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<br />insurance and Borrower was required to make separately designated payments tvward the premiums for Mortgage Insurance,
<br />Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Cnsurance previvusly
<br />in effect, at a cost substantially equivalent to the cost to Bon•vwer of the Mortgage Insurance previously in effect, from an
<br />alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available,
<br />Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance
<br />coverage ceased to be in elTect. Lender will accept, use and retain these payments as anon-refundable loss reserve in lieu of
<br />Mortgage Insurance. Such loss reserve shall tenon-refundable, notwithstanding the fact that the Loan is ultimately paid in
<br />full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer
<br />require loss reserve payments if Mvrtgage lnsurance coverage (in the amount and for the period that bender requires)
<br />provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated
<br />payments tvward the premiums for Mortgage Insurance. If Lender required Mortgage lnsurance as a cvndrtton of making the
<br />Loan and Burrower was required to make separately designated payments toward the premiums for Mortgage Insurance,
<br />Borrower shall pay the premiums required to maintain Mortgage lnsurance in effect, or tv provide anon-refmdable loss
<br />reserve, until Lender's requirement for Mortgage lnsurance ends in accordance with any written agreement between
<br />Borrower attd Lender provtdmg for such termination or until terminative is required by Applicable Law. Nothing in this
<br />Sectivn 10 affects Borrower's obligation to pay interest at the rate provided in the Notc.
<br />Mortgage Insurance reimburses i,ender (or any entity that purchases the Note) for certain losses it may incur if
<br />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 alt such insurance in force from time to time, attd may enter into
<br />agreements with other parties that share or modif3'their risk, or reduce losses. 'I'hesc agreements are on teens and conditions
<br />that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may
<br />re uire the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available
<br />(which may include funds obtained from Mortgage Insurance premiums).
<br />As a result ofthese agreements, Lender, any purchaser ofthe note, another insurer, any rcinsurer, any other entity,
<br />ar affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized
<br />as) a portion of Borrower's paymeets for Mortgage Insurance, in exchange for sharing or modifying the mortga~c insurer's
<br />risk, or reducing losses. lfsuch agreement provided that an affiliate of Lender takes a share ofthe insurer's risk m exchange
<br />for a share ofthe premiums paid to the insurer, the arrangement is often termed "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 of the Loan. Such agreements will not increase the amount Borrower will owe for
<br />Mortgage lnsurance, 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 />lnsurance 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 lnsurance, to have the Mortgage
<br />lnsurance terminated automatically, and/or to receive a refund ofany Mortgage Insurance premiums that were
<br />unearned at the time of such cancellation or termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are herebyassigtted to and
<br />shall be paid to Lender,
<br />lfthe Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair ofthe Property, if
<br />the restoration or repair is economically feasible and Lender's securityy is nut lessened. [luring such repair and restoration
<br />period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such
<br />Proper to ensure the work has been completed to bender's satisfaction, provided that such inspection shat l be undertaken
<br />prompt~y. Lender may pay for the repairs and restoration in a single disbursement yr in a series of progress payments as the
<br />work is completed. Unless an agreement is made in writing or Applicable Law requires interest tv be paid vtt such
<br />Miscellaneous Prviceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous
<br />Proceeds. If the restoration or repair is not economically feasible yr Lender's security would be lessened, the Miscellaneous
<br />Proceeds shall be applied to the sums secured by this Security Instrument, whether yr not then due, with the excess, if any,
<br />paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2.
<br />In the event of a total taking, destruction, or Ivss in value of the Property, the Miscellaneous Prviceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with the excess, ifany, paid tv Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the
<br />Property immediately before the partial taking, destruction, yr fuss in value is equal io or neater than the amount ofthe sums
<br />secured by this Security Instrument immediately before the partial taking, destruction, yr loss in value, unless Borrower and
<br />Lender otherwise agree in writing, the sums secured by this Security Instniment shall be reduced by the amount of the
<br />Miscellaneous Prviceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the
<br />partial taking, destruction, or loss in value divided by (h) the fair market value ofthe Prvperty immediately before the partial
<br />taking, destniction, or loss in value. Any balance shall be paid to Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the
<br />Property immediately before the Martial taking, destruction, or Ivss in value is less than the amount of the sums secured
<br />immediately before the partial taking, destruction, or loss in value, unless Burrower and Lender otherwise agree in writing,
<br />the Miscellaneous Proceeds shall be applied tv the sums secured by this Security Instrument whether or not the sums are then
<br />due.
<br />If the Property is abandoned by Borrower, or it; after notice by Lender to Borrvwcr that the Opposing Party (as
<br />defined in the next sentence) offers to make an award to settle a claim fur damages, Borrower fails to respond tv Lender
<br />within 30 days after the dale the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either
<br />to restorative 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 (tarty that owes Borrower Miscellancvus Prviceeds or the party against whom Borrower
<br />has a right otaction in regard to Mtscellanevus Prviceeds.
<br />Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's
<br />judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property of tights
<br />under this Security Instrument. Borrower cart cure such a default and, tf acceleration has occurred, reinstate as provided in
<br />Sectivn 19, by causing the action or proceeding to he dismissed with a ruling that, in Lender'sjudgment, Mrecludesforfeiture
<br />ofthe Property or other material impairment of bender's interest in the Property yr rights under this Securtty Instrument. The
<br />proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Prvperty are
<br />hereby assigned and shall be paid to Lender.
<br />All Miscellaneous Prviceeds 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 far payment or
<br />modittcation ofamortization ofthe sums secured by this Security Instrument granted byLcndcrtoBvrrvweroranySuccessor
<br />in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower.
<br />Lender shall not be required to commence proceedinggs against any Successor in Interest ofBorrower or to refuse to extend
<br />time fur payment or otherwise modify amortization ofthc sums secured by this Security Instrument by reason ofany demand
<br />made by the original Borrower or and Successors in Interest of Borrower. An forbearance by Lender in exercising any right
<br />or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in
<br />Interest of Borrower or in
<br />amounts less than the amount then due, shall not be a waiver of or preclude the exercise ofany right or remedy.
<br />NEBRASKA-Single Family-Fannie Mae/Freddie Mac l1NIFORM INSTRUMENT (MFRS) N"orm 3028 1/Ol (page 5 of8 pages)
<br />12439.CV (11/07) 6898885040 Creative Thinking, Inc.
<br />[;U"1~U(00275(2b)
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