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APR -15 -2003 TUE 01:09 PM HOME FEDERAL -NORTH 308 382 6338 P. 10
<br />200305001
<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer,
<br />any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that
<br />derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in
<br />exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. if such agreement
<br />provides that an affiliate of Lender 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_ wilt not affect the amounts that: Borrower has agreed to pay fur
<br />Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount
<br />Borrower will awe 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 t"S or any other law. These rights
<br />may include the right is receive certain Awlesures, to request and~ obtain cancellation of the
<br />Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and /or to receive a
<br />reftrrel of any Mortgage insurance premiums that were unearned at the time of such cancellation or
<br />termination.
<br />11. Assignment of Miscellaneous Prooeeds; Forfeiture. Alf Miscellaneous Proceeds are hereby
<br />assigned to and shall be paid to Derider.
<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 wd Lender's security is not lessened'.
<br />During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds
<br />until Lender has had are opportunity to inspect such- Pretty to 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 restoration in a single diet 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 />Miscellaoonua Proceeds. lender shall not be required to pay Borrower any interest or earnings on such
<br />Miscellaneous Proceeds. If the restoratoorr or-repair is not economically feasible or t ender's security would
<br />be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument,
<br />whether or not then due, with ilia excess, if arty, paid to Borrower. Such Miscoltancous Proceeds shall be
<br />applied in the order provided for in Section 2.
<br />In the evert of a toad taking, destruction, or loss in value of the Property. the Miscellaneous
<br />Proceeds shall be applied to the suns secured by this Security Fnstrnment, whether or not then due, with
<br />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
<br />value of the Property immediately before the partial taking, destruction, or loss in value is equal to or
<br />greater than the amount of the sums segued by this Security Iasommew immediately before the partial
<br />taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums
<br />secured by this Security Instrument shalt be reduce& by the amount of the Miscellaneous Proceeds
<br />multiplied by the following fraction: (a) the total amount of the sums secured immediately before the
<br />partial taking. dest ruction. or loss in value divided by (b) the fair market value of the Property
<br />immediately before the partial 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 of the Property in which the fair market
<br />value of the Property immediately beferc the partial taking, destruction, or lost in value is less than the
<br />amount of the sums secured immediately before the partial taking. destruction. or loss in value, unless
<br />Borrower and Lender otherwise agree in writing, the Miscellaneout Proceeds shalt be applied to the sums
<br />secured by this Security Instrument whether or not the sums are then due:
<br />If the Property is abandoned by Borrower, or i €. after notice by Lender to Borrower that the
<br />Opposing Party (as defined in the next sentence) offers to make an award to 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 the Miscellaneous Proceeds either to restoration or repair of the Property or to the
<br />sums secured by this Security lnstnunaent, whether or not then due. "Opposing Party" means the third parry
<br />that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in
<br />regard to Miscellaneous Proceeds.
<br />Borrower shall be in default if my action or proceeding, whether civvit or criminal, is begun that, in
<br />Lender's judgment, could 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
<br />Inta.a:_
<br />® -G(NE) gmrii.01 Pry 0 of is Facm 3020 1101
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