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201209558 wntinue to pay to Lender the amount of ihe separately designatad payments that were due when the Insuxanee coveraae ceased to be in effect: Lender will accept, use and retain these pa}nnents as a nou-refundable loss reserve m lieu of Mortgage Insurance. Such loss reseroe shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and I.ender shall not be required to pay Baaower any In{erest or ea�nings on such loss reserve. Lend�r can no longea requiue loss reserve payments if Mortgage Insurance coverage(in the amount and for tlie period that Lender requires)provided by an ineure� selccted by Lendet again becornes available, is obYained, and Lender requires separatcly designated payments toward the preuuums for Mortgage Insurance. If Lender ra�uired Mortgage Insurance as a condition of makiug the Loan and Bonower was required to make sepazately dcsignated payments toward the premimns for Mortgage Insurance, Bor[owec�sha1.1 pay the premiums required to maintain Mortgage Insurance in effect, or to procide a non-refundable loss reserve, unril Lender's requirement for Mortg�e Insurance ends in accord�ce wi[h avy written agreement between Borrower and Lender providing for such tenninarion or until termination is xequired by Applicablc Law. Nothing in this Section 10 affects Borrower s obligarion to�ay inTerest at the rate provided in the Note. Mortgage Insurance reunburses Lendcr(or any entity that pvrchases lhe Note) for certain losses it may incur if Borrower does not iepay the Loan as agreed. Borcower is not a pariy to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from rime te time, and may enter into agreements with other parties that share or inodify thcu risk, or reduce losses. These agreements aze on terms and conditions that aze satisfaetory to the mortgage insurer�d the othea parig(or parties)to these agreements. These agreements may require the mortgage nisiver to make payments using auy sonrce of funds that the mortgage insurer�nay ha�e avaitable(which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purehasea' of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foreaoing, may reccive(directly or indirectly) unounts that derive from (or might be characterized as) a portion of Borrower's payments for 1Vlortgage lnsurance, in exchange fpr sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement pro�zdes(hat an affiliate of Lender[akes a share of the insurer's risk in exchanga Por a share of the pxemiums paid to the insurer, the arrangement is often termed"cagt;ve reinsuranee." Ftu2her: {a) Any such agreements will uot affect the amounts tLat Borrower has agreed to pay for Mottgage Insurance, or any other terms of the Loan. Snch agreements wi11 not inerease the amount BOrrower�vill owe for Mortgage Insiu�ance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Barrower l�as-if atty-with respect to the :Vlortgage Insurance under the IIomeowners PYotection Act of 1998 or any other law. These rights may include the rigLt ko receive ceri�ain disclosures, to request and obfain cancella&on of the Mortgage Insprance, to have the Mortgagc Insurance terminated automaticalty, and/or to recebe a refund of any�VIortgAge Insurance premiums that were unearned at the time of such cancellation or terminafion. 11. Assignment of M iscellaneous Proceeds; Forfeiture. All Miscellaueous Proceeds are hereby assi�ed to and shall Uc paid to Leiider. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Propar[y, if the xestoratian or repair is eConom3eally feasible aud Lender's secutity is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunit9 to inspect such Properry to ensure the work has been completed to Lender's zaooz�s� NB4ASKASingle Fami!y-FannieMae/Fretldie Mac UNIFORIe1 INSTRUMENT Form 3028 V01 VMPp VMPG(NEj(11Q5� N/ol.=rs Kluwer Financial Services P2ge 9 of��