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�O�i0s077
<br />covered by this Security Instrument All of the foregoing is referred to in this Security Ins�trument as the "Property."
<br />Bonower undetstands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security
<br />Instrument; but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender' s successors
<br />and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose
<br />and sell the Ptoperiy; and to take any action required of Lender including, but not limited to, releasing or canceling
<br />this Security Instrument
<br />BORROWER COVINANTS that Bonower is lawfully seised of the estate hereby conveyed and has the right to
<br />grant and convey the Property and that the Property is unencumbeted, except for encumbrances of tecord Bonower
<br />wanants and will defend generally the title to the Property against all claims and demands, subject to any
<br />encumbrances of record
<br />THIS SECURITY INSTRUMINT combines unifotm covenants for national use and non-imiform covenants with
<br />limited variations by jurisdiction to constitute a tmiform security inshvment covering real properry•
<br />UNIFORM COVENANTS Bonower and Lender covenant and agree as follows:
<br />1. Payment of Princ3pal, Interest and Late C6arge. Bonower shall pay when due the principal of, and
<br />interest on, the debt evidenced by the Note and late charges due under the Note.
<br />Z. Monthly Payment of Tag�, Insurancc, and Other Charges. Borrower shall include in each monthly
<br />payment, together with the principal and interest as set forth in the Note and any late chazges, a sum for (a) taxes and
<br />special assessments levied ar ta be levied against the Property, (b) leasehold payments or ground rents on the
<br />�'�P�Y, �d ��) Prrmi� for insurance reqtrired tmder paragraph 4. In any yeat in wtrich the Lender must pay a
<br />mortgage insurance premium to the Secretary of Housing and Urban Development ("Secretary"), or in azry year in
<br />which such premium would have been required if Lender still held the Security Instivment, 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 (ri) a monthly charge instead of a mortgage insurance premiimm if this Sec�mty Instrument is held by the Secretazy,
<br />in a reasonable amount to be determined by the Secretary. Except for the monthly charge by the Secretary, these items
<br />are called "Escrow Items" aad the sums paid to Lender are called "Escrow Funds."
<br />Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed the
<br />maximum amount that may be required for Bonower' s escrow account under the Real Estate Settlement Procedures
<br />Act of 1974, 12 U.S.C. §2601 et sea. and implementing regularions, 24 CFR Part 3500, as they may be amended
<br />from time to time ("RESPA"), except tbat the cushion or reservepermitted by RESPA for unanticipated disbursements
<br />or disbursements before the Bonower' s payments are available in the account may not be based on amoimts 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 sl�all
<br />account to Bonower for the excess fimds as required by RESPA. If the amounts of funds held by Lender at any time
<br />are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make
<br />up the shortage as permitted by RESPA.
<br />The Escrow Funds aze pledged as additional security for all sums sec�aed by this Security Instivment ff
<br />Borrower tenders to Lender the full payment of a11 such s�s, Bonower's account shall be credited with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender hes
<br />not become obligated to pay to the Secretary, and Lender shall promptly refimd any excess funds to Borrower.
<br />Immediately prior to a foreclosure sale of the Properiy or its acqirisi6on by Lender, Borrower's account shall be
<br />credited with any balance remaining for all installments for items (a), (b) and (c).
<br />3. AppHcaBon of Paymenta All payment� under pazagraphs 1 and 2 shall be applied by Lender as follows:
<br />FIItST. to the mortgage insurance premium to be paid by Lender to the Secretary ot to the monthly charge by
<br />the Secretary instead of the monthly mortgage insurance premium;
<br />SECOND. to any taxes, special assessments, leasehold payments or groimd rents, and fire, flood and other hazard
<br />insurance premiums, as required;
<br />THIItD. to interest due under the Note;
<br />FOURTH, to amorti�tion of the principal of the Note; and
<br />FIFTH, to late chazges due under the Note.
<br />4. Fire, Flood and Other Hazard Insmance. Borrower shall insiue all improvements on the Property,
<br />whether now in existence or subsequently erected, against any harards, casualties, and contingencies, including Sre,
<br />for wlrich Lender requires insivance. This insurance sha11 be maintained in the amount� and for the periods that
<br />Lender requires. Boaower shall aLso insure all improvements on the Property, whether now in existence or
<br />subsequenUy erected, against loss by floods to the eactent required by the �cretary. All ins�uance shall be carriedwith
<br />companies approved by Lender. The ins�sance policies and any renewals shall be held by Lender and sha11 include
<br />loss payable clauses in fawr of, and in a form acceptable to, Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by maiL Lender may make pr�f of loss if not
<br />made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment
<br />for such loss directly to Lender, instead of to Bonower and to Lender jointly. All or any part of the insurance
<br />proceeds may he applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and
<br />this Security rnat� fust to any delinquent amounts applied in the order in pazagraph 3, and then to Prepayment
<br />of principal, or (b) ta 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 monthly payments wlrich are refened to in paragraph 2, or
<br />change the amount of such payments. .Any excess insivance proceeds over an amount required to pay all out�tanding
<br />indebtedness tmder the Note and tivs Security Instrument shall be paid to the eatity legally e�ifled thereto.
<br />FHA NEBRASKA D� OF TRUST - MERS
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