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2� 1 ��5244 �ontinue�o pa�r to L.ender�he amount�f�he separa�ely designated paymen�s that were due when�he insurance ca�erage ceased�o be in effec�. Lender w�ll accept, use and re�ain�hese payments as a nonWrefundahle Iass reser�e in lieu of Mortgage Insurar�ce. Such loss reserve sha�i be n�n-refundable, not�ith��and�ng the fact�hat the Laan is ultima�ely paid in full, and Lender shal� no�be requ�red to pay Borrower any interest ar earn�ngs�n such�oss reserve. Lender can n� Ianger require i�ss reser�e pa�ments if Mort�a�� insurance caverage ��n the amount and for�he per��d that L�nder requires}prflvided by an insurer se�ec�ed�y Lender again becomes a�ailable, is ob�a�ned, and L�nder requires separately des�gnated pa�ments�oward th�premiums for M�r�gage Insurance. �f L.�nder required Mortgage�nsurance as a condition of making �he L�an and Barrawer was requir�d �o make separately des�gnated paymen�s toward the premiums for Mor�gage �nsurance, B�rrav�rer shai�pay��e premiums required to main�ain Mor�gage Insurance�n effe�t, or�o pro�ide a non-refixndabie�oss res�rve, un�i� Lender's r�quiremen�for M�r�gage �nsurance ends in accordan�e wi�h an�wri�ten agreemen�betvveen Borrower and Lender pr��d�ng for such termina�i�n�r unti� termina�ian is required hy Appl�cab�e LavW. No�h�ng in this Sec�ion 1�affects Borrovver's o��gation�o pay interest at�he ra�e pro��ed in the Note. Mort�a�e�nsurance re�mburs�s I.ender��r any enti�y tha�purchases the I�ate} f�r cer�ain losses ��may incur �f Borrav��r does not repay the Loan as agreed. Borrav�rer is nat a par�y �� the M�r�gage In�uran�e. Martgage�nsurers��aluat�t�eir�ota� r�sk on a�� such �nsurance�n force from�ime t�time, and may enter in�o a�reements w�th o�her parties that share or modify their r�sks or reduce Iosses. These a�reemen�s are�n terms and condi�ians tha�are satisfactary to�he m�r�ga�e insurer and the other part� �or par��es} ��hese agreements, These agreements may require�h�mor�ga�e�nsurer to make payments usin� any source of funds that the mort�a�e insurer ma�ha�e a�a�ia��tvvh�ch ma� inciude funds obtained from Mor��a�e Insurane� prem�ums}. As a re�ult of thes�agreemen�s, Lender, any purchaser of the No�e, anather insurer, any reinsurer, any other entity, or any aff�l�ate o�any af th�fore��ing, m.a�re�eive��.irectly ar�ndirectly} amaunts �ha�der��re from �or mi�ht be charact�rized as} a portion of Borrower's payments for Mortgage�nsuran�e, �n e�change f�r �harin�ar mod�f�i�1g the mor�gage�nsurer's risk, or redu�ing losses. �f such agreem.ent pro�ides�ha� an af�iiiat�af Lender takes a share af�he insurer's risk �n exchange f�r a share of the premiums paid �o tl�e insurer, the arrangemen� �s often termed "cap�i�ve reinsuranc�." Fur�her: �a� Any such agreemen�s��vil� no�affec��he a�noun�s that Borrower has agreed to pay for Mor�gage Insurance, or any ofher�erms�f the Loan. Such a�reemen�s will no�increase the anr�ount Barro►��ver wi�� a��ve for Mor�gage Insurance, and the� will no�ent�fle Borrower�a any refund. �h� Any such agreemen�s will no�aFfect �he righ��Borrower ha� �if any�w��h respec��o�he �or�gage Insurance under�h�Harneowner�Pratec�ian Ac�of 199�or any o�her law. These r�gh#s �nay�nc�ude th�righ��o rec��ve cer�ain dis�Iosures, to requ�st and abtain cancella�ion of the N�vr�gage Insurance, to have�he�ortgage Insurance term�nated autamatica��y, andlor to rece�ve a r�fund of any N��r�gage Insurance premiuxns that w�re unearned at the��me of such can�e�lation or term�nation. "I'�. Ass�gnment of Mis�el�aneous Proceeds; Farfeiture. All M�sce�ianeous Proceeds are hereby assigned to and shal�be pazd�o Lender. �f the Proper�y is darnaged, such M�sceiianeous Pr�cee�s shal�be applied to restorat�on or r�pair of the Proper��, �f the res�orat�on�r repa�r�s econom�cai�y f�asibie and Lender's security is not lessened. During such repa�r and r�s�oration periad, Lender shall have�he r�gh��o hoid such Misc�I�aneous Proceeds unt�� Lender has had an oppor�unity �a inspect such Proper�y to ensure�he vvark has been comple��d to Lend�r's N�BRASKA-SingEe Family-Fannie Mael�reddie Mac UNI�ORM lNSTRUMENT Form 3fl2$11�� VMP[� VMP��N�f�13�� Wolters Kluwer�inancial Ser�ices Page 9 v#�7