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<br />200709078
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<br />As a result of these agreements, Lender, any purchaser of the Note, another insurer, <my reinsurer,
<br />any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) ilmowlts that
<br />derive from (or might be characterized as) a porlion 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 insW'er, the arrangement is often termed "captive reinsurance." Further:
<br />(a) Any such agreements will not IIffeel the amounts that Borrowcl" has IIgreed to I'll)' fOl'
<br />Mortgage Insurance, or any other terms of the Loan, Such agl'eements will not increase the amount
<br />Borrower will owe for M0l1gage Insurance, and the~' will not entitle BOITowel' to an)' refund.
<br />(b) Any such agreements will not affect the rights Borrower has" if any - with respect to the
<br />Mortgage Insumnce undel' the Homeowners Protection Act of 1998 or any other law. These lights
<br />may include the right to receive cel1ain disclosures, to request and obtain cancellation of the
<br />MOl1gage Insurance, to have the M0l1gage Insurnnce terminated automatically, and/or to receive a
<br />refund of any Mortgage Insurance premiums that were uneamed at the time of such cancellation or
<br />termination.
<br />11. Assignment of Miscellaneous Proceeds; FOlfeiture. All Miscellaneous Proceeds are hereby
<br />assigned to and shall be paid to Lender.
<br />If the Properly is damaged, such Miscellaneous Proceeds shall be applied to restoralion or 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 Properly to ensure the work has been completed to
<br />Lender's satisfaction, provided that such inspection shall be undertaken 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 requires interest to be paid on such
<br />Miscellaneous Proceeds, Lender shall not be required to pay Borrower any inleresl 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 shall be applied to the swns secured by this Security Instrwnent,
<br />whether or not tllen due, with tile 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 i.n value of the Property, tile Miscellaneous
<br />Proceeds shall be applied to the swns secured by this Securily Instrwnent, whetller or not then due, Witll
<br />tile excess, if any, paid to Borrower.
<br />In the event of a partial taking, destruclion, or loss in value of tile Property in which the fair market
<br />value of the Properly immediately before the partial laking, destruction, or loss in value is equal to or
<br />greater than the amount of the swns secured by this Secmity Instrwnenl inunedialely before tile partial
<br />taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums
<br />secured by this Security Instrwnent shall be reduced by the mnowll of tile Miscellaneous Proceeds
<br />multiplied by the following fraclion: (a) the total amount of tile swns secured inunediately before the
<br />partial taking, destruction, or loss in value divided by (b) tIle fair market value of the Property
<br />inunediately before the partial taking, destruction, or loss in value. Any balmlce shall be ,Paid to Borrower
<br />In tIle event of a partial taking, destruction, or loss in value of the Property in wluch the fair market
<br />value of the Property immediately before the parlial taking, destruction, or loss in value is less tllan the
<br />amount of tIle sums secured immediately before the partial taking, destruction, or loss in value, unless
<br />Borrower and Lender otllerwise agree in writing, the Miscellaneous Proceeds shall be applied to the swns
<br />secmed by this Security Instrwnent whetIler or not tile swns 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 lo seltle a claim for dmnages,
<br />Borrower fails to respond to Lender Witlli.n 30 days after tile date the notice is given, Lender is autllOrized
<br />to collect and apply the Miscellaneous Proceeds eitIler to resloration or repair of the Property or to tIle
<br />swns secured by tIlis Securily Instrwnent, whetIler or not tllen due. "Opposing Party" memls tile tIlird party
<br />that owes Borrower Miscellmleous Proceeds or the parly against whom Borrower has a right of action in
<br />regard to Miscellaneous Proceeds.
<br />Borrower shall be in default if mly aClion or proceeding, whetller civil or criminal, is begun that, in
<br />Lender's judgment, could resull in forfeiture of tile Property or other material impairment of Lender's
<br />interest ill the Property or rights WIder this Security Instrwnent. Borrower cml cure such a default and, if
<br />acceleration has occurred, reinstate as provided in Section 19, by caUSing the action or proceeding to be
<br />8800278337 Initial. ,tJe(i _ 5"-c 8800278337
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<br />..8A(NEIIO~07),O' Pao.9 of 15 Form 3028 1/01
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