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200403673
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for
<br />certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not
<br />a party to the Mortgage Insurance.
<br />Mortgage insurers evaluate their total risk on all such insurance in force from time to
<br />time, and may enter into agreements with other parties that share or modify their risk, or
<br />reduce losses. These agreements are on terms and conditions that are satisfactory to the
<br />mortgage insurer and the other party (or parties) to these agreements. These agreements
<br />may require the mortgage insurer to make payments using any source of funds that the
<br />mortgage insurer may have available (which may include funds obtained from Mortgage
<br />Insurance premiums).
<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer,
<br />any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly
<br />or indirectly) amounts that derive from (or might be characterized as) a portion of
<br />Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the
<br />mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of
<br />Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to
<br />the insurer, the arrangement is often termed "captive reinsurance." Further:
<br />(a) Any such agreements will not affect the amounts that Borrower has agreed to pay
<br />for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase
<br />the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to
<br />any refund.
<br />(b) Any such agreements will not affect the rights Borrower has - if any - with respect
<br />to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law.
<br />These rights may include the right to receive certain disclosures, to request and obtain
<br />cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated
<br />automatically, and/or to receive a refund of any Mortgage Insurance premiums that were
<br />unearned at the time of such cancellation or termination.
<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
<br />restoration or repair of the Property, if the restoration or repair is economically feasible and
<br />Lender's security is not lessened. During such repair and restoration period, Lender shall
<br />have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to
<br />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
<br />and restoration in a single disbursement or in a series of progress payments as the work is
<br />completed. Unless an agreement is made in writing or Applicable Law requires interest to
<br />be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any
<br />interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not
<br />economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds
<br />shall be applied to the sums secured by this Security Instrument, whether or not then due,
<br />with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in
<br />the order provided for in Section 2.
<br />SNE10 Rev 10/03/00 Page 10 of 18 Initials 3028 1/01
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<br />200403673
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for
<br />certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not
<br />a party to the Mortgage Insurance.
<br />Mortgage insurers evaluate their total risk on all such insurance in force from time to
<br />time, and may enter into agreements with other parties that share or modify their risk, or
<br />reduce losses. These agreements are on terms and conditions that are satisfactory to the
<br />mortgage insurer and the other party (or parties) to these agreements. These agreements
<br />may require the mortgage insurer to make payments using any source of funds that the
<br />mortgage insurer may have available (which may include funds obtained from Mortgage
<br />Insurance premiums).
<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer,
<br />any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly
<br />or indirectly) amounts that derive from (or might be characterized as) a portion of
<br />Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the
<br />mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of
<br />Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to
<br />the insurer, the arrangement is often termed "captive reinsurance." Further:
<br />(a) Any such agreements will not affect the amounts that Borrower has agreed to pay
<br />for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase
<br />the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to
<br />any refund.
<br />(b) Any such agreements will not affect the rights Borrower has - if any - with respect
<br />to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law.
<br />These rights may include the right to receive certain disclosures, to request and obtain
<br />cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated
<br />automatically, and/or to receive a refund of any Mortgage Insurance premiums that were
<br />unearned at the time of such cancellation or termination.
<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
<br />restoration or repair of the Property, if the restoration or repair is economically feasible and
<br />Lender's security is not lessened. During such repair and restoration period, Lender shall
<br />have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to
<br />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
<br />and restoration in a single disbursement or in a series of progress payments as the work is
<br />completed. Unless an agreement is made in writing or Applicable Law requires interest to
<br />be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any
<br />interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not
<br />economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds
<br />shall be applied to the sums secured by this Security Instrument, whether or not then due,
<br />with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in
<br />the order provided for in Section 2.
<br />SNE10 Rev 10/03/00 Page 10 of 18 Initials 3028 1/01
<br />17�z
<br />v
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