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200006219
<br />If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the
<br />Property, if the restoration or repair is economically fcasiblc and Lender's security is cot lessened. During such
<br />repair and restoration period, Lender shall have the right to lurid such Miscellaneous Proceeds until Lender has
<br />had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction,
<br />provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a
<br />single disbursement or in a series of progress payments as the work is completed. Unless an agreernnent is made
<br />m writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be
<br />required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. if the restoration or repair
<br />is not economically feasible or Laufer's security would be lessened, the Miscellaneous Proceeds shalt be
<br />applied to the sutras secured by this Security instrument, whcd= or not then due, with the excess, if any, paid
<br />to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2.
<br />In the event of a total taking, destruction, or Ioss in value of the Property, the Miscellaneous Proceeds
<br />shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if
<br />any, paid to Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value
<br />of the Property immediately before the partial taking. destruction, or laci in value is equal to or greater than the
<br />amount of the sums secured by this Security Instrument immediately before the partial taking, destruction. or
<br />loss in value, unless Borrower and Lender otherwise agree in writing, the stints secured by this Security
<br />Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction:
<br />(a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value
<br />divided by (b) the fair market value of the Property immediately before the partial taking, dcstnuccion, or loss in
<br />value. 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 market value
<br />of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the
<br />sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender
<br />otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security
<br />Instrument whether or not the stuns are then due.
<br />If the Property is abandoned by Borrower, or if, after notice by Tender to Borrower that the Opposing
<br />Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to
<br />respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the
<br />Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security
<br />Instrument. whether or not then due. "Opposing Party" means the third patty that owes Borrower
<br />Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous
<br />Proceeds.
<br />Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in
<br />Lender's judgment, could result in forfeiture of the Property or other material impairment of Under's interest
<br />in the Property or rights under this Security Instrument. Borrower can cure suit a default and, if acceleration
<br />has otxaurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a
<br />ruling that, in Leveler's judgmett, precludes forfeiture of the Property or other material impairment of Lender's
<br />interest in the 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 assigned and
<br />shall be paid to Lender.
<br />All Miscellaneous Proceeds that are not applied to restoration nr repair of the Property shall be applied in
<br />the order provided for in Section 2.
<br />12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment
<br />or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower
<br />or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors
<br />in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in
<br />Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums
<br />sensed by this Security Instrument by reason of any demand made by the original Borrower or any Successors
<br />in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without
<br />limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower
<br />or in amounts Icss than the amount then clue, shall not be a waiver of or preclude the exercise of any tight or
<br />remedy.
<br />N6BRASICA -Shale Family -Fmwe Maw tied *e Mac UNWitM II ffjtt M Form MS 3/99 (page 8 of 12 pager)
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