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200301236 Mortgage Insurers evaluate their total risk on all such insurance in force from time m time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terns and conditions that are satisfactory to the mortgage insurer and the other party (or rattles) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result ofthese agreements, Under, any purchaser ofthe note, another insurer, ary reire are r, any other entity, or affiliate ofany ofthe foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion ofl3orrower's payments fie Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, of reducing losses. Ifsuch agreement provided that an affiliate of Lender 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: '(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms ofthe 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 ofthe Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and /or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds areherebyassignedw and shall be paid to Lender. Ifthe Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair ofthe Property, if the restoration er repair is economically feasible and Lender's security is not lessened. During such repair and restoration 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. Ifthe restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or nut 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 Properly, 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 a partial taking, destruction, or lush in value of the Properly in which the fair market value of the Properly immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount ofthe sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Under 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 faction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair 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, dealt action, 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 immediately before the partial taking, destruction, or loss in value, unless Borrower and Leander otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured bythis Security Instrument whether or not the sums are then due. If the Property, is abandoned by Borrower, or if, after notice by I ender to Borrower that the Opposing Party (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 anTapply 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 party 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 judgment, could result in forfeiture of the Properly or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as rovided in Section 19, by causing the action or procccdin6 to be dismissed with a ruling that, in Lender's judgment, precludes forfeiturc of die Property or other material impairment of Lender's interest in the Property or rights underthis Scourfty Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender th Lender's interest in e Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the 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 Borrower. Under fail] 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 of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any 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. .foint and Several Liability; Co- signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co -signs this Security Instrument but does not execute the Notc (a "m- signer'): (a) is co- signing this Security Instrument only to mortgage, grant and convey the co- signer's interest in the Property under the terms ofthis Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Under and any other Borrower can agree to extend, modify, for or make any accommodations with regard to the terms ofthis Security Instrument or the Note 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 of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released front Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements ofthis Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default fin the purpose ofprotccting Lcndcr's interest in the Property and rights under this Security Instrument, including, barrel limited to, attorneys' fees, property, inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable law. Ifthe Loan is subject to a law which sets maximum loan char &es, and that law is finally interpreted so that the interest .,other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced bythe amount necessary to reduce the charge to the permitted limit; and (b) any sums NF.mRASKA— Siegle Fun,ily —Flmaie RlaelFreddie Nlac CNIFORAI INSTRI NIFNT Fnrm3029 Ilan (pnge SnfR poRe.v) 9754. CV r1 /02) 1646091 Cilrl rl(000403d2)