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<br />fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and
<br />Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender ma.y revoke the waiver as to any
<br />or a11 Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Bonower shall pay
<br />to Lender a11 Funds, and in such amounts, that are then required 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 Funds at the
<br />time spec�ed under RESPA, and (b) not to exceed the manimum amount a lender can require under RESPA. Lender shall
<br />estimate the amount of Funds due on the basis of cunent data and reasona:ble estimates of expenditures of future Escrow Items
<br />or otherwise in accordance with AQplica.ble Law.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity
<br />(including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Baak. Lender shall
<br />apply the Funds to pay the Escrow Items no laLer than the time spec�ed under RE5PA. Lender shall not charge Botrower for
<br />holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays
<br />Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in
<br />writing or Applicable Law requires iuterest to be paid on the Funds, Lender shall not be required to pay Borrower any interest
<br />or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender
<br />shall give to Bortower, without charge, an annual accounting of the Funds as required by RESPA.
<br />If there is a sur�lus of Funds held in escrow, as de�ned under RESPA, Lender shall account to Borrower for the excess
<br />funds in accordance with RESPA. If there is a shorta.ge of Funds held in escrow, as defined under RE5PA, Lender sha11 notify
<br />Borrower as required by RESPA, and Bortower shall pay to Lender the amount necessary to make up the shortage in
<br />accordance with RE5PA, but in no more than 12 monthly payments. If there is a de�ciency of Funds held in escrow, as
<br />deflned under RESPA, Lender ska11 notify Borrower as r�quired By RE�PA, and B6rrowet�shatl p�y to L:ender the amount
<br />nec:essary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments.
<br />Upon payment in full of a11 sums secured by this 5ecuriry Instrument, Lender shall promptly refund to Borrower any
<br />Funds held by Lender.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the
<br />Properry which can attain prioriry over this Security Instrument, leasehold payments ot ground rents on the Property, if any,
<br />and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower
<br />sha11 pay them in the manner provided in Section 3.
<br />Borrower shall promptly discharge any lien which has priority over this Securiry Instrument unless Bonower: (a) agrees
<br />in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Bonower
<br />is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal
<br />proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but
<br />only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender
<br />subordinating the lien to this Securiry Iastrument. If Lender determines that any part of the Property is subject to a lien wluch
<br />can attain pnority over this Security Instrument, Lender may give Borrower a nouce identifying the lien. Within 10 days of
<br />the date on which that notice is given, Borrower sha11 satisfy the lien or take one or more of the actions set forth above in this
<br />Section 4.
<br />Lender may require Bonower to pay a one-time charge for a real estate tax vetification and/or reporting service used by
<br />Lender in connection with this Loan.
<br />5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not
<br />limited to, earthquakes and floods, for which Lender requires insurance. This wsurance shall be maintained in the amounts
<br />(including deductible levels) and for the periods that Lender requires. Whax Lender requires pursuant to the preced'ung
<br />sentences can change during the term of the Loan. The insurance ca.rrier providing the insurance shall be chosen by Borrower
<br />subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may
<br />require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determinaxion, certification
<br />and tracking services; or (b) a one-time charge for flood zon� determ�ination and certification services a�d subsequent charges
<br />each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower
<br />shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection
<br />with the review of any flood zone determination resulting from an objection by Bonower.
<br />If Bonower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's
<br />option and Borrower's expense. Lender is under no obligation to purchase any particular ry�e or amount of coverage.
<br />Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower s equity in the Property, or
<br />the contents of the Properiy, aga.inst any risk, hazard or liability and might provide greater or lesser coverage than was
<br />previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significa.ntly exceed the
<br />cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this 5ection 5 sha11 become
<br />additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the
<br />date of disbursement and sha11 be payable, with such inkerest, upon notice from Lender to Borrower requesting payment.
<br />All insurance policies required by Lender and renewals of such policies sha11 be subject to Lender's right to disapprov�
<br />such policies, shall include a standard mort�age ctause, and shall na.me Lender as mortga�ee and/or as an additioaal loss payee.
<br />Lender shall have the right to hold the pohcies and renewal certificates. If Lendet requtres, Bonower shall promptly give to
<br />Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise
<br />required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and
<br />sha11 name Lender as mortgagee and/or as an additional loss payee.
<br />In We event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of
<br />loss if not ma.de prompfly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds,
<br />whether or not the underlying insurance was required by Lender, sha11 be applied to restoration or repair of the Ptoperiy, if the
<br />restoration or repair is economically feasible and Lender's securiry is not lessened. During such repair and restoration period,
<br />Lender shall have the right to hold such insutance proceeds until Lender has had an opportuniry to inspect such Pro�rly to
<br />ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertal�en promptly.
<br />Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the
<br />work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance
<br />proceeds, Lender sha11 not be-required to pay Bonower any interest or ea.rnings on such prbceecls. Fees for public adjusters, or
<br />other third parties, reta.ined by Bonower sha11 not be paid out of the insurance proceeds and shall be the sole obh�ation of
<br />Bonower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the msurance
<br />proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any,
<br />paid to Bonower. Such insurance proce.eds shall be applied in the order provided for in Section 2.
<br />If Borrower abandoas the Properly, Lender may file, negotiate and setxle any available insurance claim and telated
<br />matters. If Borrower does not respond wrthin 30 days to a notice from Lender tUat the insurance carrier has offered to settle a
<br />cla.im, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event,
<br />or if Lender acquires the Property under Section 22 or otherwise, Bonower hereby assigns to Lender (a) Bonower's rights to
<br />any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any
<br />other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrowez) under all insurance
<br />�olicies covering the Pro�rty, insofar as such rights are applicable to the coverage of the Properly. Lender may use the
<br />msurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument,
<br />whether or not then due.
<br />6. Occup�ncy. Bonower sha11 occupy, establish, and use the Properiy as Borrower's principal residence within 6(1 days
<br />after the execution of this Securiry Instrument and shall continue to occupy the Properiy as Borrower's principal residence for
<br />at least one year a.fter the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not t�
<br />unreasonably withheld, or unless extenuaiing circumstances exist which are beyond Borrower's control.
<br />NEBRASKA—Single Family—Fantde Mae/Freddie Mac UNIFORM INSTRUMENT Form 3028 1/01
<br />Bankara Systema, Inc., St. Cloud, MN Form MD-1-NE 8/17/2000 (page 3 of 7 pages} �
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