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<br /> 201006173
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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 /> 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 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 arc 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 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 ensure 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, bender 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 Property 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 immediately before the
<br /> partial taking, destruction, or loss in value divided by (b) the fair market value of the Property
<br /> immediately before the 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 the Property in which the fair 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 /> 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 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 whom Borrower has a right of action in
<br /> regard to Miscellaneous Proceeds.
<br /> Borrower shall he 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 or other material impairment of Lender's
<br /> interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if
<br /> v)--- 0110303307
<br /> Initials:
<br /> CV(NE) (0407).02 PFQe9 of 15 Form 3028 1/01
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