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201205280 continue to pa,y to Lender the amount of the separatel}� 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-rcfundablc loss rescn�c in licu of Mortgagc Insurancc. Such loss rescrvc shall bc non-rcfundablc, 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 c�n no longer require loss reserve payments if Mortgage Insurance coverage (in the amounl and for the period that Lender requires) provided by an insurer selected bv Lender again becomes available, is obtained, and Lender requires separatel_y designated payments toward Uie premiums for Mortgage Insurance. lf Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated pavments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Moftgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurancc cnds in accordancc with any writtcn agrccmcnt bctwccn Borrowcr and Lcndcr providing for such ternunation or until ternunation is required by Applicable Law. Nothing in this Section lU affects Borrower's obligation to pav interest at the rate provided in the Note. Morigage Insurance reimburses Lender (or any entity that purch.�ses the Note) for ceriain losses it may incur if Borrower does not repay U�e Loan as agreed. Borrower 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 are satisfacton� to the mortgage insurer and the other party (or parties) to these agrccmcnts. Thcsc agrccmcnts ma�� rcquirc thc mortgagc insurcr to makc paymcnts using any sourcc of funds tliat the mortgage insurer ma�� ha�e available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of tt►e Note, anolher insurer, any reinsurer, any olher entity, or any affiliate of any oP 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 e�cl�ange for sharing or modifying the mortgage insurer°s risk, or reducing losses. If such agreement provides that an �liate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid [o the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agrccmcnts will not affect thc amounts that Borrowcr has agrecd to pay for Mortgagc Insurancc, or any othcr tcrms of thc I.oan. Such s�grccmcnts will not incrcasc thc umount Borrower will owe for Mortgage lnsurance, und they will not entitle Borrower to any refund. (b} Any such a�reements 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 automatically, and/or to receive a refund of an}� Mortgage Insurance premiums that were unearned at the time of such cancellation or terminatioa. 11. Assignmentof MiscellaneousProceeds;Forteiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Propertv is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or 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 NEBRASKASingle Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMEM Form 3028 1101 VMP � VMP6(N� (110v�.00 Wolters Kluwer Financial Services �ga 9 °F ��