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201208580 conrinue to pay to 1.ender the amow�t of the separate:y designatecl paymznts that were due�vhen the insuxance coverage ceased to be in effect Lender w111 accept, use and retain these pa}�ments as a non-refundable loss reservc in lizu of Mortgage Inswance. Such loss reseroe shall be non-refundable, notz*✓ithstanding the fact that the Loan is uttimately paid in fu11, and I ender shall not�e required tn pay Borrower any interest or earnings on such loss reserve. Lender cau no longer require loss reszrve payments if Mortgage Instuance coverage(in thc xinount and for the period that Lender requires)provided by an insiu'� selected by Lender again becomes available, is obtain0d, and I.endar requires separately desiguated payments towazd lhe prcmiutns for Mortgage Insurance. If I.ender required M�rtga.ge Insurance 2s a candirion of making the Loan and Borro�ver was requued Yo inake sepazately designatcd payments toward thc premiwns for Mortaage Insurance, Borrower Shall pay the preiniums rcquired to;su�untain Mortgage Tnsurance in effect, or to pro��ide a non-refundable loss reserve, until I,ender's requirement for Mortgage InsL�rance ends in accordance with any u�itten agreement beCween Borrower and Lender providing for such fenninarinn or Lurtil temunation is requued I�y AppllGable Law. Nothing in thls Section 10 alTects Borrower's obligarion to pay interest at the rate provided in tlxe Note. Mortgage Insurance reiinhurses Lender(or any entity that purchases the Note)for certain losses it may ino� if Borro�ver does not repay the Loan as agreed. Borrower is not a party to The Mortgage Insurance. Mortgage insurers evaluate[heir total risk on all such insurance in farce from time to time, and may enter into ageeivents with oSher parties that sh�e or modify their riSk, Oi reduce losses. These agreeutents aze on tenns and condsYions that azc safisfactory to the moFtgage insurer and the other party(or parties)to th�se ag-ecinents. These agreements may require�the mortgage insurer to make payments using any source of funds that the mortgage inaurer may have available(wluch may include funds obtained froin Mortgage Insurance premiums). As a result of these agreements, I,ender, any purchasex of the Note, another insurer, any xeinsi�rer, any other eiirity, or any aftiliate of any of the foregoing, may reeei�e(directly or indirectly) amounts that derive froin (or might be eharacterized as) a pqrtion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such a,greemcnt 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 insurcr, the arrangement is often temied "captive rcinsurance." Further; (a) Any such agreemGnts will not affect Yhe xmounts that Borrower has agreed to pay for Mortg�age Insurance, or any other ternvs of tlte Loan. Snch agreements will not inerease the amount Borrower«�ili owe for Mortgage Insurance, and they will not entitle Borrowcr to any refund. (b) Any such agreements will not affeet the rights Borrower has-if any-with respect to the Vlortgage Iusm�auee uuder Clie IIomeuwners Protection Act of 1998 or auy othes law. These rights may inclnde the right to receive certain disclosures, to request and obtain cancclla&on of the V�dortgage Insttrance, to h�ve the Mortgage Insurance terminate$aAtomAficallp, and/or to receive a refund of any:Vlortgage Insurance premiums tl�at were anearned at the fime af such cancellafion or termina6on. 11. Assegnment of M isceilaneous Proceeds; Forteiture. All Miscellaneous Proceeds are hereby assigned to and shall hc paid to Lender. If the Proper[y is dunagcd, such.Miscellaneous Proceeds shall be applied to restoralion or repair of the Property, if the restoration or rcpair is economically feasible and Lender's security is not lessened, During such repair and restoxation period Lender shall have the right to hold such Miscellaneous Proceeds until Lcnder has had an opporiunity to inspect such Properry[o ensure the work has been completed to Lender's 240�2435 NFBR/SKA-Single Famity-Fannie hlaelFredtlie Nlac UMFORM INSTRUP9 ENT Form 3028 1101 VM P fq` VM P6(NE)(1 t 05) Woltxrp Kluwer fingncial Services Page9 of 1]