|
<br />200601850
<br />
<br />DOC lU ,: 00012506320602006
<br />As a result of these agreements, Lender, any purchaser of the Nole, another insurer, any reinsurer, any
<br />other entity, or any affiliate of any of the foregoing, may receive (direcLly or indirecLly) amounts that derive
<br />from (or might be chru'aeterized as) a portion of Bon-ower's payments for Mortgage Insurance, in exchange for
<br />sharing or modifying Lhe mortgage insurer's risk, or reducing losses. If sueh agreement provides LhaL an
<br />affiliaLe of Lender Lakes a share of [he insurer's risk in exchange for a share of Lhe premiums paid Lo Lhe
<br />insurer, Lhe arrangemenL is often Lermed "capLive reinsurance." FurLher:
<br />(a) Any such agrccmcnts will not affcd till' IImounts thlll Borrowl'r hilS IIgrccd 10 PIlY for Morlgllgc
<br />Insurance, ()I' any olhcl' tcrms or lhe Loan. Such agrccmcnt.. will nol incrcllsc thc amount Borrowcr will
<br />owc for Morlgage Insul'llncc, and lhcy will nol cnl.iUc Borrowcr to any rl'fund.
<br />(II) Any such agrccmenls will Ilol an'cel thc right.. Borrowcr has - il' any - with rcspccl to thc
<br />M()I'lgagc Insurunce undcl' the Homcowncrs Proleelion Ael 01' 1998 OJ' llny otlwr luw. Tbese righls may
<br />include lbc righl to rcccivc ccrhtin disclosurc!>, to n~quesl and obblin cancellation 01' thc Mortguge
<br />Insurunce, 10 havc tbe Mortgagc Insurance tl'mlimlled aulomalicaUy, undlor 1.0 receive a rcf'und or any
<br />Morlgagc In!>urancc premium!> lhal wcn' uncarnl'd at tbc timc of' sucb cunccllalion or termination.
<br />11. Assignment of Miscellaneous Procccdsj Fod(~ihll'c. All Miscellaneous Proceeds are hereby
<br />assigned Lo and shall be paid Lo Lender.
<br />If Lhe Properly is damaged, such Miscellaneous Proceeds shall he applied 10 reslOraLion or repair of the
<br />Property, if Lhe resLoraLion or repair is economically feasible and Lender's securiLy is noL lessened. During such
<br />repair and resLoration period, Lender shall have Lhe righL Lo hold such Miscellaneous Proceeds until
<br />Lender has had an opporLunity to inspect such Property 10 ensure the work has been compleled to Lender's
<br />saLisfaction, provided thm such inspedion shall be underLaken prompLly. Lender may pay for Lhe repairs and
<br />restoraLion in a single dishursement or in n series of progress payments as Lhe work is completed. Unless an
<br />agreement is made in writing or Applicable LllW requires interesL (0 be paid on such Miscellaneous Proceeds,
<br />Lender shall not be relJuired Lo pay Borrower any interesl or earnings on such Miscellaneous Proceeds. If Ihe
<br />restoration 01' repair is not economically feasible or Lender's security wonld be lessened, Lhe Miscelhllleolls
<br />Proceeds shall he applied 10 the sums secured by this Security InslnrlnenL, whether or not then due, with the
<br />excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in
<br />Seclion 2.
<br />In the evenL of a lotal Laking, destrucLion, or loss in value of the ProperLy, Lhe Miscellaneous Proceeds
<br />shall be applied to the sums secured by this Security Instrument, wheLher or not then due, wiLh the excess, if
<br />any, paid Lo Borrower.
<br />In Lhe event of a parLialtaking, destruction, or loss in value of the Properly in which the fair market value
<br />of Lhe Property immediaLely before the parLial Laking, destruction, or loss in value is equal LO or greater Ulan
<br />the amount of the sums secured by this Security InstrumenL immediately before the partial taking, destruction,
<br />or loss in value, unless Borrower and Lender otherwise agree in writing, the slims secured by this Security
<br />InstnllTIent shall be reduced by the amounL of the Mil'lcellaneous Proceeds mlllLiplied by the following fraction:
<br />(a) the toLal amount of the sums secured immediaLely before Lhe pallial Laking, destruction, or loss in value
<br />divided by (b) Lhe fair market value of the Property immediately before the partial Laking, destruction, or losfl
<br />in value. Any halanee shall be paid to Borrower,
<br />In the event of a partial taking, destruction, or loss in value of Lhe ProperLy in which Lhe fair market value
<br />of the Property immediaLely before the partial Laking, desLruetion, or Joss in value is less than the amount of
<br />the sums flecured immediately before the partial Laking, destrucLion, or loss in value, unless Borrower and
<br />Lender oLherwise agree in wriling, the Miscellaneous Proceeds shall be applied Lo Lhe sums secured by this
<br />Security Instrument whether or not Lhe sums arc then due.
<br />If the Property is abandoned by Bon'ower, or if, after noLice by Lender to Borrower that the Opposing
<br />Party (as defined in the next senLenee) offers to make an award 10 seule a claim for damages, Borrower fails Lo
<br />respond 10 Lender within 30 days aner the dale the nOLice is given, Lender is authorized to collect and apply
<br />the Miscellaneous Proceeds eiLher 10 restoraLion or repair of Lhe ProperLy or to the sums secured by Lhis
<br />Security Instrument, whether or not then due. "Opposing ParLy" means the third party that owes Borrower
<br />Miscellaneous Proceeds or the party against whom Borrower has a righL of action in regard Lo Miscellaneous
<br />Proceeds.
<br />Borrower shall be in defaulL if any action or proceeding, wheLher civil or criminal, is begun LhaL, in
<br />Lender's judgment, could result in forfeiture of the ProperLy or other material impairmelll of Lender's inLerest
<br />in the Property or rights under Lhis Security Instrument Borrower Cllll cure such a default and, if acceleration
<br />has occurred, reinfltaLe as provided in Section 19, by causing the aclion or proceeding to he dismissed with a
<br />ruling that, in Lender's judgmenl, precludes forfeiture of Lhe Propeny or oLher maLerial impainTlenL of Lender's
<br />inLerest in the Property or rights under this SeeuriLy Instrument. The proceeds of any award or claim for
<br />damages that arc aLlrihuLable to the impairment of Lender'l! inLerest in Lhe Property lU'e hereby assigned and
<br />shall be paid 10 Lender.
<br />All Miscellaneous Proceeds that arc llot applied to restoration or repair of the Properly shall be applied in
<br />Lhe order provided for in SecLion 2.
<br />12. IhnTowcr Not RclclI!>cdj Forhcllrance By Lendcr NoL II Waivcr. Extenflion of Lhe Lime for
<br />payment or modifieatioll of amortization of the sums secured by Lhis SecuriLy InsLllnTIenl. granled by Lender Lo
<br />Bormwer or any Successor in InLcrest of Borrower shall not openll.e to release Lhe liability of Borrower or any
<br />Successors in InLerest of Borrower. Lender shall noL be required to commence proceedings against any
<br />Successor in Interest of Bon-ower or to refuse Lo ex Lend time for payment or otherwise modify mTIortizlltion of
<br />
<br />~ -6A(NE) (0407)
<br />
<br />CHL (08/05)
<br />
<br />rag" 7 of 11
<br />
<br />Form 3028 1/01
<br />
|