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<br />N~3niHIl.m".Il,l:i. h~m
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<br />200601465
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<br />payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable,
<br />notwithstanding the fact that the Loan is ultimately paid In full, and Lender shall not be required to pay Borrower any
<br />interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance
<br />coverage (in the amount and for tbe period that Lender requires) provided by an insurer selected by Lender again
<br />becomes available, is obtained, and Lender requires separately designated payments toward the premiums for
<br />Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was
<br />required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay
<br />the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve. until
<br />Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and
<br />Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section
<br />10 affects Borrower's obligation to pay interest at the rate provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity lhat purchases the Note) for certain losses it may incur
<br />if Borrower 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 into
<br />agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and
<br />conditions that are satisfactory to the mortgage Insurer and the other party (or parties) to these agreements. These
<br />agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer
<br />may have available (which may include funds ohtained from Mortgage Insurance premiums).
<br />As a result of these agreements, Lender. any purchaser of the Note, another insurer, any reinsurer, any other
<br />entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might
<br />be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying
<br />the mortgage insurer's risk, or reducing losses, If such agreement provides that an affiliate of Lender takes a share
<br />of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement Is often termed
<br />"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 other terms ofthe Loan. Such agreements will not increase the amount Borrower will owe
<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 Mortgage
<br />Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may Include the right
<br />to receive certain disclosures, to request and obtaln cancellation of the Mortgage Insurance, to have the
<br />Mortgage Insurance terminated automatically, andlor to receive a refund ofany Mortgage Insurance premiums
<br />that were unearned at the time of such cancellation or termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are herehy assigned to
<br />and shall be paid to Lender.
<br />If the Property Is damaged, such Miscellaneous Proceeds shall he applied to restoration or repair of the Property,
<br />if the restoration or repair is economically feasible and Lender's security Is not lessened. During such repair and
<br />restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an
<br />opportunity to Inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that
<br />such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement
<br />or in a series of progress payments as the work is completed. Unless an agreement Is made In writing or Applicable
<br />Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any
<br />interest or earnings on such Miscellaneous Proceeds. If the restoration or repair Is not economically feasible or
<br />Lender's security would be lessened. the Miscellaneous Proceeds shall be applied to the sums secured by this Security
<br />Instrument, whether Or not then due, with the excess, if any. paid to Borrower. Such Miscellaneous Proceeds shall
<br />be applied In the order provided for In Section 2.
<br />In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to
<br />Borrower.
<br />In the event of a partial taking. destruction, or loss in value of the Property in which the fair market value of
<br />the Property immediately before the partial taking, destruction. or loss in value is equal to or greater than the amount
<br />of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value,
<br />unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced
<br />by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums
<br />secured immediately before the partial taking, destruction, or loss in value divided by (h) the fair market value of the
<br />Property immediately before the partial taking, destruction, or loss In value. Any halance shall be paid to Borrower.
<br />In Ihe evenl of a partial taking, destruction, or loss in value of the Property In which the fair market value of
<br />the Property Immedlateiy hefore the partial taking, destruction, or loss in value is less than the amount of the sums
<br />secured Immediately before the partial taking, destruction. or loss in value, unless Borrower and Lender otherwise
<br />agree in wrlting, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether
<br />or not the sums are then due.
<br />If the Property is abandoned by Borrower, or If, after notice by Lender to Borrower that the Opposing Party (as
<br />defined in the next sentence) offers to make an award to settle a claim for damages. Borrower fails to respond to
<br />Lender within 30 days after the date the notice Is given, Lender Is authorized to collect and apply the Miscellaneous
<br />Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether
<br />or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party
<br />against whom Borrower has a right of action in regard to Miscellaneous Proceeds.
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<br />NEBRASKA-.Single Family..Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS
<br />Form 3028 1/01 Page 6 of 10
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<br />Dcx;Magk;eF@1uulNl 800-649.1.362
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