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<br />200602706
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<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer,
<br />any other entity, or any affiliate of any of the fiJregoing, nmy receive (directly or indirectly) amounts that
<br />derive Ii-om (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in
<br />exchange lilr sharing or lIHldif)ting the mortgage insurer's risk, or reducing losses. If such agreement
<br />provides that an affiliate of Lender takes a share of the insurer's risk in exchange ((lr a share of the
<br />premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further:
<br />(a) Any such llgreemellts will 1I0t lIffect the lImuunts thllt Borrower hlls lIg,'eed tu PllY fur
<br />['Iortgage Jnsurance, or lIny other terms of the Loan. Such agreements will not increase the amount
<br />Uornlwe,' will owe for Mortgage Insul"llllce, lllld they will nut entitle Borrower to any refund.
<br />(b) Any such lIgreements will not affect the rights Borrower hIlS ~ if any ~ with respect to the
<br />i\lurtgllge lusumuce under the Homeowners Protection Act of 1998 ur any other law. These rights
<br />may include the right to receive cerhlin disclusurcs, to request and obtain cancelllltiun uf the
<br />Mortgage Insurance, to hll\'e the Mortgllgc Insurance terminated automllticllII~', and/or to receive a
<br />refund of any Mortgage Insurance rn'emiums that were unearned at the time of such cllllcellation or
<br />termi na t ion.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
<br />assigned to and shall be paid to Lendl.:r.
<br />If the Propcrty is dmnaged, such Miscellancous Procccds shall be applied to rcstoration 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. I,ender shall have the right to hold such Miscellancous Proeceds
<br />until Lender has had an opportunity to inspect such Property to ensure the work has been completed to
<br />Lendcr's satisfaction, provided that such inspection shall be undertaken prOlnptly. Lender may pay f(lr the
<br />repairs and restoration in a single disbursement orin a serics of' progress paymcnts as the work is
<br />cOlllpleted. Unless an agreCllu:nt is rnade in writing or Applicable Law requircs intl.:rest to be paid on such
<br />Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings OIl 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 applicd to the sums secured by this Security Instrument,
<br />whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be
<br />applied in the order provided 1(1I' 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 stllns 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 ill value of the Property in which the fair market
<br />value of the Property immediately befill'e the partial taking. destruction, or loss in value is equal to or
<br />greater than the amount of the sums secured by this Security Instrument immediately bef()re the partial
<br />taking, destruction. or loss in value, unless Borrower and Lender otherwise agrl.:l.: in writing. the sums
<br />sccurcd by this Security Instnllnent shall be reduced by the amount of the Miscellaneous Proceeds
<br />multiplied by the j(lllowing fraction: (a) the total alllount of the sums secured immediately bet(ll"C the
<br />partial taking. destruction, or loss in value divided by (b) the j~lir lnarket value of the Property
<br />immediately bet(ll'C the partial taking. dcstruction, or loss in value. Any balance shall be paid to Borrower.
<br />In the event of a partial taking, destruction, or loss in value or the Property in which the fair market
<br />value of the Propertyimlllediately befi)1'e the partial taking, destructioll. or loss in value is less than the
<br />amount of the sums secured immediately bd()re the partial taking, destruction, or loss in value, unless
<br />Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums
<br />secured by this Security Instrument whether or not the SUlns are then due.
<br />I l' the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the
<br />Opposing Party (as defIned in the next sentence) offers to make an award to settle a claim tl.lr damages.
<br />Borrower fails to respond to Lender within 30 days after the date the noticc is given. Lendcr is authorizcd
<br />to collcct and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the
<br />sums sceured by this Security Instrtnnent, whether 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 or action in
<br />regard to M iseellancous Proceeds.
<br />Borrowcr shall he in default if any action or proceeding, whether civil or criminal, is begun that, in
<br />Lender's judgment. could result in j()rfeiture of the Property or other material impainnent of Lendcr's
<br />interest in the Propcrty or rights under this Security Instrument. Borrower can cure such a default and, if
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<br />Initials: ltluJJ)
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<br />0110247846
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<br />G-6(NE) (0401)(11
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<br />Fonn 3028 1/01
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