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20�10565�
<br />insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance,
<br />Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage lnsurance previously
<br />in effect, at a cost substantiaily equivalent to the cost to Borrower 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 shalI continue to pay to Lender the amount ofthe separately designated payments that were due when the insurance
<br />coverage ceased to be in effect. L.ender will accept, use and retam these payments as a non-refundable loss reserve in lieu of
<br />Mortgage Insurance. 5uch loss reserve shall be non-refundable, notwithstandmg the fact that the Loan is ultimately paid in
<br />full, and Lender shall not be rec�uired to pay Borrower any interest or earnings on such loss reserve. Lender can no longer
<br />require loss reserve payments if Mortgage Insurance coverage(in the amount and for the period that Lender requires)
<br />provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated
<br />payments toward the premiums for Mortgage Insurance. If I,ender required Mortgage Insurance as a condriYOn ofmalcuig the
<br />Loan and Borrower was required to make separately designated payments toward the premiums for Morkgage Insurance,
<br />Borrower shall pay the premiums required to maintam Mortgage Insurance in effect, or to provide a non-refundable loss
<br />reserve, until Lender's rec�uirement for Mortgage Insurance ends in accordance with any written agreement between
<br />Borrower and I.ender providmg for such termmation or until termination is required by Applicable Law. Nothing in this
<br />5ection 10 affects Borrower's obligation to pay interest at the rate provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any enfity that purchases the Note) for certain losses it may incur if
<br />Borrower does not repay the I.aan as agreed. Borrower is not a party to the Mortgage Insurance.
<br />Mortgage Insurers evaluate the�r total risk on all such insurance in force from time to time, and may enter into
<br />agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions
<br />that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. Theseagreements may
<br />require the mortgage insurer to make paytnents using any source of funds that the mortgage insarer may have available
<br />(which may include funds obtained from Mortgage Insurance premiums).
<br />As a result of these agreements, Lender, any purchaser ofthe note, another insurer, any reinsurer, any other entity,
<br />or affiliate of any of the foregomg, may receive (directly or indirectly) amounts that derive from �or might be characterized
<br />as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifymg the mortga�e insurer's
<br />risk, or reducing losses. If such agreement provided that an affiliate of Lender takes a share ofthe msurer's nsk m exchange
<br />for a share of the 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 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 Aomeowners Protection Act of 1998 or any other law. These rights may mclude the right to
<br />receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage
<br />Insurance terminated automatically, 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 Miscellaneous Proceeds; Forfeiture. All Miscellaneous Praceeds are hereby assigned to and
<br />sha11 be paid to Lender.
<br />If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair ofthe Properly, if
<br />the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restorahon
<br />period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportumty to inspect such
<br />Property to ensure the work has been completed to Lender's satisfaction, provided that such inspechon shall be undertalcen
<br />promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series ofprogress payments as the
<br />work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such
<br />Miscellaneous Proceeds, Lender shall not be required to pay Bonower any interest or earnings on such Miscellaneous
<br />Proceeds. Ifthe restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous
<br />Proceeds shall be applied to the sums secured by this Security Instrument, whether or 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 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, wrth the excess, if any, paid to Bonower.
<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 />Properly immediately hefore the partial taking, destruction, or loss in value is equal to orgreater than the amount ofthe sums
<br />secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and
<br />Lender otherwise agree m writing, the sums secured by this Security Instrument shall be reduced by the amount of the
<br />Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount ofthe sums secured immediatelybefore the
<br />partial taking, destruction, or loss in value divided by (b) the fair market value ofthe Property immediately before the partial
<br />taking, destruction, or loss m value. Any balance shall be paid to Borrower.
<br />In the event of a partial talcing, destruction, or loss m value of the Property in which the fair market value of the
<br />Property immediately befare the �artial takin�, destruction, or loss in value is less than the amount of the sutns secured
<br />immediately before the partial takmg, destruct�on, or loss in value, unless Borrower and Lender otherwise agree in writing,
<br />the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or notthe sums are then
<br />due.
<br />If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party �as
<br />defined in the ne�ct sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Len er
<br />within 30 days after the date the notice is given, Lender is authorized to coltect and applythe 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 Parl}�' means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower
<br />has a right of achon 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
<br />jud ent, could result in forfeiture ofthe Property or other material impanment of Lender's interest in the Propertyor rights
<br />un er this Security Instrument. Bonower can cure such a default and, if acceleration has occurred, reinstate as provided in
<br />Section 19, by causmg the action or proceeding to be dismissed with a ruling that, in Lender's jud�nent, �recludes forfeiture
<br />ofthe Property or other material impaument of Lender's interest in the Property or rights under this SecuntyInstirrumen� The
<br />proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are
<br />hereby assign ed and shall be paid to Lender.
<br />All Miscellaneous Proceeds that are not applied to restoration or repair ofthe 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 ofthe time for payment or
<br />modification of amortization ofthe sums secured by this Security Instrument granted byLender to Borrower or any Successor
<br />in Interest of Bonower shall not operate to release the liability of Borrower or any 5uccessors in Interest of Borrower.
<br />Lender shall not be required to commence proceedings ag�inst any Successor in Interest ofBonower or to refuse to extend
<br />time for payment or otherwise modify amortization ofthe sums secured by this Security Instrument by reason ofanydemand
<br />made by the origittal Borrower or an� Successors in Interest of Borrower. Any forbearance by Lender in exercising any right
<br />or remedy includmg, without limitation, Lender's acceptance of payments from third persons, entities or Successors in
<br />Interest ofBorrower or in
<br />amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy.
<br />NEBRASKA—Single Family—Fannie Mae/Freddie Mac iJNIFORM INSTRUMENT
<br />(MERS)
<br />Form 3028 1/Ol (page S of 8 pages)
<br />Creative Thinking, Inc.
<br />12439.CV (11/07) 4300102395
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