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<br />and sell the Property; and to take any action required of Lender including, but not limited w, releasing or canceling
<br />this SCCllflty rnetmmQ^�,
<br />BORROWER COVENANTS that Bonower ia lawfully seised of the estate hereby conveyed and has the right to
<br />grant and convey the Property and that the Property is unencumbered, except for encumbrances of record Bonower
<br />warrants and will defend generally the title to the Property against all claims and demands, subject w any
<br />enc�brances of r�ord
<br />THIS SECLJRITY INSTRUMENT combines uniform covenanta for national use and non-uniform covenants with
<br />limited variations by jurisdiction to constihrte a uniform security instrument covering real properiy.
<br />UNIFORM COV9dANTS. Honower and Lender covenant and agree as follows:
<br />1. Payment of Principal, Interest and Late Charge. Bonower shall pay when due the principal o� and
<br />inter�t on, the debt evidenced by the Note and Iate chatges due under the Note.
<br />2. Monthly Payment of Tasea, Insmance, 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 s� for (a) taxes and
<br />special ass�ssme�s levied or to be levied against the Properiy, (b) leasehold payments or grouad renis on the
<br />Properly, and (c) ptemi�s for insurance required under paragtaph 4. In any year in wluch the Lender must pay a
<br />mortgage insurance premium to the Secretary of Housing and Urbaa Development (" Secretary"), or in any year in
<br />wlrich such premium would have been required if Lender still held the Security Instrument, each monthly payment
<br />shall also include either: (i) a sum for the annual mortgage insurance premium to be paid by Lender to the Secretary,
<br />or (n� a monthly charge instead of a mortgage insurance premium if this Sec�uity Instrument is held by the Secretary,
<br />in a reasonable amount to be determinedbythe Sectetaty. Except for the monthly charge by the Sectetary, these items
<br />are called "Escrow Items" and the sums paid to I.ender are called "Escrow Funds."
<br />Lender may, at aay time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed the
<br />maximum amount that may be required for Borrower' s escrow account under the Real Estate Settlement Procedures
<br />Act of 1974, 12 U. S. C. §2601 et sea. and implementing regulations, 24 CFR Patt 3500, as they may be amended
<br />fromtime to time ("RESPA"), exceptthat the cushion or reservepermitted by RESPA for unanticipated disbursements
<br />or disbursements befare the Borrower' s paymenis �e available in the accaunt may not be based on amoimts due for
<br />the mortgage insurance pr�n�*�+
<br />If the amounis held by Lender for Escrow Items exceedthe amounts petmitted to be held by RESPA, Lender shall
<br />account to Bortower for the excess funds as required by RESPA. If the amount� of fimds held by Lender at any time
<br />are not sufficient to pay the Escrow Items when due, Lender may notify the Bortower and require Bonower to make
<br />up the shortage as permitted by RESPA.
<br />The EsEtow Funds are pledged as additional se,curity for all sums secured by this Security Instrument If
<br />Botrower tenders to Lender the full payment of a11 such sums, Bortower' s account shall be credited with the balance
<br />rrm �'�g for all inst�llment items (a), (b), and (c) and any mortgage insurance premium installment tl�at Lender has
<br />not become obligated to pay to the Sectetary, aad Lender shall promptly refimd any excess fimds tb Borrower.
<br />lmmediately prior ta a fore�clos�ue sale of the Property or its acquisition by Lender, Bonower's account shall be
<br />credited with atry balance rema;n;ng for all installmenis for items (a), (b) and (c).
<br />3. Appllcal3on of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />FIltST. to the mortgage insurance premium to be paid by Lender to the Secxetary or to the monthly charge by
<br />the Sectetary instead of the monthly mortgage insurance premium;
<br />SECOND• to any taxes, special assessments, leasehold payments or groimd rents, and fire, flood and other ha�ard
<br />ins�uance premiums, as required;,
<br />THIliD. to interest due under the Note;
<br />FOURTH. to amorti�tion of the principal of the Note; and
<br />FIF1'H. to late chazges due under the Note.
<br />4. NYre, Flood and Other Hazard Insnrance. Borrower shall insure a11 improvements on the Propetty,
<br />whether now in existence or subsequently erected, against any ha�ards, casualties, and coatingencies, including fire,
<br />for which Lender requires insurance. This insuranee shall be maintained in the amoimis and for the periods that
<br />Lender requires. Bonowet shall also insw�e all improvements on the Properiy, whether now in eacistence or
<br />subsequenfly erected, against loss by floods to the extent requiredby the Secretary. All insurance shall be carried with
<br />companies approved by Lendet. The ins�sance policies and any renewals shall be held by Lender and shall include
<br />loss payable clauses in favor o� and in a form acceptable to, Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not
<br />made PromPflY bY Borrower. Each insurance company concemed ia hereby suthorized and dir�ed to make payment
<br />for such loss directly to Lendet, instead of to Borrower and to Lender jointly. All or any part of the insurance
<br />proceeds may be applied by Lender, at i1s option, either (a) to the reduction of the indebtedness under the Note and
<br />this Security in�,,,,,,em first ta any delinquent amounts applied in the order in pazagraph 3, and then to prepayment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application of the proceeds to the
<br />principal shall not extend or postpone the due date of the monUily payments wluch are referred to in paragraph 2, or
<br />change the amount of such payments. A� excess insurance proceeds over an amount required to pay a11 outstanding
<br />iadebtedness under the Note and this Security Instrument shall be paid to the entity legally en6tled thereto.
<br />In the event of foreclosure of this Sectaity Instr�rent or oth� transf� of title to flie Property that extinguishes the
<br />indebtedness, all right, title � mterest of Borrower in and to insmance policicg in force sl�ell pass to the purchaset.
<br />5. Occapancy, Preservation, Maintenance and Protectton of the Properiy; Borrower' a Loan AppHcai3on;
<br />Leaveholds. Boaower shall occuPY. establish, and uae the Property as Borrower's principal residence within sixty
<br />days aRer the exec�rtion of this Sec�mty Inshvtnent (or within sixty days of a later sale or transfer of the Property)
<br />FHA N�RASKA D� OF TRUST - MQbS ��� �
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