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<br />200800525
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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 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 ii1surer's risk, or reducing losses. If such agreement
<br />provides that an atliliate of Lender takes a share of the insurer's risk in exchange. for a share of the
<br />premiums paid tathe insurer, the arrangement is often termed "captive reinsurance." Further:
<br />(a) Any such agreements will not affect the amounts that Borrower 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 to any refund.
<br />(b) Any such agreements will not affect therlghts Borrower has - if any- with respect to the
<br />Mortgage Insurance under the Homeowners Protection Act of 1998 or any otber Jaw. These rights
<br />may include the right to receive certain disclosures, to request and obtain eancellation of the
<br />Mortgage Insurance., to have the Mortgage msurance terminatedautornatically,andlor to receive a
<br />refund of any Mortgage Insurance premiums that were unearned atthe time ofsuchcimceUation or
<br />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
<br />the Property,if the restoration or repair is economically feasible and Lender's security is not lessened.
<br />During suchrepairand restoration period, Lender shall have the right to hold such Miscellaneous Proceeds
<br />until Lender has had an opportunity to inspect such Property to ensure. the work has been complctcd 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. U mess .all agreement is made in writing or Applicable Law requires interest to be paid on such
<br />Miscellaneous Proceeds, Lender shall not bc rcquired to pay Bdrroweranyinterest 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 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 tbe event of a total taking, destruction, or .1055 in value of the Proper1y,theMiscellaneous
<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 Booower. ,. . ,
<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 beforethe partial taking, destruction, or loss in value is equal to or
<br />greater than the amount of the sums secured by this Security Instrument immediately before the partial
<br />taking, destruction, or loss in value, unless Borrower and Lender otherwise. agree in. writing, the sums
<br />secured by this Sccurity Instrument shall be reduced by the amount of the Miscellmieolls 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
<br />immediately before thc paI1ial t~ing, destru~ion,or loss ,in valUe. Any balance sh~lbe paid to B?rrower.
<br />In the event of a partial takmg, destiuetlOn,or loss m value of the Propertym which the f:ur 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 />securcd by this Sccurity 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 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 ornot 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, whether civil or criminal, is begun that, in
<br />Lender's judgment, could result in forfeiture of the Property orotherm.at~-~irment of Lender's
<br />interest in the Property or rights under this Security Instrument. Borrower cr c~~ suc~a default and, if
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<br />~. 1.......- 0110278085
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<br />Initials:
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<br />.-e(NE) (0407).02
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<br />P!ge9of15
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<br />Form3028 1/01
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