|
�Q120787�
<br />as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage
<br />insurer's risk, or reducing losses. If such agreement provided that an affiliate of Lender takes a share of the insurer's risk
<br />in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance."
<br />Further:
<br />(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance,
<br />or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage
<br />Insurance, and they will not entttle Borrower to any refund
<br />(b) Any such agreemenis will not affect the rights Borrower has — if any — with respect to the Mortgage
<br />Insurance under the Homeowners Protectlon Act of 1998 or any other law. These rights may inclade the right to
<br />recetve certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage
<br />Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were
<br />unearned at the time of such cancellation or terminai3on.
<br />11. Assignment of Miscellaneoas Proceeds; Forfeiture. All Miscellaneous Proceeds aze hereby assigned to and
<br />shall be paid to Lender.
<br />If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if
<br />the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration
<br />period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect
<br />such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be
<br />undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress
<br />payments as the work is completed. Unless an agreement is made in writing orApplicable Law requires interest to be
<br />paid on such Miscellan�us Proceeds, Lender shall not be required to pay Bonower any interest or earnings on such
<br />Miscellaneous Proceeds. Ifthe restoration or repair is not economically feasible or Lender's security would be lessened,
<br />the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due,
<br />with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in
<br />Section 2.
<br />In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds sha11 be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to
<br />Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the
<br />Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the
<br />sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless
<br />Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument sha11 be reduced by the
<br />amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the tota.l amount of the sums secured
<br />immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property
<br />immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Bonower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the
<br />Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured
<br />immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender othetwise agree in
<br />writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Secwity Instrument whether or not the
<br />sums are then due.
<br />If the Property is abandoned by Borrower, or if, after notice by Lender to Bonower that the Opposing Party (as
<br />defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender
<br />within 30 days afller the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds
<br />either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due.
<br />"Opposing Party" mcans the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower
<br />has a right of action in regazd to Miscellaneous Proceeds.
<br />Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's
<br />judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or
<br />rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as
<br />provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment,
<br />NEBRASKA -Single Family-Fannle Mae/Freddte Mac UNIFORM INSTRUMENT with MERSForm 3028 1/01
<br />Page 8 of 13
<br />1 DS� �"O. Borrower(s) Inidal�
<br />
|