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<br />200702912
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<br />DOC 1D #: 00016552167503007
<br />As a result of t~se agreements, Lender, any purchaser oft~ Note, another insurer, any reinsurer, any
<br />other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive
<br />lrom (or might be characterized as) a portion of Borrowers payments lor Mortgage Insurance, in exchange for
<br />sharing or modifying the mortgage inswers risk, or reducing losses. If such agreement provides that an
<br />afIlliate of Lender takes a share of the inswers risk in eJ\change for a share of the premiwns paid to the
<br />inswer., tbe arrangement is often termed "ca.ptive reinslU"8llce." Further:
<br />(a) Any such agreements will not affect the amounts that Borrower bas agreed to pay for Mortgage
<br />fnsurance, 01' any other terms of the Loan. Such agreements wlU not Increase the amount Borrower wlU
<br />owe for MortgaR" Insurance, and they will not entitle BolTOwer to any refund
<br />(b) Any such agreements will not affect the rights BolTOwer has . if any. with respect to the
<br />Mortgalte InsunulCe under the Homeowners Protection Act of 1998 or any other law. These rights may
<br />include the right to receive certa.ln disclosures, to request and obtain cancellation of the Mortgage
<br />Insurance, to bave the Mortgage Insurance terminated automatically, andlor to r'ffeive a refund of any
<br />Mortgage Insurance premlwns that were unearned at the time of such cancellation or termination.
<br />11, Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
<br />assigned to and shall be paid to Lender.
<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 Lenders seeurity 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 sueh Property to ensure the work has been completed to Lenders
<br />sati~faction, provided that sUl:h it1~pection ~hall be undertakl;n promptly, umdcr may pay for tlre repairs and
<br />restoration in a single di~bursement or in a series of progress payments as the work is oomplctl;d. Unless an
<br />agreement is made in writing or Applicable Law rcquires interest to be paid on such Miscellaneous Proceeds,
<br />Lender shall not be required to pay Borrower any intercst or earnings on such Miscellaneous Proceeds. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous
<br />Proceeds shall be applied to the Slims secwed by this Security Instrulllent, whether or 1I0t then due, widl the
<br />execss, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in
<br />Section Z_
<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 seclU"ed by this Secwity Instrument, \MIether or not thcn duc, with the excess, if
<br />any, paid to Borrower.
<br />In the event of a partial tsking, destruction, or loss in value o[the Property in which the fair market value
<br />of the Property i1mnediate]y before the partial taking, destruction, or ]oss in value is equal to or greater than
<br />the amount of the sums secured by this Security lll~trument 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 of the Miscellaneous Proceeds multiplied by the following fraction:
<br />(a) the total amount of the 8ll1ll8 secured immediately before the partial tsking, destruction, or loss in value
<br />divided by (b) the fair market value of the PmpeI1y immediately before the partial18king, desrruction, Or loss
<br />in valuc. Any balance shall be paid to Borrower.
<br />In the event ofa partial taking, destruction, or loss in value ofthe Property in \MIich the lair market value
<br />of the Property immediately belore the partial tal;ng, destrootion, 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 otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this
<br />:5t:curity Instruml;nt whether or IIOlllre sums are then due,
<br />If the Property is abandoned by Borrower, Or if, after notice by Lender to Borrower that the Opposing
<br />Party (as defined in the next sentence) oilers to make an award to settle a claim lor damages, Borrower fuils to
<br />respond to Lender within 30 days after the date the notiee is given, Lender is authorized to eollect and apply
<br />the Miscellaneous Proceeds either to restoration or repair of the Property or to the SlUns secured by this
<br />Security Instrument, whether or not thell due_ "Opposing Party" meaI18 the third party that owes Borrower
<br />Miscellaneolls Proceeds or the party agaillllt whom Borrower has a right of action in regard to Miscellaneous
<br />Proceeds.
<br />Borrower shall be in default if any aetion or proceeding, whether civil or eriminal, i. hegun that, in
<br />Lcnders judgment, could result in forfeiture of the Property or other material impainuent of Lenders inlerest
<br />ill the Pro~rty or rights under this Security lnstnlmellt. Borrower elln cure such a default and, if aeceleration
<br />has occurred, reinstate as provided in Section 19, by causing the aelion Or proceeding to be dismissed with a
<br />mling that, in Lender's judgment, precludes torfeiture of the Property or other material impainnent of Lenders
<br />interest in the Property or rights under this Security J nstrument. The proceeds of any 8Wl1rd Or c1ai m for
<br />damages that are attributable to the impainnent of Lender's inkrest 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 of the Property shall be applied ill
<br />the order provided tor in Section 2,
<br />12 Borrower Not Rekoosed; Forbearance By Lender Not a Waiver. Extension of the time for
<br />payment or modification of8lllortization of the sums secured by this Security JnstrWllent granted by Lender to
<br />Borrower or !Iny Successor in Interest of Borrower ~hall IIOt operate to release the liability of Borrower or any
<br />Successors in Interest of Borrower, Lender shan not be required to oommellCe procccdings against any
<br />Successor in Interest of Borrower or to refuse tn extend time for payment or otherwise modify amortiz.ation of
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<br />at -6A(NE) (04071
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<br />CHL (ll8I06)
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<br />Paflo>7of11
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<br />Form 3ln8 1101
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