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<br />and sell the Property; and to take any action required of Lender including, but not limited to, releasing or canceling
<br />tUis Secin'ity Inshvment.
<br />BORROWER COVENANTS that Bonower is lawfully seised of the estate hereby conveyed and has the right to
<br />grant and convey the Ptoperty and that the Property is unencumbered, except for encumbrancea of record Bonower
<br />wanants and will defend generally the tide to the Properry against all claims and demands, subject to any
<br />encumbrances of record.
<br />TIIIS SECIJRITY INS1TtUMENT combines unifotm covenants for national use and non-uniform covenants with
<br />limited variations by jurisdiction to consiitute a uniform se�curity instrument covering real property.
<br />UNIFORM COVENANTS. Boaower and Lender covenant and agree as follows:
<br />1. Payment of Prindpal, Interest and Late Charge. Borrower shall pay when due the principal o� and
<br />interest on, the debt evidenced by the Note and late chaxges due imder the Note.
<br />2. Monthly Payment of Tages, Insnrance, and Other Charges. Borrower shall include in each mo�hly
<br />payment, together with the principal and interest as set forth in the Note and any late charges, a sum for (a) taaces and
<br />special assessments levied or to be levied against the Property, (b) leasehold payments or ground rents on the
<br />Property, and (c) premi�s for insurance required under pazagraph 4. In any year in which the Lender must pay a
<br />mortgage insurance premi� to the Secretary of Housing and Urban Development ("Sectetary"), or in any yea�' in
<br />wlrich such premium would have been required if Lender still held the Security Instnmment, each monthly payment
<br />shall also include either: (i) a s� for the annual mortgage insurance premium to be paid by Lender to the Secretary,
<br />or (ri) a monthly charge instead of a mortgage insurance premium if this 3ec�uih' Instr�me� is held by the Secretary,
<br />in a reasonable amount to be determined by the Secretary. Except for the monthly charge by the Secretary, these items
<br />are called "Escraw Items" and the sums paid to Lender are called "Escrow Funds."
<br />Lender may, at any time, collect and hold amouats for Escrow Items in an aggregate amount not to exczed the
<br />maximum amaunt that may be required for Borrower' s escrow account tmder the Real Estate Settlement Procedtttes
<br />Act of 1974, 12 U.S.C. §2601 et sea. and implementing regulations, 24 CFR Part 3500, as they may be amended
<br />fromtime to time ("RESPA"), exceptthaf the cushion or reservepermitted by RESPA forunanticipated disbursements
<br />or disbursements before the Bonower' s payments are available in the account may not be based on amouats due for
<br />the mortgage insurance prP^++�.
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall
<br />account to Borrower for the excess funds as required by RESPA. If the amoimts of fimds held by Lender at any time
<br />are not su�cient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower ta make
<br />up the shortage as permiued by RESPA.
<br />The Escrow Funds aze pledged as addirional security for a11 sums secured by this Security Instrument If
<br />Bonower tenders to Lender the full payment of all such sums, Borrower' s accoimt sha11 be credited with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insin'ance premium installment that Let►der has
<br />not become obligated w pay to the Secretary, and Lender shall promptly refimd any excess fimds to Borrower.
<br />Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Barrower's account shall be
<br />credited with azry balance remaining for all installments for items (a), (b), and (c).
<br />3. ApplicaLioa of Payments. All paymenis under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />FIItST. to the mortgage insurance premium to be paid by Lender to the Secxetary or to the monthly chazge by
<br />the Secretary instead of the monthly mortgage insurance premium;
<br />SECOND, to any taxes, special assessments, leasehold payments or gound rents, and fire, flood and other hazard
<br />insurance premiums, as re�quired;
<br />THIItD, to interest due under the Note;
<br />FOURTH, to amorti�tion of the principal of the Note; and
<br />FIFTH. to late charges due imder the Note.
<br />4. FYre, Flood and Other Hazard Insm�nce. Borrower shall insure all improvements on the Property,
<br />whether now in existence or subsequently erected, against any ha�ards, casualties, and co�ingencies, including fire,
<br />for wlrich Lender requires insivance• This insivance shall be maintained in the amounls and for the periods that
<br />Lender requires. Bortower shall also insure all improvements on the Property, whether now in existence or
<br />subseqnenfly erected, against loss by floods to the eactent required by the Secxetary. All insurance ahall be carried with
<br />companies approved by Lender. The insurance policies and any renewals shall be held by Lender and shall include
<br />loss payable clauses in favor of, and in a form acceptable to, Lender.
<br />In the event of loss, Borrowet shall give Lendet immediate notice by mail. Lender may make proof of loss if not
<br />madepromptly by Borrower. Each insivance company concerned is hereby authotized and directed to make paymeat
<br />for such loss direcfly to I,ender, instead of to Borrower and to Lender jointly. All or any part of the insivance
<br />proceeds may be applied by Lender, ai its option, either (a) to the reduction of the indebtedness uader the Note and
<br />this Security Instrume�, first to any delinquent amounts applied in the order in paragraph 3, and then to prepayment
<br />of principal, or (b) to the restoration or repair of the damaged Property. tlny application of the proceeds to the
<br />principal shall not extend or postpone the due date of the monthly payment� wlrich are referred to in paragraph 2, or
<br />change the amoimt of such payments. A� excess insurance proceeds over an amount required to pay all outstanding
<br />indebtedness under the Note and this Secisity Instrument shall be paid to the entity legally entitled thereto.
<br />In die ev�t of foreclosure of this Sacurity Inshruv�ent or other transfer of title to the Prap�ly fl�at extingttishc5 the
<br />indebtad�ss, all right, title a� interest of Borrower in and to insucance policies in force shall pass to the purcl�ase►'.
<br />5. Oc�vpancy, PreservaUion, Maintenance and Protecdon of the Property; Borrower's Loan AppHcadon;
<br />Leaseholds. Borrowet shall occ¢PY, �ablish, and use the Property as Borrower' s principal residence within sixty
<br />days after the execirtion of this Secarity Instrument (or within sixty days of a latet sale or transfer of the Properiy)
<br />FHA N�RASKA D� OF TRUST - M� Docl1lagte �
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