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2011Q927�
<br />covered by Uris Security Instr�ment All of the foregoing is referred to in this Security Instrument as the "Properiy."
<br />Borrower understands and agrees fl�at MERS holds only legal title to the interests granted by Bonower in this Security
<br />Iastrument; but, if necessary to comply with law or custom, MERS (as nominee for Lettder and Lender' s successocs
<br />and assigns) has the right: to exezcise any or all of those interests, including, but not limited to, the right to foreclose
<br />and sell the Property; and to take any actian required of Lender including, but not limited to, releasing or cance]ing
<br />this Security Inslrumenk
<br />BORROWER COVENANTS that Borrower is lawfully aeised of the estate hereby conveyed and has the right to
<br />grant and convey the Property and that the Properiy is unencumbered, except for encumbrances of record Bwrower
<br />wartants and will defend genetally the title to the Property against all claims and damands, subject to any
<br />enc�nnbrances of record
<br />THIS SECURITY INSTRUMENT combines uniform covenants for nalional use and non-uniform covenants with
<br />limited variations by jutisdiction to consticute a uniform security insirument covering real property.
<br />UNIFOI�UI COV�VANTS. Borrower aad Lender covenant aad agree as follows:
<br />1. Payatent of Principal, Interest and Late Charge. Borrower shall pay when due the principal o� and
<br />interest on, the debt evidenced by the Note and late charges due imder the Note.
<br />2. Monthty Payment of Tases, Insurance, and Other Charges. Borrower shall include in each moathly
<br />payment, together with the principal and intetest as set forth in the Note and any late chatges, a sum for (a) taxes and
<br />special assessments levied or to be levied against the Ptoperty, (b) leasehold payments or ground tents on tfie
<br />Property, and (c) premiams for insarance required vnder paragraph 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 />wirich such premium would have been required if Lender still held the Sec�aity Instrument, each monthly payment
<br />shall also include either: (i) a sum for t1re annual mortgage insuraace premium to be paid by Lender to We Secretary,
<br />or (ri) a monthly chazge instead of a mortgage insurance premium if this Security Instrument is held by the Secretary,
<br />in a reasonable amount to be determined by the Secretary. Except for the montUly charge by the Secretary, t6ese items
<br />are called "Escrow Items" and the sums paid to Lendcr are called "Escrow Funds."
<br />Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amouat not to exceed the
<br />maximimm amotimt that may be required for Borrower' s escrow account under the Real Estate Settiement Procedures
<br />Act of 1974, 12 U.S.C. §2601 et sea, and implementing tegulations, 24 CFR Part 3500, as they may be amended
<br />from time to time ("RESPA"), except that the cushion or reservepermitted by RESPA for uoanticipated disbursements
<br />or disbursemenis before the Bonower's payments are available in the account may not be based on aznounts due for
<br />the mortgage instcrance premium,
<br />If the amounts held by Lender for Escrow Items exceed the amoimts permitted to be held by RESPA, Lender shall
<br />account to Borrower for the eaccess funds as required by RESPA. If the amounts of fimds field by Lender at any time
<br />are not sufficieat to pay the Escrow Items when due, Leader may norify the Borrower and require Bonower to make
<br />up the shortage as permitted by RESPA.
<br />The Fscrow Funds aze pledged as additional sec�aity for a11 sums sec�ued by this Security Instrument If
<br />Borrower tenders to Lender the full payment of all such sums, Bonower's account shal] be credited with the ba7ance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insiaance premium installment that Lender hes
<br />not become obligated to pay to the Secretary, and Lender shall promptly refimd any excess fimds to Borrower.
<br />Immediately prior to a fore�losure sale of the Property or its acquisition by Lender, Bonower's accoimt shall be
<br />credited with any balance remaining for all installmeats for items (a), (b), and (c).
<br />3. AppllcaHoa of Payments. All payment� under paragraphs L and 2 shall be applied by Lender as follows:
<br />FIliST, to the mortgage insurance preminm 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, Ieasefiold payment� or ground rents, and fire, flood and other hazard
<br />iasivance premiums, as requii'ed;
<br />THIItA. to interes[ due under the Note;
<br />FOURTH. to amorti�ation of the principal of the Note; and
<br />FIFTFI, to late charges due under the Note.
<br />4. Flre, Flood and Other Hazard Inswance. Borrower shall insure all improvements on the Property,
<br />whether now in existence or subsequently crected, against any hazards, casualties, and contingencies, including fire,
<br />for w3uch Lendet requir� insurance; This insivance shall be maintained in the amotmts and for the periods that
<br />Lender requires. $orrower shall also insure all improvements on the Properiy, whether now in existence or
<br />snbsaquently erected, against loss by floods to the eactent required by tfie Secretary. Alt insurance shall be carried with
<br />companies approved by T,ender. The insivaaca policies and any zenewals shall be held by Lender and shall include
<br />loss payable clauses in favor o� and in a form acceptable to, Lender.
<br />In the event of loss, Bonower 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 insurance
<br />proceeds may be appGed by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and
<br />this Security InsWment, first to any delinquent amounts applied in the order in pazagraph 3, and then ko prepayment
<br />of principal, or (b) to the r�toration or repair of the damaged Property. Any application of the proceeds to the
<br />principal s6alI not extend or pos[pone tfie due date of the monthly payments wlrich are referrad to in paragraph 2, or
<br />change the amotmt of such payments. Any excess insurance proceeds over an amoimt required to pay all outstanding
<br />indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto.
<br />FHA NEBRASKA DEm OF TRUST - M�iS �
<br />NmOTZ.FHA 05/23/11 Page 2 oi 7 www.doanagic.mm
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