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DEED OF TRUST
ADAMS,~~CO~~,UN~~TrrY~, NE
INST. N0. F~ 4 i ~'
Date z - -~ Time1~3.~~
TER OF DEEDS
Lot Four (4) of Block One (1) of the Replat of McConnell's Addition to the
Village of Kenesaw, Adams County, Nebraska, subject to. easements and
restrictions of record, according to the recorded plat thereof, (hereinafter
referred to as the "Property").
This Deed of Trust, hereinafter referred to as Security Instrument, is made on this
day of December, 2007. The Trustor, hereinafter referred o as Borrower, ~~~ott
Shreve, a Sine person, whose address is a// /l/. Fr6~,5 en a. , NE 6 The
Trustee, hereinafter referred to as Trustee, is Douglas Pauley, member~of the Nebira's7ca
State Bar Association. The Beneficiary, hereinafter referred to as. Lender, is Verna
Roeder, a single person; and Theresa M. Cline, a married person, whose address is 501 N.
Dennison Ave.., Kenesaw, NE 68956. Borrower owes Lender the principal sum of Twenty-one
Thousand Five Hundred and no/100 Dollars ($21,500.00) with interest thereon at 8.SB per
annum. This debts is evidenced by Borrower's note dated the same date as this Security
Instrument, hereinafter referred to as Note, which provides for payment of the same. This
Security Instrument secures to Lender: (a) the repayment of the debt evidenced by Note,
together with interest thereon, any further advances, and all extensions, modifications,
substitutions and renewals thereof; (b) the payment of all other sums, with interest,
advanced under Section Seven hereof to protect the security of this Security Instrument;
and (c) the performance of Borrower's covenants and agreements under this Security
Instrument and the Note.
The above described property, together with .all the improvements now or hereafter
erected on the property, and all easements, rights, appurtenances, rents, royalties,
mineral, oil and gas rights and profits, water rights and stock and all fixtures now or
hereafter a part of the said property, and all replacements and additions shall also be
covered by this Security Instrument. All of the foregoing is referred to in this Security
Instrument as the "Property".
Borrower covenants that Borrower is lawfully seized of the estate hereby conveyed
and has the right to grant and convey the Property and that the Property is unencumbered,
except for encumbrances of record. Borrower warrants and will defend generally the title
to the Property against all claims and demands, subject to any encumbrances of record.
Borrower and Lender covenant and agree as follows:
SECTION ONE
PAYMENT OF PRINCIPAL AND INTEREST; PREPAYMENT AND LATE CHARGES
Borrower shall promptly pay when due the principal of and interest on debt evidenced
by the Note and any prepayment and late charges due under the Note.
SECTION TWO
TAXES
`"''Borrower will pay all real estate taxes and assessments for which provisions has not
been made previously in this Deed of Trust, and will promptly deliver the official
receipts therefore to Lender. In default thereof, Lender shall have the right to pay the
same, and Lender may also pay any other sum that is necessary to protect the security of
this Deed of Trust. All such sums, as well as all costs paid by Lender pursuant to this
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Deed of Trust, shall be secured hereby and shall bear interest at the rate provided for in
the principal indebtedness.
SECTION THREE
APPLICATION OF PAYMENTS
Unless applicable .law provides otherwise, all payments received by Lender under
Section One hereof shall be applied; first, to late charges due under the Note; second, tc
prepayment charges due under the Note; third, to interest due; and last, to principal due.
SECTION FOUR
CHARGES; LIENS
Borrower shall pay all taxes, assessments, charges, fines and impositions
attributable to the Property that may attain priority over this Security Instrument, and
leasehold payments or ground rents, if any. Borrower shall pay them directly to the
person owed payment.. Borrower shall promptly furnish to Lender all notices of amounts to
be paid under this paragraph. If Borrower makes these payments directly, Borrower shall
promptly furnish to Lender receipts evidencing the payments.
Borrower shall promptly discharge any,lien that has priority over this Security
Instrument unless Borrower: (a) agrees in writing to the payment of the obligation
secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien
by, or defends against enforcement'of the lien in, legal proceedings which in the Lender's
opinion operate to prevent the enforcement of the lien or forfeiture of any part of the.
Property; or (c) secures from the holder of the lien an agreement satisfactory to the
Lender subordinating the lien to this Security Instrument. If Lender determines that any
part of the Property is subject to a lien that may attain priority over this Security
Instrument, Lender may give Borrower a notice identifying the lien., Borrower shall
satisfy the lien or take one or more of the actions set forth above within ten (10) days
of the giving of notice.
SECTION FIVE
HAZARD INSURANCE
Borrower shall keep the improvements now existing or hereafter erected on the
Property insured against foss by fire, hazards included within the term "extended
coverage" and any other hazards for which Lender requires insurance. This insurance shall
be maintained in the amounts and for the periods that Lender requires. The insurance
carrier providing the insurance shall be chosen by Borrower subject to Lender's approval
which shall' not be withheld unreasonably. Borrower shall provide proof of said insurance
to Lender on the date of closing.
All insurance policies and renewals shall be acceptable to Lender and shall include
a standard mortgage clause. Lender shall have the right to hold the policies and
renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid
premiums and renewal notices. Additionally, Borrower agrees to furnish Lender on an
annual basis a certificate showing that hazard insurance has been procured and also
indicating that-the policy contains a standard mortgage clause. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make
proof of loss if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be
applied to restoration or repair of the Property damaged, if the restoration or repair is
economically feasible and Lender's security is not lessened, the insurance proceeds shall
be applied to. the sums secured by this Security Instrument, whether or not then due, with
any excess paid to Borrower. If Borrower abandons the Property, or does not answer within
thirty (30) days a notice from Lender that the insurance carrier has offered to settle a
claim, then Lender. may collect the insurance proceeds. Lender may use the proceeds to
repair or restore the Property or to pay sums secured by this Security Instrument, whether
or not then due. The thirty (30) day period will begin when the notice is given.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds
to principal shall not extend or postpone the due date of the monthly payments referred to
in Section One hereof, or change the amount of the payments. If under Section Twenty
hereof, the Property is acquired by Lender, Borrower's right to any insurance policies and
proceeds resulting, from damage to the Property prior to the acquisition shall pass to
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Lender to the extent of the sums secured by this Security Instrument immediately prior to
the acquisition.
' SECTION STX
PRESERVATION AND MAINTENANCE OF PROPERTY; LEASEHOLDS
Borrower shall not destroy, damage or substantially 'change the Property, allow the
Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title
to the Property, the leasehold and fee title shall not merge unless Lender agrees to the
merger in writing.
SECTION SEVEN
PROTECTION OF LENDER'S RIGHTS IN THE PROPERTY; MORTGAGE INSURANCE
If Borrower fails to perform the covenants and agreements contained in this Security
Instrumeht, or there is a legal proceeding that may significantly affect Lender's .rights
in the Property (such as a proceeding in bankruptcy, probate, for condemnation, or to
enforce laws or regulations), then Lender may do and pay for whatever is necessary to
protect the value of the Property and Lender's rights in the Property. Lender's actions
may include paying any sums secured by a lien that has priority over this Security
Instrument, appearing in court,, paying reasonable attorneys' fees, and entering on the
Property to make repairs. Although Lender may take action under this paragraph, Lender
does not have to do so.
Any amounts disbursed by Lender under this Section Seven shall become additional
debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to
other terms of payment, these amounts shall bear interest from the date of disbursement at
the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
requesting payment.
If Lender requires mortgage insurance as a condition of making the loan secured.by
this Security Instrument, Borrower shall pay the premium required to maintain the
insurance in effect until such time as the requirement for the insurance terminates in
accordance with Borrower's and Lender's written agreement or applicable law.
SECTION EIGHT
HAZARDOUS MATERIALS
Borrower shall keep the Property in compliance with all applicable laws, ordinances
and regulations relating to industrial hygiene or environmental protection (collectively
referred to herein as "Environmental Laws"). Borrower shall keep the. Property free from
all substances deemed to be hazardous or toxic under any Environmental Laws (collectively
referred to herein as "Hazardous Materials"). Borrower hereby warrants and represents to
Lender that there are no Hazardous Materials on or under the Property. Borrower hereby
agrees to indemnify and hold harmless Lender, its directors, officers, employees and
agents, and any successors to Lender's interest, from and against any and all claims,
damages, losses and liabilities arising in connection with the presence, use, disposal or
transport of any Hazardous Materials on, under, from or about the Property. THE FOREGOING
WARRANTIES AND REPRESENTATIONS, AND BORROWER'S OBLIGATIONS PURSUANT TO THE FOREGOING
INDEMNITY, SHALL SURVIVE RECONVEYANCE OF THIS DEED OF TRUST.
SECTION NINE
INSPECTION
Lender or its agent may make reasonable entries upon and inspections of the
Property. Lender shall give Borrower notice at the time of or prior to an inspection
specifying reasonable cause for the inspection.
SECTION TEN
CONDEMNATION
The proceeds of any award or claim for damages, direct or consequential, in
connection with any condemnation or other taking of any part of the Property, or for
conveyance in lieu of condemnation; are hereby assigned and shall be paid to Lender.
In the event of a total taking of the Property, the proceeds shall be applied to the
sums secured by this Security Instrument, whether or not then due, with any excess paid to
Borrower: In the event of a partial taking of the Property, unless Borrower. and .Lender
otherwise agree in writing, the sums secured by this Security Instrument shall be reduced
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' by the amount of the proceeds multiplied by the following fraction: (a) the total amount
of the sums secured immediately before the taking; divided by (b) the fair market value of
the Property immediately before the taking. Any balance shall be paid to Borrower:
If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower
that the condemnor offers to make an award or settle a claim for damages, Borrower fails
to respond to Lender within thirty (30) days after the date the notice is given, Lender is
authorized to collect and apply the proceeds, at its option, either to restoration or
repair of the Property or to the sums secured by this Security Instrument, whether or not
then due.
Unless Lender and Borrower otherwise agree in writing, any applications of proceeds
to.principal shall not extend or postpone the due date of the monthly payments referred to
in Section One hereof or change the amount of such payments.
SECTION ELEVEN
BORROWER NOT RELEASED; FORBEARANCE BY LENDER NOT A WAIVER
Extension of the time for payment,or modification of amortization of the sums
secured by this Security Instrument granted, by Lender to any successor in interest of
Borrower shall not operate to release the liability of the original Borrower or Borrower's
successors in interest. Lender shall not be required to commence proceedings against any
successor in interest or refuse to extend time for payment or otherwise modify
amortization of the sums secured by this Security Instrument by reason of any demand made
by the original Borrower or Borrower's successors in interest. Any forbearance by Lender
in exercising any right or remedy shall not be a waiver of or preclude the exercise of any
right or remedy.
SECTION TWELVE
SUCCESSORS AND ASSIGNS BOUND; JOINT AND SEVERAL LIABILITY; CO-SIGNERS
The covenants and agreements of this Security .Instrument shall bind and benefit the
successors and assigns of Lender and Borrower. Borrower's covenants and agreements shall
be joint and several. Any Borrower who co-signs this Security Instrument but does not
execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and
convey that Borrower's interest in the Property under the terms of this Security
Instrument; (b) is not personally obligated to pay the sums secured by this .Security
Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify
forbear, or make any accommodations with regard to the terms of this Security Instrument
or the Note without that Borrower's consent.
SECTION THIRTEEN
LOAN CHARGES
If the loan secured by this Security Instrument is subject to a law which sets
maximum loan charges, and that law is finally interpreted so that the interest or other
loan charges collected or to be collected in connection with the loan exceed the permitted
limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce
the charge to the permitted limit; and (b) any sums already collected from Borrower that
exceeded permitted limits will be refunded to Borrower. Lender may choose to make this
refund by reducing the principal owed under the Note or by making a direct payment to
Borrower. If a refund reduces principal, the reduction will be treated as a partial
prepayment without any prepayment charge under the Note.
SECTION FOURTEEN
LEGISLATION AFFECTING LENDER'S RIGHTS
If enactment or expiration of applicable laws has the effect of rendering any
provision of the Note or this Security Instrument unenforceable according to its terms,
Lender, at its option, may require immediate payment in full of all sums secured by this
Security Instrument and may invoke any remedies permitted by Section Twenty hereof.
SECTION FIFTEEN
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Any notices to Borrower provided for in this Security Instrument shall be given by
delivering it or by mailing it by first class mail unless applicable law requires use of
another method. The notice shall be directed to the Property Address or any other address
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200'75419
Borrower designates by notice to Lender. Any notice to Lender shall be given by first
class mail to Lender's address stated herein or any other address Lender designates by
notice to Borrower. Any notice provided for in this Security Instrument shall be deemed
to have been given to Borrower or Lender when given as provided in this paragraph.
SECTION SIXTEEN
GOVERNING LAW; SEVERABILITY
This Security Instrument shall be governed by federal law and the law of the
jurisdiction in which the Property is located. In the event that any provision or clause
of this Security Instrument or the Note conflicts with applicable law, such conflict shall
not affect any other provision of this Security Instrument or the Note which can be given
affect without the conflicting provision. To this end the provisions of their Security
Instrument and the Note are declared to be severable.
SECTION SEVENTEEN
BORROWER'S COPY
Borrower shall be given one conformed copy of the Note and of this Security
Instrument.
SECTION EIGHTEEN
TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER
If all or any part of the Property or any interest in it is sold or transferred (or
if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural
person) without Lender's prior written consent, Lender may, at its option, require
immediate payment in full of all sums secured by this Security Instrument. However, this
option shall not be exercised by Lender, if exercise is prohibited by federal law as of
the date of this Security Instrument. '
If Lender exercises this option, Lender shall give Borrower notice of acceleration.
The notice shall provide a period of not less than thirty (30) days from the date the
notice is delivered or mailed within which Borrower must pay all sums secured by this
Security Instrument. If Borrower fails to pay these sums prior to the expiration of this
period, Lender may invoke any remedies permitted by this Security Instrument without
further notice or demand on Borrower.
SECTION NINETEEN:
EVENTS OF DEFAULT
Each of the following occurrences shall constitute an event of default hereunder,
(hereinafter called an "Event of Default"): (a)" Borrower shall fail to pay when due any
principal, interest, or principal and interest on the indebtedness; (b) Any warranty of
title made by Borrower herein shall be untrue; (c) Borrower shall fail to observe or
perform any of the covenants, agreements, or conditions in this Deed of Trust, or any.
other Deed of Trust; (d) Borrower shall fail to pay real estate taxes on the Property
before the same become delinquent; (e) Any representation or warranty made by Borrower on
any financial statements or reports submitted to Lender by or on behalf of Borrower shall
prove false or materially misleading; (f) Borrower shall fail to perform or observe any
of the covenants, conditions or agreements contained in, or binding upon Borrower under
any building loan agreement, security agreement, loan agreement, financing statement, or
any other agreement, instrument or document executed by trustor in connection with the
loan evidenced by the Note; (g) A trustee, receiver or liquidator of the Property or of.
Borrower shall be appointed, or any of the creditors of Borrower shall file a petition in
bankruptcy against Borrower, or for the reorganization of Borrower pursuant to the Federal
Bankruptcy Code, or any similar law, whether federal or state, and if such order or
petition shall not be discharged or dismissed within thirty (30) days after the date on
which such order or petition was filed; (h) Borrower shall file a petition pursuant to
the Federal Bankruptcy Code or any similar law, federal or state, or if Borrower shall be
adjudged a bankrupt,, or be declared insolvent, or shall make an assignment for the benefit
of creditors, or shall admit in writing its inability to pay its debts as they become due,
or shall consent to the appointment of a receiver of all or any part of the Property; (i)
Final Judgment for. the payment of money shall be rendered against Borrower and Borrower
shall not discharge the same, or cause it to be discharged, within thirty (30) days after
the entry thereof, or shall not appeal therefrom or from the order, decree of process upon
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which or pursuant to which said judgment was granted, based, or entered, and secure a stay
of execution pending such appeal; (j) Borrower shall sell or convey the Property, or any
part thereof, or any interest therein, or shall be divested of its title, or any interest
therein, in any manner or way, whether voluntarily or involuntarily, without the written
consent of Lender being first had and obtained, or (k) If Borrower is a corporation or
partnership and more than fifty (50~) percent of the shares or beneficial interests in
such corporation or partnership, as the case may be, shall be transferred or conveyed,
whether voluntarily or involuntarily, without the written consent of Lender being first
had and obtained.
SECTION TWENTY
ACCELERATION OF DEBT; FORECLOSURE
Upon the occurrence of any Event of Default, or any time thereafter, Lender may, at
its option, declare all the indebtedness secured hereby immediately due and payable and
the same shall bear interest at the default rate, if any, set forth in the Note, or
otherwise at the highest rate permitted .by law, and, irrespective of whether Lender
exercises said option, it .may, at its option and in its sole discretion, without any
further notice or demand to or upon Borrower, do one or more of the following: (a)
Lender may enter upon, take possession of, manage and operate the Property or any part
thereof; make repairs and possession, in its own name, sue for or otherwise collect and
receive rents, issues and profits, including those past due and unpaid, and apply the
same, less costs and expenses of operation and collection, including reasonable attorney
fees and Lender's costs, upon the indebtedness secured hereby and in. such order as Lender
may determine. Upon request of Lender, Borrower shall assemble and shall make available
to Lender any of the Property which has been removed. The entering upon and taking
possession of the Property, the collection of any rents, issues and profits, and the
application thereof as aforesaid, shall not cure or waive any default theretofore or
thereafter occurring, or affect any notice of default or notice of sale hereunder or
invalidate any act done pursuant to any such notice. Notwithstanding Lender's continuance
in possession or receipt and upon or after the occurrence of an Event of Default,
including the. right .to exercise the .power of sale..-Any of the actions referred to in this
paragraph may be taken by Lender at such time as Lender may determine without regard to
the adequacy of any security for the indebtedness secured hereby; (b) Lender shall,
without regard to the adequacy of any security for the indebtedness secured hereby, be
entitled to the appointment of a receiver by any court having jurisdiction, without
notice; to take possession of, protect, and manage the Property and operate the same and
collect the rents, issues and profits therefrom; (c) Lender may bring any action in any
court of competent jurisdiction to foreclose this Deed of Trust or enforce any of the
covenants hereof; and (d) Lender may elect to cause the Property or any part thereof to
be sold under the power of sale, and in such event, Lender or Trustee shall give such
notice of default and notice of sale as may be then required by law. Thereafter, upon the
expiration of such time and the giving, of such notice as may then be required by law,
Trustee, at the time and place specified by the notice of sale, shall sell such Property,
or any part thereof specified by Lender, at public auction to the highest bidder for cash
in lawful money of the Unites State of America. Upon receipt of payment of the price bid,
Trustee shall apply the proceeds in the following order: (i) to the cost and expenses of
exercising the power of sale and of the sale, including but not limited to, trustee's fees
of not more than $500.00 plus one-half of one percent of the gross sale price, and
reasonable attorney fees, (ii) to the indebtedness, and (iii) the excess, if any, to the
person or person legally entitled thereto.
All costs and expenses incurred by Lender in enforcing any right under this Deed of
Trust, including without limitation, abstract or title fees, appraisal fees, premiums for
title insurance, attorney fees and court costs, shall be and constitute indebtedness
secured hereby.
SECTION TWENTY-ONE
DUTIES OF TRUSTEE
Borrower agrees that: (a) Duties and obligations o£ Trustee shall be determined
solely by the express provisions of this Deed of Trust and Trustee shall not be liable
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except for the performance of such duties and obligations as are specifically set forth
herein, and no implied covenants or obligations shall be imposed upon Trustee; (b) No
provision of this Deed of Trust shall require Trustee to expend or risk its own funds, or
otherwise incur any financial obligation in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers; (c) Trustee may consult
with counsel of its own choosing and the advise of such counsel shall be full and complete
authorization and protection in the respect of any action taken or suffered by it
hereunder in good faith and reliance thereon; and (d) Trustee shall not be liable for any
action taken by it in good faith and reasonably believed by it to be authorized or within
its discretion or rights or powers conferred upon it by this Deed of Trust.
SECTION TWENTY-TWO
REGULATION Z WAIVER
The Borrower agrees this transaction is not a transaction between a borrower and a
commercial lender and waives any three (3) day right to rescind it may. have, together with
any rights to disclosures and notices in__addition to those made herein„~if any, under
federal and state Truth in Lending and Consumer Protection legislation.
SECTION TWENTY-THREE
RECONVEYANCE
Upon payment of all sums secured by this Security Instrument, Lender shall request
Trustee to reconvey the Property and shall surrender this Security Instrument and all
notes evidencing debt secured by this Security instrument to Trustee. Trustee shall
reconvey the Property without warranty and without charge to the person of persons legally
entitled to it. Such person or persons shall pay any recordation costs.
SECTION TWENTY-FOUR
SUBSTITUTE TRUSTEE
o
Scott Shreve
TRUSTOR
Lender, at its option, may from time to time remove Trustee and appoint a successor
trustee to any Trustee appointed hereunder by an instrument recorded in the County in
which this Security Instrument is recorded. Without conveyance of the Property, the
successor trustee shall succeed to all the title, power, and duties conferred upon Trustee
herein and by applicable law.
By signing below, Borrower accepts and agrees to the terms and covenants contained
in this Security Instrument.
DATED this ~_ day of ~~~~~ e r , 2007.
SECTION TWENTY-FIVE .
REQUEST FOR NOTICES
Borrower request that copies of the notices of default and sale be sent to
Borrower's address which is the Property Address..
STATE OF NEBRASKA )
ss.
COUNTY OF ADAMS )
On this _~~ day of ~EC'NIrt,6ei^, 2007, before the undersigned Notary Public,
personally came Scott Shreve, a Si person, and acknowledged the execution of the
foregoing Deed of Trust as his voluntary act and deed.
GENBIAL NOTARY • State of Nebraska
~DANIELJ. WIEBEWIEBE
My lumm. Exp. May ?3, ?010
~~ G^-E~,
Notary Public
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