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<br /> ~RECCRDb
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<br /> 201008260 201007985
<br /> due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve
<br /> in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full,
<br /> and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve
<br /> payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender
<br /> again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If
<br /> Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments
<br /> toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to
<br /> provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement
<br /> between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10
<br /> affects Borrower's obligation to pay interest at the rate provided in the Note.
<br /> Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not
<br /> repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance.
<br /> Mortgage Insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with
<br /> other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the
<br /> mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments
<br /> using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance
<br /> premiums).
<br /> As a result of these agreements, Lender, any purchaser of the note, another insurer, any reinsurer, any other entity, or affiliate of
<br /> any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's
<br /> payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement
<br /> provided that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the
<br /> 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 Insurance, or any other
<br /> terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not
<br /> entitle Borrower to any refund.
<br /> (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under
<br /> the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to
<br /> request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to
<br /> receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination.
<br /> 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to
<br /> Lender.
<br /> If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration
<br /> or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the
<br /> right to bold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been
<br /> completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and
<br /> 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
<br /> Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or
<br /> earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened,
<br /> the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if
<br /> any, 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 loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums
<br /> secured by this Security Instrument, whether or not then due, with the excess, if any, 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 Property
<br /> immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security
<br /> instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the
<br /> sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following
<br /> fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair
<br /> market value of the Property immediately 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 of the Property in which the fair market value of the Property
<br /> immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial
<br /> taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to
<br /> the sums secured by this Security Instrument whether or not the sums are then due.
<br /> If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next
<br /> 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
<br /> is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums
<br /> secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous
<br /> Proceeds or the party against whom 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, could result
<br /> in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument.
<br /> Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding
<br /> to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's
<br /> interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the
<br /> impairment of Lender's interest 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 provided for in
<br /> Section 2.
<br /> 12. Borrower Not Released; Forbearance By Fender Not a Waiver. Extension of the time for payment or modification of
<br /> amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall
<br /> not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence
<br /> proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the
<br /> sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of
<br /> Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments
<br /> from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or
<br /> preclude the exercise of any right or remedy.
<br /> 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's
<br /> obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the
<br /> NEBRASKA -Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT with MERS rm 30 8 IIQ06
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