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�01�06294
<br />covered by this Sec�mty Instrument All of the foregoing is referred to in this Security Instrument as the "Propetty."
<br />Borrower imderstands and agrees that MERS holds only legal title to the interests ganted by Bortower in this Sectttity
<br />Instrument; but, if necessary to comply with law ar custom, MERS (as nominee for Lender and Lender' s successors
<br />and assiBos) has the right: to exercise an}� or all of those interests, including, but not limited to, the right to foreclose
<br />and sell the Property; and to take any action required of Lender including, but not limited to, relwsing or canceling
<br />this Sec�uity Instrument
<br />BORROWER COVINANTS that Bonower is lawfully seised of the estate hereby conveyed and has the right to
<br />grant and comey the Property and that the Property is unencumbered, except for encumbrances of record Borrower
<br />warrants aad will defend generally the title to the Property against all claims and demands, subject to any
<br />encumbrances of record
<br />TFIIS SECURTI'Y INSTRiJMENT combines uaiform covenants for national use and non-uniform covenants with
<br />limited variations by jurisdiction to constitute a uniform security instrument covering real PraP�Y•
<br />UNIFORM COV�IANTS. Boaower and Lender covenant and agree as follows:
<br />1. Payment of Prindpal, Intcrest and Late CLarge. Borrower shall pay when due the principal o� and
<br />intetest on, the debt evidenced by the Note and late cbatges due imder the Note.
<br />2. Monthly Payment of Tases, Insmance, and Other Charges. Bonowet sha11 include in each monthly
<br />payment, together with the principal and interest as set forth in the Note and any late charges, a s� for (a) taxes and
<br />special assessments levied or to be levied against the Property, (b) leasehold payments or groimd rents on the
<br />Properry, and (c) premiums far insurance reqtrired tmdet patag�raph 4. In azry year in which the Lendet must pay a
<br />mortgage insurance premium to the Secretary of Housing and Urban Development (" Secretary"), or in azry year in
<br />w3uch such premium would have been required if Lender still held the Security Inshument, each monthly payment
<br />shall aLso include either: (i) a sum for the annual mortgage insurance premi� to be paid by Lender to the Secretary,
<br />or (ri) a monthly charge instead of a mortgage insurance ptemium if this Sec�uity Instnmment is held by the Secretary,
<br />in a reasonable amount to be determinedby the Secreffiry. Except for the monthly chargeby the Secretary, these items
<br />are called "Escrow Items" and the sums paid to Lender ate called "Escrow Funds."
<br />Lender may, at azry time, collect and hold amounts for Escrow Items in an aggegate amount not to exceed the
<br />maximum amount tbat may be reqtrired for Borrower' s escrow account under the Real Estate Settlement Procedin'es
<br />Act of 1974, 12 U.S.C. §2601 et s�. and implementing regttlafions, 24 CFR Part 3500, as they may be amended
<br />from time to time ("RESPA"), except tUat the cushion or reservepetmitted by RESPA for unanficipated disbursemeats
<br />or disbursements before the Barrower's payments are available in the account may not be based on amounts due for
<br />the mortgage insurance premium.
<br />Ifthe amountc held by Lender for Escrow Items exceedthe amoimts permitted to be held by RESPA, Lender shall
<br />account to Borrower for the excxss fimds as reyuued by RESPA. If the amounts of fimds held by Lender at any time
<br />are not sufficient to pay the Escrow Items when due, Lender may notify the Bortower and require Borrower to make
<br />up the shortage as petmitted by RESPA.
<br />The Escrow Funds are pledged as additional security for all s�s secwed 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 aay mortgage insurance premium installment thaL Lender has
<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 acquisition by Lender, Boaower's account shall be
<br />credited with any balance remaining for all installments for items (a). (b) and (c).
<br />3. Applicatlon of Payments. All payments imder paragraphs 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 or 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 grouad rentc, and fire, flood and other hazard
<br />insurance premiums, as required;
<br />THIIiD. to interest due under the Note;
<br />FOURTH. to amorti�ation of the principal of the Note; and
<br />FIFTH, to late charges due under the Note.
<br />4. Flre, Flood and Other Hazerd Insm�ance. Boaower shall insure all improvements on the ProP�Y>
<br />whethet now in existence or subsequenfly erected, against any ha�ards, casualties, and contingencies, including fire,
<br />for wlrich Lender requir� ins�sance. This insurance shall be maintained in the amounts and for the periods that
<br />Lender requires. Bonower ahall also insiae all improvements on the Property, whether now in existence or
<br />subsequenfly erected, against loss by floods to the extent required by the Secretary. All insurance shall be catried with
<br />companies approved by I,ender. The insurance policies and any renewals shall be held by Lender and ahall include
<br />loss payable clauses in favor of, and in a form acceptable to, Lender.
<br />In the eveat of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not
<br />made promptly by Bortower. Each ins�ance company coacerned is hereby suthorized and directed to make payment
<br />for such loss directly to Lendet, inatead of to Borrower and to Lender jointly. All or aay part of the insurance
<br />proceeds may be applied by Lender, at its option, either (a) to the reducdon of the indebtedneas under the Note and
<br />this Secttt+ty Instrument, fitst to any delinquent amounts applied in the order in paragraph 3, and then to prepayment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application of the proceeds to the
<br />priacipal shall not extend or postpone the due date of the monthly payments wlrich are referred to in paragraph 2, or
<br />change the mnount of such payments. Any excess insura�e proc.eeds over an amotmt required to pay all outstanding
<br />indebtedness under the Note and this Security Instrument ahall be paid to the enflty legally entitled thereto.
<br />FHA N�RASKA D� OF TRUST - M92.S �elye�
<br />NmOTZ.FHA 08/23/11 Page 2 oT 7 wwYy.d�onag(�.aom
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