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201109705 continue to pay to Lender the amount of the separately designated payments that were due when the 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 Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately 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 paymeiits if Mortgage Tnsuraiice coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes availabl�, is obtained, and Lender requires separately designated payments toward the prezniums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payinents toward the premiums for Mortgage Insurance, Borrowei s1�a11 pay the premiums required to maintain Mortgage lnsurance in effect, or to provide a non-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 termination 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 the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force froin time to time, and may enter into agreeinents with other parties that share or modify their risk, or reduce losses, These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available(which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, oi•any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might 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 the insurer's risk in exchanga for a share of the premiums paid to the insurer, the arrangement is often termed °captive reinsurance," Further: (a) Aiiy such agreements will iiot affect the amouuts that Borrower has agreed to pay for Mortgage Iiisurance, or any other terms of the Loan. Such agreements will�iot increase the amount Borrower will owe for Mortgage Insurance, and they wi11 not entitle Borrower to any refund. (b) Aiiy such agreemei�ts will not affect the rights Borrower has-if any-with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of tlie Mortgage Insurance, to have the Mortgage Iiisurance teiminated automatically, and/or to receive a refund of auy 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 Ue applied to restoration or repair of the Property, if the restoration o�•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 231247 NEBRASKA•Single Family-Fannie MaelFreddle Mac UNIFORM INSTRUM�NT Form 3028 1/01 UMP OO VMP6(NE)11105( Wolters Kluwer Flnancial Services Page 9 of 17