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200301786 Mortgage Insurers evaluate their total risk on all such insurance in force from 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 other parry (or parties) to these agreements. These agreements may regtrue the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include Ponds obtained from Mortgage Insurance premiums). As a result of these agreements, Lander, any purchaser of the note, another insurer, any reinsurer, any other entity, or 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 educing losses. Ifsuelr agreement provided that an affiliate of Lender takes a share of the insurer's risk in exchange for a share ofthe premiums paid to the insurer, the arrangement is often tented "captive reinsurance." Further: '.(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has— if any —with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and /or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment ofMiscellancous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. Ifthe Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair ofthe Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has hadan opportumtyto inspeetsueh Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall he undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would he lessened, the Miscellaneous Proceeds shall be a plied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value ofthe Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, dest ruction, or loss in value is equal to or greater than the amount ofthe sums secured by this Security Instrument Immediately before the partial taking, dest ruction, or loss in value, unless Borrower and I znder otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or lass in value divided by (b) the for market value ofthe Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Burrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediate] yy before the Partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the many are then due. If the Property is abandoned by Borrower, or if, after notice by larder to Borrower that the Opposing Party (as defined in the next serience) offers to make an award to settle a claim for damages, Borrower fails to respond to Linder within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscclluncous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third parry that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judggment, could result in fbrfcilure of the Property or other material impairment of Lender's interest in the Property or rights underthis Securirylnstrionem. Borrower can cure such adefaullanl, ifaccclennionlnasoccurred, reinstateas providedln Section 19, by causing the action or proceedin to be dismissed with a ruling that, in Lender'sjud&mant, preclu esforfeimre of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assiggned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification famortization ofthe sums secured by this Security Instrument granted by Lender m Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Burrower or any Successors in Interest of Borrower. Under shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend rt time for payment or otherwise modify amo ¢ation ofthe sums secured by this Security Instrument by reason of my demand made bythe original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender In exercising any right or remedy including, without limitation, lender's acceptance of payments hum third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver offer preclude die exercise of Say right or remedy. 13. Joint and Several Liability; Co- signers; Successors and Assigns Bound. Borrowercovenantsandagrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co -signs this Security Instrument but does not execute the Note (a "co- signet'): (a) is cosigning this Security Instrument only in mortggage, grant and convey the co- signer's interest in the Property under the terms Of This Security Instrument; III) is notpersonally obligated to paythe sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without die co- signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Burruwer's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release In writing. The covenants mid agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns oft znder. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation ecs. In regard m any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited bythis Security Instrument or by Applicable law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected on be collected in connection with the Ivan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge tome permitted limit; and (b) any sums NEBRASKA SnalekImnt,— Fannin Mae /Freddie Mae FN (FORM INS] RUMENT Form M2a t /ol (poge5of8prsgu) 9- 4.11(1/02) 165W6 GOTO(000419k)