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20120415� Insurance previously in effect, at a cost substanrially equivalent to the 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 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 Bonower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires sepazately designated payments toward the premiums for Mortgage Insura.nce. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make sepazately designated payments toward the premiums for Mortgage Insurance, Bonower shall pay the premiums required to maintain Mortgage Insurance 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 Bonower'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 incw if Bonower does not repay the Loan as agreed. Bonower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that aze satisfactory to the mortgage insurer and the other party (or pazties) 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 ott►er entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be chazacterized as) a portion of Bonower' 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 talces a share of the insurer's risk in exchange for a shaze of the premiums paid to the insurer, the arrangement is often termed "caprive reinsurance." Further: (a) Any snch agreements will not affect the �moants that Borrower has agreed to pay for Mortgage Insarance, or any other terms of the Loan. Sach agreements will not increase the amoant Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Iiomeowners Protection Act of 1998 or any other law. These rights may inclnde 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 refand of any Mortgage Insnrance premiums that were unearned at the time of snch cancellaHon or termination. 11. Assignment of Miscellaneons Proceeds; Forfeitare. All Miscellaneous Proceeds aze hereby assigned to and shall be paid to Lender. ff the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Properiy, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restorarion 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 inspecrion shall be undertaken 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 Bonower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender' s security would be lessened, the Miscellaneous Proceeds sha11 be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Bonower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. NEBRASKA—Single Family—Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS DocMlag/e� Fortn 3028 1/01 Page 8 of 15 www.docmagic.com IIIIIIIII IIIIII IIIIIII IIII I I II I II II I I IIIIII IIIIIIIIIIII III 'I'V�Y�- G��