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200302633
<br />As a result of the,, aareancnts, Lender, wry purchaser of the Note, another insurer, any reinsurer,
<br />any other ew,k, or an} affiliate of any of the foregoing, may receive (directly or indirectly) amounts that
<br />derive hole (or might he ch:uautaized as) it portion of Borrower's payments for Mortgage Insurance, in
<br />exchange for sharing nr mod'diing the ntort-aec insurer's risk, or reducing losses. If such agreement
<br />provides that an allllisre of Lcnder takes a share of the insurer's risk in exchange for a share of the
<br />premiums paid m dre insurer, [hc ai rangen ent is often termed "captive reinsurance." Further-
<br />(a) Any such agreements will not afftct the amounts that Borrower has agreed to pay for
<br />Mortgage Insurance, or am other terms of the Loan. Such agreements will not increase the amount
<br />Borrower will owe for Mortgage Insurance, land then will not entitle Borrower to any refund.
<br />(b) Au% such agreements will not affect the rights Borrower has - if any - with respect to the
<br />Mortgage Insurance under the Homanvners Pi tection Act of 1998 or any other law. These rights
<br />man y include the right to receive certain disclosures, to request and obtain cancellation of the
<br />V1ortguge Insurance, to hove the Ylurtgage insurance terminated automatically, and /or to receive a
<br />refund of ally Mortgage Insurance premiums thin were unearned at the time of such cancellation or
<br />let oi lion.
<br />11. Assignment of Macelluncous Procetds; Forfeiture. All Miscellaneous Proceeds are hereby
<br />assigned to and shall be paid w Lcnder.
<br />II' the Ifopcm is darea,atl, such Misaclloncnus Proceeds shall be applied to restoration or repair of
<br />the Property, it the res!oradnn or repair is ecnnnmicilly feasible and Lender's security is not lessened.
<br />During such repair and restoraion Deriod. Lender shall have the right to hold such Miscellaneous Proceeds
<br />until Lcnder has had to opporv.mile m Inspe i such Property to ensure the work has been completed to
<br />Lenders smisfaation_ pmvidN that such Inspn Lion shall be undertaken promptly. Lender may pay for the
<br />repairs tell rcvomtinn in a siuelc dhlaltsemmnt or iu a series of progress payments as the work is
<br />completed. I lIcss all aerecmeo: is made In v i li, or Applicable Law requires interest to be paid on such
<br />Mis'cdlanenu,s Ifocecds. Lcudec shall not he i::yuircil to pay Borrower any interest or earnings on such
<br />%I iscellaucous flocs ds. II tae restoration or rc,mir is uoi economically feasible or Lender's security would
<br />be lessened, the rmlS¢IlanCOl6 Proceeds shall be applied to the sums secured by this Security Instrument,
<br />,chethei of not then due, with the exi;css, it any, paid to Borrower. Such Miscellaneous Proceeds shall be
<br />applied In the order provided lot ill Section 3.
<br />In rile event of a mud Maio", destrudion, or loss in value of the Property, the Miscellaneous
<br />Proceeds shall be applied to the stuns secitenl by this Security Instrument, whether or not then due, with
<br />the execs, it any_ paid to Bono ,ci.
<br />In the event of it panial inking, destruction, or Toss in value of the Property in which the fair market
<br />value of the Propcny immctliatch before [he partial taking, destruction, or loss in value is equal to or
<br />greater than the arl of the suns secured by this Security Instrument immediately before the partial
<br />taking, destntaion, or Inns in calve, unless Borrower and Lender otherwise agree in writing, the sums
<br />secured by this sc,llmy Instrument shall be reduced by the amount of the Miscellaneous Proceeds
<br />multiplied be the following fraction: (a) the loran amount of the sums secured immediately before the
<br />parti:d tukln, _ desb mn')n, o: lass in value divided by (bl the fair market value of the Property immediately
<br />before the pwt,od (Liking, dcstn¢tion, or loss in calve. Any balance shall be paid to Borrower.
<br />In the cyeal of a panial w6hra_ destruction, or loss in value of the Property in which the fair market
<br />vtduc of the Property timed itwk helbre the partial caking, destruction, or loss in value is less than the
<br />zmomu of the sums secured inmxdimel} 11110:c the pedal taking, destruction, or loss in value, unless
<br />Bnrrmvcr and Itinder olllem"C ugrcc iu ,vri tit G, the Miscellaneous Proceeds shall be applied to the sums
<br />acnrrcd by dris SeCtIl d' Insuun:om whcdmr nr not the sums are then due.
<br />If the I'rnpem Is ahtnudoucd by llorro,ecr, or if, after notice by Lender to Borrower that the
<br />Opposin, Pan) tas dclincd i:t the :text seuucoee) offers to make an award to settle a claim for damages,
<br />Barroom fills (o respond to Lcnder m -irhin 30 days after the date the notice is given, Lender is authorized
<br />to sanest and apply the Mlstmilantnus Pnsenls either to restoration or repair of the Property or to the
<br />sum's scoured by this Security Insrument. ,ahenc,r or vat then due. "Opposing Party" means the third parry
<br />that owes Ian mower Miscelluncous Proceed+ el the party against whom Borrower has a right of action in
<br />rcGard to A41sccllancous Procccds.
<br />&xro,acr shall be le dctault if ars xenon or proceeding, whether civil or criminal, is begun that, in
<br />Leather s jutlgnucnt, cntdcl result lea lorfelure nt the Property or other material impairment of Lender's
<br />interest dl the Plopcm or rights under this Sitvrity Instrument. Borrower can cure such a default and, if
<br />(o6(NE) "neic L. Porm3028 1 /01
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