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� continne to pay to Lender the amount of the separately 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-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultima.tely paid in full, and Lender shall not be required to pay Borrower any interest or earnings 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 I.ender again becomes available, is obtained, and Lender requires �parately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of makin$ the Loan and Borrower was required to make separately designated payments towazd the premiums for Mortgage Tnc�,�nsp, Borrower shall pay the premiums required to maintain Mortgage Inswrance in effect, or to provide a non-refundable loss resezve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower aud Lender providing for such termination or until termination is required by Applica.ble Law. Nothing in this Secdon 10 affects Borrower's obligadon to pay interest at the rate pmvided in the Note. Mortgage Tn�,*�� reimburses Lender (or any entity that purchases fhe Note) for certain losses it may incur iF Borrower does not regay the Loan as agreed. Bortower 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 aze satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source 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 aff'�liate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Bonower's payments for Mortgage Inc„ra�p, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses, If such agreement provides that an aff'�liate of Lender takes a share of the insurer's risk iu excha.nge for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (�) Any snch agreements will not affect the amounfs that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Snch agreements will not increase the amonnt Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to sny refund. ib) Any such agreemeats will not affect the rights Borrower has - if any - with respect to the Mortg�ge Insurance nnder the Homeowners Protection Act of 1998 or any other law. Th�e rights may include the right to receive certain disclosures, to reqnest and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated sutomatic�lllly, and/or to receive a refund of any Mortgage Insnrance premiums that were unesrned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and sball be paid to Lender. ff the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Propezty, 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 Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's NEBAASKA-Single Femlly-Fannia Mae/Freddie Mec UNIFORM IRtSTRUMENT Form 3026 7/01 VMP � YMP61NE) (11061.00 Woltera Kluwer Flnanciel Servicas Paga 8 of 17