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<br />200509549
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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 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 />premiwns paid to the insurer, the arrangement is often temled "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 ther will not entitle Borrower to any refund.
<br />(b) Any such agreements will not affect the rIghts 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 />Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a
<br />refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation 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 tlIe restoration or repair is economically feasible and Lender's security is not lessened.
<br />During such repair and restoration period, Lender shall have tlIe right to hold such Miscellaneous Proceeds
<br />until Lender has had an opportunity to inspect such Property to ensure tlIe work has been completed to
<br />Lender's satisfaction, provided tlIat such inspection shall be undertaken promptly. Lender may pay for tlIe
<br />repairs and restoration in a single disbursement or in a series of progress payments as tlIe 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 tlIe restoration or repair is not economically feasible or Lender's security would
<br />be lessened, tlIe Miscellaneous Proceeds shall be applied to tlIe swns secured by this Security Instrument,
<br />whether or not then due, witlI tlIe excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be
<br />applied in tlIe order provided for in Section 2.
<br />In the event of a total taking, destruction, or loss in value of tlIe Property, tlIe Miscellaneous
<br />Proceeds shall be applied to tlIe swns secured by tlIis Security Instrument, whetlIer or not tlIen due, witlI
<br />tlIe excess, if any, paid to Borrower.
<br />In tlIe event of a partial taking, destruction, or loss in value of tlIe Property in which tlIe fair market
<br />value of tlIe Property immediately before tlIe partial taking, destruction, or loss in value is equal to or
<br />greater tlIan tlIe amount of tlIe swns secured by this Security Instrument immediately before tlIe partial
<br />taking, destruction, or loss in value, unless Borrower and Lender otlIerwise agree in writing, tlIe swns
<br />secured by this Security Instrument shall be reduced by the amount of tlIe Miscellaneous Proceeds
<br />multiplied by tlIe following fraction: (a) tlIe total amount of tlIe sums secured immediately before the
<br />partial taking, destruction, or loss in value divided by (b) tlIe fair market value of tlIe Property immediately
<br />before tlIe 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 m value of tlIe Property in which tlIe fair market
<br />value of tlIe Property immediately before tlIe partial taking, destruction, or loss in value is less than tlle
<br />amount of tlIe swns secured immediately before tlIe partial taking, destruction, or loss in value, unless
<br />Borrower and Lender otherwise agree in writing, tlIe Miscellaneous Proceeds shall be applied to tlIe sums
<br />secured by this Security Instrument whetlIer or not tlIe swns are tlIen due.
<br />If tlIe Property is abandoned by Borrower, or if, after notice by Lender to Borrower tlIat tlIe
<br />Opposing Party (as defined in tlIe next sentence) offers to make an award to settle a claim for damages,
<br />Borrower fails to respond to Lender witlIin 30 days after tlIe date the notice is given, Lender is autlIorized
<br />to collect and apply tlIe Miscellaneous Proceeds eitlIer to restoration or repair of tlIe Property or to the
<br />sums secured by this Security Instrument, whether or not then due. "Opposing Party" means tlIe third party
<br />tlIat 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, whetlIer civil or criminal, is begun tlIat, in
<br />Lender's judgment, could result in forfeiture of the Property or otlIer material impairment of Lender's
<br />interest in the Property or rights under tlIis Security Instrument. Borrower can cure such a default and, if
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<br />. -6(NE) 10005)
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<br />Initi'I':~
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<br />Pago 9 of 15
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<br />Form 3028 1/01
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