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<br />200610222
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<br />DOC ID #: 00014300790609006
<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any
<br />othcr cntity, or any affiliatc of any of the foregoing, may receive (directly or indirectly) amounts that derive
<br />from (or might be characterized as) a portion of Borrower's payments for Mortgagc Insurance, in exchange tor
<br />sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an
<br />affiliate of Lcnder takes" a shar'; of the insurer's risk in exchange tor a share of the premiums paid to the
<br />insurer, the arrangement is often termed "captive reinsurance." Further:
<br />(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage
<br />Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will
<br />owe for Mortgage Insurance, and they will not entitle Borrower to any refund.
<br />(b) 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 any other law. These rights may
<br />include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage
<br />Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any
<br />Mortgage Insurance premiums that were unearned at the time of such cancellation or termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds arc hcreby
<br />assigned to and shall bc paid to Lender.
<br />Ifthe Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the
<br />Property, ifthe restoration or repair is economically feasible and Lender's security is not lessened. During such
<br />repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until
<br />Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's
<br />satisfaction, provided that such inspection shall be undcrtaken promptly. Lender may pay for the repairs and
<br />restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an
<br />agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds,
<br />Lender shall not be required to pay Borrowcr any intercst or earnings on such Miscellaneous Proceeds. Ifthe
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous
<br />Proceeds shall be applied to the sums secured by this Security Instrument, whether or not thcn due, with the
<br />excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in
<br />Section 2. v
<br />In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds
<br />shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if
<br />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 value
<br />of the Property immediately before the partial taking, destruction, or loss in valuc is equal to or greater than
<br />the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction,
<br />or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security
<br />Instrument shall be reduced by the amount ofthe Miscellaneous Proceeds multiplied by the following fraction:
<br />(a) the total amount of the sums secured immediately before the partial taking, destruction, or Ic\ss in value
<br />divided by (b) the fair market value of the Property immediately before the partial taking, dcstruction, or loss
<br />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 value
<br />of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of
<br />the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and
<br />Lender otherwisc agrcc in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this
<br />Security Instrument whether or not the sums are then due.
<br />If the Property is abandoned by Borrower, or if: aftcr noticc by Lcndcr to Borrower that the Opposing
<br />Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to
<br />respond to Lcnder within 30 days after the date the notice is givcn, Lcndcr is authorized to collect and apply
<br />thc Miseellancous Proceeds either to restoration or repair of thc Property or to the sums sccured by this
<br />Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower
<br />Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous
<br />Proceeds.
<br />Borrowcr shall be..in default if any action or proceeding, 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 interest
<br />in the Property or rights under this Security Instrument. Borrower can cure such a default and, if aecelcration
<br />has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismisscd with a
<br />ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's
<br />intercst in the Property or rights under this Sceurity Instrument. The proceeds of any award or claim for
<br />damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and
<br />shall be paid to Lender.
<br />All Miscellaneous Proceeds that are not applied to restoration or repair ofthe Property shall b,e applied in
<br />the order provided for in Section 2.
<br />12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the timc for
<br />payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to
<br />Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any
<br />Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any
<br />Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of
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<br />~ -6A(NE) (0407)
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<br />CHL (08/05)
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<br />Fann 3028 1/01
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