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201201534 continue to pay to I,ender the amomrt of thz sepazately designated payments that were due when the insurance coverage ceased to he in efFect. Lender will accept, use and retain these payments as a i�on-refimdable loss xeserve in lieu of Moxtgage Insmance. Such loss reserve sMall be ntln-refundable, notwiEhstanding the fact that the Loan is ulrimafely paid 3n full, and Lender shall not be required to pay Borrower any interest or earnjngs on such loss reserve. I,ender can no longer requi=e loss reserve paymenfs if Mortgage Insurance covarage(in the amount and for Yfie period that I ender requires)provided by an � insurer selected by Lender again bec;omcs available, is obtained, and Lender rzqtures separately dcsiamated payinents toward the premiwns for Mortgage Insurance. If Lender required Mortgage Insivance as a conclirion of making thc Loan and Borrower�vas required to make separataly designated payments towatd the premiums for Mortgage Insurance, 73on-ower shall pay the premiums required to maintain MorEgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requircment fbr_lYIortgage Insurance ends in accordance wlth any written agseement between Borrower and Leader providing for such teru�ination ox unril termination is requued by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgagc Insurance reimburses Lender(or any entity thai purchases the IVOte) for certain losses it may incur iP Boaower docs not repay the Loan as agreed. Borrower is not a part5�to the Mortgage Insurance. Mortgage insures.s evaluate their total risk on all such insurance in force from time fo timc, and may enter� into agreeanents with other partics that shaze or modify their risk, or rcduce losses. These ageements are�n terms and conditions that�re satisfactory t�the mortgane insurer and the other parry(crr parties) to these a�eemenis `1'hese agreements may requue the morCgage uisurer to make pa}nnents using any source of funds that the mortgage insurer may havc available(which may include funds obtained from Mortgage Inswance pxemiums). As a r�sult of these agreements, Lender, any purchaser of[he Note, another insurer, 2ny reinsurer; any other . eattty, ox any affiliate of any of fhe foregoing, may receive(direcfly or indirectly) amounts that daive from (or might be chazacterized as) a portion of$orrowet's gayments for Mortgage Inswance, in exchange for sharing ar modifying the m6rtgage insurer's risk, or reducing losses, If such agreement provldes that an affiliate c�f Lcnder fal<es a shaze of the insurer's risk in exchange for a share of the preiniums paid to the iasurer, the atrangement is often.termed"captive reinsurance." Further: (a) Any such agreements will not affect the amo�nts that Bomower l�as agreed to pap for Mnrtgage Insurance, or any other terms of the Loan. Such agreements�vill not increase the amount Borrower will owe for_l�Iortgage Insurance; and they�vill not enflfle Borro�ver to any refund. (b) Any such ag�ceements will not affect the rights Rorrower has -if any-wifh respect tu the Mortgage Insura.nce under tlie Homeo�vners Pmtecfion Act of 1998 or any otUer law. 17icse rigtds may include the right to receivc certain disclosnres, to request aud obtain esncellalion of the DZortgage Insurance, tu have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that tivcre unearned at the rime of such cancellation or termination. 11. Assignment of M iscellaneous Proceeds� Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. IF the Property is damagzd, such Miscellaneous Proceeds shall be applied to restoration or repair oP Che Property, if the restoration or repau is econoinically feasible and Lender's security is not lessened. During stich repav aud xesCoration period, Lender shall have the right to hold sueh Miscellaneous Proceeds unf� Lender has had aa opportunity to irspect such Preperty to ensure the work has heen completed to Lender's zaooaas� N EB W'�SI(A-Single Fam ily-Fannie M aei Fretltlie M ac UNI,=DZM11 INSTROM TIT Form 3028 1/01 VMP� VMP6MEJ(�105) Nlolfs[s Kluw er Financial Services Page 9 of 1]