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� 201209483 continue to pay to Leader the ainount of the separately designated payments tliat were due when the insurance coverage ceased ta be in eff'ect. Lender v✓ill accept, use and retain these payments as a non-re€undable loss reserve iu lieu of Mortgage InSurance. Such loss reserne shall be non-refundable, nohvithstanding the fact that the Loan is ultunateiy paid in full, and Lender shall not be required[o pay Borrower any interest or eamings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insnrance eoverage(in the amount and for the period that Lendez requires)provided by an 3nsurer selected by Lender again becomes available, is obtained, and Lender requixes sepazatelp designated pa}�ments towazd the premiums for Mortgage Ia,urance. If I,ender required Mortgage Insurance as a condition of making flie Loan and Borrower v✓as required to make separately dzsignated paymerns toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss resesve, until Lender's requiremeirt for Mortgage Insurance ends in accordance with any written aereeinent beh�t�een Borrower and Lender pro��iding for such teruunation or until termination is reqLured by Applicable Law. Nothing in this Section 10 affects 13orrower's obligatlon To pay inTerest aE the rate provided in the Note. Mortgage Insurance reimbcu-ses Lender(or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the ioan as agreed. Bonower is not a party to the Mortgage Insurance. Mortgage instuers evaluate their total risk on a11 suci�insurance iu force frqm time to time, and may enter into agreements with other parties that share or modify the�r f3sk, or xeduce losses. These agxeements aee op tetu�s and conditions that are satisfacfory to the mortgage insurar and the oflier party(or par[ies)To these agreements. Thcse ag�eemznts may require the mortgage insurer to make payments using any source of funds that the mortgage iasurer may have available(wluch may include funcls obta3ned from Mortga�e Insurance preiniums). As a result of these agreements, Leader, any purchaser of the NoTe, another iasut�er, any reinsuter, a,ny other enrity, or any affiliatc of any of the foregoing, may receive(direcdy or indirectly)amounts zhat derive from (or might be chazacterized as) a porrion of Bonower's payments for Ulortgage Insurance, in exchange for sharing or modifyu�g the mortgage insurer's risk, or reducing losses If such agreemant provides fhat an aff�iiiaie of Lender takes a share of the insurer's risk in�change for a share of the premimns paid to fhe insurer, the arrangement is often Termed°captive xeinsurance." Further: (a) Any such Agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or 9ny other terms of the Loan.. Snch agreements will not increase the amaunf Borrower will owe for VIorfgage Iusurance, and they will mot entitle Borro�ver to any refund. (b) Any such agreements will not affect the rights Borrower has -if any-a2th respect to the lbiortgage Insnranee under the Homcowners Protecison Aet of 1998 os any othei�law. These righls . may include the right to receive certain disclosures, to request and obtain cancellation of tt�e �.Zortgage Insnrance, to have the Mortgage Insurance terminated automafically, and(or to receive a refund of any Vdortgage Insurance premiwns t3tat w-ere uneamed at the time of such cancellation or termination 11. Assignment of M isceltaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigied to and shall be paid to Lender. I:the Property is damaged, such Miscellaneous Proceeds sha116e applied to restoration or repair of the Properiy, if the restoration ar repair is economically feasble and Lender's sccuriry is not lesseeaed. During such repair and restoTation period, Lender shall have the right to hold such ivliscellaneous Procceds until Lender lias had an opportunity to inspect such Yroperry to ensure the work has been completed to Lender s zeoaz�is NFBR:SKA-Single Fzmily-Fannie Mae✓Fretldie P.4ac UNI�ORM WSTRUMENT Form 3�28 1/01 �'��P�°% VMP6(N�(1105) V/oHers Kluwer Financial Services Page 9 of 17