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<br />200708697
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<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer,
<br />any other entity, or any affiliate of any of the foregoing, may receive (directly or indiJ:ecdy) 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 reducq 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 tenned "captive reinsurance.. Further:
<br />(a) Any such agreements will not affect the amounts that BOrTower 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 Insta-ance, and they will not entitle BOlTOwer to any refund.
<br />(b) Any such agreements wiD not affect the rlghts Borrower has - if any - with respect 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 />Mortpge Insurance, to have the Mortgage Insurance terminated automatlcally, and/or to reeeil'e a
<br />refund of any Mortaace Imuraoce premiums that were unearned at the time of such canc:elladon 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 ICstoration or repair of
<br />the Property, if the restoration or repair is economicaUy feasible and Lender's security is not lessened.
<br />DuriD8 such repair and. restoration period, Lender sball have the right to hold such Misce1lancous Proceeds
<br />until Lender has had an opportunity to inspect such Property to unsure the work has been completed to
<br />Lender's satisfaction, provided that such inspection shall be undenaken promptly. Lender may 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 requUes inteIest to be paid on such
<br />Miscellaneous Proceeds, Lender 8hall not be requiTed to pay Borrower any iDterest or earnings on such
<br />Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would
<br />be lessened, the Miscellaneous Proceeds sball be applied to the 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 tho 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, dc:struction, or loss in value is equal to or
<br />greater than the amount of the sums sceuted by this Security Instrument hntnt::diately before the partial
<br />taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the S1UIIS
<br />secured by this Security Instrument shall be reduced by the amount of the Misce1lanoous Proceeds
<br />multiplied by the following fraction: (a) the total amount of the sums secured immediately before the
<br />partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately
<br />before the partial taking, destruction, or loss in value. A.n1 balance sball be paid to Borrower.
<br />In the event of a partial taking, destruction, or loss m 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 less 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 Instrll:lumt 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 to make an award to settle a claim 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 a right of action in
<br />regard to Miscellaneous Proceeds.
<br />Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun dlat, in
<br />Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's
<br />- m.... Property or...... under ddo ~ --. ~W"" such........ aod, n
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