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<br />V1 waCD LOAN # 501737733
<br />risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance."
<br />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 of the Loan. Such agreements will not increase the amount Borrower will owe for
<br />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 to
<br />receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage
<br />Insurance terminated automaticaliy, and/or to receive a refund of any Mortgage Insurance premiums that were
<br />unearned at the time of such cancellation or termination.
<br />11. Assignment of Mlscelianeous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and
<br />shall be paid to Lender.
<br />If the Property is damaged, such Miscellaneous Proceeds shall be 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 opportunity
<br />to inspect such Property to ensure the work has been completed to lender's satisfaction, provided that such inspection
<br />shall be undertaken promptly. lender may pay for the repairs and restoration in a single disbursement or in a series of
<br />progress payments as the work is completed. Unless an agreement is made in writing or Applicable law requires interest
<br />to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on
<br />such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be
<br />lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not
<br />then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided
<br />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 ofthe Property in which the fair market value ofthe Property
<br />immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums
<br />secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower
<br />and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount
<br />of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately
<br />before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately
<br />before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower.
<br />In the event of a partial taking, destruction, or loss in value ofthe Property in which the fair market value ofthe Property
<br />immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured
<br />immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in
<br />writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not
<br />the sums are then due.
<br />Ifthe Property is abandoned by Borrower, or if, after notice by lender to Borrower thatthe Opposing Party (as defined
<br />in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within
<br />30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either
<br />to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due.
<br />"Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom
<br />Borrower has a right of action in regard to Miscellaneous Proceeds.
<br />Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in lender's judgment,
<br />could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under
<br />this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in
<br />Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes
<br />forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security
<br />Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of lender's interest
<br />in the Property are hereby assigned and shall be paid to Lender.
<br />All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order
<br />provided for in Section 2.
<br />12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or
<br />modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any
<br />Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of
<br />Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to
<br />refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by
<br />reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by
<br />Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third
<br />persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver
<br />of or preclude the exercise of any right or remedy.
<br />13. Joint and Several liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees
<br />that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security
<br />Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage,
<br />grant and convey the co-signer's interest in the Property under the terms ofthis Security Instrument; (b) is not personally
<br />obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can
<br />agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or
<br />the Note without the co-signer's consent.
<br />Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations
<br />under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits
<br />under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this
<br />Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security
<br />Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender.
<br />
<br />20071025f
<br />
<br />NEBRASKA-Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT
<br />@ 1999-2004 Online Documents, Inc. Page 6 of 9
<br />
<br />Form 3028 1/01
<br />
<br />Initials: rx1I
<br />NEEDEED 0402
<br />11-29-2007 14:21
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