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20120553� LATE CHARGE: At Lender's option, Bonower 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 s�ured hereby, unless such praceeds are sufficient to discharge the entire indebtedness and all proper costs and expenses se.cured 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 ugon by the Department of Veterans Affairs under the provisions of Title 38 of the U.S. Code "Veterans Benefits," the Mortgag� may d�laze the indebtedness hereby secured at once due and payable and may fore.close imme�iiately or may exercise any other rights hereunder or take any other proper action as by law provided. TRANSFER OF THE PROPERTY: This loan may be declared immediately due and payable upon transfer of the property securing such loan to any transfer�, unless the acceptability of the assumprion of the loan is established pursuant to Section 3714 of Cha.pter 37, Tide 38, United States Code. An authoriaed transfer ("assumption") of the property shall also be subject to additional covenants and agr�ments as set forth below: (a) ASSUMPTION FUNDING FEE: A fee equal to one percent (1 %) of the balance of this loan as of the date of transfer of the property sha11 be payable at the time of transfer to the loan holder or its authorized agent, as trust� for the Department of Veterans Affairs. If the assumer fails to pay this fe.e at the time of transfer, the fee shall constitute an additional debt to that already secured by this instniment, shall bear interest at the rate herein provided, and, at the oprion of the payee of the indebtedness hereby secured or any transferee ther�f, shall be immediately due and payable. This fee is automatically waived if the assumer is exempt under the provisions of 38 U.S.C. 3729 (c). (b) ASSUMPTION PROCESSING CHARGE: Ugon applicarion for approval to allow assumption of this loan, a prac�essing fee may be charged by the loan holder or its authorized agent for determining the creditworthiness of the assumer and subsequently revising the holder's ownership r�ords when an approved transfer is completed.. The amount of this charge shall not exce.�i the maximum established by the Department of Veterans Affairs for a loan to which Se,crion 3714 of Chapter 37, Title 38, United States Code applies. (c) ASSUMPTION INDEMNITY LIABILTTY: If this obligation is assumed, then the assumer hereby agrees to assume all of the obligations of the veteran under the terms of the instruments creating and securing the loan. The assumer further agr�s to indemnify the Department of Veterans Affairs to the extent of any claim payment arising from the guaranty or insurance of the indebtedness created by this instrument. Initials:� �-538R (0301) Page 2 of 3 �