|
20]203243
<br />DOC ID 4: 00024193853304012
<br />were due when the insurance coverage ceased to be in effect. Lcndcr will accept use and retain these
<br />payments as a non- rcfundablc loss reserve in lieu of Mortgage Insurance. Such loss reserve shall he non -
<br />refundable, notwithstanding the tact that the Loan is ultimately paid in full, mid Lender shall not be
<br />required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss
<br />reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires)
<br />provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires
<br />separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage
<br />Insurance as a condition of making the Loan and Borrower was required to make separately designated
<br />payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to
<br />maintain Mortgage Insurance in effect, or to provide a non- roftnhdahle loss reserve, until bender's
<br />requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and
<br />Lender providing for such termination or until termination is required by Applicable Law. Nothing in this
<br />Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may
<br />incur if Borrower does not repay the Loan as agreed Borrower is not a party to the Mortgage Insurance.
<br />Mortgage insurers evaluate their total risk on all such insurance in force from tune to time, and may enter
<br />into agreements with other parfics that share or modify their risk, or reduce losses - Thesc agreements are on
<br />terms and conditions that are satisfactory to the mortgage insurer and the other parry or parties) to these
<br />agreements. These agreements may require the mortgage insurer to make payments using any source of
<br />funds that the mortgage insurer may have available (which may include funds obtained from Mortgage
<br />Insurance premiums).
<br />As a result of these agreements, lender, any purchaser of the Note, another insurer, any rcinsurer, any other
<br />entity, or any affiliate of any of the foregoing may receive (directly or indirectly) amounts that derive from
<br />(or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for
<br />sharing or modifying the mortgage insurer's risk, or reducing losses- If such agreement provides that an
<br />affiliate of Lender takes a share of the insurers risk in exchange for a share of the premiums paid to the
<br />insurer, the arrangement is often termed "captive reinsurance." Further.
<br />(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage
<br />Insurance, or any other terms of the Loan. Such agreements will not increase the amount
<br />Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund.
<br />(b) Any such agreements will not af'f'ect the rights Borrower has - if any - with respect to the
<br />Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These
<br />rights may include the right to receive certain disclosures, to request and obtain cancellation of
<br />the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and /or to
<br />receive a refund of any Mortgage insurance premiums that were unearned at the time of such
<br />cancellation or termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to
<br />and shall be paid to Lender.
<br />If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the
<br />Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During
<br />such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until
<br />Lender has had air opportunity to inspect such Property to ensure the work has been completed to Lenders
<br />satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs
<br />and restoration in a single disbursement or in a series of progress payments as the work is completed.
<br />Unless an agreement is made in writing or Applicable Law requires interest to be paid on such
<br />Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such
<br />Miscellaneous Proceeds If the restoration or repair is not ccommnlically feasible or Lenders security would
<br />be lessened, the Miscellaneous Proceeds shall be applied to the sons secured by this Security Instrument
<br />whether or not then due, with the excess, if any, paid to Borrower_ Such Miscellaneous Proceeds shall be
<br />applied in the order provided for in Section 2.
<br />In the event of a total taking destruction, or loss in value of the Properly, the Miscellaneous Proceeds shall
<br />be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any,
<br />paid to Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of
<br />the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than
<br />the amount of the sums secured by this Security Instrument immediately before the partial taking,
<br />destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by
<br />this Security Instrument shall he reduced by the amount of the Miscellaneous Proceeds multiplied by the
<br />following fraction: (a) the total amount of the sums secured immediately before the partial taking,
<br />destruction, or loss in value divided by (b) the fair market value of the Property immediately before the
<br />partial taking, destruction, or Loss in value. Any balance shall be paid to Borrower.
<br />NEBRASKA -- Single Family -- Fannie Mae /Freddie Mac UNI FORM INSTRUMENT( ME RS) Form 30281/01
<br />MERS Deed of Trust NE
<br />2006A -NE (12111) Page 7 of 12
<br />
|