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<br />201101630
<br />insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage
<br />Insurance, Borrower shall pay the pretniums required to obtain coverage substantially equivalent to the 1vIortgage
<br />Insurance previouslq in effect, at a cost substandally equivalent to the cost to Borrower of the Mortgage Insurance
<br />previously in effecy from an alternate mortgage insuter selected by Lender. If substantially equivalent Mortgage
<br />Insurance coverage is not available, Borrower shal] continue to pay to Lender the amount of the separately deaignated
<br />payments that werc due when the insurauce coverage ceased to be in effecc Lender will accept, use and retain these
<br />payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable,
<br />notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any
<br />interest or eaznings on such loss reserve. Lender can no longer requ've loss reserve payments if Mortgage Insurance
<br />coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again
<br />becomes available, is obtained, and Lender requires sepazately designated payments toward the premiums for
<br />Mortgage Tnsurance. If Lender requued Mortgage Insurance as a condition of making the Loan and Borrower wac
<br />required to make separately designated payments toward the pretniums for Mortgage Insurance, Bonower shall pay
<br />the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until
<br />Lender' s requirement for Mortgage Insurance ends in accordance wit6 any wriuen agreement between Borrower and
<br />Lender providing for such terminadon or until termination is required by Applicable Law. Nothing in this Section
<br />10 affects Borrower's obligation to pay interest at the rate provided in the Note.
<br />Mortgage Insurance reunburses Lender (or any entity that purchases the Note) for certain losses it may incur
<br />if Bonower does not repay the Loan as agreed. Borrower is not a pazty to the Mortgage Insurance.
<br />Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into
<br />agreements with other parties that share or modify their risk, or reduce losses. These agreemenu are on terms and
<br />condirions that are satisfactory to the mortgage insurer and the o[her party (or parties) to these agreements. These
<br />agreetnents may requ'ue the mortgage insurer to make payments using any source of funds that the mortgage insurer
<br />may have available (which may include funds obtained from Mortgage Insurance premiums).
<br />As a result of these agreements, Lendet, any purchaser of the Note, another insurer, any reinsurer, any other
<br />entity, or any affiliate of any of the foregoittg, may receive (directly or indirectly) amounts that derive from (or might
<br />be chazacterized as) a portion of Borrower' s paymenu for Mortgage Insurance, in exchange for sharing or modifying
<br />the moRgage insurer' s risk, or teducing ]osses. If such agreement provides that an affiliate of Lender takes a share
<br />of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is oftett termed
<br />"captive reinsurance." Further:
<br />(a) Any such agreements will oot affect the amounts that Borrower has agreed to pay for Mortgage
<br />Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe
<br />for Mortgage Insurance, and they will not entiUe Borrower to any refuad.
<br />(b) Any such agreements will not affect the rights Borrower has - it auy - with respect to the Mortgage
<br />Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right
<br />to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the
<br />Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums
<br />that were unearned at the time of such cancellation or tcrmination.
<br />11. Assignment of Misce➢aneous Proceeds; Forfeiture. All Miscellaneous Prceeeds are hereby assigned to
<br />and shall be paid to Lender.
<br />If the Properry is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Properry,
<br />if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and
<br />restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an
<br />opportuniry to inspeot such Properiy to ensure the work has been completed to Lender's satisfaction, provided that
<br />such iaspection shall be undertaken prompUy. Lender may pay for the repairs and restoration in a single disbursement
<br />or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable
<br />Law requires interest to be paid on such Miscellaneous Procceds, Lender shall not be required to pay Borrower any
<br />interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasble or
<br />Lender' s security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security
<br />Instrument, whether or not then due, with the eucess, if any, paid to Borrower. Such Miscellaneous Proceeds sball
<br />be epplied in the order provided for in Seetion 2.
<br />In ihe event of a total taking, destruc6on, or loss in value of the Property, the Miscellaneous Proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to
<br />Borrower.
<br />In the event of s partial taking, destruction, or loss in value of the Properry in which the fair market value of
<br />the Properry itnmediately before the partial taking, destruction, or loss in value is equal to or greater than the amount
<br />of the sutns secured by this Secwity Instrument immediately before the partial taldng, destruction, or loss in value,
<br />unless Borrower and I.ender otherwise agree in writing, the sums secured by ihis Securiry Instrument shall be reduced
<br />by the amount of the Miscellaneous Proceeds multlplied by tlie following &action: (a) the total amount of the sums
<br />secured immediately before the paztial taking, destruction, or loss in value divided by (b) the £air market value of the
<br />Property immediately before the partial taldng, destruction, or loss in value. Any balance shall be paid to Borrower.
<br />In the event of a partial taking, desh or loss m value of the Properry in which the fair market value of
<br />the Property immuliately before the partial taking, destruction, or ]oss in value is less than the amount of the sums
<br />secwed immediately before the partial taking, deshvction, or loss in value, unless Borrower and Lender otherwise
<br />agree in writing, the Miscellaneous Proceeds shall be applied to the swns securedby ttris Security Instrument whether
<br />or not the sums aze then due.
<br />Borrower
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<br />Form 3028 1/01 Paga 6 of 11 www.docmagic.cam
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