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<br />the Mortgage Insurance previously in effect, at a cost substantially equivalent In the cost to Borrower of the
<br />Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially
<br />equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of
<br />the separately designated payments that were, due when the insurance coverage ceased to be in effect. Lender will
<br />accept, use and retain these payments as a nun - refundable loss reserve in lieu of Mortgage Insurance_ Such loss
<br />reserve shall be non - refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall
<br />not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss
<br />reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided
<br />by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated
<br />payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of
<br />making the Loan and Borrower was required to make separately designated payments toward the premiums for
<br />Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to
<br />provide a non - refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with
<br />any written agreement between Borrower and Lender providing for such tennlnation or until termination is required
<br />by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in
<br />the Note
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may
<br />incur if Borrower does not repay the Loan as agreed Borrower is not a party to the Mortgage Insurance_
<br />Mortgage insurers evaluate their total risk tin all such insurance in force fionl time to lime, and may enter
<br />into agreements with other parties that share or modify their risk, or reduce losses. These m reententa are on terms
<br />and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements_
<br />'I hese agreements may require the mortgage insurer to make payments using any source of funds that the mortgage
<br />insurer nray have available (which may include funds obtained from Mortgage Insurance premiums).
<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinnurcr, any
<br />other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from
<br />(or might be chameten,ed as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing nr
<br />modifying the mortgage insurer's risk, or reducing losses. if such agreement provides that an aBlliate of Lender
<br />takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is
<br />often temaed 'captive reinsurance.' Further
<br />(a) 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 Rorruwer will owe
<br />for Mortgage Insurance, and thee will oat 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 1998 or any other law. These rights may
<br />include the right to receive certain disclosures, in request and obtain cancellation of the Mortgage Insurance,
<br />to have the Mortgage Insurance terminated automatically, and /or to receive a refund of any Mortgage
<br />Insurance premiums that were unearned at the time nfsuch cancellation or termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned
<br />to and shall he paid to Lender
<br />If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the
<br />Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such
<br />repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had
<br />an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided
<br />that such inspection shall be undertaken promptly. Leader may pay for the repairs and restoration in a single
<br />disbursement or in a s'crics of progress payments as the work is completed I Inless an agreement is made in writing
<br />or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay
<br />Borrower any interest or eammRs on such Miscellaneous Proceeds. If the restoration or repair is not economically
<br />feasible at Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by
<br />this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous
<br />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
<br />be applied to tie sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to
<br />Borrower.
<br />NERR,kSRA— tiloele Fanrdy— Fannie M1lae /Freddie Mat UNIFORM INRTRI MENT Farm 30381/01
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