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<br />covered by this Secwity Instrumea� All of the foregoing is referredto in this Sec�mty Instrument as the "Propetty."
<br />Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in Uvs Security
<br />Instrument; but, if necessary to comply wifli law or custom, MERS (as aominee for Lender and Lender's successors
<br />and assigus) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose
<br />aad sell the Properry; and m take any action required of Lender including, but not limited to, releasing or canceling
<br />this Sec�uity Instrument
<br />BORROWER COVENAN'fS that Borrower is lawfully seised of the estate hereby conveyed and has the right to
<br />grant and convey the Properiy and that the Property is uaencumbered, except for encumbrances of record Borrower
<br />warranfs and will defend generally the title to tire ProPertY againat all claims and demands, subje�t to any
<br />encumbtances of reoord
<br />THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants wifh
<br />limited vaziations by jurisdiction to constitute a uaiform security instrument covering real PI'oP�'h'•
<br />UNIFORM COVEWANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payirtent of A3ndpal, Interest and Late Charge. Borrower shall pay when due the principal o� and
<br />interest on, the debt evidenced by the Note and late charges due undet the Note.
<br />2. Mont3ily Payment of Tages,, Insw�ance, and Other Chargea. Borrower shall include in each monthly
<br />Payment, together with the principal and interest as aet forth in the Note and any late charges, a sum for (a) taxes and
<br />special assessments levied or to be levied against the Property, (b) leasehold payments or ground rents on the
<br />Property, and (c) premiums for inaurance reqirired under paragrapfi 4. In azry year in w}rich the Lender must pay a
<br />mortgage insurance premiimi to the Secretary of Housing and Urban Development ("Secretary"), or in azry yeaz in
<br />wluch such premium would have been required if Lendcr 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 w the Secretary,
<br />or (ii) a mvnthly charge iastead of a mortgage insurance premium if Uus Security Insirument is held by the Secxetary,
<br />in a reasonable amount to be determined by the Secretary. Except for the monthly chazge by the Se�retary, these items
<br />are called "Escrow Ttems" and the sums paid to I,ender aze called "Escrow Funds."
<br />Lender may, at azry time, collect and hold amotmts for Escrow Items in an aggregate amount not to exceed the
<br />maximum amoumt that may be required for Bonower' s escrow account under the Real Bstate Settlement Procedures
<br />Act of 1974, 12 U. S. C. §2601 et sea. and implementing regulations, 24 CFR Part 3500, as tkey may be amended
<br />from time to time ("RESPA"), except that the cushion orreserveparmitted by RESPA for uoanticipated disbursements
<br />or disbursements before the Bonower' s payments are available in the account may not be based on amounts due for
<br />the mortgage insurance premium.
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall
<br />account to Bonower for the excess funds as reqtured by RESPA. If the amounts of funds held by Lender at any time
<br />aze not sufficient to pay the Escrow Items when due, Lender may norify the Borrower aad require Borrower to make
<br />up the shortage as permitted by RESPA.
<br />The Escrow Funds are pledged as additional seciuity for all siuns sec�ued by this Security Instrument. If
<br />Borrower tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premi� installment that Lender has
<br />not become obligated to pay to the Secretary, and Lender shall pramptly refimd any excess funds to Bonower.
<br />Immediately prior to a foreclosure sale of the Property or its acquisirion by Lender, Bonower's accoimt shall be
<br />credited with azry balance remaining for all installments for items (a), (b), and (c).
<br />3. ApplicaHon 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
<br />the Secretaty instead of the monthly mortgage insurance premium;
<br />SECOND. to azry taaces, special assessments, leasehold paymettt� ar ground rents, and fire, flood and other ha�ard
<br />insurance premiums, as required;
<br />THIItD. to interest due under the Note;
<br />FOURTH. to amorti�ation of the principal of the Note; and
<br />FIFTH, to late chazges due under ihe Note.
<br />4. FYre, Flood and Other Hezard Insurance. Bonower shall insure all improvements on the Propetty,
<br />whether now in existence or subsequenflY e�'ecf�d, a�ainst anY hazards, casualties, and contingencies, including fire,
<br />for which Lender reqirire.s insurance. 'This insucance shall be maintained in the amounts and for the petiods tl�at
<br />Lender requires. Bonower shall also insure all improvements on the Property, whether now in existence ar
<br />subsequenfly erected, against loss by fIoods to the extent reqtured by the Secretary. All ivsiurance shall be cairied with
<br />companies approved by Lender. The insurance policies and any renewals ahall be held by Lender and sl�all include
<br />loss payable clauaes in favor o� and in a form acceptable to, Lender.
<br />In the event of loss, Borrower shali give Lender immediate notice by mail. Leader may make proof of loss if not
<br />made promptly by Bonower. Each insurance company concerned is hereby suthorizefl and directed to make payment
<br />for such loss directly W Lender, instead of to Borrower and to Lender jointly. All or azry part of the insurance
<br />proceeds may be applied by Leader, at its option, either (a) to the re�uction of the indebtedne.ss uader the Note and
<br />this Security Instrument, first to any delinqueat amounts applied in the order in Patagc'aPh 3, and then to prepayment
<br />of principal, or (b) to the restoration or repair of the damaged Properry. Any application of the proceeds to the
<br />principal sha11 not entend or postpone t1re due dete of the monthly paymeats which are referred to in paragraph 2, ar
<br />change the amount of such payments. tlny excess insurance proceeds over an amount required to pay all outstanding
<br />indebtedness imder the Note and this Security Instrument sha11 be paid to the etttity legally eatifled thereto.
<br />FHA N�RASKA DE@ OF TRUST - MERS � �
<br />NEDOTZ.FHA 05/23/11 page 2 of 7 www.doanaglc.aom
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