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HomeMy WebLinkAbout20075645NUM PGS ~S DOCTAX CK# FEES 7570 PD r/S.SO CK~' ~y33t CHG ACCT # COTJ RETFE :-CASH R.Q.D.CK#__ RECD •n~1/A. A~ILp .p RETU "•~~A,~, J~~o~~2 Return To: HOME FEDERAL ~ 715 WEST 4TH, Prepared By: DEFINITIONS [Space Above This Line For Recording Dal DEED OF TRUST Words used in multiple sections of this document aze defined below and other words aze defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document aze also provided in Section 16. (A) "Security Instrument" means this document, which is dated December 31 , 2007 together with all Riders to this document. (B)"Borrower"is Ronald C. Challender Sr, A SINGLE PERSON and Sharon K. Ehrgood, A SINGLE PERSON Borrower is the trustor under this Security Instrument. CHALLENDER, R 15-7630-7 NEBRASKA -Single Family -Fannie Mae/Freddie Mac UNIFORM INSTRUMENT -61NE1 roao71 ~~~ . Page 7 of 15 MW 07/04 Initial . ~_~ VMP Mortgage Solutions, Inc. 1800)521-7291 I~WIIVIN'IN!~U'll'VN ADAMS COUNTY, NE ILED INST.NO. ~oor1 6~5 //~1 Date ~ ~ l -o~ Time 3- 5 ~ m NUM e U~- ~.Mu~v ~' RD. COMP r ~ /_1~.~? ~l-~lo~ REGISTER OF DEEDS COMPARE CADAS '- A0 ~ SAVINGS & LOAN ASSOC OF NEBRASKA P.O. BOX 927, HASTINGS, NE 68901 Form 3028 1/01 /of l.s 200`75645 (C)"Lender"is HOME FEDERAL SAVINGS AND LOAN ASSOCIATION OF NEBRASKA Lender is a CORPORATION organlized and existing under the laws of THE UNITED STATES OF AMERICA Lender's address is 201 W. 7TH, .P.O. BOX'960, LEXINGTON, NE 68850 Lender is the beneficiary under this Security Instrument. (D) "Trustee" is HOME FEDERAL SAVINGS AND LOAN ASSOCIATION OF NEBRASKA (E) "Note" means dre promissory note signed by Borrower and dated December 31, 2007 The Note states that Borrower owes Lender S1Xty Fl Ve ThOUSdnC] and. no/100 Dollars (U.S. $ 65 , 000 , 00 )plus interest. Borrower has promised to pay this debtin regular Periodic Payments and to pay the debt in full not later than ~dnUd ry 1, 2038 (F) "Property" means the property that is described. below under the heading "Transfer of Rights in the Property. " (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (In "Riders" means all Riders to this Security histn~rment that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: 0 Adjustable Rate Rider 0 Condominium Rider ~ Second Home Rider 0 Balloon Rider ~ Plamred Umt Development Rider ~ 1-4 Family Rider 0 VA Rider 0 Biweekly Payment Rider 0 Other(s) [specify] m "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have dne effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on -Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or sinular paper inlstrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic [ape so as to order, instruct, or authorize a financial innstitution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine .transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items [hat are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condeounation or other taking of all or any part of the Property; (iii) coniveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or conditimi of tine Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. CHALLENDER, R 15-7630-7 Initials?mil ~ ~;, -6(NE) ~oao~~ Page 2 of 15 ~ Form 3028 1 /01 d o¢IS 200"1565 (O) "Periodic Payment" meatrs the regularly scheduled amount due for (i) principal and interest under [he Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they Hugh[ be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used iri this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" evem if the Loan does not qualify.as a "federally related mortgage loan" under RESPA. (~ "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY, This Security Instrument secures to Lender: (i) dre repayment of the Loan, and all renewals, extetrsiotrs and moditications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and dre Note. Por this propose, Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in the COUNTY of ADAMS [Type of Recording Iurisdiction] [Name of Recording Jurisdiction] Lot Eleven (11), Block Three (3), Imperial Village Addition to the City of Hastings, Adams County, Nebraska, according to the recorded plat thereof. Parcel ID Number: 284-15950 2913 W 7th St Hastings ("Property Address"): which currently has the address of [Street] [city], Nebraska 68901 [zip code] TOGETHER WITH all the improvements now or hereafter erected oir [he property, and all easements, appurtetunces, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by [iris Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has dre right to grant and convey dre Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will. defend generally fire title to the Property against all claitns and dent<urds, subject to any encumbrances of record. CHALLENDER, R -61NE) loao~i B 15-7630-7 Page 3 of 1 5 Initial :,c; /; ~-~`~+ Form 3028 1/01 3 ~ r / ..7 200"15645 THIS SECURITY INSTRUMENT combines urriform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: L Payment of Principal, Interest, Escrow Items, Prepayment Charges, and .Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall-also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made iu U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security hrstrumeut is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security hlstrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, balk check,-treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Trarrsfex. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in fire future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on mrapplied funds. Lender may hold such unapplied funds until Borrower makes payments to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, sucli funds will be applied to .the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security hrstrunreut or perfo"rming the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: {a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and' then to reduce the principal balance of the Note. If Leader receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If moxe than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments. shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under fire Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments, 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under fire Note, until fire Note is paid in full, a sum (tire "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over tlris Security Instrument as a lieu or encumbrance on the Property; (b) leasehold payments or ground rents on fire Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance CHALLENDER, R 15-7630-7 Initials' ~ Chi" -61NE) Io4o71 ~ Pageaof is ,-. /) Form 3028 ~ 1/01 © /yXO'~,fl/ ~- of )S 200'75645 premiums, if any, or any sums payable by Borrower to Lender in lieu of Ute payment of Mortgage Insurance prenilums in accordance wiUt Ute provisions of Section 10. These items are called "Escrow Items." At origittation or at any Unte during Ute term of Ute Loan, Lender Wray require that Cotmumtity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Fwtds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver tray only be iu writing. lu the event of such waiver, Borrower shall pay directly, when"and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if'Lender requires, shall funilsh to Leader receipts. evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used,iu Section 9. If Borrower is obligated to pay Escrow Rents directly, pursuant to a waiver, and Borrower fails to pay Ute amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall Uten be obligated under Section 9 to repay to Lender any. such amount. Lender tray revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance wiUt Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Leader may, at any time, collect and hold Funds in an amount (a) sufficient to perntit Lender to apply Ute Funds at Ute time specified under 12ESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the antowtt of Funds due on Ute basis of current data and reasottable estimates of expenditures of future Escrow Items or oUterwise in accordance with Applicable Law. The Funds shall be held in an itstitution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Battk. Lender shall apply the Funds to pay the Escrow Items no later than Ute time specified under RESPA. Lender shall not charge Borrower for holding and applying Ute Funds, atmually xttalyzing Ute escrow account, or verifying the Escrow Items, wiles Lender pays Borrower interest on Ute Funds and Applicable Law permits Lender to stake such a charge. Uttless an agreement is trade in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earttings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on Ute Funds. Lender shall give to Borrower, without charge, an atmual accounting of Ute Funds as required by RESPA. If Utere is a surplus of Pwtds held in escrow, as defined under 12ESPA, Lender shall account to Borrower for Uie excess funds in accordance wiUt RESPA. If Utere is a shortage of Funds held in escrow, as defined under 12ESpA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Leader Ute amount necessary to makeup the shortage iu accordance with RESPA, but in no more Utan 12 mondily payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by ItESPA, and Borrower shall pay to Lender the amount necessary to make up Ute deficiency in accordance wiUt RESPA, but in no store Utan 12 monUUy payments. Upon payment in tirll of all sums secured by Utis Security htstrumeut, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositiotts attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Commuttity Association Dues, Fees, and Assessments, if any. To the extent Utat Utese items are Escrow Rents, Borrower shall pay Utem in.the ntatmer provided in Section 3. CHALLENDER, R 15-7630-7 Initial! ~:K /ice -6(NEI loao7l Page s or to - ~~~~"~"~~__ Form 3028 1/01 ~; ,5"of 1S ,:. 200'7565 Borrower shall promptly discharge any lieu which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of ttxe obligation secured by the lien in a manner acceptable to Lender, butbnly so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings, are pending, but only until such proceedings are concluded; or (c) secures from fire holder of the lien an agreement satisfactory to Lender subordinating the lieu to this Security Instrument. If Lender determines [hat any part of the Property is subject to a lien which can attain priority over this Security hlstrument, Lender may-give Borrower a notice identifying the lien. Within 10 days of d1e date on which that notice is given, Borrower shall satisfy the lien or take one or more of fire actions set forth above in this Section 4. ;' Lender may require Borrower to pay none-time charge for a real estate tax. verification and/or reporting service used by Lender in comiection with this Loan. 5. Property Insurance. Borrower shall keep d1e improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the-periods that Lender requires. What Lender requires pursuant to tlxe preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in comxection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determintation and certification services and subsequent charges each time rexnappings or similar changes occur which reasox>itbly might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender xnay obtain insurance coverage, at Lender's option and Borrower's expense. Lender is. under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in fire Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges tlxat the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Leader to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Leader requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and sliall lxame Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may 1x>dke proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or no[ dxe underlying insurance was required by Lender,, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the CHALLENDER, R 15-7630-7 Initial G~- -6(NE) loao7l Page 6 of 15 „, n Form 3028 1101 i" rp OT~S f~QOrl~V~S work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is cmnpleted. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other. third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied. to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order.provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any. available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. hi either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an' amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned prenliurns paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use Ure insurance proceeds either to repair or restore dre Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use dre Property as Borrower's principal residence within 60 days after the execution of [his Security Instrument and shall continue to occupy [he Property as Borrower's principal residence for at least one year after [he date of occupancy, uriless Lender otherwise agrees in writing, which consent shall not be unreasonably witlilreld, or .uriless extenuating circwnstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Wlre[her or not Borrower is residing in [he Property,' Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is detenruned pursuant to Section 5 that repair or restoration is not econoncally feasible, Borrower shall promptly repair the Property if dau~aged to avoid turtlrer deterioration or damage. If insurance or condermution proceeds are paid in comrection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property orily if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the iruurance or condenulation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities actiug at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material infornution) in comletion with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. CHALLENDER, R 15-7630-7 ~~ Ini[ia;/ -61NE) 104071 Page 7 or is Form 3028 1/01 m J i ~, mr f ..s 2U~"15645 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there. is a legal proceeding that might sig~riticantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condernnauon or forfeiture, for enforcement of a lien which Wray attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, tlren Lender tnay do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instruient, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but, is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs' no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by dris Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice frmu Lender to Borrower requesting payment. If this Security Iltstrument is mr a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires tee title to the Property, the leasehold and fire fee title shall not merge unless Lender agrees to dre merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, t(re Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiwns for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to fire cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Leader fire amount of the separately designated payments that were due when fire insurance coverage ceased to be in` effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage hrsurance. Such loss reserve shall be non-refundable, notwithstanding the fact drat the Loan is ultituately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in dre amount and for the period flrat Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making fire Loan and Borrower was required to make separately designated payments toward dte.prerniums for Mortgage Insurance, Borrower shall pay the prerniurns required to maintain Mortgage Insurance in effect, or to provide anon-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until ternurration is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay dre Loan as agreed. Borrower is not a party to dre Mortgage insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and tnay enter into agreements with other parties that share or modify dreir risk, or reduce losses. These agreements are on terms and conditions drat are satisfactory, to the mortgage insurer and fire other party (or parties) to these agreements. These agreements Wray require dre mortgage insurer'to make payments using any source of funds drat the mortgage insurer Wray have available (which may include funds obtained from Mortgage Insurance prenuums). CHALLENDER, R 15-7630-7 Initial /~~'~ ~r61NElloao7l ~ Page6otts Form 3028 1/01 ~~ ~- ~af-~S 2U0"d5645 As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reittsurer, any other entity, or any affiliate of,any of the foregoing, may receive (directly or indirectly) amounts that derive fiom (or Wright be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of dte insurer's risk in exchange for a share of the prenilunts paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms,of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any' refund. (b) Any such agreements will not affect the nghts Borrower has - if any -with respect to the Mortgage Insurance under the 13omeowners Protection Act of 3998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration.or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened: During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be wtdertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower atiy interest of earnings on such Miscellaueous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Sectimt 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the stuns secured by this Security Instrument,. whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destmction, or loss in value is equal to or greater than the amount of the sums secured by this Security Irtsttument inunediately before the partial taking, destruction, or loss in value, wiles Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured itmmediately before the partial taking, destruction, or loss in value divided by (b) ttte fair market value of the Property inunediately before the partial taking, destruction, or loss in value. Any balance shall be laid to Borrower. In the event of a partial taking, destmction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of fire sums secured immediately before the partial taking, destruction, or loss in value, utiless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the scans secured by this Security hnstrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in [he next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Ltsttmnent. Borrower can cure such a default and, if CHALLENDER, R -61NE) loao7l 15-7630-7 Page 9 of 15 ~fllll 9: ~ ~~~ ~~ Form 3028 1/01 G n~ JS fi~~r1 e~6~J acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of tre Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released;. Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by thisSecurity Instrument granted by Lender to Borrower or any Successor in hrterest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to cornrnence proceedings against any Successor in Interest of Borrower or_to 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 any Successors in.Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without liniltation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of arty right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants anti agrees that Borrower's obligations and liability shall be joint and several, However, any Borrower who co-signs this Security hrstrurnent but does not execute the Note (a "co-signer"): (a) is co-signing this Security hrstrumeut only to mortgage, grout and convey tre co-signer's interest in the Property under the terms of dais Security Instrument; (b) is not personally obligated to pay the sums secured by [his Security Instrument and (c) agrees drat Lender and any other Borrower can agree to extend, modify, forbear or make any acconnnodations wide regard to tre terns of this Security Instrument or the Note without the co-signer's consent. Subject to dre provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under Iris Security Instrument. Borrower shall not be released from Borrower's obligations and liability under tils Security Instrument unless Lender agrees to such release in writing. The covenants anti agreements of this Security Instrument shall bind (except as provided in Section 20) and benetit die successors and assigns of Lender. 14. Loari Charges. Lender may charge Borrower fees for services performed in comrection wide Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security hrstrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to,any oilier fees, tre absence of express authority in this Security Instrument to charge a specific tee to Borrower shall not be construed as a prohibition on tre charging of such fee. Lender may not charge fees tlrat are expressly prohibited by Iris Security Instrument or by Applicable Law. If tre Loan is subject to a law which sets nraxinmm loan charges, and that law is finally interpreted so drat tre interest or other loan charges collected or to be collected iu commection widr dre Loan exceed the permitted limits, diem (a) any such loan charge shall be reduced by the amount necessary to reduce [he charge to the perritted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing tre 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 (whether or not "a prepayment charge is provided for under tre Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. , 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in comrection witr this Security Instrument shall be deemed to have been given to Borrower when trailed by first class mail or when actually delivered to Borrower's notice address if senCby other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otrerwise. The notice address shall be dre Property Address uriless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, dren Borrower shall only report a change of address though that specified procedure, CHALLENDER; R 15-7630-7 ~;~,_ InlNal¢') -6tNE) ~oao~i Page to or is -~ Form 302(3 1/01 j. ~d A~ ~5 ~00'~5645 There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein miles Lender has designated anoUrer address by notice to Borrower. Any notice in connection wiUi Unis Security Instrument shall not be deemed to have been given to Leader until actually received by Lender. If any notice required by this Security h>strument is also required under Applicable Law, the Applicable Law requirement will satisfy Une corresponding requirement under [his Security Instrument. 16. Governing Law; Severahility; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to, any requirements and limitations of Applicable Law. Applicable Law aught explicitly or implicitly allow U1e parties to agree by contract or it aught be silent, but such silence shall. not be construed as a prohibition against agreement by contract. In the event that any provision or clause of Unis Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect orrer provisions of this Security Instrument or Uie Note which can be given effect without Une conflicting provision. As used in this Security Instrument: (a) words of the n>dsculine gender shall mean and include corresponding neuter words or words of the feninune gender; (b) words in Uie singular shall mean and include Ure plural and vice versa; and (c) Une word "nay" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of Ure Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Sectinn 18, "Interest in Ure Property" means any legal or beneficial interest in the Property, including, but not linnited to, those benetcial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in Une Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Inistrunneut. However, this option shall not be exercised liy Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from [he date the notice is given in accordance with Section 15 wiUrin which Borrower must pay all sums secured by Unis Security Instrument. If Borrower fails to pay Unese sums prior to the expiration of U1is period, Lender may invoke any remedies permitted by this Security Instrument wiUlout further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have Ure right to have enforcement of this Security Instrument discontinued at any time prior to Une earliest of: (a) five days before sale of Une Property pursuant to any power of sale contained in Uris Security Instrument; (b) such oU~er period as Applicable Law unight specify for Une termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are Unat Borrower: (a) pays Lender all sums which then would be due under Uiis Security Iustrunnent and Une Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for U1e purpose of protecting Lender's interest in the Property and rights under this Security hnstrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security h>strumeut, and Borrower's obligation to pay Une stuns secured by Unis Security Instrument, shall continue unchanged. Lender may require U~at Borrower pay such reinstatement sums and expenses in one or more of U1e following forms, as selected by Lender:. (a) cash; (b) money order; (c) certified check, back check, treasurer's check or cashier's check, provided any such check is drawn upon au institutimr whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatenneut by Borrower, Uris Security Instrument and obligations secured hereby CHALLENDER, R 15-7630-7 ///S (/~/~ Initialer' [~ `-~" -8(NE) loao~l Page f t of 15 ~.... Form 3028 1 /01 m ~f tlf ~/~ FdUOr1564~ shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in Uxe case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. Tlxe Note or a partial interest in Uxe Note (together with this Security Instrument) can be sold one or more times without prior notice to' Borrower. A sale ought result in a change in the entity (laxown as Uxe "Loan Servicer") that collects Periodic Payments due under the Note and Uxis Security Instrument and performs other mortgage loan servicing obligations under Uxe Note, this Security'Instxument, and Applicable Law. There also might be one or more changes of Uxe Loan Servicer uxnelated to a sale of Uxe.Note. If there is a change of the. Loan Servicer, Borrower will be given written notice of U1e change which will state the name and address of the new Loam Servicer, the address to which payments should be made and any other information 12ESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter Uxe Loan is serviced by a Loan Servicer other than Uxe purchaser of U1e Note, the mortgage loan servicing obligations to Borrower will remain with Uxe Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by Uxe Note purchaser u~iless oUxerwise provided by the Note purchaser. NeiUxer Borrower nor Lender may continence, join, or be joined to any judicial actimx (as either an individual litigant or Uxe member of a class) Uxat arises from the oUier party's actions pursuant to this Security Instrument or that alleges that Uxe other party lias breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance wiUx the requirements of Section 15) of such alleged breach and afforded the other party hereto a'reasmxable period after Uxe giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action cam be taken, that Ume period will be deemed to be reasonable for purposes of Uus paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant 'to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of Uxis Section 20. 21. Hazardous Substances. As used in Uxis Sectioxi 21: (a) "Hazardous Substances" are Uiose substances detned as toxic or hazardous substances, pollutants, or wastes by Enviromnental Law and Uxe following substances: gasoline, kerosene, oUxer fla~mnable or toxic petrolemn products, toxic pesticides and herbicides, volatile solvents, materials contailung asbestos or forxxisldehyde, and radioactive materials; (b) "Enviroxmxental Law" means federal laws and laws of Uie jurisdiction where the Property is located that relate to healUx, safety or enviromneutal protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal actial, as defined in Environmental Law; and (d) an "Envirmtiuemtal Condition" means a cmxdition that can cause, contribute to, or otherwise trigger an Envirmtinen[al Cleanup. . Borrower shall not cause or permit Uxe presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release airy Hazardous Substances, on or in Uxe Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Enviroxtinental Law, (b) which creates an Enviromnental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects Uxe value of the Property. The preceding two sentences shall not apply to U1e presence, use, or storage on the Property of sn1a11 quantities of Hazardous Substances that are generally recogluzed [o be appropriate to normal residential uses and to nuintel>ance of Uxe Property.(including, but not linuted [o, hazazdous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or oUxer action by any governmental or regulatory agency or private party involving Uxe Property and any Hazardous Substance or Enviromnental Law of which Borrower has actual knowledge, (b) any Enviromnental Condition, including but not linuted to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of Uxe Property. If Borrower learns, or is notified CHALLENDER, R -6(NE) toao~l 0 15-7630-7 Page 12 of 15 Initi s: / v~- ~ r Form 3028 1 /01 /,Z o}1S 200'75645 by any govenuvental or regulatory authority, or any private party, Urat any removal or order remediation of any Hazardous Substance affecting rde Property is necessary, Borrower shall promptly take all necessary remedial actioi>s in accordance wiUd Environmental Law. Nothing herein shall create any obligation on Lender for an Envirommental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or,agreement in this Security..Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shalt specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. IF the default is not cured on or before tide date specit-ied in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If the power of sale is invoked, Trustee shall record a notice of default in each county in which any part of the Property is located and shall mail copies of such notice in the manner prescribed by Applicable Law to Borrower and to the other persons prescribed by Applicable Law. After the time required by Applicable Law, Trustee shall give public notice of sale to the persons and in the manner prescribed by Applicable Law. Trustee, without demand on Borrower, shall sell the Property at public auction to the highest bidder at the time and place and under the terms designated in the notice of sale in one or more parcels and in any order Trustee determines. Trustee may postpone sale of all or any parcel of the Property by public announcement at the time and place of any previously scheduled sale. Lender or its designee may purchase the Property at any sale. Upon receipt of payment of the price bid, Trustee shall deliver to the purchaser Trustee's deed conveying the Property. The recitals in the Trustee's 'deed shall be prima facie evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the sale in the following order: (a) to all costs and expenses of exercising the power of sale, and the sale, including the payment of the Trustee's fees actually incurred and reasonable attorneys' fees as permitted by Applicable Law; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Reconveyance. Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to rr:convey the Property and shall surrender this Security Instrument and all notes evidencing debt secured by riffs Security Instrument to Trustee. Trustee shall reconvey the Property wiU~out warranty to Ude person or persons legally entitled to it. Such person or persons sha-1 pay any recordation costs. Lender may charge such person or persons a fee for reconveying the Property, but oiry if Ude fee is paid to a third party (such as the Trustee) for services rendered and the charging of the fee is permitted under Applicable Law. 24. Substitute Trustee. 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 Ude county in which this Security Instrundeut is recorded. Wirdout conveyance of Ude Property, rde successor trustee shall succeed to all the title, power and duties conferred upon Trustee herein and by Applicable Law. 25. Request for Notices. Borrower requests rat copies of Ude notice of default and sale be sent to Borrower's address which is Ude Property Address. CHALLENDER, R 15-7630-7 ~~~t~a~C -6(NE) ioao~i Page is or is Farm 3028 1/01 ~~ ~ /,~ of Js 2oo75s~5 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: p~JaK~" L ~ ~n~~ ~~ - (Seal) Ronald C. Challender Sr ~ -Borrower /. _ (Seal) -Borrower _ (Seal) -Borrower _ (Seal) -Borrower lG ~ G(~ (Seal) S aron K. Ehrgood -Borrower CHALLENDER, R 15-7630-7 -6~NE) 10407) Page 14 of 15 _ (Seal) -Borrower _ (Seal) -Borrower _ (Seal) -Borrower Form 3028 1 /01 ~~ O~IS 200'75645 STATE OF NEBRASKA, ADAMS County ss: The foregoing instrument was aclrnowledged before me this 31St day of December, 2007 ,by Ronald C. Challender Sr, A SINGLE PERSON and Sharon K. Ehrgood, A SINGLE PERSON My Commission Expires: Md rCh 23 , 2011 EiENERAI. NOTARY - State of Nebraska SUSAN J. ESCH Ny Cantu. Exp. March 23, 2011 CHALLENDER, R -61NE) ioaa~l m n~ n/~ Notary rubl;~ SUSAN ESCH 15-7630-7 Pege 15 of 15 ~.~r1~ is Initial4/j ~i ~~. Form 3028 1 /01 ~'