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201207540 continue to pay to L.ender the amount of ihe sepazately designated payments that were due when the insurance coverage ceased to be in effect. I.ender 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, notwi[hstanding the Fact that the Loan is ultimately paid in tull, and Lender shall not be required to pay Borrower any interest or eantings 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 availa6le, is obtained, and Lender requires separa[ely designat� payments towazd the premiums for Mortgage [nsurance. If Lender requ'ved Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments towazd the premiums for Mortgage Insurance, Borrower 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 Insnrance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Iaw. Nothing in this Section 10 affects Borrower's obligaaon to pay interest az the rate provid�in the Note. Mortgage Insurance reimburses Lender(or any entity that purchases[he Note) For certain losses it may incur iF Borrower does not repay the Loan as agrced. Borrower is not a party ro the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter irno agreements with other parties that share or uwdify their risk, or reduce losses. These agr�ments are on terms and conditions that aze satisFactory to the mortgage insurer and the other par[y(or parties)to these agreements. These agreements may require the mortgage insurer to make payments using any soutce 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 other entity, or any affiliate of any of the foregoing, may receive(dir�tly or indirectly) amounts that derive from (or might be characterized as)a portion of Bortower'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 khe insuret, the azrangement is ofren termed "captive reinsurance." Further: (a) My such agr�ments will nat affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Suclt agrcewenfs will not incr�se the emount Borrower wlll owe for Morrgage Insurance, end they wi71 not entitle Borrower to any refund. (b) Any such agreem�is will not aft'ect the rights Borrower has-if any-with resp�t to the Mortgage Insurance under the Homeowners Prot�tion Act of 1998 or any other law.These rlghts may include the right to r�eive certain disclosures,to request and abtain cencell�tion of the Martgage Insurance, to have the Mortgage Insurance terminated autometicaRy,and/ar to receive a refund of a�ry Mortgage Ias�ance premiums tLat were mearned at the time of such cancellation or terminetion. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellan�us Proc�ds are hereby assigned to and shall be paid to L.ender. If the Property 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 restontion period, Lender shall have the right to hold such Miscellaceous Proceeds until Lender has had an opportuniry to inspect such Property to ensure the work has been completed to Lender's NEBRASKA-Si�le Femily-Fannle Mae/f�e�tlie Mec UNIFORM INSTflUMENT Form 3026'l/�t �MP� VMP6INE)(1106).00 Walters Kluwar Finanual5ervlces Page 9 ot 17