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201211193 continue to pay to Lender the ainount of the separately designateci payments that were due u�hen the insurance coverage caased to be in effect. Lender��ill accept, use and retain these payments as a non-refundable loss reseroe in lieu of Mortgage Tnsurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ulrimately pud 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 Ins�ance coverage(in tho amount and for the period that Lender requires)pxovi,ded by� insurer selected by Lender again becomes available, is obtained, and Lender requires sepazately de,igna.ted payments toward the premiums for Mortgage Insurance. If Lender reqLured Martgage Insurance as a condirion of maldng ihc Loan and Borrower was requi.red fo make sepazately desienated payments towazd the premiums for Mortgage Insurance; Borrower shall pay the premimns required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement f'or Mortgage Insurance ends in accordance with any written agreemcnt between Borrower and Lender provicling for such ternunation or Luxtil kermivarion is xequired by Applicable Law. Nothing in this SecCion 10 affects Borrower's obligation to pay intexest at the rate provided in the Note. Mortgage Insurance reimburses Lender(or any entity that purchases the Note)for certain loss�it may incur iP Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total riSk oa all such insurance in force from time to time, and may enter into ageancnts�vith other parties that shaze or modify their risk, or reduce losses. These a�vreemcnts are on teim�and conditions that are satisfaetory to the mortgage insurer and the other party(or pazties) to these agreements. These a�-eemeuts may require the mortgage uisurer to uiake paymen;s using any source of funds that the mortgage insurer inay have auailable(whic$may include funcLc oUtained from Mortgane Insurance premiums). As a result oP these agreements, Lender, �y piuchaset o£the Note, another insur�r, auy reinsurer, any other entity, or an��affiiiate of any of the foregoing, may receive(directl;�or indirectly) amounts that derive from (or might Ue cliaracterized as) a portion of Borrower's payments for Moatgage Insurance, in exchange for sharing or modifying the mortgage msurer's risk; or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a shaze of the preiniums paid to the insurer, the arrangement is often termed"captive reinsurance." Further: (a) Any such agreements will uot affect the amounts that Borro�t•er has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Snch agreements�viII not increase We amount Boaower will owe fpr Mortgage Insurance, and Yhey will not enfitle Borrower to Any refmmd. (b) Any such agrcemenCs wil1,not xffect the rights Boarower ha.s-if any-with respect to the Vlortgage Insurance[[nder the Homeowners protec&on Act of 1998 or any otLer law. These rights mxy inclnde the right to receiv¢certain disclosures, to reqnest and obtun cancellation of th0 Mortgage Insurance, to have the_l4ortgage Insm-Amce terminated aatomiatically, xn@/or to receive a refund of any Mortgage Insurance premiums that were uneamed at the time of snch cAncellation or Yermine,tion 11. Assignment of M iscellaneous Proceeds; Forteiture. All Miscellaneous Proceeds are hereby assinned to and sha11 be paid to Lender. If the Property is&vnaged, such Miscellaneous Proceeds shall be applied to restorarion or repair of the ProperEy, if the restorarion or repair is economically f.easible and Lender's security is not lessened. During such zepa�and restorarion period, Lender shall have the right to hold sueh Miscellaneo'us Proceeds nnhil L,ender has had an opp��rtunity to inspect suoh Pxoperty to ensure fhe work has been compleTed to Lander's zaaaazz� NE3R9SKA-Single Family-Fan�ie A1 aNFreddie M ac UNIF-0 Wvl INSTRUM ENT Form 3028 5/01 VM P� VM P6(NE)(1105) Wo�ters Klusv=_r Fnancial Services Page 9 of 1�