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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 afilliate of any pf the foregoing, may receive (directly or indirectly) amounts that
<br />derive from (or might be characterized a�) a portion of Borrower' s payments for Mortgage Insurance, in
<br />exchange for sharing or modifying the mortgage insurer's risk, or reducinb losses. If such agreement
<br />provides that an affiliate of I,ender takes a sharc of the insurer' s risk in exchange for a share of the
<br />prerniums paid to the insurer, the arrangernent is often termed "captive rcinsurance." Further:
<br />(a) Any such agreemenCs wi11 nat affect tlae amaunts that Barrower l�as agreed to pay far
<br />Martgage Insurance, or an�> other terms af the Loan. Such agreements 'will not increase the amount
<br />Sorrower will owe for Mortgage Insurance, and they will not entitle Sorrower to any refund.
<br />(b) Any such agreements will not affect the rights Barrower has - if any - with respect to the
<br />Mortgage Insurance under the Homeowners Prptection Act of 1998 or anv ather law. These rights
<br />rnay include the right to receive certain disclosures, to request and obtain cancellation of the
<br />Mortgage Insurance, to have the Mort�age Insurance terminated autamatically, and/or to receive a
<br />refund of any Mortgage Insurance prexniums that werc unearned at t�e time of such cancellation or
<br />termination.
<br />11. Assignment af Miscellaneous Proceeds; Forfeitare. All Miscellaneous Proceeds are 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 />unti] 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 undertalcen promptly. Lender may pay for the
<br />repairs and restoratian in a single disbursement or in a series of progress payments as the work i5
<br />completed. Unless an a�reement is made in writing or Applicable Law requires interest to be paid on such
<br />Miscellaneous Proceeds, Lender sl�all not be required to pay Sorrower any interest or earnings on such
<br />Miscellaneous Procceds. If the restoration or repair is not economically feasible or Lender' s security would
<br />be lessened, the Misce1laneous Proceeds shall be applied to the sums secured by this Security Instrument,
<br />whether or not then due, with thc 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 Miscellaneou5
<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 Praperty immediately before the partial taking, destruction, or loss in value is equal to or
<br />greater than the amount of the sums secured by thia Security Instrument immediately before the partial
<br />takin�;, destruction, or lass in value, unless Borrower and Lender otherwise agree in writing, the sums
<br />secured by this Security Instrurnent shall b� reduced by the amount of the Miscellaneous Proceeds
<br />multiplied by the following fraction: (a) the tota] 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 Froperty
<br />immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to $orrower.
<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 iznmediately before the partial taking, destruction, or loss in value, unless
<br />Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shal] 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, afCer notice by Lender to Borrower that the
<br />Opposing Farty (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 Froceeds 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 be in default if any action or praceeding, whether civil or criminal, is begun that, in
<br />Lender' s judgme�at, could result in forfeiture of the 1'roperty or other material impairment of Lender' s
<br />interest in the Property ar rights under this Security lnstrument. Borrower can cure such a default and, if
<br />231D30
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