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20�104271
<br />be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No affset or claim
<br />which Borrower might have now or m the future against Lender shall relieve Borrower from making payments due
<br />under the Note and this Security Instrument or performing the covenants and agreements secured by this Security
<br />Instrument.
<br />Z. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments
<br />accepted and applied by Lender shall be applied in the followmg order of priority: (a) interest due under the Note;
<br />(b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic
<br />Payment m the order in which it became due. Any remaining amounts shall be ap�lied first to late charges, second to
<br />any other amounts due under this Security Instrument, and then to reduce the prmcipal balance of the Note.
<br />If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient
<br />amount to pay any late charge due, the payment may be applied to the delinyuent payment and the late chazge. If
<br />more than one Aeriodic Payment is outstandmg, Lender may apply any payment received from Borrower to the
<br />repayment of the Periodic Payments i� and to the extent that, each payment can be paid in full. To the extentthat any
<br />excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be
<br />applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment chazges and then as
<br />described in the Note.
<br />Any application ofpayments, insurance proceeds, or Miscellaneous Proceeds to principal due under the
<br />Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments.
<br />3. Funds for Escrow Items. Bonower shall ayto I.ender on the day Periodic Payments aze due under
<br />the Note, until the Note is paid in full, a sum (the "Funds'� to provide for payment of amounts due for: (a) taxes and
<br />assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the
<br />Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance
<br />requ�red by Lender under Section 5; and (d) Mortgage Insurance premiums, ifany, or any sums payable byBorrower
<br />to Lender m lieu of the �ayment of Mortgage Insurance premiums m accordance w�th the provisions of Section 10.
<br />These items are called ` Escrow Items" At origination or at anytime during the term ofthe I.oan, Lender mayrequire
<br />that Community Association Dues, Fees, and Assessments, if any, be escrowed by Bonower, and such dues, fees
<br />and assessments shall be an Escrow Item. Bonower shall promptly furnish to Lender all notices of amounts to be
<br />paid under this Section. Borrower shall pay I.ender the Funds for Escrow Items unless Lender waives Borrower's
<br />obligation to pay the Funds for any or all Escrow Items. I.ender may waive Borrower's obligation to payto Lender
<br />Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver,
<br />Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of
<br />Funds has been waived by Lender and, if Lender requires, shall fumish to I.ender receipts evidencing such payment
<br />within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts
<br />shall for all purposes be deemed to be a covenant and agreement contained in this Secunty Insm�ment, as the phrase
<br />"covenant and agreement" is used in Section 9. IfBorrower is obligated to pay Escrow Items directly, pursuant to a
<br />waiver, and Bonower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9
<br />and pay such amount and Bonower shall then be obligated under Section 9 to repay to Lender any such amoun�
<br />Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Secrion
<br />15 and, upon such revocation, Borrower shall pay to Lender a11 Funds, and in such amounts, that aze then required
<br />under this Section 3.
<br />Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the
<br />Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under
<br />RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of
<br />expenditures of future Escrow Items or otherwise in accordance with Applicable Iaw.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumerrtality, or
<br />entity (including Lender, if Lender is an institution whose deposits are so insured) or in anyFederal Home Loan Bank.
<br />Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall
<br />not charge Borrower for holding and applying the Funds, annually anal�zing the escrow account, or verifying the
<br />Escrow Items, unless Lender pays Bonower �nterest on the Funds and Applicable Law permits Lender to make such
<br />a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds,
<br />Lender shall not be required to pay Bonower any interest or earnings on the Funds. Bonower and Lender can agree
<br />in writing, however, that interest shall be paid on the Funds. Lender shall give to Bonower, without chazge, an
<br />annual accountin� of the Funds as required by RESPA.
<br />Ifthere is a surplus of Funds held in escrow, as defined under RESPA, Lender shall accowrtto Borrower for
<br />the excess funds in accordance with RESPA. Ifthere is a shortage ofFunds held in escrow, as defined under RESPA,
<br />I.ender shall notify Borrower as required by RESPA, and Bonower shall pay to Lender the amount necessaryto make
<br />up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of
<br />Funds held in escrow, as defined under RESPA, Lender sha11 notify Bonower as required by RESPA, and Borrower
<br />shall payto Lender the amount necessaryto make up the deficiency m accordance with RESPA, but in no more than
<br />12 monthly payments.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to
<br />Bonower any Funds held by Lender.
<br />4. Charges; Liens. Borrower shall pay all taaces, assessments, charges, fines, and impositions attributable
<br />to the Pro�eLty which can attain priorit� over this Security Instrument, leasehold payments or ground rents on the
<br />Property, �f any, and Community Assoc►at�on Dues, Fees, and Assessments, if any. To the extent that these items aze
<br />Escrow Items, Bonower shall pay them in the manner provided in Section 3.
<br />Bonower shall promptly discharge any lien which has priority over this Security Instrument unless
<br />Bonower: �a) agrees in wrrtmg to the payment ofthe obligation secured by the lien in a manner acceptable to Lender,
<br />but only so ong as Bonower is performuig suchagreement; (b) contests the lien in good faith by, or defends against
<br />e�forcement ofthe lien in, legal proceedings which in Lender's o�inion operate to prevent the enforcemetrt ofthe lien
<br />while those proceedings are pendmg, but only until such proceedmgs are concluded; or (c) secures from the holder of
<br />the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. IfLender determines
<br />that any part of the Property is sub�ect to a lien which can attain priority over this Security Instrument, Lender may
<br />give Bonower a notice identifying the lien. Within 10 days ofthe date on which that notice is given, Bonower shall
<br />satisfy the lien or ta.ke one or more of the actions set forth above in this Section 4.
<br />Lender may require Borrower to pay a one-time charge for a real esta.te tax verification and/or reporting
<br />service used by Lender m connection with this Loan.
<br />5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property insuredagamst loss by fire, hazazds included within the term "extended coverage," and any other hazards
<br />including, but not limited to, earthc�uakes and floods, for which I.ender requires insurance. This insurance shall be
<br />maintained in the amounts (includmg deductible levels) and for the periods that Lender requires. What Lender
<br />requires pursuant to the preceding sentences can change dwing the term ofthe Loan. The insurance carrier providing
<br />the insurance shall be chosen by Bonower subject to Lender's right to disapprove Borrower's choice, which right
<br />shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a
<br />NEBRASKA—Single Family—Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Modiiied Form 3028 1/Ol (page 3 of 8 pages)
<br />22050.CV (9/09) 03-1174 CreaNve Thinking, Inc.
<br />GOTO(0027t29d)
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