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<br />200808865
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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 aff1liate of any of the foregoing, may receive (directly or indirectly) amounts that
<br />derive from (or might be chllI1lCterized as) a ponion 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 tbe insurer, the arrangement is often termed "captive reinsurance." Further:
<br />(a) Any such &greements will not affect tbe amounts that Borrower has agreed to pay for
<br />Mortgage Insurance, or ony other terms of the Loan, Such qreements will not increase the amount
<br />Borrower will owe for Mortgage Insurance, and ther will not eatitle Borrower to any refund,
<br />(b) Any such agreements will not arreet tbe rights Borrower has - if any . witb respect to the
<br />Mortgage 1nsW"anc:e under- the Homeowners Protection Act of 1998 or any other law, Tbese rights
<br />may indude the right to receive certain disclosures, to request and obtain cancellation of the
<br />Mortgage Insurance, to have the Mortgage Insurance terminated automatically, andlor to receive a
<br />refund of any Mortgage Insuranc:e premiums tbat were unearned at the time of such auu..'ellation 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 Propeny 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 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 Property to ensuJ'C 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 interest 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 the event of a total taking, 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, paid to Borrower.
<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 Propeny immediately before the panial 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 />muJtiplied by the following fraction: (a) the total amount of the sums secwed immediately before the
<br />partial taking, destruction. or loss in value divided by (b) the fair market value of the Property
<br />inunediately before the partial taking, deslrUction, or loss in value. Any balance shall be paid to Borrower.
<br />In the event of a panial taking, destruction, or loss in value of the Property in whlch the fair market
<br />value of the Propeny 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 agroo in writing, the Miscellaneous Proceeds shall be applied to the sums
<br />secured by this Security Instrument whether or not the swns are then due.
<br />If the ProperlY 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 or not then due. "Opposing Party" means the third party
<br />that owes Borrower Miscellaneous Proceeds or the party against wbom Borrower bas 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 that, in
<br />Lender's judgment, could result in forfeiture of the Properly or other material impainnent of lender's
<br />interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if
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