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<br />200805023
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<br />As a result of these agreemenls. Lender, any purchaser of the Nole, another Insurer, any reinsurer,
<br />any other entity, or any affillale of any of the foregoing, may receive (directly or indirectly) amounts that
<br />derive from (or might be characleIized as) a porlion of Borrower's paymenls for Morlgage Insurance, in
<br />exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement
<br />provides thai 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 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 the TIghts 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, nnd/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 10 restoration 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 inspecl such Properly to ensure the work has been completed to
<br />Lender's satisfactJon, 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 10 pay Borrower any inlerest 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 appll!ld 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 tolal taklng. 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. flaid to Borrower.
<br />In the event of a partial talting. destrucllon. or loss in value of the Property in which the fair market
<br />value of the Property immediately before the partial taking, deSlruction, 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 />laklng, destruction, or loss in value, unless Borrower and Lender oUlCrwlse agree in wIiUng, the sums
<br />secured by this Security Instrument shalI be reduced by the amount of the Miscellaneous Proceeds
<br />multiplied by the following fraction: (a) Ihe total amount of the sums secured immediately before the
<br />partial taking, destruction, or loss In value divided by (b) the fair marltet value of the Property
<br />immediately before the parllal taking, destruction. or loss in value. Any balance shall be paid to Borrower.
<br />In the event of a partialtaklng, destruction. or loss in value of the Properly in which the fall' market
<br />value of the Property immediately before the partial laklng, destruction, or loss In value is less than the
<br />amount of the sums secured immediately before the partial taklng, 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 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 Ihe 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 nol then due. "Opposing Party" means the third party
<br />thai owes Borrower Miscellaneous Proceeds or the party againsl 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 Ihat. in
<br />Lender's judgment. could resull In forfeiture of tbe Property or olher material impairment of Lender's
<br />Interest in the Property or righls under this Security Instrument. Borrower can cure such a defaull and. if
<br />acceleration has occurred, reinstate as provided In Seclion 19;Zb ca Ing@j1CtiOnorproceedingtobe
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<br />002005425058 Inl,lolo:
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<br />~.6A(NE) (0401).01 Pogo 9 or 15 Form 3028 1/01
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<br />CIlIMol1gage 3.2.15.13 VG
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