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200303282
<br />Mortgage Insurers evaluate their total risk on all such insurance in force from time to time, and may enter into
<br />agreements with other pmlies that share or modify their risk, or reduce losses. These agreements me on terms andconditions
<br />that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may
<br />require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available
<br />(which may include funds obtained from Mortgage Insurance premiums).
<br />As a result of these agreements, Lender, any urchaser ofthe note, another insurer, any remsureq any other entity,
<br />or affiliate of my of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized
<br />as) a portion of Borrower's aym��ls for Mort age Insurance, in exchange for sharing or modifying the mortga &e insurer's
<br />risk, or reducing losses. If sue provided that an affiliate of Under takes a share ofthe insurer's risk in exchange
<br />for a share of the premiums paid to the insurer, die arrangement is often termed "captive reinsurance. Further:
<br />(h) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage
<br />Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for
<br />Mortgage Insurance, and they will not entitle Borrower to any refund.
<br />(b) Any such agreements will nut affect the rights Borrower has— if any —with respect to the Mortgage
<br />Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to
<br />receive certain disclosures, to request and obtain cancellation ofthe Mortgage Insurance, to have the Mortgage
<br />Insurance terminated automatically, and /or to receive a refund of any Mortgage Insurance premiums that were
<br />unearned at the time of such cancellation or termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are h s ebyassignrd wand
<br />shall be paid to Lender.
<br />Ifthe Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair ofthe Property, if
<br />the restoration or repair Is economically feasible and Lender's security is out lessened. During such repair and restoration
<br />period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had anoppommi toinspectsuch
<br />Property to ensure the work has been completed to Lender's satisfac[ ion, provided that such inspection shall) be undertaken
<br />P Lender may pay for the repairs and restow[ion in a single disbursement or in a series of progress payments as the
<br />work Is cnmplcu:d. Unless an agreement is made in writing or Applicable law requires interest to be paid on such
<br />Miscellaneous Proceeds, Lender shall not b. rcyuireJ to pay Borrower any interest or earnings on such Miscellaneous
<br />Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous
<br />Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if my,
<br />paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2.
<br />In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower.
<br />In the event of a partial taking destruction, or loss in value of the Property in which the fair market value of the
<br />Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amountofthe sums
<br />Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the
<br />Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediatelybefcrethe
<br />partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial
<br />taking, destruction, or loss in value. Any balance shall be paid to Borrower.
<br />In the event of a partial taking, destruction, or loss in value ofthe Property in which the fair market value of the
<br />Property immediately before the Partial taking, destruction, or loss in value is Icss than the amount of the sums secured
<br />immediately before the partial taking, destruction, or loss in value, unless Borrower and lender otherwise agree in writing,
<br />the M;acellnnernan Proceeds shall be arm lied to the sums secured by this Security Instrument whether or not the suns are then
<br />due.
<br />If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as
<br />defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender
<br />within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either
<br />to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due.
<br />"Opposing Party" means die third parry that owes Borrower Miscellaneous Proceeds or the party against whom Borrower
<br />has a right of action in regard to Miscellaneous Proceeds.
<br />Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's
<br />judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Propertyor rights
<br />under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in
<br />Section 19, by causing the action or proceedin66 to be dismissed with a ruling that, in lender's judgment, precludes forfeiture
<br />ofthe Property or other material impairment ofLender's interest in the Property or rights under this Security Instrument The
<br />proceeds of my award or claim for damages that are attributable to the impairment of Lender's interest in the Property are
<br />hereby assiggned and shall be paid to lender.
<br />All Miscellaneous Proceeds that are not applied to restoration or repair of are Property shall be applied in the order
<br />provided for in Section 2.
<br />12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or
<br />modification of amortization of the sums secured by ibis Security Instrument granted byLenderto Borrower or any Successor
<br />in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower.
<br />Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend
<br />time for payment or otherwise modify amortization o the sums secured by this Security Instrument by reason ofany demand
<br />made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising anyright
<br />or remedy Including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in
<br />Interest of Borrower or in
<br />amounts less than the amount then due, shall not be a waiver of or preclude the exercise of my right or remedy.
<br />13. Joint and Several Liability; Co- signers; Successors and Assigns Bound. Bomowercovenantsandagmes
<br />that Borrower's obligations and liability shall be joint and several. However, any Borrower who co -signs this Security
<br />Instrument but does not execute the Note (a "co- signer') (a) is co- signing this Security Instrument onlyto mort gage, grant
<br />and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated
<br />to pay the sums secured by this Security Instrument; and (e) aggrees that Lender and any other Borrower can agree to ex tend,
<br />modify, forbear or make any accommodations with regard to [he terms of this Security Instrument or the Now without the co-
<br />signer's consent.
<br />Subject m the provisions of Section 18, any Successor in Interest ofBorrower who assumes Borrower's obligations
<br />under this Security Instrument in writing, mid is approved by Lender, shall obtain all of Borrower's rights and benefits under
<br />this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this SeI uri
<br />Instrument unless Under agrees to such release in writing. The covenants and agreements ofthis Security Instrument she,
<br />bind (except as provided in Section 20) and benefit the successors and assigns of lender.
<br />14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's
<br />default, for the purpose of protecting Lender's interest In the Property and rights wider this Security Instrument, including,
<br />but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express
<br />authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the
<br />chargingofsuchfee. Lender may not charge ees that are expressly prohibited by this Security Instrument or by Applicable
<br />Law.
<br />If the Loan is subject or a law which sets maximum loan charges, and that law is finally interpreted so that the
<br />interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a)
<br />any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums
<br />N'ED"KA— Single Fumlly- -Fannie Mee /Freddie Mae UNIFORM IN STRUMENT Form3028 1101 Wge5of8pages)
<br />9754 CV (1/02) 1668532
<br />GOTO(0004602)
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