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201207384 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 aiter the due date thereof to cover the extra expense involved in handling delinquent payments, bud 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 indebfedness and all proper costs and expenses secured hereby. GUARANTY: Should the Department of Veterans Affairs faii or refuse to issue ifs 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 Mortgagee may declare the indebtedness hereby secured at once due and payable and may foreclose immediately or may exercise any ofher 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 transferee, unless the acceptabifity of the assumption of the loan is established pursuant to Section 3714 of Chapter 37, Title 38, United States Code. An authorizea transfer ("assumption") of the property shal! also be subjeci to additional covenants and agreements as set forth below: (a) ASSUMPTION FUNDING FEE: A fee equal to ( %) of the balance of this loan as of the date of transfer of the property shall be payable at the time of transfer to the loan holder or its authorized agent, as trustee for the Department of Veterans Affairs. If the assumer fails to pay this fee at the time of transfer: the fee shall constitute a� additional debt to that already secured by this instrument, shall bear interest at the rate herein provided, and, at the option of the payee of the indebtedness hereby secured or any transferee thereof, shall be immediately due and payable. This fee fs automatically waived if the assumer is exempt under fhe provisions of 38 U.S.C. 3729 (c}- (b) ASSUMPTION PROCESSING CHARGE: Upon application for approvaJ to allow assumption of this loan, a processing fee may be charged by the foan holder or its authorized agent for determining the creditworthiness of the assumer and subsequently revising the holder's ownership records when an approved transfer is completed. The amount of this charge shall not exceed 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 INDEMIVITY LIABILITY: If this obligation is assumed, then the assumer hereby agrees to assume aIl of the obligations of the veteran under the terms of the instrumenis creating and securing the Ioan. The assumer further agrees to indemnify the Department of Veterans Affairs to the exfent of any claim payment arising from the guaranty or insurance of the indebtedness created by this instrument. 0451208777 fnitialsG�� VMP�-538R (0405).01 Page 2 of 3