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THIS SUBORDINATE MORTGAGE (Mortgage) is made on September 02, 2011 by JAMES J HOESCHE AND JARAH C
<br />HOESCHE, HUSBAND AND WIFE (Borrower). This Mortgage is given to the Federal Home Loan Bank of Topeka, a corporation
<br />organized and existing under the laws of the United States of America, and whose address is One Security Benefit Pl. Ste. 100,
<br />Topeka, KS 66606, its successors and assigns (Lender). Borrower owes Lender the principal sum of Four thousand and 00 /100
<br />Dollars (U.S. $ 4,000.00 ). This debt is evidenced by Borrower's note dated the same date as this Mortgage (Note). The Note provides
<br />for no payments if the Borrower complies with the terms of the Note. The loan evidenced by the Note and secured by this Mortgage
<br />(Loan) is being made pursuant to the Affordable Housing Program (AHP) as implemented by Lender (12 U.S.C. 14306); 12 CFR Part
<br />1291).
<br />In addition to the Loan, Borrower obtained a mortgage loan (First Mortgage Loan) from Equitable Bank (Senior Lien Holder), which
<br />loan is secured by a first mortgage lien on the Property (First Mortgage). The documents evidencing or securing the First Mortgage
<br />Loan are collectively referred to herein as the First Mortgage Loan Documents.
<br />This Mortgage secures to Lender the repayment of the debt evidenced by the Note. For this purpose, Borrower irrevocably mortgages,
<br />grants and conveys to Lender and Lender's successors and assigns, with power of sale, subject to the rights of Senior Lien Holder
<br />under the First Mortgage, the following property, to -wit:
<br />The North Seventy Two Feet (N72') of Lot Ten (10) and the Fast Thirteen and Two Tenths Feet (E13,2') of the North Seventy Two
<br />Feet (N72') of the East Half (Fl /2) of Lot Nine (9), in Block Twelve (12), in Gilbert's Addition to the City of Grand Island, Hall
<br />County, Nebraska.
<br />(which has the address of: _1012 N Washington St., Grand Island, NE 68801 ), to have and to hold this property unto Lender and
<br />Lenders successors and assigns, forever, all the improvements now or hereafter erected on the property, and all easements,
<br />appurtenances and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this
<br />Mortgage. All of the foregoing is referred to in this Mortgage as the Property.
<br />Borrower covenants that Borrower is lawfully seized of the estate hereby conveyed and has the right to mortgage, grant and convey
<br />the Property and, except for the First Mortgage and other encumbrances of record acceptable to Senior Lien Holder, the Property is
<br />unencumbered. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to such
<br />encumbrances of record.
<br />1. PAYMENTS. In the case of a sale or refinancing of the Property within five years of the date of the Note (the Retention
<br />Period), an amount equal to a pro rata share of the principal, reduced for every year Borrower owned the Property, shall be
<br />repaid to the Lender from any net gain realized upon the sale or refinancing, unless: (1) the Property was assisted with a
<br />permanent mortgage loan funded by an AHP subsidized advance; (2) the Property is sold to a very low -, or low- or moderate -
<br />income household; or (3) following a refinancing, the Property continues to be subject to a deed restriction or other legally
<br />enforceable retention agreement or mechanism. The Lender will have ultimate control over any funds repaid by the Borrower
<br />pursuant to this section. Lender shall be given notice of any sale or refinancing of the Property occurring prior to the end of
<br />the Retention Period. Provided that Borrower complies with the terms of the Note, the amounts due and payable under the
<br />Note shall not become due and payable, but shall be forgiven as follows: The principal amount of the Loan shall be reduced
<br />over the first 5 years by 1 /60th of the original principal balance of the Loan for each month the Loan is outstanding. Such
<br />monthly reductions shall take effect in arrears on the same day of the month the Loan was originally made. The amount of
<br />the Loan due and payable at any time shall be determined after deducting the principal amount of the Loan which has been
<br />forgiven by Lender.
<br />2. SUBORDINATION. This Mortgage is subject and subordinate in all respects to the liens, terms, covenants and conditions
<br />of the First Mortgage and to all advances heretofore made or which may hereafter be made pursuant to the First Mortgage,
<br />including all sums advanced for the purpose of (a) protecting or further securing the lien of the First Mortgage, curing
<br />defaults by Borrower under the First Mortgage or for any other purpose expressly permitted by the First Mortgage; or (b)
<br />constructing, renovating, repairing, furnishing, fixturing or equipping the Property. The terms and provisions of the First
<br />Mortgage are paramount and controlling, and they supersede any other terms and provisions hereof in conflict therewith. In
<br />the event of foreclosure or deed -in -lieu of foreclosure of the First Mortgage, or if the First Mortgage is assigned to the
<br />Secretary of the U.S. Department of Housing and Urban Development, any provisions herein or any provisions in any other
<br />collateral agreement restricting the use of the Property or otherwise restricting Borrower's ability to sell the Property shall
<br />have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or
<br />assigns (other than Borrower or a related entity of Borrower), receiving title to the Property through a foreclosure or deed -in-
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<br />THIS SUBORDINATE MORTGAGE (Mortgage) is made on September 02, 2011 by JAMES J HOESCHE AND JARAH C
<br />HOESCHE, HUSBAND AND WIFE (Borrower). This Mortgage is given to the Federal Home Loan Bank of Topeka, a corporation
<br />organized and existing under the laws of the United States of America, and whose address is One Security Benefit Pl. Ste. 100,
<br />Topeka, KS 66606, its successors and assigns (Lender). Borrower owes Lender the principal sum of Four thousand and 00 /100
<br />Dollars (U.S. $ 4,000.00 ). This debt is evidenced by Borrower's note dated the same date as this Mortgage (Note). The Note provides
<br />for no payments if the Borrower complies with the terms of the Note. The loan evidenced by the Note and secured by this Mortgage
<br />(Loan) is being made pursuant to the Affordable Housing Program (AHP) as implemented by Lender (12 U.S.C. 14306); 12 CFR Part
<br />1291).
<br />In addition to the Loan, Borrower obtained a mortgage loan (First Mortgage Loan) from Equitable Bank (Senior Lien Holder), which
<br />loan is secured by a first mortgage lien on the Property (First Mortgage). The documents evidencing or securing the First Mortgage
<br />Loan are collectively referred to herein as the First Mortgage Loan Documents.
<br />This Mortgage secures to Lender the repayment of the debt evidenced by the Note. For this purpose, Borrower irrevocably mortgages,
<br />grants and conveys to Lender and Lender's successors and assigns, with power of sale, subject to the rights of Senior Lien Holder
<br />under the First Mortgage, the following property, to -wit:
<br />The North Seventy Two Feet (N72') of Lot Ten (10) and the Fast Thirteen and Two Tenths Feet (E13,2') of the North Seventy Two
<br />Feet (N72') of the East Half (Fl /2) of Lot Nine (9), in Block Twelve (12), in Gilbert's Addition to the City of Grand Island, Hall
<br />County, Nebraska.
<br />(which has the address of: _1012 N Washington St., Grand Island, NE 68801 ), to have and to hold this property unto Lender and
<br />Lenders successors and assigns, forever, all the improvements now or hereafter erected on the property, and all easements,
<br />appurtenances and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this
<br />Mortgage. All of the foregoing is referred to in this Mortgage as the Property.
<br />Borrower covenants that Borrower is lawfully seized of the estate hereby conveyed and has the right to mortgage, grant and convey
<br />the Property and, except for the First Mortgage and other encumbrances of record acceptable to Senior Lien Holder, the Property is
<br />unencumbered. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to such
<br />encumbrances of record.
<br />1. PAYMENTS. In the case of a sale or refinancing of the Property within five years of the date of the Note (the Retention
<br />Period), an amount equal to a pro rata share of the principal, reduced for every year Borrower owned the Property, shall be
<br />repaid to the Lender from any net gain realized upon the sale or refinancing, unless: (1) the Property was assisted with a
<br />permanent mortgage loan funded by an AHP subsidized advance; (2) the Property is sold to a very low -, or low- or moderate -
<br />income household; or (3) following a refinancing, the Property continues to be subject to a deed restriction or other legally
<br />enforceable retention agreement or mechanism. The Lender will have ultimate control over any funds repaid by the Borrower
<br />pursuant to this section. Lender shall be given notice of any sale or refinancing of the Property occurring prior to the end of
<br />the Retention Period. Provided that Borrower complies with the terms of the Note, the amounts due and payable under the
<br />Note shall not become due and payable, but shall be forgiven as follows: The principal amount of the Loan shall be reduced
<br />over the first 5 years by 1 /60th of the original principal balance of the Loan for each month the Loan is outstanding. Such
<br />monthly reductions shall take effect in arrears on the same day of the month the Loan was originally made. The amount of
<br />the Loan due and payable at any time shall be determined after deducting the principal amount of the Loan which has been
<br />forgiven by Lender.
<br />2. SUBORDINATION. This Mortgage is subject and subordinate in all respects to the liens, terms, covenants and conditions
<br />of the First Mortgage and to all advances heretofore made or which may hereafter be made pursuant to the First Mortgage,
<br />including all sums advanced for the purpose of (a) protecting or further securing the lien of the First Mortgage, curing
<br />defaults by Borrower under the First Mortgage or for any other purpose expressly permitted by the First Mortgage; or (b)
<br />constructing, renovating, repairing, furnishing, fixturing or equipping the Property. The terms and provisions of the First
<br />Mortgage are paramount and controlling, and they supersede any other terms and provisions hereof in conflict therewith. In
<br />the event of foreclosure or deed -in -lieu of foreclosure of the First Mortgage, or if the First Mortgage is assigned to the
<br />Secretary of the U.S. Department of Housing and Urban Development, any provisions herein or any provisions in any other
<br />collateral agreement restricting the use of the Property or otherwise restricting Borrower's ability to sell the Property shall
<br />have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or
<br />assigns (other than Borrower or a related entity of Borrower), receiving title to the Property through a foreclosure or deed -in-
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