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2oii000so 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 involved 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 60 days from the date that this laan would normally become eligible far such guaranty cammitted upon by #hE Departmen# qf Veterans Affairs under the provisions of Title 38 of the U.S. Code "Veterans Benefits," the Mortgagee may declare the indebtedness hereby secured at once due and payable and may foreclose immediately or may �xercise any other rights hereunder or tak� any other proper action as by law provided. TRANSFER OF THE PROPER7Y: 7'his loan may be declared immediately due and payable upqn transfer of the property securing such loan to any transferee, unless the acceptability of the assumption of the loan is established pursuant to Section 3714 of Chapter 37, Title 38, lJnited States Code. An authorized transfer ("assumption") of the property shall also be subject to additional covenants and agreements as set forth below: (a) ASSUMPTI�N FUNDING FEE: A fee equal to one half af one percent ( .50 %) of the balance of this loan as of the date of transfer of the property shall be payable at the time of transfer to the laan holder ar its authorized agent, as truste� for the Department of Veterans Affairs. If the assumer fails to pay this fee at the time of transfer, the fee shafl canstitute an additional d�bt to that already secured by this instrument, shall bear interest at the rate herein provided, and, at the optian 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 provisions of 38 U.S.C. 3729 (c). (b) ASSUMPTION PROCESSING CHARGE: Upon application for appraval to allow assumption of this loan, a processing fee may be charged by the loan 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 amount 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, Title 38, United States Code applies. (c) ASSUMPTION INDEMNITY LIABILITY: If this obligation 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. 880D916903 VMP�'-538R (0405).01 Page 2 of 3 BB0�916903 Init'