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<br />200707399
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<br />As a result of these agreements, Lender, anyprirchaser of the Note. another insurer, any reinsurer,
<br />any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that
<br />derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in
<br />exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement
<br />provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the
<br />premiums paid to the insurer, the arrangement is often termed n captive reinsurance.... Further:
<br />(a) Any such agreements will not affect the amounts that BoiTower has agreed to pay for
<br />Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount
<br />Borrower will owe for Mortgage Insurance,. and. they. will not entitle Borrower toanyrefund.
<br />(b) Any such agreements will notafTect thenghts Borrowerbas ...ifany- withrespect to the
<br />Mortgage Insurance under the Homeowners . Protection Act of 1998 or any . other ..law. These rights
<br />may include the right to receive certain disclosureS, to request and obtain cancellation of the
<br />Mortgage Insurance, to have the Mortgage]nsurallceterminatedautomatically,and/or to receive a
<br />refund of any Mortgage Insurance premiums that were uneamclf aUhe til11eofsuch cancellation or
<br />termination.
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<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 restotationor repair of
<br />the Property, if the restoration or repair is economically feasible and Lender's security is not lessened.
<br />During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds
<br />until. Lender has had an opportunity to. inspect such. Property to ensllre.. the work has been completed to
<br />Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lendennay pay for the
<br />repairs and restoration in a single disbursement or in a series of progress payments as the work is
<br />completed. 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
<br />Miscellaneous Proceeds. If the restoration or repairis not economically feasible or Lender's security would
<br />be lessened, the Miscellaneous Proceeds shall be appliedtothe sums secured by this Security Instrument,
<br />whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous.Proceeds shall be
<br />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 Miscellaneous
<br />Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
<br />the excess, if 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
<br />value of the Property immediately before the partial taking, destruction, or loss in value is equal to or
<br />greater than. the amount of the suinssecured by this.Security Instrument im1Iiediately before .the partial
<br />taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums
<br />secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds
<br />multiplied by the following fraction: (a) the total amount of the sums secured im1Iiediately before the
<br />partial. taking, destruction, or. loss in. value divided by (b) the. fair market value of the . Property
<br />immediately. before the pa~ial taJ?ng, destruc~ion; or loss ,in value. Any balance sh?lI be paid to B?ITower.
<br />In the event of a partml taking. destructlOn, or lossm value of the Property 10 WhICh the. falr market
<br />value of thePropettyimmediately before the partial taking, destruction, or loss in value isless than the
<br />amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless
<br />Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums
<br />secured by . this. Security Instrument whether or not the. sums are. then due,
<br />If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the
<br />Opposing Party (as defined in the next sentence)offers toinakeanawardtosettleac1a:im for damages,
<br />Borrower. fails to respond to Lender within 30 days. after. the date. the. notice is . given,. Lender. is. authorized
<br />to collect and apply the Miscellaneous. Proceeds either to restoration . or repair of. the. Property or to. the
<br />Sums secured by this Security Instrument, whether or not then due, "Opposing Party" means the third party
<br />that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has aright of action in
<br />regard. to Miscellaneous Proceeds.
<br />Borrower shall be in default if any action or proceeding, whethercivilor criminal, is begun that, in
<br />Lender's judgment. could result in forfeiture of the Property or other material impairment of Lender's
<br />interest in the . Property or rights under this Security. Instrument. Borrower can cure such a default and, if
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<br />.C6INEI (0407),02
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