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200301228 Mortgage Insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreementa war other partiesthol hare or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer mid the other party (or parries) to these agreements. These agreements stay require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include Ponds obtained Croat Mortgage Insurance premiums). As a result ofthese agreements. Lender, any purchaser oCthc note, another insurer, any reinsurer, any other entity, or affiliate at-any ofthe foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion mCBurrower's payments tot Mortgage Insurance, in exchange for sharing Or modifying die mortgage insurer's risk, or reducing losses. Ifsuchh agreement provided that an affiliate of Under takes a share ofthe insurer's risk in exchange for a share ofthe premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: 7a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has— if any — with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automaticallyy, and /or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancelation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are herebyassigned to and shall be paid to Lender. ICthe Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if' the restoration or repair is economically feasible mid Lender's security is not lessened. During such repair and restoration perimd, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is net economically feasible or Leader's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by, Security Instrument, whether or not then due, with the excess, if any, paid to Borrower Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of partial taking, destruction, or loss in value of the Properly in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is eq mi ual to or greater than theamo t ofthe sums secured by this Security Instrument immediately before the Vial taking, destruction, or Ins. m value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fait market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the Partial taking, destruction, or loss in value is less than the amount of the sums secured inunediaely before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Properly is abandoned by Borrower, or it after notice by Lender to Borrower that the Opposing Parry (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third parry that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgmeal, could result in forfeiture ofthe Property or other material impairment offender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, ifacceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender'sjudgment, precludes mat iture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall he paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair aerie Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Burrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization o}the sums secured by this Security Instrument by reason ofany demand made by the original Borrower or any Successors in Interest of Burrower. Any forbearance by Lender in exercising my right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co- signers; Successors and Assigns Bound. Borrower coveamhts mid agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co -signs this Security and convey the co- signer's interest in the Property under the terns of this Security Instrument; Of is not personallyobugated to pay the sums secured by this Security Instrument; and (c) aggrees that Lender and any other Burrower can agree to extend modify, forbear or make any accommodations with regard tot lheterms ofthis Security Instrument or the NOW without the co- signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all oCBorruwer's rights and benefib under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements ofthis Secunty Instmmen[ shall bind (except as provided in Section 20) and henefil the successors mid assigns of Lender. 14. Loan Charges. Lender may charge Borrower tees for services performed in connection with Borrower's default, for the purpose ofprotecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence ofexpress authority in this Security Instrument to charyy'e a specific fee to Borrower shall not be consisted as a prohibition on the charging ofsuch fee. Lendernmynotcharge ees that are expressly prohibited bythis Security Instrument tar by Applicable Law. If the Loon is subject to a law which sets maximum loan char &es, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Lean exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit, and (b) any sums N ERR ASKA SinFlc Family— formiR Mae /Freaaie Mac Ufft FORM INSTRUM ENT Form3028 1 /01 (pageSofdpages) 9754.CV(1/02) 1649114 GOT00004086)