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200709607 10. Mortgage Insurance, If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the prcmiums 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 insurancc and Borrower was required to make separatcly 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 equivalcnt to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected hy Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall eontinuc to pay to Lender the amount of the separately designatcd payments that were due when the insurance coverage ceased to be in effect. Lender will aeecpt, use and retain these payments as a non-refundable loss reServe in lieu of Mortgage Insurance. Such loss reserve shall bc non.refundable, notwithstanding the fact that the Loan is ultimately paid in full. and Lender shall not be required to pay Borrower any interest or eamings 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 Mortgage Insurance, If Lender required Mortgage Insurance as a condition ofmakmg 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 arc on terrns and conditions that arc 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 inelude funds obtained from Mortgage Insurance premiums), As a result of these agreements, Lender, 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, orreducing losses, If such agreement provided that an affiliate ofLendertakes a share ofthe insurer's risk in exchange for a share of the premiums paid t.o the insurer, the arrangement is often termed "captive reinsurance," Further: (a) Any such al!:reements will not affect the amounts that Borrower has a!(reed to pay for Mortgage Insuranee, or any other terms of the Loan. Such a!(reements will not increase the amount Borrower will owe for Mort!(a!(e Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the ri!(hts 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 ohtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatieally, andlor to receive a refund of any Mortgage Insuranee premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous I'roceeds; 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 of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. Dnring snch 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 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 he required to pay Borrower any interest Or earnings on such Misccllaneous Proceeds, If the restoration or repairis not economically feasible or Lender's security would be lessened, the Misccllaneous Proceeds shall be applied to the sums secured by this Security Instmment, whether or not thcn due, with thc excess, if any, paid to Borrower, Such Miscellaneous Proceeds shall be applied in the order provided for in Scction 2, In thc event of a total taking, destmction, Or loss in value of thc Property, the Misccllancous Proceeds shall he applied to the sums sccured by this Security Instmment, whethcr or not then due, with thc cxcess, 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 ofthe Property immediately before the partial taking, destruction. or loss in value is equal to or greater than the amount of the Sun1S secured hy this Security Instrument immediately bcfore 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 multiplied by the following fraction: (a) the total amount of the Sun1S 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, destmction, Or loss in value, Any balance shall be paid to Borrower. In the event of a partial taking, dcstruction, or loss in value of the Property in which the fair market valuc of the Property immediately before the partial taking, destmction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruCllon, or loss in value, unless Borrower and Lender otherwisc agree in writing, the Misccllaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due, Ifthe 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 authoriLOed to collect and apply the Misccllaneous Proceeds either to rcstoration or repair of the Property or to the snms securcd by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Procceds 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 judgment, could result in forfeiturc ofthc Property or other material impairment of Lender' s interest in the Property or rights under this Security Instrument. Borrowcr can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender' s jud~ent, prceludcs forfeiturc of the Property or other material impairment of Lender' s interest in the Property or rights under thIS Security Instrument. The procecds of any award or claim for damages that are attributablc to the impainnent of Lender's interest in the Property are hereby assigned 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. Extcnsion oftbe time for payment or modification of amortization ofthe sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to rcfusc to extend time for payment or otherwisc modify amortization of the sums secured by this Security Instrumcnt by reason of any dcmand madc bythc original Borrower or any Successors in Interest of Borrower, Any forbearance by Lender in exercising any right NEBRASKA-Smgle Family-Fannie MaelFreddie Mac UNIFORM tNSTRUMENT 97,4.0' (110,) 6898557140 ~orm 3028 t/Ot (page 5 of 8 pages) Creative Thinking, Inc. (iOTO(0016a7!l7)