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~DO 7/D087 10. Mortgage Insurance. If Lender required Mortgage Insurance as ~ condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insnrance coverage reqnired by Lender ceaSes to be available from the mortgage insurer that previonsly provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insumnce, Borrower shall pay the premiums requircd t.o obtain coverage substantially equivalent to the Mortgagc Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in cffcct, Irom an alternate mortgagc 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 designated payments that were due when the insumnce coverage ceased to be in eftect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage I nsurance. 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 pay 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 sclected 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 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 Insumnce ends in accordance with any written agreement betwcen 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 thc Notc, Mortgage Insurance reimburses Lender (or any entity that purchases the Note) 101' 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 timc. and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on tenDS 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 fund, that the mortgage Insurer may have available (which may include 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 ofthe foregoing, may receive (directly or indirectly) amount, that derive from (or might be characterized as) a portion of Borrower' s payments for Mortgage Insurance, in exchange lor sharing or modifying the mortgage insurer's risk, or reducing losses. Ifsuch agreement provided that an affiliate of Lender takes a share of the insurer's risk III exchange for a share of the premiums paid to the insurer, the arrangement is often temled "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 al(reements will not affect the ril(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 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. I f the 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, During such repair and restoration period, Lender shall have thc right to hold such Miscellancous Proceeds until Lender has had an opportunity to inspcct such Property to enSUrC the work has been completed to Lender's satisfaction, provided that such inspection shall bc undcrtaken 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 be lessened, 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. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2, In thc event of a total taking. dcstruction, or loss in valuc of the Property, thc Miscellancous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with thc excess, if any, 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 belore the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument inlmediately belore the partial taking, destruction, or loss in value, unless Borrower and Lender otherwisc agrec in writing, the sums sccured by this Security Instrument shall bc 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 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 Joss 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. rfthe 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 lor damages, Borrower lails 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 if any action or proceeding, whether civil Or criminal, is begun that, in Lender's judgment, could result in forfeiture ofthc Property or other material impairment of Lender' s interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has ocenrred, reinstate as provided in Section 19, by causing the action or proceeding to bc dismissed with a ruling that, in Lender'sjudgment, precludes forfeiture of the Property or other material impairnlent of Lender' s interest in the Property or rights under this Security Instrument. The proceeds of any award or claim lor damages that are attributable 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, Extension of the tinle for payment or modification of amortization of the 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 Borrowcr or any Successors in Interest of Borrower, Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right :"<EBRASKA~Smgle Family-Fa..le MaelFreddle Mac tJNIFQRJ\1INSTRUJ\1ENT 9754.CY (1105) 6!N8555040 Forln 3028 J 10 I (pag~ 5 of N page,,) Creatlvl,: Thtnklng~ Inc_ GOTO(OOI685oo)