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2� 1 ��8188 cnn��nue�o pay�a Lender the amount of�he separateiy designated pa�ments�hat were due when the �nsurance��erage ceased to be in effect. Lender wi�� a�cep�, use and retain�h�se paymen�s as a non-refundable loss reserve in l�eu of Mor�gag�Insurance. Such loss reser�re sha�l be nan-refundab�e, notv�r�ths�and�ng th�fa�t that�he Laan is u��imat�ly paid in full, and Lender shal� not be required t�pay B�rrow�r any intereSt Qr��rnings�n SUCh��SS re5e�re. Lender can no longer require loss reser�v�payments if Mortgage �nsurance co�erage ��n the amount and for�he periad�hat I,ender requires}pro��ded by an insurer s��ected by Lender again becomes a�ailable, �s ob�ained, and I.ender requ�res separa�ely designat�d pa�men�s taward the premium� for Mor�gage Insuranc�. �f L.ender rec�uired Mor�gage Insurance as a condit�on�f making the Loan and Borraw�r v�ras required to make separatel�designated payments�oward th� premu�.unls for Mort�age�nsurance, Borrower shall pa��he premiums r�qu�red�o ma�ntain Mor�gage Ynsurance�n effec�, or ta provide a nanWrefunda��e loss reser�e, un�il Lender's requirernen�for Mor�gage Insurance ends in accordance with any v�ri�ten agreemen�be�ween Barr�wer and Lender pr��iding far such terminat�on or un�i�termination is r�quired b�Appl�cable Law. Nothing in this Sect�on �4 affects Borrower's ob��atxon�a pay interes�at�he ra�e pro��ded in�he No�e. Mor�gage Insurance reimburses L.ender�or an�en�ity �ha�purchas�s�he Note} for cer�ain�osses �t may incur if Borrower doe�no�repay the Loan as agreed, B�rrou�er is no� a part��a the Mor��age Insurance. Mortgage insurers e�aluat�th�ir total risk on all such�nsurance in force from t�me�o f�me, and ma��n�er �nta agreements v�ith o�her par�ie�tha�share ar rnadify�heir r�sk, �r reduce losses. These a�reem�nts are on �erms and condi�ions tha�are sa�isfac�ary to �he mor�gage insurer and the other par�y �or parties} �o�hes� agre�men�s. These agreements may require the mor�gag��nsurer�o mak�payments us�n� any source of funds �hat�he mor�ga�e �nsurer ma�ha�e ava��abie �v�hi�h may inciud�funds ob�a�n�d from Mortgage�nsurance premiums�, A�a resu��of these agreements, L�nder, any purchaser af�he N��e, an�th�r�nsurer, an� r�insurer, any o�her ent�ty, ar any af��ia�e of any�f th�fore�oin�, ma� receive �direc��ar �ndirect�y} amoun�s�hat deri�re from �ar m�gh�be characteriz�d as} a partion�f Sorrow�r's pa�ments for Mor�gag��nsuran�e, in exchan�e for sharing flr madif�ing �he mortgage insurer's r�sk, or reducing losses. If such agreemen�pro�id�s that an affil�ate of Lender takes a�hare of the insurer's r�sk in�xchan�e for a shar�of the prem�ums pa�d�o�he �nsur�r, the arran�ement ��often term�d "captive reinsurance." Fur�her: �a� Any such agree�rnenfs«�i�l not affect the amoun�s�ha�Barrower has agreed ta pay far Mor�gage Insur�nCes or any o�her�erms of th�Loan. Such agreem�nts��iii nat in�rease the amount Borrow�r wil�o�v�for�Vlortgage Insurance, and they��v��nat en�i��e Borrower�o any refund. �h} Any such agreena�en�s wi��not affect the r�ght�B�rrower has-if an�- v�ith respec�to�he Mar�gage Insurance under�he Homeowners Pro�ec�xon Act of 1995 or any other�a��. These righ�s may�nc�ude#h�right#o rec��e certain disclosures, to request and obtain can�el�ati�n of�he Mar�gage Insuranc�, to have the IVlarfigage Insurance ternr��nated automa��cally, andlar to recei�e a refund af any 1Vlor�gage Insurance�rem�ums�ha� wer�unearned at�he t�me of such cance�lation�r�ermination. 'i�. Assignment of tV�isce�laneous Pr�ceeds; Fo�feiture. All Misce�Ian�aus Prflceeds are hereb� assigned to and sha�l be paid to Lender. If�he Propert� �s damag�d, such M�sceilane�us Proce�ds shall be app�ied to restoration�r repa�r of the Proper�y, �f the restora��on flr repa�r�s ec�n�mical�y f�asib�e and Lend�r's securi�y is not lessened. Dur�ng such repa�r and restoration p�riod, L.ender sha��have�he righ�to hold such Misce�laneous Proc�eds unt�l �ender has had an appor�uni��a inspeGt such Proper�y t��nsure the wark ha�been ctimpleted�fl Lender's NEgRASKA-Single Famiiy-F�nnie Ma�IFreddie Ma�UNIFQRM tNSTRUM�NT Form 302$110� VMP� VMPfiiN�;t13�2� Walters Kluwer FinanciaE Ser�ices Page 9 of 17