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200207491
<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any
<br />other entity, or any affiliate of any of die foregoing, may receive (directly or indirectly) amounts that derive
<br />from (or might be characterized ac) a portion of Borrower's payments for Mortgage Insurance, in exchange
<br />for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an
<br />affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid m the
<br />insurer, the arrangement is often 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 may
<br />include the right to receive certain disclosures, In request and obtain cancellation of the Mortgage
<br />Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any
<br />Mortgage Insurance premiums that were unearned at the time of such cancellation or 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 shall be applied to restoration or repair of the
<br />Property, if the restoration or repair is economically feasible and Lender's security is 1101 lessened. During
<br />such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until
<br />Lender has had an opportunity in inspect such Property to ensure the work has been completed m Lender's
<br />satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and
<br />restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an
<br />agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous
<br />Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous
<br />Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the
<br />Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether of lot then
<br />due, with the excess, if may, paid to Borrower. Such Miscellaneous Proceds shall be applied in the order
<br />provided for in Section 2.
<br />In the event of a tool taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds
<br />shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if
<br />any, paid to Borrower.
<br />In die event of a partial Liking, 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 of greater
<br />than the amount of the sums secured by this Security Insumnent immediately before the partial taking,
<br />destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, die sums secured by this
<br />Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the
<br />following fraction: (a) die WWI amount of tae sums secured immediately before the partial taking, destruction,
<br />or loss in value divided by (b) the fah market value of the Property immediately before the partial taking,
<br />destruction, or loss in value. Any balance shall be paid to Borrower.
<br />In the event of a parted 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 less than die
<br />amount of the sums secured immediately before dire partial Liking, destruction, or loss in value, unless
<br />Borrower and Lander otherwise agree in writing die Miscellaneous Proceeds shall be applied to the sums
<br />secured by this Security Instrument whether or not the sums we then due.
<br />If the Property is abandoned by Borrower, or if, after notice by Leader to Borrower that the Opposing
<br />Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails
<br />to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and
<br />apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this
<br />Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower
<br />Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard a Miscellaneous
<br />Proceeds.
<br />Borrower shall be in default it any action or proceeding, whether civil or criminal, is begun that, in
<br />Lender's judgment, could result in forfeiture of die Property or other material impairment of Lender's interest
<br />in the Property or rights under this Security Instrument. Borrower can cure such a default mill, if
<br />DOC X:31]609 APPL k:00161R7494 LOAN µ: 0016107359
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<br />-e(NE) i000st v,pa a of 16 Form 3020 1101
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