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continue 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 ultimately paid in full, and shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no Lan ier require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that er requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender requir Mortgage Insurance as a condition of making the Lan and Borrower was required to make separately designated payments 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 reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrowkr and Lender providing for such termination or until termination is required by Applicable Law. Nothing is this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. 1 Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party tolthe Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force flom 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 are satisfactory to the mortgage insurer and the tither 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 finds obtained from Mortgage Insurance premiums). 1 As a result of these agreements, Lender, any purchaser of the Note, smother insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. Ifsu�h agreement provides that an affiliate of Lender takes a share of the insurer' s risk in exchange for a sh of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: 1 Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Suds agreements will not Increase the amount Borrower will owe for Mortgage Insurance, and they will not endtle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - i f y - with respect to the Mortgage Insurance under the Homeowners Protection Act of or any other law. These rights may include the right to receive certain disclosure, to request an obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated' automatically, and/or to receive a rettmd of any Mortgage Insurance premiums that were unearadd at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Misoellaneo Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender' a security is not lessened. During such repair and restoration period, Lender shall have the right to bold such Miscellaneous Proceeds until Leader has had an opportunity to inspect such Property to ensure the wor14 has been completed to Lender's (a) WU* 412727 120788 VM NEBRASKAanole Famly-Frara MaNFnesla Mae unmoral INSTFUMen Walters Kluwer RneiWM SrvMea VMP (1701 P1es 1! oe 17