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<br />modifying the mortgage insurer's risk, or reducing losses. If such agreement provided that an affiliate of Lender
<br />takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is
<br />often termed "captive reinsurance." Further:
<br />(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage
<br />Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will
<br />owe for Mortgage Insurance, and they will not entitle Borrower to any refund.
<br />(b) Any such agreements will not affect the rights Borrower has — if any — with respect to the
<br />Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may
<br />include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage
<br />Insurance, to have the Mortgage Insurance terminated automatically, and /or to receive a refund of any
<br />Mortgage Insurance premiums that were unearned at the time of such cancellation or termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
<br />assigned to and shall be paid to Lender.
<br />If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the
<br />Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such
<br />repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has
<br />had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction,
<br />provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a
<br />single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in
<br />writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be
<br />required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is
<br />not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to
<br />the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower.
<br />Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2.
<br />In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds
<br />shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any,
<br />paid to Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value
<br />of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the
<br />amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss
<br />in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument
<br />shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total
<br />amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the
<br />fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance
<br />shall be paid to Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value
<br />of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the
<br />sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender
<br />otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security
<br />Instrument whether or not the sums are then due.
<br />If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing
<br />Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to
<br />respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the
<br />Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security
<br />Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous
<br />Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds.
<br />Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in
<br />Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in
<br />the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has
<br />occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling
<br />that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest
<br />in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are
<br />attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender.
<br />All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in
<br />the order provided for in Section 2.
<br />12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for
<br />payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to
<br />Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any
<br />Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor
<br />in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums
<br />secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in
<br />Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation,
<br />Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in
<br />amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy.
<br />13. Joint and Several Liability; Co- signers; Successors and Assigns Bound. Borrower covenants
<br />and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-
<br />signs this Security Instrument but does not execute the Note (a "co- signer "): (a) is co- signing this Security
<br />Instrument only to mortgage, grant and convey the co- signer's interest in the Property under the terms of this
<br />Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c)
<br />agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations
<br />with regard to the terms of this Security Instrument or the Note without the co- signer's consent.
<br />Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's
<br />obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's
<br />rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations
<br />and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and
<br />agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors
<br />and assigns of Lender.
<br />14. Loan Charges. Lender may charge Borrower fees for services performed in connection with
<br />Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security
<br />Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any
<br />NEBRASKA -- Single Family -- Fannie Mae /Freddie Mac UNIFORM INSTRUMENT Form 3028 1 /01 (page 6 of 9 pages)
<br />9754.CV (7/11) 62026 Creative Thinking, Inc.
<br />GOTO(0004ac0e)
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