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<br />appurtenances, rents, royalties, mineral, oil, and gas rights and profits, water rights and stock and fixtures now or hereafter a
<br />part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is
<br />referred to in this Security Instrument as the "Property." Bonower understands and agrees that MERS holds only legal title to
<br />the interests granted by Bonower in this Security Instrument; but, if necessary to comply with law or custom, MERS (as
<br />nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but
<br />not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited
<br />to, releasing or canceling this Security Instrument.
<br />BORROWER COVENANTS that Bonower is lawfully seized of the estate hereby conveyed and has the right to
<br />mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower
<br />warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of
<br />record.
<br />1. Payment of Principal, Interest and Late Charge. Borrower shall pay when due the principal of, and interest on,
<br />the debt evidenced by the Note and late charges due under the Note.
<br />2. Monthly Payments of Taxes, Insurance and Other Charges. Bonower shall include in each monthly payment,
<br />together with the principal and interest as set forth in the Note and any late charges, an installment of any (a) taxes and special
<br />assessments levied or to be levied against the Property, (b) leasehold payments or ground rents on the Properiy, and (c)
<br />premiums for insurance required by paragraph 4.
<br />Each monthly installment for items (a), (b), and (c) shall equal one-twelfth of the annual amounts, as reasonably
<br />estimated by Lender, plus an amount sufficient to maintain an additional balance of not more than one-sixth of the estimated
<br />amounts. The full annual amount for each item shall be accumulated by Lender within a period ending one month before an
<br />item would become delinquent. Lender shall hold the amounts collected in trust to pay items (a), (b), and (c) before they
<br />become delinquent.
<br />If at any time the total of the payments held by Lender for items (a), (b), and (c), together with the future monthly
<br />payments for such items payable to Lender prior to the due dates of such items, exceeds by more than one-sixth the estimated
<br />amount of payments required to pay such items when due, and if payments on the Note are cunent, then Lender shall either
<br />refund the excess over one-sixth of the estimated payments or credit the excess over one-sixth of the estimated payments to
<br />subsequent payments by Borrower, at the option of Borrower. If the total of the payments made by Bonower for item (a), (b),
<br />or (c) is insufficient to pay the item when due, then Bonower shall pay to Lender any amount necessary to make up the
<br />deficiency on or before the date the item becomes due.
<br />As used in this Security Instrument, "Secretary" means the Secretary of Housing and Urban Development or his or her
<br />designee. In any year in which the Lender must pay a mortgage insurance premium to the Secretary, each monthly payment
<br />shall also include either: (i) an installment of the annual mortgage insurance premium to be paid by Lender to the Secretary, or
<br />(ii) a monthly charge instead of a mortgage insurance premium if this Security Instrument is held by the Secretary. Each
<br />monthly installment of the mortgage insurance premium shall be in an amount sufficient to accumulate the full annual
<br />mortgage insurance premium with Lender one month prior to the date the full annual mortgage insurance premium is due to the
<br />Secretary, or if this Security Instrument is held by the Secretary, each monthly charge shall be in an amount equal to one-
<br />twelfth of one-half percent of the outstanding principal balance due on the Note.
<br />If Borrower tenders to Lender the full payment of all sums secured by this Security Instrument, Borrower's account
<br />shall be credited with the balance remaining for all installments for items (a), (b) and (c) and any mortgage insurance premium
<br />installment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to
<br />Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be
<br />credited with any balance remaining for all installments for items (a), (b), and (c).
<br />3. Application of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the
<br />Secretary instead of the monthly mortgage insurance premium;
<br />' Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br />insurance premiums, as required;
<br />FHA Nebraska Deed Of Trust - 07/08
<br />� 391.6 Page 2 of 7
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