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201203�6� LATE CHARGE: At Lender's option, Borrower will pay a"late charge" not exceeding four per centum (4%) of the overdue payment when paid more than fifteen (15) days after the due date thereof to cover the extra expense involved in handling delinquent payments, but such "late charge" shall not be payable out of the proceeds of any sale made to satisfy the indebtedness secured hereby, unless such proceeds are sufficient to discharge the entire indebtednes.s and a11 proper costs and expenses secured hereby. GUARANTY: Should the Department of Veterans Affairs fail or refuse to issue its guaranty in full amount within 60 days from the date that this loan would normally become eligible for such guaranty committed upon by the Department of Veterans Affairs under the provisions of Title 38 of the U.S. Code "Veterans Benefits," the Mortgag� may declare the indebtedness hereby s�ure.d at once due aud payable and may foreclose immediately or may exercise any other rights hereunder or take aay other proper action as by Iaw provided. TRANSFER OF THE PROPERTY: This loan may be declared immediately due and payable upon traaIISSfer of the property securing such Ioan to any transferee, unless ihe acceptability af the assumption of the loan is e�ab�isfie8 pursuant to Section 3714 of Cf►apter 37, Title 38, United States Code. An aut�ori�eci transfer ("assumption"} of the property sha1T atso � subject to additiornat covenaats and agreements as set forth belQw: (a) AS�UMI'FI(}N �FJNDING FEE: A fee equal to one percent (I %a) of ttte balance of this Ioan as of tla� date of traIISfeE of the groperiy sha� be payable at the ti�re of transfer to the 1Qan holder or its authorized agex►t, as trustee for the Department of Veterans Affairs. If the assumer fails to gay this fee at the time of transfer, the f�e shall constitute an additional �ebt to that already secured by this instrument, shall bear interest at the rate herein provide�, and, at the option of the gayee of the indebtedness hereby secured or any transferee thereof, shal� be immediately due and payable. This f� is automatically waived if the assumer is exempt under the provisions of 38 U.S.C. 3729 (c). (b) ASSiJMPTIOI�T PR�CESSIl�TG CFIARGE: Upon application for appsoval to a1low assumgtion of this loan, a p�ocessing fee may be clsarg�. by the Ioan holder or its authorize� agent for determining the creditworrhiness of the assumer �d se�bsequently revising the holder's ownership r�rds when an approved transfer is completed. Tbe amvunt of this chazge shall not exc�ed the maximum established by the Department of Veterans Affairs for a loan to which Section 3714 of Chapter 37, Title 38, United States Code applies. (c) ASSUMPTION INDEMNITY LIABILITY: If this obligarion is assumed, then the assumer hereby agrees to assume all of the obligarions of the veteran under the terms of the instruments creating and securing the loan. The assumer further agrees to indemnify the Department of Veterans Affairs to the extent of any claim payment arising from the guaranty or in�,r��p of the indebtedness created by this instrument. Initials: �-538R (0301) Page 2 of 3 �