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<br />covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property."
<br />Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security
<br />Inshvment; 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 lnnited to, the right to foreclose
<br />and sell the Property; and to take any action required of Lender including, but not limited to, releasing or canceling
<br />this Security Instrutnent.
<br />BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to
<br />grant and convey the Property and that the Property is unencumbered, except for encumbrances of record, Borrower
<br />watrants artd will defend generally Yhe title to the Property against all claims and demands, subject to any
<br />encumbrances of record.
<br />THIS SECURITY INSTRLTMENT combines uniform covenants for national use and non-uniform covenants with
<br />timited variations by jurisdiction to constitute a uniform security instrument covering real property.
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal, Interest and Late Charge. Borrower 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 />2. Monthly Payment of Taxes, Insurance, and Other Charges. Borrower shatl 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) t�es 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 insurance required under pazagraph 4. In any year in which the Lender must pay a
<br />mortgage insurance premium to the Secretary of Housing and Urban Development ("Secretary"), or in any year in
<br />which such premium would have been required if Lender still held the Secwity Instrument, 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 (ii) a monthly charge instead of a mortgage insurance premium if this Security Instrument is held by the Secretary,
<br />in a reasonable amount to be determuted by the Secretary. Except for the monthly chazge by the Secretary, these items
<br />aze called 'Bscrow Items" and the sums paid to Lender aze 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 />maxnnum amount that may be required for Borrower's escrow account under the Real Estate Settlement Procedures
<br />Act of 1974, 12 U. S.C. §260I e- t sea. and implementing regulations, 24 CFR Part 350Q as they may be amended
<br />from time to time ("RESPA"), except that the cushion or reservepernutted by RESPA for unanricipated 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 pemutted to be held by RESPA, Lender shall
<br />account to Botrower for the excess funds as required by RESPA. If the amounts of fiutds held by Lender at any time
<br />aze not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make
<br />up the shortage as pernritted by RESPA.
<br />The Escrow Funds are pledged as additional securiTy for all sums secured by this Security Instrument. If
<br />Borrower tenders to Lender the full payment ofall 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 premium installment that Lender has
<br />not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrower.
<br />Immediately prior to a forecloswe sate of the Property or its acquisirion by Lender, Borrower's account shall be
<br />credited with any balance remaining for all instalUnents for items (a), (b), and (c).
<br />3. Application of Payments. All paytnents under pazagaphs 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 chazge by
<br />the Secretary instead of ttie monthly mortgage insurance premium;
<br />SECOND, to any ta2ces, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br />insurance premiums, as required;
<br />THIRD, to interest due under the Note;
<br />FOURTH to amortization of the principal of the Note; and
<br />FIFTH, to late chazges due under the Note.
<br />4. PYre, F'lood and Other Hazard Insurance. Borrower shall insure all improvements on the Property,
<br />whether now in existence or subsequently erected, against any hazards, casualries, and contingencies, including fire,
<br />for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that
<br />Lender requires. Bonower shall also insure all improvements on the Property, whether now in ea�istence or
<br />subsequently erected, against loss by floods to the extent required by the Secretary. All insurance shall be cazried with
<br />companies approved by Lender. The insurance policies and any renewals shall be held by Lender and shall include
<br />loss payable clauses in favor 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 proof 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 Borrower and to Lender jointly. All or any part of the inswance
<br />proceeds may be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and
<br />ttris Security Instnunent, first 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 Proper[y. Any application of the proceeds to the
<br />principal shall not extend or postpone the due date of the monthly payments which are referred to in paragraph 2, or
<br />change the amouni of such payments. Any excess inswance proceeds over an amount required to pay all outstanding
<br />indebtedness under the Note and this Secwity Instrument shall be paid to the entity legally entitled thereto.
<br />FHA NEBRASKA DEm OF TRUST - MERS pcelle8/c�
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