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<br />the premiums required to maintain Mongage Insurance in effect, or to provide a non-refundabla loss reserve, until
<br />Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and
<br />Lender providing for such terminaHon or until termination is required by Applicable Law. Notlung in this Section
<br />10 affects Borrower's obligation to pay interest at the rate provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that pwchases the Note) for certain losses it may incur
<br />if Bonower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Inswance.
<br />Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into
<br />agreements with other pardes that share or modify their risk, or reduce losses. These agreements are on terms and
<br />conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These
<br />agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer
<br />may have available (which may include funds obtained from Mortgage Inswance premiums).
<br />As a result of these agreements, Lender, any purchaser of the Note, enother insurer, any reinsurer, any other
<br />entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might
<br />be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying
<br />the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share
<br />of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed
<br />"captive reinsurance." Further:
<br />(a) Any such agreements wlll not affect t6e amounts that Borrower has agreed to pay for Mortgage
<br />Insuraace, or any other terms of the Loaa. Such agreemeats wiD pot increase the amount Borrower will owe
<br />for Mortgage Iasurance, aad they wID not en8tle Borrower to any refund.
<br />(b) Aay snch agreemeats wlll not affect the rlghts Borrower has - if any - with respect to the Mortgage
<br />Insurance under the Homeowners ProtecHon Act of 1998 or any other law. Tdese rig6ts may inclnde the right
<br />to rece9ve certaia disclosurea, to request and obtala canceUaHon of the Mortgege Iasurance, to have the
<br />Mortgage Insurance term9nated automatically, and/or to receive a refund of any Mortgage Insuraace premiums
<br />that were uneamed at the time of such canceUaHon or tcrmination.
<br />I1. Asaignment of Miacellaneous Proceeds; Forfeiture. Al] Miscellaneous Proceeds are hereby assigned to
<br />and s6aU be paid to Lender.
<br />If the Properiy 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 end
<br />restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an
<br />opportunity to inspect such Property to enswe the work has been completed to Lender's satisfaction, provided that
<br />such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbwsement
<br />or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable
<br />Law requ'ues interest to be paid on such Miscellaneous Proceeds, Lender shall not be requued to pay Borrower any
<br />interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or
<br />Lender's securiry would be lessened, the Miscellaneous Proceeds shall be applied to the sums secwed by this Security
<br />Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miacellaneous Proceeds shall
<br />be applied in the order provided for in Section 2.
<br />In the event of a total taking, destrucrioa, or loss in value of the Property, the Miscellaneous Proceeds shall be
<br />applied to the sutns secured by tivs Security Inshvment, 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 of the Property in which the fair market value of
<br />the Property immediately before the partial taking, destnzction, or loss in value is equal to or greater than the amount
<br />of the sums secured by this Security Instrument immediately before the paztial taking, desuuction, or loss in value,
<br />unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Insuument shall be reduced
<br />by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums
<br />secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the
<br />Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower.
<br />In the event of a parrial taldng, destruction, or loss in value of the Properiy in which the fair market value of
<br />the Property immediately before the partial taldng, destructioa, or loss in value is less than the amount of the sums
<br />secured immediately before the partial taking, destrucrion, or loss in value, unless Botrower and Lender otherwise
<br />agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether
<br />or not the sums aze then due.
<br />If the Property is abandoned by Borrower, or if, aRer notice by Lender to Borrower that the Opposing Party (as
<br />defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to
<br />Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous
<br />Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether
<br />or not then due. "Opposing Party" means the third party that owes Bonower Miscellaneous Proceeds or the party
<br />against whom Borrower has a right of action in regatd to Miacellaneous Proceeds.
<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
<br />or rights under this Security Instrument. Borrower can cwe such a default and, if acceleration has occurred, reinstate
<br />as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's
<br />judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or
<br />rights under this Security Instrument. The proceeds of any award or claim for damages that are amibutable to the
<br />impairtnent of Lender' s interest in the Property are hereby assigned and shall be paid to Lender.
<br />All Miscellaneous Proceeds that aze not applied to restoration or repair of the Property shall be applied in the
<br />order provided for in Section 2.
<br />NEBRASKA—Single Famlly—Fennie Mee/Freddle Mac UNIFORM IN3TRUMENT ppry(eg/e$�fiDi�
<br />Farm 3028 1/01 Page 8 oi 11 www.doanagk.com
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