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<br />10. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds aze hereby assigned to
<br />and shall be paid to Lender.
<br />If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property,
<br />if the restorarion or repair is economically feasible and Lender's security is not lessened. During such repair and
<br />restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an
<br />opportunity to inspect such Properiy to ensure the work has been completed to Lender's satisfacrion, provided that
<br />such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement
<br />or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable
<br />Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Bonower any
<br />interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or
<br />Lender' s security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security
<br />Instrument, whether or not then due, with the excess, if any, paid to Bonower. Such Miscellaneous Proceeds shall
<br />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 sha11 be
<br />applied to the sums secured by this Security Instrument, 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 Properiy immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount
<br />of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value,
<br />unless Bonower and Lender otherwise agree in writing, the sums securedby this Security Instrument shall be reduced
<br />by the amount of the Miscellaneous Proceeds multiplied by the following fracrion: (a) the total amount of the sums
<br />secuted immediately before the partial taking, destruction, or loss in value divided by (b) the fair mazket value of the
<br />Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Bonower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair mazket value of
<br />the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums
<br />secured immediately before the partial taldng, destruction, or loss in value, unless Bonower 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 are then 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 next sentence) offers to make an award to settle a claim for damages, Bonower 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 restorarion 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 Borrower Miscellaneous Proceeds or the party
<br />against whom Bonower has a right of action in regazd to Miscellaneous Proceeds.
<br />Bonower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's
<br />judgment, could result in forfeihue of the Property or other material impairment of Lender' s interest in the Property
<br />or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate
<br />as provided in Section 18, 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 impa,irment of Lender's interest in the Property or
<br />rights under this Secutity Insttument. The proceeds of any awazd or claim for damages that aze ariributable 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 aze not applied to restoration or repair of the Property shall be applied in the
<br />order provided for in Section 2.
<br />11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or
<br />modification of amorti�arion of the sums secured by this Security Instrument granted by Lender to Bonower or any
<br />Successor in Interest of Bonower shall not operate to release the liability of Bonower or any Successors in Interest
<br />of Bonower. Lender shall not be required to commence proceedings against any Successor in Interest of Bonower
<br />or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security
<br />Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Bonower. Any
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<br />MODIFlm FOR DEPARTMENT OF VETERANS AFFAIRS - MERS www.doanagfc.com
<br />(Rev. 1/01) Page 8 of 14
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