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<br />200602921
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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 affiliatc of any of the foregoing, may receive (directly or indirectly) amounts that
<br />derive from (or might he characterized as) a portion of Borrower's payments for Mortgage Insurance, in
<br />exchange for sharing or modifying the mortgage insurer's risk, or reducing losses, 1 f such agreement
<br />provides that an affiliate of Lender takes a share of the insurer's risk in exchange f<ll' 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 tlwt Borrower has agreed to pay for
<br />Mortgage InsUI'ance, or any other terms of the Loan. Such agreements will not increase the amount
<br />Borrower will owe for Mortgage Insurance, ~lUd they will not entitle Borrower to any refund.
<br />(h) Any such agreements will not affect the rights Borrower has - if any - with respect to the
<br />;\lortgage Insurance under the l-IomeownersProtection Act of 1998 or any other law. These rights
<br />may include the right to receive certain disclosures, to request and obtain cancellation of the
<br />Mortg~lge Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a
<br />refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or
<br />termination.
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<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are herehy
<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 Property, 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 right 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 satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the
<br />repairs and restoration in a single disbursement or in a series of progress payments as the work is
<br />completed. Unless an agreement is made in writing or Applicable Law requires 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 Lcnder' s security would
<br />be lessened, the Miscellaneous Procceds shall be applied 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 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 thl:n due, with
<br />the eXCl:SS, 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 before the partial taking, destruction, or loss in value is equal to or
<br />greater than the amount of the sums securl:d by this Security Instrument immediately bcfore tbl: partial
<br />taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums
<br />secured by this Security Instrument shall be reduced by the amount of the Miseellanl:ous Proceeds
<br />multiplil:d 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 sball be paid to Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which thl: bir market
<br />value of thl: Property immediately bcf<lre the partial taking, destruction, or loss in value is less than the
<br />amount of the sums secured imml:diately before 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 />sl:eured by this Security Instrument whether or not the sums arc then due.
<br />If the Property is abandoned hy Borrower, or if, after notice by Lender to Borrower that the
<br />Opposing Party (as ddined in the next st:ntence) offers to make an award to sdtle a claim for damages,
<br />Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized
<br />to colkct and apply thl: Miscellaneous Proceeds either to restoration or repair of the Property or to the
<br />sums secured by this Security Instrument, whether or not then due. "Opposing Party" lneans tbe third party
<br />that OWl:S Borrower Miscdlaneolls Procl:l:ds or the party against whom Borrowt:r has a right of action in
<br />regard to Miscellaneous Proceeds.
<br />Borrowl:r shall be in dd~lUlt if any action or pnlcel:ding, whether civil or criminal, is begun that, in
<br />Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's
<br />interl:st in the Property or rights untkr this Security Instrument. Borrower can cure such a default and. if
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<br />Initials: ~,?;
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<br />0110247901
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<br />.-6(NE) (0401).01
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<br />Fonn 3028 1/01
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