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<br />200801890
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<br />As a result of these ab'feements, Lender, any purchaser of the Note, another insurer, any reinsurer,
<br />any other cntity, or any affiliate of any of the forcgoing, may receive (directly or indirectly) amounts that
<br />derive from (or might be characterized as) a portion of Borrower's paymcnts for Mortgagc Insurancc, in
<br />exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement
<br />provides that an affiliate of Lendcr takes a share of the insurer's risk in exchange for a share of thc
<br />prcmiums paid to the insurer, thc arrangcment 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 a~reements will not atl'ect the ri~ts Borrower has - if any - with respect to the
<br />Mortgage Insurance under the Homeowners Protection Act of I99R or any other law. These rights
<br />may include the right to receive certain disclosures, to request and obtain cancellation 01" the
<br />Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a
<br />refund 01" any Mortgage Insurance premiums that were unearned at the time 01" such cancellation or
<br />termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
<br />assigncd to and shall be paid to Lendcr.
<br />If the Property is damaged, such Miscellaneous Proceeds shall bc applied to restoration or rcpair of
<br />the Propcrty, if the restoration or rcpair is economically feasible and Lender's security is not lessened.
<br />During such repair and restoration period, Lcndcr shall have the right to hold such Miscellaneous Proceeds
<br />until Lender has had an opportunity to inspect such Property to ensurc thc work has bccn completcd 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 interest or earnings on such
<br />Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lcnder'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 providcd for in Section 2.
<br />In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous
<br />Procecds shall bc applied to the sums seeurcd by this Security Instrumcnt, whether or not then due, with
<br />the excess, if any, paid to Borrower.
<br />In the event of a partial taking, dcstruction, or loss in value of the Property in which the fair market
<br />value of the Propcrty immediately before the 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 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 immcdiately beforc thc
<br />partial taking, destruction, or loss in value divjdcd by (b) the fair market value of the Property
<br />inU11ediately bcfore thc partial taking, destruction, or loss in value. Any balance shall be paid to Borrower.
<br />In the event of a partial taking, destruction, or loss in value of thc Propcrty in which thc fair market
<br />value of the Property immediately beforc thc partial taking, deslruetion, or loss in value is less than the
<br />amount of thc sums secured immediately before the partial taking, destruction, or loss in value, unless
<br />Borrower and Lemler 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 sentcncc) offers to make an award to settle a elaim for damages,
<br />Borrower fails to respond to Lender within 30 days after the date thc notice is gi ven, Lender is authorized
<br />to collect and apply the Miscellaneous Proceeds either to restoration or rcpair of thc Propcrty or to the
<br />sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party
<br />that owes Borrowcr Miscellaneous Proceeds or the party against whom Borrower has a right of action in
<br />regard to Miscellaneous Proceeds.
<br />Borrower shall be in defimlt if any action or proceeding, whether civil or criminal, is begun that, in
<br />Lender's judgmcnt, could result in forfeiture of thc Property or other material impairment of Lender's
<br />interest in the Property or rights undcr this Security Instrument. Borrowcr can eurc such a default and, if
<br />acceleration has occurred, rcinstate as provided in Section 19, by causing the action or proceeding to be
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<br />8800374338 Inilials ~-D 8800374338
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<br />.-SAINE) (0407)01
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<br />Page 9 01 15
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<br />Form 3028 1/01
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