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<br />200605786
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<br />As a n.:sult of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer,
<br />any other entity, or any affiliate of any of the f(Jr(.:going. may n;eeive (directly or indirectly) amounts tbat
<br />derive fl"om (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in
<br />exchange for sharing or modifYing thc 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 /"l.lr a share of the
<br />prerniums paid to thc insurer, the arrangement is often termed "captive reinsurance." Furthcr:
<br />(a) Any such agreements will not affect the amounts thllt Borrowcr' has agreed to pay for
<br />Mortgage Insur"lll1ce, or any other terms of the Loan. Such agreements will not increase the amount
<br />Borrower will owe for Mortgage Insunll1ce, and 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 />Mortgage Insurance under" the Homeowners Protection Act of 1998 or 11l1y other law. These rights
<br />may include the right to receive certain disclosures, to request and obtllin cancellation of the
<br />MOI"tgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive II
<br />J"efund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or
<br />termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeitur'c. All Misccllancous Proceeds are hereby
<br />assigned to and shall be paid to Lender.
<br />If the Property is damagcd, such Miscellaneous Proceeds shall be applied to restoration or rcpair of
<br />the Property, if the restoration or repair is economically feasible and Lender's security is not lessencd.
<br />During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Procl:eds
<br />until Lender has had an opportunity to inspect such Property to ensure the work has been completed to
<br />Lender's satisfirction, provided that such inspection shall be undertaken promptly. Lendcr may pay f(lr the
<br />repairs and rcstoration in a single disbursemcnt or in a series of progrcss payments as the work is
<br />cornpleted. Unless an agreemcnt 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 Procel:ds. If the restoration or repair is not economically feasible or Lender's security would
<br />be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument,
<br />whether or not then due, with the excess, i r any, paid to Borrower. Such Miscellancous 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 surns 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 filir nlarket
<br />value of the Property inllnediately bd(Jre the partial taking, destruction, or loss in value is equal to or
<br />greater than the amount of the sums securcd by this Security Instrument immediately bd()re the partial
<br />taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the StllllS
<br />secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds
<br />multiplied by the f()llowing fraction: (a) the total amount of the sums secured inullediate1y 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 />Tn 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 bctl.lre the partial taking, destruction, or loss in value is less than the
<br />amount of the sums secured inunediately 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 />secured by this Security Instnnnent whether or not the sums arc then due.
<br />If the Property is abandoned by Borrower, or it~ atter notice by Lender to Borrower that the
<br />Opposing Party (as defined in the next sentence) offers to make an award to scttle a e1ainl Il.)r damages,
<br />Borrower bits to respond to Lender within 30 days after the date the notice is given, Lender is authorized
<br />to coiled and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the
<br />sums secured by this Security Instnllnent, 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 of action in
<br />regard to Miscellaneous Proceeds.
<br />Borrower shall be in dctillllt if any action or proceeding, whether civil or criminal, is begun that in
<br />Lcnder's judgment, could result in forfeiture of the Property or other material impairment of Lender's
<br />interest in the Property or rights ulHJer this Security Instrument Borrower can cure such a default and, if
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<br />P,,"e 9 of 1 5
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<br />06-041407
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<br />e-6(NE) (0407).01
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<br />Fonn 3028 1/01
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