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<br />200700427
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<br />If the Property 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 had
<br />an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided
<br />that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single
<br />disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing
<br />or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay
<br />Borrower any interest or earnings on such Miscellaneous Proceeds. Subject to the rights of any lienholder with
<br />rights to Miscellaneous Proceeds that are superior to Lender's rights, if the restoration or repair is not economically
<br />feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by
<br />this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous
<br />Proceeds shall be applied in the order provided for in Section 2.
<br />Subject to the rights of any lienholder with rights to Miscellaneous Proceeds that are superior to Lender's
<br />rights, in the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to
<br />Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of
<br />the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount
<br />of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value,
<br />unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be
<br />reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of
<br />the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market
<br />value of the Property immediately before the partial taking, destruction, or loss in value. Subject to the rights of any
<br />lienholder with rights to Miscellaneous Proceeds that are superior to Lender's rights, any balance shall be paid to
<br />Borrower.
<br />In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of
<br />the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums
<br />secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise
<br />agree in writing, the Miscellaneous Proceeds shalI be applied to the sums secured by this Security Instrument
<br />whether or not the sums are then due, subject to the rights of any lienholder with rights to MiscelIaneous Proceeds
<br />that are superior to Lender's rights.
<br />If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party
<br />(as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to
<br />Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the MiscelIaneous
<br />Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or
<br />not then due, subject to the rights of any lienholder with rights to MiscelIaneous Proceeds that are superior to
<br />Lender's rights. "Opposing Party" means the third party that owes Borrower MiscelIaneous Proceeds or the party
<br />against whom Borrower has a right of action in regard to MiscelIaneous Proceeds.
<br />Borrower 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 in the
<br />Property or rights under this Security Instrument. Borrower can cure such a default by causing the action or
<br />proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other
<br />material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of
<br />any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are
<br />hereby assigned and shall be paid to Lender.
<br />All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in
<br />the order provided for in Section 2, subject to the rights of any lienholder with rights to Miscellaneous Proceeds that
<br />are superior to Lender's rights.
<br />10. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time 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 Successor in
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<br />iiilliiii.illlllliiliiiiillli5 (3/1/05)
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<br />(page 6 of 13 pages)
<br />Documents Processed 11-24-2006,08:01 :25
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