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201205251 continue to pay to Lender the amount of the separately designaf.ed 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 ultima.tely 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 the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obta.ined, and Lender requires separately designated payments toward the prem.iums for Mortgage Insurance. If Lender required Mortgage Tn�,ransP as a condition of making the Loan and Borrower was required to make separately designated payments towazd tb.e premiums for Mortgage Tnsurance, Bortower shall pay the premiums required ta maintain Mortgage In�,�,�nsp in effect, or to provide a non refuudable loss reserve, until Lender's requirement for Mortgage Insurance ends in accardance with any written agreement between Borrower and I.ender 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 Leuder (or any entity that purchases fhe Note) foz certain losses it may incur if Borrowez does uot repay the Loan as agreed. Borrower is not a party to the Mortgage Tnc�*an�, Mortgage insurers evaluate their total risk on atl 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 tha.t aze satisfactory to the mortgage insurer and the other pariy (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using aay source of funds that the mortgage insurer ma.y 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, or auy aff'iliate of any of the foregoing, may receive (directly or indirecfly) amounts that derive from (or might be characterized 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 takes a share of the insurer's risk in exchange for a share of the premiums paid to the insnrer, the amangement 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 re�und. (b) Any such agreements 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 the Mortgage Insurance, to have the Mortgage Insurance terminated sutomatically, and/or to receive a refund of any Mortgage Insarance preminms that were anesrned 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 MisceAaneous Proceeds shall he applied to restoration or repair of the Praperty, if the restoration or repair is economically feasible and I:ender's security is uot lessened. During such repair and restoration period, I.ender shall have tfie 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 ��SKA-Single Family-Fannfa Mae/Freddia Mac UNIFORM INSTRUMENT Wokara Kluwer Flnarxfal Sarvices Farm 3028 1/07 VMP81Nq (11061.00 Paga 9 of 17