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� 20�1as35� LATE CHARGE: At Lender's option, Borrower will pay a"late charge" not exceeding four per centum (4%) of the overdue paymeht when paid more than fifteen (15) days after the dus date thereof to cover the extra expense invoived in handling delinquent payments, but such "(ate charge" shail not be payable out of the proceeds of any sale made to satisfy the indebtedness secwed hereby, unless such proceeds are sufficient to discharge the entire indebtedness and ail proper costs and expenses secured hereby. GUARANTY: Shoutd the Department of Veterans Affairs fail or refuse to issue its guaranty in fuii amount within 60 days from the date that this loan would no�mally become eligibie for such guaranty committed upon by the Department of Veterans Affairs under the provisions ot 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 exercise any other dghts hereunder or take any other proper action as by law provided. TRANSFER OF THE PROPERTY: This loan may be declared immediateiy 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 3714 of Chapter 37, Titie 38, United States Code. An authorized transfer ("assumption") of the property shall also be subject to additional covenants and agreements as set forth below: (a) ASSUMPTION FUNDING FEE: A fee equal to one half of onm percent ( 0.50 96) 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 loan holder or its authorized agent, as trustee for the Department of Veterans Affairs. tf the assumer fails to pay this fee at the time of transfer, the fee shalt constitute an additiona! debt to that already secured by this instrument, shall bear interest at the rate herein provided, 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 autamatically waived if the assumer is exempt under the provisions of 38 U.S.C. 3729 (c). �b) ASSUMPTION PROCESSING CHARGE: Upon application for approval 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 ef Veterans Affairs far a loan to which Section 3714 of Chapter 37, Titte 38, United States Code applies. (c) ASSUMPTION INDEMNITY LIABILiTY: If this obligation is assumed, then the assumer hereby agrees to assume all of the obtigations of the veteran under the terms of the instruments creating and securing the laan. 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. VMP�-538R (0405).01 Page 2 of 3 . Initials:SJF