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201109223
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Last modified
3/7/2012 11:16:11 AM
Creation date
12/8/2011 12:28:07 PM
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DEEDS
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201109223
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201109223 <br /> retain the same lien priority initially granted to loan advances has expired) and state law permits the original <br /> lien status to be maintained for future loan advances through the execution and recordation of one or more <br /> documents,then Lender shall obtain ticle evidence at 6orrower's expense. [1'the title evidence indicates that the <br /> Property is not encumbered by any liens(except the First Security Instrument described in Paragraph 13(a),this <br /> Second Security Instrument and any subordinate liens that the Lender determines will aiso be subordinate to <br /> any future loan advances),Lender shall request the Borrower to cxecute any documents necessary to protect the <br /> priority of the lien status of fulure loan advances. Borrower agrees to execute such documents. [F state law <br /> does not permit the original lien status to be extended to future loan advances.I3orro��er�vill be dcemed to have <br /> failed to have performed an obligation under lhis Security [nstrument. <br /> (b) Tax Deferral Programs. Borro�.ver shali not participate in a rcal estate tax deierral program, iPan}� liens <br /> created by the tax deferral are not subordinate to this Security Instrument. <br /> (c) Prior Liens. Borrower shall promptly discharge any lien which has priority over this Security lnstrument <br /> unless Borrower: (a)agrees in writing to the payment of the obligation sccured by the liei� in a mai�ner <br /> acceptable to Lende�; (b)contests in good faith the lien by.or de[ends against enl-orcement ot'the lien in, legal <br /> proceedings which in the Lender's opinion operate to prevent thc cnforcement of the lien or forfeiture oi�any <br /> part ofi the Property;or(c)secures ti•om the holder of the lien an agreement satisfactoiy to Lender subordinating <br /> the lien to all amounts secured by this Security Instrument. If Lender determines that any part of the Property is <br /> subiect to a lien which may aCCain priority over lhis Security li�stirumei�t, Lender may give [3orrower a notice <br /> identifying the lien. Borrower shall satisty the liei�or take one or more of the actions set forth above within ten <br /> (10)days of the giving of notice. � <br /> 13. Relationship to First Security Instrument. <br /> (a) Second Security Instrument. In order to secure payments which the Secretary may make to or on behalf <br /> of Borrower pursuant to Section 255(i)(1)(A) of the National Housing Act and the Loan Agreement, the <br /> Secretary has required Borrower to execute a Second Note and this Second Security Instrument. Borrower also <br /> has executed a�irst Note and �irst Security Instrument. <br /> (b) Relationship of�'irst and Second Security Instruments. Payi��erits �nade by the Secretaty shall not be <br /> included in the debt under the I;iist Note unless: <br />� <br /> (i) The I�irst Security Instrument is assigned to the Secretaiy;or <br /> (ii) 1'he Secretary accepts reimbursement by the holder of the First Note for all payments made by the <br /> Secretary. <br /> If the circumstances described in(i)or(ii)occur,then all payments by the Secretary, including interest on <br /> the payments buti escluding late charges paid by the Secretary, shal] be included in the debt undr r the First <br /> Note. <br /> (c) Effect on Borrower. Where there is no assignment or reiii�bursement as described in (b)(i)or(ii)and the <br /> Secretary makes payments to Qorrower,then [3orrower shall not: <br /> (i) Be required to pay amounts owed under the First Note, or pay any rents and revenues of the Property <br /> under Paragraph 19 to the holder of the Pirst Note or a receiver of the Property, until thc Secretaty has <br /> required payment in full of all outstanding principal and accrued interest under the Second Note;or <br /> (ii) Be obligated to pay interest or shared appreciation under the First Note at any time, whether accrued <br /> bef'ore or atter the payments by the Secretary,and�o�hether or not accrued interest has been included in the <br /> principal balance under the}'irst Note. <br /> (d) No Duty of the Secretary. The Secretaiy has no duty to the holder of the First Note to enlorce covenai�ts <br /> Neb�•aslcci 2°��Sec¢u•rry lnslrzmzent �O' Bay Docs.lne.06/10 <br />' Pnge 5 <br />
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