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MAR -14 -2003 FRI 01;48 PM WELLS FARGO HOME MTG FAX NO. 4025362983
<br />200303116
<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer,
<br />any other entity, or say affiliate of any of the foregoing, may receive (directly or indirectly) amoanrs that
<br />derive from (or mifht be characterized as) a portion of Borrower's payments for Mortgage Insurance, in
<br />exchange for sharingg or modifying the mortgage insurer's risk, or reducing losses. If such agrermemt
<br />provides that so affiliate of Lander Takes a share of the insurer's risk in exchange for a share of the
<br />premiums paid to 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 for
<br />Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount
<br />Borrower will owe for Mortgage Insurance, and they will not entitle Borrower, to any refund.
<br />(b) Any such agreements will not affect the rights Borrower has - If any - with respect to the
<br />Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights
<br />may include the tight to receive certain disclosures, to request and obtain cancellation of the
<br />Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or m receive a
<br />refund of any Mortgage Insurance premiums that were unearned at the time of such rmcellatim or
<br />termination.
<br />11. Assignmad of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
<br />assigned to and shall be paid in Le.hdcr.
<br />If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of
<br />the Property, If the restoration or repair is economically feasible and Lender's security is not lessened.
<br />During such repair a ad restoration period. Lender shall have the fight to hold such Miscellaneous Proceeds
<br />until Lender has hart an opportunity w inspect such Propeny in ensure the work has been completed to
<br />Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the
<br />repairs and resmrat on 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 be paid on such
<br />Miscellaneous Proce3ds, Lender shall not be required to pay Borrower any interest or earnings on such
<br />Miscellaneous Prercoxls. If the restoration or repair is not econortdcally feasible or Lender's security would
<br />be lessened, The Misell=mw Proceeds shall be applied to the sums secured by this Security Instrument,
<br />whether or not then Joe, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be
<br />applied in The order I rovided for in Section 2.
<br />In the event o' a total taking, destruction, or loss in value of The Property, the Miscellaneous
<br />Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
<br />the excess, if any, paid to Borrower.
<br />In the event of h partial taking, destruction, or loss in value of the Property in which the far market
<br />value Of the Propey+ immediately before the partial taking, destruction, or loss in value is equal to or
<br />greater than the amount of The sums secured by this Security Instrument inunediately before the partial
<br />taking, destruction, ar loss in value, unless Harrower and Lender otherwise agree in writing, the sums
<br />secured by this Sec linty Imtrument shall he reduced by the amount of the Missrdlaneous Proceeds
<br />multiplied by the fo lowing fractions (a) the rota] amount of the sums secured immediately before the
<br />partial taking, desmu lion, or loss in value divided by (b) the fair market value of The Property immediately
<br />before the partial saki tg, destruction, or loss in value. Any balance shall be paid to Borrower.
<br />In the event of : partial taking, destruction, or loss in value of the Property in which the fair market
<br />value of the Property immediately before the partial taking, destruction, or loss in value is less than the
<br />amount of the gums ;ecured immediately before the partial Taking, destruction, or loss in value, unless
<br />Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums
<br />secured by this Security Instrument whether or not the sums are then due.
<br />11 the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the
<br />Opposing Party (as d;fined in the next sentence) offers in make an award in settle a claim for damages.
<br />Borrower fails to respond to Lender within 30 days after the date the notice is given, Leader is authorized
<br />to collect and apply she Miscellaneous Proceeds either to restoration or repair of the Property or to the
<br />sums secured by this : ;ocurity Instrument, whether or not then due. "Opposing Pang' means the third party
<br />That owes Borrower Afiscellanenus Proceeds or the party against whom Bari has a right of action in
<br />regard to Miscellancoo is Proceeds.
<br />Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in
<br />Lender's judgment, cruld result in forfeiture of the Property or other material impairment of Lender's
<br />interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if
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<br />aeaa a or +s F.O. 3028 1101
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