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20031643'7
<br />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
<br />in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage
<br />Insurance ends in accordance with any written agreement between Borrower and Lender providing
<br />for such termination or until termination is required by Applicable Law. Nothing in this Section
<br />10 affects Borrower's obligation to pay interest at the rate provided in the Note.
<br />Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain
<br />losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the
<br />Mortgage Insurance.
<br />Mortgage insurers evaluate their total risk on all such insurance in force from time to time,
<br />and may enter into agreements with other parties that share or modify their risk, or reduce losses.
<br />These agreements are on terms and conditions that are satisfactory to the mortgage insurer and
<br />the other party (or parties) to these agreements. These agreements may require the mortgage
<br />insurer to make payments using any source of funds that the mortgage insurer may have available
<br />(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
<br />reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or
<br />indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's
<br />payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's
<br />risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the
<br />insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is
<br />often termed "captive reinsurance." Further:
<br />(a) Any such agreements will not affect the amounts that Borrower has agreed to
<br />pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not
<br />increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle
<br />Borrower to any refund.
<br />(b) Any such agreements will not affect the rights Borrower has - if any - with
<br />respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any
<br />other law. These rights may include the right to receive certain disclosures, to request
<br />and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance
<br />terminated automatically, and/or to receive a refund of any Mortgage Insurance
<br />premiums that were unearned at the time of such cancellation or termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are
<br />hereby assigned to and shall be paid to Lender.
<br />If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or
<br />repair of the Property, if the restoration or repair is economically feasible and Lender's security is
<br />not lessened. During such repair and restoration period, Lender shall have the right to hold such
<br />Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure
<br />the work has been completed to Lender's satisfaction, provided that such inspection shall be
<br />undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or
<br />in a series of progress payments as the work is completed. Unless an agreement is made in
<br />writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender
<br />shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If
<br />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
<br />or not then due, with the excess, if any, 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 secured by this Security Instrument, whether or not then
<br />due, with 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
<br />market value of the Property immediately before the partial taking, destruction, or loss in value is
<br />equal to or greater than the amount of the sums secured by this Security Instrument immediately
<br />before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise
<br />agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of
<br />the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums
<br />secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair
<br />Initials:
<br />4=® 61NE1 c000s.oz Page 9 of 16 Form 3028 1/01
<br />CVNE 07/14/03 11:56 AM 6278689218 01
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