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<br />200700001
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<br />Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter
<br />into agreements with other parties that share or modify their risk, or reduce losses. These agreements arc on
<br />t~rms and conditions that ar~ satisfactory to the mortgage insurer and the other party (or parties) to th~s~
<br />agreements. Th~s~ agreem~nts may r~quir~ the mortgage insurer to make payments using any source of funds
<br />that th~ mortgag~ insur~r may hav~ available (which may include funds obtained from Mortgage Insuranc~
<br />pr~miurns).
<br />As a result of th~se agreements, Lender, any purchaser of the Note, another insurer, any reinsur~r, any
<br />other entity, or any affiliate of any of the foregoing, may receive (direct]y or indirectly) amounts that derive
<br />from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for
<br />sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an
<br />affiliate of Lender takes a share of the insurer's risk in ~xehang~ for a shar~ ofth~ pr~miums paid to the
<br />insurer, th~ arrangement is often tcrmed "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 afl'ect 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 are hereby assign~d
<br />to and shall be paid to Lender.
<br />If lh~ Prop~rty is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the
<br />Property, if the 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 Lender has
<br />had an opportunity to inspect such Propcrty to cnsure the work has been completed to Lcnder's satisfaction,
<br />provided that such inspection shall b~ und~rtaken promptly. Lender may pay for the repairs and restoration in a
<br />single disburs~m~nt or in a s~ries of progress payments as the work is completed. Unless an agreement is made
<br />in writing or Applicable Law r~quir~s interest to he paid on such Miscellaneous Proceeds, Lender shall not be
<br />required to pay Borrowt::r any intt::r~st or earnings on such Misccllaneous Procceds. If the restoration or repair
<br />is nol el:onomil:ally f~asiblc or Lender's security would be lessened, the Miscellaneous Proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with thc excess, if any, paid
<br />to Borrower. Such Miscellaneous Proceeds shall be 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 .\1iseellaneous Proceeds
<br />shall b~ applicd to the sums secured by this Security Instrument, whether or not then due, with the excess, if
<br />any, paid to Borrow~r.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value
<br />of tht:: Propt::Tty imm~diatdy b~fore the partial taking, dest11Jction, or loss in value is equal to or greater than the
<br />amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or
<br />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 of the Miscellaneous Proceeds multiplied by the following fraction:
<br />(a) the total amount of the sums secured immediately bcforc thc partial taking, destruction, or Joss in valuc
<br />divid~d by (b) th~ fair market valu~ of th~ Property immediately before the partial taking, dest11Jction, or loss in
<br />value. Any balance shall be paid to Borrow~r.
<br />In the ev~nt of a partial taking, d~struetion, or loss in value of the Property in which the fair markct value
<br />of th~ Property immediately b~for~ th~ partial taking, dest11Jction, or loss in valuc is less than the amount of the
<br />sums secured irTlrnt::diately befoTt:: tht:: partial taking, destnlction, or loss in valll~, unkss Borrow~r and Lender
<br />otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security
<br />Instrument whether or not the sums are then due.
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<br />~rlil~llmi~lrlrlrliliniiiiiiil~liilil~mll Mac UNIFORM INSTRUME~T
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<br />Form 3028 1/01 (page 8 of 13 pages)
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