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201208395 contiuue m pay to Lender the amount of thc separately designated payments tha[ were due when the insurance coverage ceased to 6e 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 Borrower any interes[or eamings on such loss reserve. Lender can no longer require loss reserve payments if MoRgage Insurance coverage(in the amount and for the period that Lender requires)provided by an insurer sel�[ed by Lender again becomes available, is obtained, and Lender requires separately designated payments towazd the premiums for Mortgage Insurance. If Lznder required Mortgage Insurance as a condition of making the L.oan and Boaower was required to make sepazately designated payments toward the premiums for Mongage 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 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 Sec[ion 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender(or any entity tt�at purchases the No[e)for certain losses i[may incur if Borrower dces not repay the 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 o[her parties[hat share or modify their risk, or reduce losses. T'hese agreements are on terms and conditions tha[aze satisfactory ro the mortgage insurer and the other party(or parties) to these agreemen[s. These agreemen[s may require the mortgage insurer to make payments using any source of funds that the mor[gage insurer may have available(wluch 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 entiry, or any affiliate of any of the foregoing, may receive(directly or indire�tly)amounts that derive from (or might be characterized as)a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides thaz an affiliate of Lender takes a share of the insurer's risk in exchange for a shaze of the premiums paid ro the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agre�l to pay for Mortgage Insurauce, or any other terms of the Loan. Such agreements will not increase the amount Barrower will owe for Mortgage Insnrance, and they will not entitle Borrower to any refund. (b) Any such agr�anents will not affect the rights Borcower has-if any-with respect to the Mortgage Insurance under the Homeowners Protection Act oP 1998 or any other law. T6ese rights may include the right to receive certain disclosures, to request and o6tain cancelladon of t6e Mortgage Insurance, to have the Mortgage Insurance terminat�l automarically, and/or ta r�eive a refl�nd of any Mortgage Insurance premiums that were uuearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds aze hereby assig�ed to and shall be paid to Lender. If the Proper[y 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 securiry is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellan�us Proceeds until Lender has had an opport�ciity [o inspect such Propeny to ensure the work has been completed to Lender's NE9PASKA-Single Famdy-Fannie Mae/Fraddie Mac UNIFORM INSTqUMEPJT Gorm 3028 1101 uMP� VMP6(NE)111051.00 Wolters Kluwer Financial Servires Page 9 ol t]