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MAR.21.2002 12:43PM 200204237 N0.078 P.32/72 Mortgage Insurance reimburses (endar (or any entity that purchaIses the Note) for certain losses it may Incur if Borrower does not repay the Loan as ag Peed. Borrower is not a party to the Mortgage insurance. 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 o modify their risk, or reduce losses. These agreements are on terms and conditions that re _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 obthined from Mortgage Insurance premiums), As a result of these agreements. .ender, any purchaser of the Note, another insurer, any reinsurer, any outer entity, or any 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 provides that an affiliate of Lender takes a .share of the insurerrs risk in exchange for a share of the premiums paid to the insurer, the arranpeMent 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 lnsurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not aftt the rights Borrower has - It any - with respect to the Mortgage Insurance under the Homeowners Protectloo Act of 1998 or any other i81w. 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 ;Tarfeifure, All Miscellaneous Proceeds are hereby assigned to and shell 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 security is not lessened. During such repair and restoration period. Lander shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly, Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement Is mode in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay 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 to the sums secured by this Sepurity 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, SK 10 Rev tb✓o3 /nn Paop 10 of 1R initial , FORM( M26 1101 V. .r= x� M