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~oioo5o~2 insurance aitd 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 cast 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 Hat available, Borrower shall continue to pay to Lender the amount ofthe separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as anon-refundable lass reserve in lieu of Mortgage Insurance. Such lass 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 ar earnings an 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 far 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 Han-refundable lass reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Harrower 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 (ar 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 ofthe Hate, another insurer, any reinsurer, any 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 orrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provided that an affiliate ofLender takes a share ofthe insurer's risk m 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 herebyassignedto 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 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 nn such Miscellaneous Proceeds, Lender shall not be required to pa Borrower any interest or earnings on such Miscellaneous Proceeds. Ifthe restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured byy 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 of the Property, 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. ]n the event ofa 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 ofthe sums secured by this Security Instrument immediately 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 ofthe Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount ofthe sums secured immediatelybeforethc partial taking, destruction, or loss in value divided by (b) the fair market value ofthe Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event ofa 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 less than the amount ofthe sums secured immediately before the partial taking, destruction, or loss in value, unless Harrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or notthe 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 Gender within 30 days after the date the native 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 nr riot then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds nr 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 ofthe Property or other material impairment ofL.ender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in 5ectian 19, by causing the action or proceeding to be dismissed with a ruling that, iii Lender's judgment, precludes forfeiture ofthe Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment afLender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restnratian or repair ofthe Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension ofthe time for payment or modification ofamortizatinn ofthe sums secured bythis Security Instrument granted by Lender to Borrower or an Successor in Itttexe;;t of Borrawer..s~iall- Bot_~p~rate_to..relerise the liability of Borrower nr any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower ar to refuse to extend time for payment or otherwise modify amarttzatian ofthe sums secured by this Security Instrument by reason ofanydemand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by T ,ender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors m Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise.of any right or remedy. NEBRASKA--Single Family-Fannie Mae/Freddie Mac I1NIFbRM INSTRiIMENT (HERS) Form 3028 1/Ol (page S of 8 pages) 12439.CV (11/07) 03-1109 Creative Thinking, Inc. GUTU(OOlfric2a)