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200704639 Any amounts disbursed by Lender under this Section 9 shall become additional debt ofBorrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable. with such interest. upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold. Borrower shall comply wIth all the provisions of the lease. If Borrow~r acq~ires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger In wntmg. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan. Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason. the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance. Borrower shall pay the premiums requIred to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect. from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately desi~nated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retaIn these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non- refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pax Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments If Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mort~age Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was reqUired to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entIty that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. 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 party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result ofthese agreements. Lender, any purchaser of the note. another insurer, any reinsurer, an)'other entity, or affiliate of any ofthe 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 mortga~e insurer's risk, or reducing losses. If such 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 termed "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 of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the 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 had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a sin~le 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 be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due. with the excess, ifany, 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 a partial taking, destruction, or loss in value ofthe Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount ofthe sums secured by this Security Instrument nnmediately before the partial takIng, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing. the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multip lied by the following fraction: ( a) the total amount of the sums secured immediately before the partial taking. destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction. or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately 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 sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous 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 party 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 ifany action or proceeding, whether civil or criminal. is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property NEBRASKA--Single Family--Fannie Mae/l<'reddie Mac lJNIFORM INSTRllMENT Form 3028 1/01 (page 5 of8 pages) I72I3.CV (3/06) 05-1018 Creative Thinking, Inc. GOTO(000c737f)