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201109222 continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately pa�id in full, and Lender shall not be required to pay � Bonower any interest or earnings on such loss reserv@. Lender can no longer require loss reserve payments if Mortgage Insurance coverage(in the amount and far the period that Lender requires)provided by an insurer selected by Lender again becomes available, i�obtained, and Lender requires sepazately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Bonower was requ�red to make separately designated payments toward the premiums for Mortgage Insurance, Bonower shall pa�the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreemlent between Borrower and Lender providing for such tennination or until ternunation is required by Applic�ble Law. Nothing in this Section 10 affects Bonower's obligation to pay interest at the rate provid�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. Bonower 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 modifly their risk, or reduce losses. These agreements are on terms and conditions that aze satisfactory to the mort�age insurer and the other party (or parties)to these agreements. These agreements may require the mortg�ge insurer to make payments using any source of funds that the mortgage insurer may have available(which rnay include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchas�r of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may r�ceive(directly or indirectly) amounts that derive from (or might be characterized as)a portion of Bonower'�payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or�ieducing losses. If such agreement provides 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 arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amoupts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Sdch agreements will not increase the amount Borrower will owe for Mortgage Insurance, a�hd they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has-if any-with resp�t to the Mortgage Insurance under the Homeowners I�rotection Act of 1998 or any other law.These rights may include the right to receive certain disclo�ures, 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 premium�s that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds aze hereby assigned to and sha11 be paid to Lender. If the Properly is damaged, such Miscellaneous Proc,�eds shall be applied to restoration or repair of the 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�he right to hold such Miscellaneous Proceeds until Lender has had an opportunity to insp�t such Properiy to ensure the work has been completed to Lender's �� NEBRASKA-Smgle Fam�ly-Fannie Mae/Fretldie Mac UNIFORM INSTRUMENT Form 3028 1/01 VMP� VMP61NE)(11051.00 Wolters Kluwer Financ�ai Services Page 9 of 17