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200303551 Mortgage Insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modifytheir risk, or reduce losses. These agreements are on terms andcondltions that are satisfactory to the mortgage insurer and the other party (or parties) 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). Asa result of these agreements, Lender, any purchaser of the note, another insurer, any reinsurer, any other entity, or affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provided that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the 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 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 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 Pro dsareherebyassignedWand shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's securi ty is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportumtyto inspect such Property to ensure the work has been completed [o Lender's saris( action, provided that such inspection shall l he undertaken promptly. Lender maypay forthe repairs and restoration inasingle disbursement or in a series of progress payments as the work is completed. ❑nless an agreement is made in writing or Applicable law requires interest to be paid on such Miscellaneous Proceeds, Lender shell nut he required to pa Borrower any interest or earnings on such Miscellaneous Proceeds. If[he restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall ba applied to the sums secured by [his 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 mtal taking, destruction, or loss m value of the Properly, the Miscellaneous Proceeds shall be applied m the sums secured by this Security Insmm�en[, whether or not then due, with the excess, if my, paid to Borrower. In the even[ of a partial taking, destruc[ioq or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, desmuctioq or loss in value is equal to or greater than theamoumofthe sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender of crwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amrnmt of thp partial taking, destruction, or loss in value divided by (b) the fair market value of theProperty immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before die 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 Lender otherwisea ggree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whetheror not dte sums srethen due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that die 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 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 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 began that, in Lender's judggment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property orr is under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as PProvided in Section 19, by causing the action or proceeding m be dismissed with a ruling that, in Lender'sjudbmient, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights underthis Securnyli shument The proceeds of any award or claim for damages that arc attributable to the impairment of Lender's interest in the Property are hereby ass.ggtied 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 byLenderm Borrower oranySuccessor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Leader 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 ofthe sums secured by this Security Instrument by reason ofanydcmand made by the original Borrower or any Successors in Interest of Borrower. Anyforbearance by Lander in exercising myright or remedy including, without limitation, Lender's acceptance of payments Gam third persons, entities or Successor Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of my right or remedy. 13. Joint and Several Liability; Co- signers; Successors and Assigns Bound. Borrowercovenawsandagrees 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 Note (a "co- signer'): (a) is co- signing this Security Instrument onlyto mortgage, grant and convey the co- signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modit'y, forbear or make any accommodations with regard to the terms of this Security Instrument or the New 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 from Borrower's obligations and liability under this Secur.ry Instrument unless Lender agrees to such release in writing. 'I he covenants and agreements of this 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, for the purpose ofprotecting Lender's interest in the Property unit rights under this Security Instrument, including but not limited to, al ties, property inspection and valuation lees. 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 churn fees that are expressly orohibiwd by thin Secnriry inamimen,„r ho A-U-M. If the loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or 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 by the amount necessary to reduce the charge to the permitted limit; and (b) any sums Nllilt SI Single Family— Fannle Mae /Freddie Mac UNIFORM INSTRUMENT Fnrm3028 nut gs,,5of 8pages) 9954.CV(1/02) 1667245 C0T0(W04491a)