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201007515 I,AT� CHARGE: At Lender's option, Barrawer will pay a"late charue" not exceeding four per centum (4°Io) �f the avexdue payment when paid more than fifteen (1S) days after the due date thereof to cover thc extra expense invalved in handling delinquent paym�nts, but such "late charge" shall not be payable out of the procer:ds c7f any sale made to satisfy the indebtedness s�cur�d hereby, unless such proceeds are sufficient to discharge the entire indebtedness and all proper costs and expenses securcd hez'sby. GUARAN'I'Y: Should the Deparim�nt af Veterans Affairs fail or refuse to issue its guaranty in full amaunt within 60 days from lhe date [hat this loan would normally become eligible far such guaranty committed upon by the Depariment of Veterans Affairs under the provisic�ns af Titl� 38 of the U.3. Code "Veterans Benefits," the Mortgagee may declare the indebtedness hereby secured at ance due and payable and may foreclose immedial�ly or may exercise any other rights hercund�r or take any other proper action as by law provided. 1'RANSFER OF THr PROPER�I'Y: "Ifiis loan may be declared immediately due and payable upon transfer of the property securing such loan to any transferee, unless the acceptability of the assumption of the loan is established pursuant ta Section 3714 of Chapter 37, Title 38, Unit�d States Code. An authorized transfer ("assumption") of the property shall alsa be subject to additional covenants and agreements as set farth below: (a) ASSUMPTION F�UNDING F��: A fe� equal to one-half of one percent ( O.S %) of [hc balance af this loan as of the date of transfez' of the praperty shall be payable at the time of transfer ta th� lpan holder or its authorized agent, as trustee for the Department of Veterans Affairs. If the assumer fails ko pay this fee at the time of transfer, the fee shall canstitute an additional debt to that already secured by this instzvment, shall bear interest at the rate her�in pravided, and, at [he option of the payee of the indebtedn�as her�by secured or any transferee thereof, shall b� immediately due and payable. 'Tfiis fee is automatically waiv�d if the assumer is exempt under the provisions of 38 i.J.S.C. 3729 (c). (b) ASSUMPTI�N PROCESSTNG CHARGE: Upon application far approval to allow assumption of this loan, a proc�ssing fee may be charged by the loan holdcr or its authorized agent for determining the cr�ditwarthiness of the assumer and subsc:qu�ntly r�vising the holder's ownership records when an approved transfer is completcd. Th� amount of this charge shall not exceed the maximum esCablished by the Department of Veteran.s Affairs for a loan to which Section 371�F of Chapter 37, Titl� 38, Unittd Stat�s Code applies. (c) ASSUMPTION INDEMNITY LTABTLITY: Tf khis obligation is asswr�ed, then the assumer hereby agrees to assume all af the obligations of the veteran under the terms of the instnxments creating and securing the loan. The assumsr further agrees to indemniiy the Department of Veterans AFfairs tn the extent of any claim payrnent arising from the guaranty or insurance of the indebtedn�ss creat�d by this instrument. �-538R (031 Q) Page 2 of 3