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200411790
<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer,
<br />any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that
<br />derive from (or rii-'a be characterized as) a portion of Borrower's payments for Mortgage Insurance, in
<br />exchange for sh::rin , or modifying the mortgage insurer's risk, or reducing losses. If such agreement
<br />provides that al. affiliate of Lender takes a share of the insurer's risk in exchange for a share of the
<br />premiums paid t,; the insurer, the arrangement is often termed "captive reinsurance." Further:
<br />(a) Any st., h agreements will not affect the amounts that Borrower has agreed to pay for
<br />Mortgage Insu r:: tc c, or any other terms of the Loan. Such agreements will not increase the amount
<br />Borrower will o �, c for Mortgage Insurance, and they will not entitle Borrower to any refund.
<br />(b) Any su:lt agreements will not affect the rights Borrower has - if any - with respect to the
<br />Mortgage Insur.:ncc under the Homeowners Protection Act of 1998 or any other law. These rights
<br />may include thr right to receive certain disclosures, to request and obtain cancellation of the
<br />Mortgage Insun: ;ice, to have the Mortgage Insurance terminated automatically, and /or to receive a
<br />refund of any A i ortgage Insurance premiums that were unearned at the time of such cancellation or
<br />termination.
<br />11. Assignn!ei,t of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
<br />assigned to and s!::tll be paid to Lender.
<br />If the Propc ,y is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of
<br />the Property, if i !c rstoration or repair is economically feasible and Lender's security is not lessened.
<br />During such rcpc! x cl restoration period, Lender shall have the right to hold such Miscellaneous Proceeds
<br />until Lender has i,,c; an opportunity to inspect such Property to ensure the work has been completed to
<br />Lender's satisfac:Ic r.. provided that such inspection shall be undertaken promptly. Lender may pay for the
<br />repairs and rest( ratlwi in a single disbursement or in a series of progress payments as the work is
<br />completed. Un':e: • ;ir agreement is made in writing or Applicable Law requires interest to be paid on such
<br />Miscellaneous P: c . ds, Lender shall not be required to pay Borrower any interest or earnings on such
<br />Miscellaneous Pr ;.•c is. If the restoration or repair is not economically feasible or Lender's security would
<br />be lessened, the is,:cllaneous Proceeds shall be applied to the sums secured by this Security Instrument,
<br />whether or not t', h e, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be
<br />applied in the or, it ;s_ovided for in Section 2.
<br />In the ev.r, ! a total taking, destruction, or loss in value of the Property, the Miscellaneous
<br />Proceeds shall b. :tp,)lied to the sums secured by this Security Instrument, whether or not then due, with
<br />the excess, if ariv p: id to Borrower.
<br />In the eveir ;! partial taking, destruction, or loss in value of the Property in which the fair market
<br />value of the Pr( - before the partial taking, destruction, or loss in value is equal to or
<br />greater than the ,r, unt of the sums secured by this Security Instrument immediately before the partial
<br />taking, destrucu. it loss in value, unless Borrower and Lender otherwise agree in writing, the sums
<br />secured by this 'cc irity Instrument shall be reduced by the amount of the Miscellaneous Proceeds
<br />multiplied by th fo.!owing fraction: (a) the total amount of the sums secured immediately before the
<br />partial taking, , 41 action, or loss in value divided by (b) the fair market value of the Property
<br />immediately be I'(, tie partial taking, destruction, or loss in value. Any balance shall be paid to Borrower.
<br />In the even! )f _t partial taking, destruction, or loss in value of the Property in which the fair market
<br />value of the Pi o, immediately before the partial taking, destruction, or loss in value is less than the
<br />amount of the s: _r.; secured immediately before the partial taking, destruction, or loss in value, unless
<br />Borrower and 1.- .:!: r otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums
<br />secured by this S u; ty Instrument whether or not the sums are then due.
<br />If the Pro ::� is abandoned by Borrower, or if, after notice by Lender to Borrower that the
<br />Opposing Party > (.;Mined in the next sentence) offers to make an award to settle a claim for damages,
<br />Borrower fails t( ;: s ;nnd to Lender within 30 days after the date the notice is given, Lender is authorized
<br />to collect and :u the Miscellaneous Proceeds either to restoration or repair of the Property or to the
<br />sums secured by ;. i : : :�)ccurity Instrument, whether or not then due. "Opposing Party" means the third party
<br />that owes Borro \1iscellaneous Proceeds or the party against whom Borrower has a right of action in
<br />regard to Miscc'; :nc is Proceeds.
<br />Borrower L 111 'oe in default if any action or proceeding, whether civil or criminal, is begun that, in
<br />Lender's judging t, could result in forfeiture of the Property or other material impairment of Lender's
<br />interest in the Pr ty or rights under this Security Instrument. Borrower can cure such a default and, if
<br />0110226088
<br />Initials:
<br />-6(NE) (000 s) Page 9 or 15 Form 3028 1/01
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