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<br />coveted by this Security Instrument. All of the foregoing is referred to in tUis Secutity Instrument as the "Property."
<br />Borrower uadersmnds and agrees that MERS holds only legal title to the interests granted by Borrower in Uris 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 w, the right to foreclose
<br />and sell the Property; and to take any action requited of Lender including, but not limited to, relessing or canceling
<br />this Security Instrument
<br />BORROWER COVINANfS that Borrower is lawfully seised of the estate hereby conveyed and has the right to
<br />gant and convey the Property and tUat the Property is unenc�bered, except for encumbrances of record Borrower
<br />w�arrants and will defend generally the title to the Properry against all claims and demands, subject to any
<br />enc�brances of record
<br />THIS SECURITY INSTRUMENT combin� uniform covenants for national use and non-uniform covenanis with
<br />limited variations by juriadiction to cons6tute a imiform security instrument covering real PraPert�'•
<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 �mder the Note.
<br />Z. Monthly Payment af Tages, Insarance, and Ot6er Charges. Borrower shall include in each monthly
<br />payment, together with the principal and interest as set forth in the Note and any late charges, a sum far (a) taxes and
<br />special assessments levied or to be levied against the Property, (b) leasehold payment� or grou¢d rents on the
<br />Property, and (c) premiums for insurance required under patagraph 4. In any year in which the Lender must pay a
<br />mortgage insivance premium to the Secretary of Ho"�ng and Urban Development ("Secretary"), or in any year in
<br />wluch such premium would have been required if Lender still held the Security Instrument, each monthly payment
<br />shall also include either: (i) a sum for the annual mortgage insurance premium to be paid by Leader to the Secretary,
<br />or (ri) a monthly chatge instead of a mortgage insurance premi� if this Security Instrument is held by the Se�cretary,
<br />in areasonable amount to be determined by the Secretary. Except for the monthly charge by the Secretary, these items
<br />are called "Escrow Items" and the sums paid to Leader are called "Escrow Funds."
<br />Lender may, at azry time, collect and hold amounts for Eacrow Items in an ag�egate amrnmt not to exceed the
<br />maximum amount that may be required for Borrower' s esctow account under the Real Estate Settlement Procedures
<br />Act of 1974, 12 U.S.C. §2601 et sea. and implementing regulalions, 24 CFR Part 3500, as they may be amended
<br />from time to time ("RESPA"), except that the cusUion or reservepermitted by RESPA for unanticipated disbursements
<br />or disbursements hefore the Borrower' s payments are available in the account may not be based on amounts due for
<br />the mortgage insurance premium.
<br />If the amoimts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall
<br />account to Borrower for the excess fimds as required by RESPA. If the amount� of funds held by Lender at any time
<br />are not sufficient to pay the Escrow Items when due, Lender may notify the Bonower and require Borrower to make
<br />up the shortage as permitted by RESPA
<br />The Escrow Funds are pledged as additional sec�mty for all sums sec�ued by this Security Insuvmea� If
<br />Bonower tenders to Lender the full payment of all such st�s, Borrower's account sl�all be credited with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premiimm installment tl�at Lender has
<br />not become obligated to pay to the Secxetary, and Lender shall promptly refimd any excess funds to Bonower.
<br />Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be
<br />credited with any balance remA;n;ng for all installments for items (a), (b), and (c).
<br />3. Applical3on of Paymenta 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 ground rents, and fire, flood and other he�ard
<br />insurance premiums, as required;
<br />TFIIRD. to interest due under the Note;
<br />FOURTH. to amortization of the principal of the Note; and
<br />FIFTH. to late charges due under the Note.
<br />4. F9re, Flood and Other Ha�ard Insarance. Bonower shall insure all improvements on the Property,
<br />whether now in existence or subsequenUy erected, against any ha�ards, casualties, and contingencies, including fire,
<br />for wlrich Lender requires insurance. This ins�ance shall be maintained in the amotmts and for the periods that
<br />Lender requires. Bonower shall also insure all improvements on the Property, whether now in existence or
<br />subsequently etected, against loss by floods to the extent required by the Secretary. All insiaance shall be cazried with
<br />compaaies approved by Lender. The insura�ce policies and any renewals shall be held by Leader and shall include
<br />loss payable clauses in favor of, and in a form acceptable to, Lender.
<br />In the event of loss, Bonower ahall give Lender immediate notice by mail. Lender may make proof of loss if not
<br />made PromPt1Y by Bonower. Each insurance company concerned is hereby suthorized and dir� w make payment
<br />for such loss directly to Lender, instead of to Boaower and to Lender jointly. All ot any part of the insiu�ance
<br />proceeds may be applied by Lender, at its option, either (a) to the reduction af the indebtedness imder the Note and
<br />Uris Security Instrument, first to any delinqueat amounts applied in the order in paragaph 3, and then to piepaymeat
<br />of principal, or (b) to the restoration or repair of the damaged Properiy. Any application of the proceeds to the
<br />principal shall not extend or postpone the due date of the montlily payments wlrich are referred to in paragraph 2, or
<br />change the amoimt of such payments. fwy excess insurance proceeds ovet an amount required to pay all outstanding
<br />indebtedness under ihe Note and this Security Instcvment shall be paid to the entity legally e�itled thereto.
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