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200303732 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 modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or partier) to these agreements. These agreements may regire the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include fiends obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchase rofthe note, another insurer, any reinsures, anyother 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 Menge a 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 ofthe inswer'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, acrd /or to receive a refund of any Mortgage Insurance premiums that were unearned at the lime of such cancellation or termination. 11. Assignment ofMiscellancous Proceeds; Forfeiture. All Miscellaneous Proceedsareherebysssignedmand shall be paid to Lender. Ifthe Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair ofthe Property, ff the restoration or repair is economically feasible and Lender's security is out lessened. During such repair and restoration period, lender shall have the right to hold such Miscellaneous Proceeds until lender has had an opportuni ty to inspect such Property w ensure the work has been completed to Lender's satisfaction, provided that such inspection shall) be undertaken promptly. Lender may payforthe repairs and restoration inasingle disbursement or in aseries 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 pa Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied lu the sums secured made Security Instrument, whether or not then due, with the excess, ifany, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In [he even[ o(a WWI taking, destruction, or loss m value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, ifany, paid to Borrower. In the event of a partial taking, destruction, or loss in value ofthe Property in which the fair market value ofthe Property immediately before the partial taking, destrecuoo, orloss invalue isequaltoor eaterdrantheamountrfthesums secured bythis Security Instrumcn[ immediately before the Darial taking, destruct ion, orf ss in value, unless Borrower and Lender otherwise agree m writing, the sums secured by this Security Instrument shall be reduced by the amount ofthe Miscellaneous Proceeds multiplied 6y the following fraction: (a) the total amount ofthe sums secured immediatelybemre the partial taking, destruction, or loss in value divided by (b) the fair market value ofthe Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event ore partial taking, destruction, or loss in value ofthe Property in which the fair market value ofthe Property immediately before the partial taking, destruction, or loss in value is less than the amount ofthe sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be app s lied to the sums secured by Security Instrument whether or not the sum we then due. If die Property is abandoned by Borrower, or it; after notice by Under to Borrower that the Opposing Party I. defined in the next sentence) otters 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 applythe Miscellaneous Proceeds cidmr 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 Miscel menus Proceeds or the party against whom Borrower has a right ofaction in regard to Miscellaneous Proceeds. Borrower shall be in default if my action or proceeding, whether civil or criminal, is begun that, in Lender's judggment, could result in forfeiture ofthe Property or other material impairment ofUnder's interest in the Propertyor rights underthis Security Instrument. Borrower can cure such a default and, ifaceelerahnn has occurred, reinstate as provided In Section 19, by causing the action or proceedingg to be dismissed with a ruling that, in Lender's judgment, precludes forfeimre ofthe Property or other material impairment of Lender's interest in the Property or rights under this Securitylustrmnen . The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assiggned and shall be paid to Lender. All Miscellaneous Proceeds that we not applied to restoration or repair ofthe Property shall be applied in the order provided fin in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension ofthe time for payment or modification ofamortization ofthe sums secured by this Security Instrument granted by Underto Borrower ormy Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Under shall not be required to conhmence proceedinggs against any Successor in Interest ofBorroweror to refuse to extend time for payment or otherwise modify amortization ofthe sums secured by this Security Instrument by reason ofanydemand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising anyriOr or remedy including, without limitation, Under's acceptance of payments from third persons, entities or Successors m Interest of Borrower or in amounts less than the amount then due, shall not be a waiver ofor preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrowercovensnisandagrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co -signs this Security Instrument but does not execute die Note (a "co- signer "): (a) is co- signing this Security Instrument only to mort P[,age, grant and convey the co- signer's interest in the Property under the terms ofthis Security Instrument; (b) is notpersonalyobligand to pay the sums seemed by this Security Instrument; and (c) aggrees that Lender and my other Borrower can agree to extend, muddy, forbear or make any accommodations with regard to [he terms ofthis Security Instrument or the Note without the co signer's consent. Subject to the provisions of Section 18, any Successor in Interest ofBorrower whoassumes 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 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 permrmed in connection with Borrower's default, for the purpose ofprotecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, an ... eys fees, property inspection and valuation tees. In regard to airy other fees, the absence ofexpress authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the chargingo'suchfec. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Wan 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 Wan exceed the permitted limits, then: (a) tiny such loan charge shall be reduced bythe amount necessary to reduce the charge to the permitted limit; and (b) any sums NEf1R,oi"- Sing1e Family- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Furm3028 LOl (page5a/8pages) 9751 CV (1 /02) 102195 GOT0(000191dl)