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200005659
<br />Borrower was required to make separately designated payments toward the premiums for
<br />Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance
<br />in effect, or to provide a non - refundable loss reserve, until Lender's requirement for Mortgage
<br />Insurance ends in accordance with any written agreement between Borrower and Lender providing
<br />for such termination or until termination is required by Applicable Law. Nothing in this Section
<br />10 affects Borrower's obligation to pay interest at the rate provided in the Note.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are
<br />hereby assigned to and shall be paid to Lender.
<br />If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or
<br />repair of the Property, if the restoration or repair is economically feasible and Lender's security is
<br />not lessened. During such repair and restoration period, Lender shall have the right to hold such
<br />Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure
<br />the work has been completed to Lender's satisfaction, provided that such inspection shall be
<br />undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or
<br />in a series of progress payments as the work is completed. Unless an agreement is made in
<br />writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender
<br />shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If
<br />the restoration or repair is not economically feasible or Lender's security would be lessened, the
<br />Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether
<br />or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be
<br />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
<br />Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then
<br />due, with the excess, if any, paid to Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair
<br />market value of the Property immediately before the partial taking, destruction, or loss in value is
<br />equal to or greater than the amount of the sums secured by this Security Instrument immediately
<br />before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise
<br />agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of
<br />the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums
<br />secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair
<br />market value of the Property immediately before the partial taking, destruction, or loss in value.
<br />Any balance shall be paid to Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair
<br />market value of the Property immediately before the partial taking, destruction, or loss in value is
<br />less than the amount of the sums secured immediately before the partial taking, destruction, or
<br />loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds
<br />shall be applied to the sums secured by this Security Instrument whether or not the sums are then
<br />due.
<br />If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the
<br />Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for
<br />damages, Borrower fails to respond to Lender within 30 days after the date the notice is given,
<br />Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or
<br />repair of the Property or to the sums secured by this Security Instrument, whether or not then
<br />due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the
<br />party against whom Borrower has a right of action in regard to Miscellaneous Proceeds.
<br />Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun
<br />that, in Lender's judgment, could result in forfeiture of the Property or other material
<br />impairment of Lender's interest in the Property or rights under this Security Instrument.
<br />Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section
<br />19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment,
<br />precludes forfeiture of the Property or other material impairment of Lender's interest in the
<br />Property or rights under this Security Instrument. The proceeds of any award or claim for
<br />damages that are attributable to the impairment of Lender's interest in the Property are hereby
<br />assigned and shall be paid to Lender.
<br />4 -6(NE) (99041.01
<br />Page 9 of 15
<br />CVNE 07/10/00 7:52 AM 6696781076
<br />S: / V
<br />Form 3028 3/99
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