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200206904
<br />As a result of these agrcentenis, lender, any purchaser of the Note, another insurer, any rcinsumq
<br />any other entity, or any affiliate of any of the foregoing, may receive (direuly or indirectly) amounts that
<br />derive from (or might be cha ractericed as) a portion of Borrower 'a payments for Mortgage Insurance, in
<br />exchange for sharing or modifying the mortgage insurer's risk, or redwing 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 oflrn termed "captive reinsurance' further
<br />(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for
<br />Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount
<br />Borrower will owe 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 1998 or any other law. These rights
<br />may include the right to receive certain disclosures, to request and obtain cancellation of the
<br />Mortgage Insurance, m have the Mortgage Insurance terminated automatically, and /or to receive a
<br />refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or
<br />termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
<br />assigned to and Shall be paid to Lender.
<br />If the Property is damaged, such Miscellaneous Proceeds Shull be applied to restoration or repair of
<br />the Property, if the restoration or repair is economically feasible and Lender's Security is not lessened.
<br />During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Pmawls
<br />until Lender has had an opportunity to button such Property 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 disbursement or vh 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 />Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such
<br />Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender'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 the excess, if airy, paid to Borrower. Such Miscellaneous Proceeds shall be
<br />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
<br />Proceeds Shall be applied to the sums soured by this Security Instrument, 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 witch the fair market
<br />value of the Property immediately before the partial taking, destruction, or lass in Vance is equal to or
<br />greater than the amount of the soots scoured by this Security Instrument immediately before the partial
<br />taking, destruction, or loss in value, unless Borrower and Leader otherwise agree In writing, the sums
<br />secured by this Scurity Instrument shall be reduced by the amount of the Miscellaneous Proceeds
<br />multiplied by the following fraction: (a) the total amount of the sums secured imunediateny before the
<br />partial taking, destruction, or loss in value divided by (b) the fair market value of the Property
<br />immediately before the partial talking, destruction, or loss in value. An 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 immor ntely before the partial taking, destruction, or loss in value is less than the
<br />amount of the sums soured immediately before the partial taking, destruction, or loss in value, unless
<br />Borrower and Leader otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums
<br />secured by this So urity Instrument whether or not the sums are then due.
<br />If the Properly is abandoned by Borrower, or if, after notice by Lender to Borrower that the
<br />Opposing Perry (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, Lender is authorized
<br />to collect and apply the Miscellaneous Proceeds either to restoration or repair of die Property or to the
<br />sums sections by this Security htntrmnetn, whetter or not then due. "Opposing Party" means the third party
<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 any action or procedling, whether civil or criminal, Is began that, in
<br />Lender s judgment, could result In forfeiture of the Property or other material impairment of Lendei s
<br />interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if
<br />02- 05-07- 000007
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