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2oioas4o2 LATE CHARGE: At Lender's option, Borrower will pay a"late charge" not exceeding four per centum (4%) of the overdue payment when paid more than fifteen (15) days after the due date thereoF to cover the extra expense invalved in handling delinquent payments, but such "late charge" shall not be payable out of the proceeds of any sale made to satisfy the indebtedness secured hereby, unless such proceeds are sufficient to discharge the entire indebtedness and all proper costs and expenses secured hereby. GUARANTY: Should the Department of Veterans Affairs fail or refuse to issue its guaranty in Full amount within fip days from the date that this loan would normally become eligible for such guaranty committed upon by the Department of Veterans Affairs under the provisions of Title 38 of the U.S. Code "Veterans Bene�ts," the Mortgagee may declare the indebtedness hereby secured at once due and payabl� and may foreclose immediately or may exercise any other rights hereunder or take any other proper actian as by law provided. TRANSFER OF THE PROPERTY: This 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 to Section 37'14 of Chapter 37, Title 38, United States Code. An authorized transfer ("assumption") of the prop�rty shall also be subject to additional cavenants and agreements as set forth below: (a) ASSUMPTION FUNDING FEE: A fee equal to ono-halfpercent (.50 %) of the balance of this loan as of the date of transfer of the property shall be payable at the time �f transfer to the loan holder ar its authorized agent, as trustee for the Department of Veterans Affairs. If the assumer fails to pay this fee at the time of transfer, the fee shall constitute an additional debt to that already secured by this instrument, shall bear interest at the rate herein pravided, and, at the option of the payee of the indebtedness hereby secured or any transferee thereof, shall be immediately due and payable. This fee is automatically waived if the assumer is exempt under the pravisions of 38 U.S.C. 3729 (c). (b) ASSUMPTION PROCESSING CHARGE: Upon application for approval to allow assumption of this loan, a pracessing fee may be charged hy the laan holder or its authorized agent for determining the creditworthiness of the assumer and subsequently revising the holder's ownership records when an approved transfer is completed. The amaunt of this charge shall not exceed the maximum established by the Department of Veterans Affairs for a loan to which Section 3714 of Chapter 37, 7itle 3$, United States Code appli�s. (c) ASSUMPTION INDEMNITY LIABILITY: If this abligation is assumed, then the assumer hereby agrees to assume all of the obligations of the veteran under the terms of the instruments creating and securing the loan. The assumer further agrees to indemnify the Department of Veterans Affairs to the extent of any claim payment arising from the guaranty or insurance of the indebtedness created by this instrument. 001122236652 VMP�-53$R (D405).01 Initials: � Page 2 of 3 CitiMortgage 8.2.42.07 Vll