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<br />200700328
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<br />As a result of these agreements, Lender, any purehaser of the Note, another insurer, any reinsurer, any other entity, or
<br />any affiliate of any ofthe foregoing, may reeeive (direetly or indiredly) amounts that derive from (or might be eharacterized as)
<br />a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or
<br />reducing losses. If such agreement providcs that an aftiliate of Lender takes a share of the insurer's risk in exchange for a share
<br />ofthe premiums paid to the insurer, the arrangement is otten lermed "captive reinsurance." Further:
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<br />(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any
<br />other terms ofthe Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they
<br />will not entitle Borrower to any refund.
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<br />(b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under
<br />the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures,
<br />to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically,
<br />and/or to receive a 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 hereby assigned lo and shall be
<br />paid to Lcndcr.
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<br />If thc Property is damagcd, such Miscellaneous Proceeds shall be applied to rcstoralion or repair of the Property, if the
<br />restoration or rcpair is economically feasible and Lender's securily is not lesscncd. During such repair and rcstoration pcriod,
<br />Lender shall have the right to hold such Miscellancous Proceeds until Lender has had an opportunity to inspect such
<br />Properly to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken
<br />promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the
<br />work is compleled. 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 Miscellaneous
<br />Proceeds. If the restoralion or repair is nol economically feasible or Lender's security would he lessened, the Miscellaneous
<br />Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any.
<br />paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2.
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<br />In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall he applied to
<br />lhe sums secured by this Security Instrument. whether or not lhen due, with thc excess, if any, paid to Borrowcr.
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<br />In the event of a partial taking, destruction, or loss in value ofthe Property in which the fair market value of the Property
<br />immediately hefore the partial taking, destruction, or loss in value is equal to or greater than the amounl of the sums secured
<br />by this Security Inslrument immedialely before the partial taking, destruction, or loss in value, unless Borrower and I,ender
<br />otherwise agree in wriling. lhe sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous
<br />Proceeds multiplied by the following li'action: (a) the total amount of the sums secured immediately before the partial taking,
<br />destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking,
<br />destrudion, or loss in value. Any balance shall be paid to Borrower.
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<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property
<br />immediately heflwe the partial taking, deslrudion, or loss in value is less than the amount of the sums secured immediately
<br />before the pat1ial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the
<br />Miscellaneous Proceeds shall be applied lo the sums secured by this Security Instrument whether or not the sums are lhen
<br />due.
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<br />If the Property is abandoned by Borrower, or if; after notice by Lender to Horrower that the Opposing Parly (as defined in
<br />the next sentence) offers to make an award lo settle a claim for damages, Borrower fails to respond to Lender within 30 days
<br />after the date the nolice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to resloration or
<br />repair of the Property or lo the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means
<br />the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard
<br />lo Miscellaneous Proceeds.
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<br />Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun lhal, in Lender's judgment,
<br />could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this
<br />Security Instrument.
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<br />Initials: 1) \. G... .J1
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<br />_ -6A(NE) (0407).01
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<br />Page 9 of 15
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<br />Form 3028 1/01
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