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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 (direetly ar indirectly) amounts that
<br />derive from (or mi�ht bc charactcriz�d as) a portion of Borrower's payments for Mart�age Insurance, in
<br />exchange for sharin� or madifying 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 �xchange for a share of the
<br />premiums paid to the ia�surer, th� 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 />Mortga�e 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 nat entitle Borrower to any refund.
<br />(b) Any such agreements will not affect the rights Borrower has - if any - with respect to the
<br />Martgage 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 1VIortgage Insurance terminated automakicatly, and/or to receive a
<br />refund of any Mortgage Insurance premiurns that were unearned at the time of such cancellation or
<br />termination.
<br />11. Assignment of Miscellaneous Proceeds; Forfeiture, All Miscellaneaus Proceeds are hereby
<br />assigned to and shall be paid to Lendcr.
<br />If the Froperty is dama�ed, such Miscellaneous Proceeds shall be applied to restoration or repair of
<br />the Froperty, if thc restoratian or re�air 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 Miscellancous Procceds
<br />until Lender has had an opportunity to inspect such Property to ensure the work has becn completcd to
<br />Lender's satisfax:tion, pravided that such inspection shall be undertaken promptly. Lender may pay for the
<br />repairs and restoration in a sin�le disbursement or in a series of progress payments as the work is
<br />completed. Unless an agreement is made in writing or Applicable I,aw requires int�rest ta be paid on such
<br />Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such
<br />Misccllaneous Prpceeds. If the restoration or repair is not economically feasible or Lender's security would
<br />be lesscned, the Miscellaneous Praceeds shall be applied to the sums secured by this Security Instrument,
<br />whether or not then due, with the cxccss, if any, paid to F3orrowcr. Such Miscc:llan�ous Proceeds shall be
<br />applied in the order pravided for in Section 2.
<br />In tl�e event of a total taking, destructian, or loss in value af the Property, the Miscellaneous
<br />Praceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
<br />the sxcess, 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 />valuc of the Property immediately before the partial taking, destruction, or loss in value is equal to or
<br />greater than the amc�unt of the sums secured by this Sccurity Instrum�nt immediately before the partial
<br />taking, destruction, or loss in value, unless I3orrower and I,ender otherwise a�;r�e in writing, the sums
<br />secured by this Security lnstrument 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 valuc: divided by (b) thc; fair market value af the Praperty
<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, destructian, c>r 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 thc sums secured immediately befara the partial taking, destructian, ar lass in value, unless
<br />Barrower and Lender otherwise agree in writing, the Miscellaneous Procecds shall bc applied to thc 5ums
<br />secured by this Security Instrument whether or not the sums arc; then due.
<br />If the Property is abandoned by Borrower, or if, after notice by Lendc:r to �orrower that the
<br />Oppasing Party (as defined in the next sentence) offers to make an award to settle a claim for damages,
<br />Borrvwer fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized
<br />to collect and 7pply the Miscellaneous Proceeds either to restoration or repair c�f the Prop�:rty <�r to the
<br />sums secured by this Security Instrument, whether ar not then due. "�pposing Party" means the third party
<br />that owes Borrower Misccllancous Proceeds ar the party against whom Borrower has a right of action in
<br />regard to Miscellaneous Proce�:ds.
<br />Borrovver shall lae 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 pf Lender's
<br />interest in thc Property or rights under this Security Instrument. Borrower can cure such a default and, if
<br />1111056292
<br />Initials.
<br />�-6(NE) (oao��.oz P�e9 of 15 Form 3028 1/01
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