|
<br />200601775
<br />
<br />As ,I result of these agreements, Lendcr, any purchascr of thc Noll:. another insurer, any reinsurer,
<br />any other entity. or any at1'iliate of any of the foregoing. may rceeivc (directly or indirectly) amounts that
<br />derive fronl (or might be characterized as) a portion of Borrower's payrnents for Mortgage Insurance. in
<br />exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement
<br />provides that an affiliate of Lcnder takcs a share of the insurer's risk in exchange filr a share of the
<br />premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further:
<br />(a) Any such agreements will not affect the amounts th:lt 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 fOl" Mortgage Insurance, and they will not entitle Borrower to an~' refund.
<br />(b) Any such agreements will not affect the rights Borrower has - if any - with respect to the
<br />Mortgage lnsuranee under the Homeowners Protection Act of 1998 or any other law. These l"ights
<br />may inelude the r"ight to receive certain disclosures, to request and ohtain cancellation of the
<br />Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or' to receive a
<br />refund of any Mortgage Insunlllce premiums that were unearned at the time of such cancellation or
<br />termination.
<br />1 L Assignment of Miscellaneous Proceeds; ForfeitUl"e. All Miscellaneous Proceeds arc 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
<br />the Propcrty. 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 rigbt to hold such Miscellaneous Proceeds
<br />until Lender has had an opportunity to inspect such Property to ensure the work has been completed to
<br />Lender's satishtction, provided that such inspection shall be undertaken promptly. Lcnder may pay for the
<br />repairs and restoration in a single disbursement or in a series of progress payments as the work is
<br />cornpleted. Unless an agreement is made in writing or Applicable Law requircs 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 tbe sums secured by this Security Instrument.
<br />whcther or not then due, with the excess, if any. paid to Borrower. Such :'vIiscellancous 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 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 which the fair market
<br />value of the Property immediately bd'(lre the partial taking, destruction, or loss in value is equal to or
<br />greater than the amount of the sums secured hy this Security Instrument immediately heforc the partial
<br />taking. destruction, or loss in value. unless Borrower and Lender otherwise agrec in writing, the sums
<br />secured hy this Security Instrument shall he reduced by the amount of the Miscellaneous Proceeds
<br />multiplied by the following fraction: (a) the total amount of the sums secured immediately 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 taking, destruction, or loss in value. Any 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 immediately before the partial taking, destruction, or loss in value is less than the
<br />amount of the sums secured immediately bej()re the partial taking, destruction, or loss in value, unless
<br />Borrower and Lender otherwise agree in writing, the :'vi iscellaneous Proceeds shall be applied to the sums
<br />secured by this Security Instrument whether or not the sums arc then due.
<br />If the Property is abandon cd by Borrower. or if after notice by Lcnder to Borrower that the
<br />Opposing Party (as defined in the ncxt sentence) offers to make an award to settle a claim I'(,r damages,
<br />Borrower fails to respond to Lender within :\0 days after the date the notice is given, Lender is authorized
<br />to collect and apply the :'vIiscellaneous Proceeds either to restoration or n:pair of the Property or to the
<br />sums secured by this Security Instrument. whether or not then due. "Opposing Patiy" 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 proceeding, \vbether civil or criminal, is begun that. in
<br />Lender's judgment, could result in f'(H'feiture of the Property or other material impainnent of Lender's
<br />interest in the Property or rights under this Security Instrument. Borrower can CUlT such a default and, if
<br />
<br />S-6(NE) (0407).01
<br />@
<br />
<br />Poge 9 of 1 5
<br />
<br />InitiaIS~? 0110247550
<br />y. Q.)f Fonn 3028 1101
<br />
|