|
200407208
<br />the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the
<br />Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially
<br />equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of
<br />the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will
<br />accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss
<br />reserve shall be non - refundable, notwithstanding the fact that the Loan is ultimately paid in fall, and Lender shall
<br />not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss
<br />reserve payments if Mortgage Insurance coverage (in the amount and for due period that Lender requires) provided
<br />by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated
<br />payments toward the premiums for Mortgage Insurance, If Lender required Mortgage Insurance as a condition of
<br />making the Loan and Borrower was required to make separately designated payments toward the premiums for
<br />Mortgage Insurance, Romlwer shall pay the premiums required to maintain Mortgage Insurance in effect, or to
<br />provide a non- refirudable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with
<br />any written agreement between Borrower and Leader providing for such termination or until termination is required
<br />by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in
<br />the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may
<br />incur if Burrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance.
<br />Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter
<br />into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms
<br />and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements.
<br />These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage
<br />insurer may have available (which may include fiends obtained from Mortgage Insurance premiums).
<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any
<br />other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from
<br />(or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or
<br />modifying the mortgage insurer's risk, or reducing losses. If such agreement provides 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 tenned "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 tither terms of the Loan. Such agreements will not increase the amount Borrower will awe
<br />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 Insurance,
<br />to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage
<br />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 assigned
<br />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 had
<br />an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided
<br />that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single
<br />disbursement or in a series of progress payments as the work is completed. Unless air agreement is made in writing
<br />or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay
<br />Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically
<br />feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by
<br />this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous
<br />Proceeds shall be applied in the order provided for in Section 2.
<br />In the event oft total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall
<br />be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to
<br />Borrower.
<br />NEBRASKA -- Single Family- -Fmmie Mae /Freddie Mac I INIFORMINSTRUMENT Form 30281/01
<br />INI1c", (POge ) Of 1.1)wge.,)
<br />a 1w 1l.cox 11 /Wlee0
<br />
|