Fillable Printable Deed of Trust - Missouri

Deed of Trust - Missouri

MISSOURI--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3026 1/01 (page 1 of 16 pages)

After Recording Return To:

____________________________________

____________________[Space Above This Line For Recording Data]___________________

DEED OF TRUST

DEFINITIONS

Words used in multiple sections of this document are defined below and other words are defined

in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this

document are also provided in Section 16.

(A) “Security Instrument” means this document, which is dated _____________________,

_____________, together with all Riders to this document.

(B) “Borrower” is __________________________________________________________.

Borrower is the trustor under this Security Instrument.

Lender is a ___________________________________ organized and existing under the laws of

____________________________________. Lender’s address is ________________________

_________________________________________________________________. Lender is the

beneficiary under this Security Instrument.

(D) “Trustee” is ____________________________________________________________.

(E) “Note” means the promissory note signed by Borrower and dated

___________________________________, ___________. The Note states that Borrower owes

Lender _______________________________________________________________________

Dollars (U.S. $__________________________________) plus interest. Borrower has promised

to pay this debt in regular Periodic Payments and to pay the debt in full not later than

___________________________________.

(F) “Property” means the property that is described below under the heading “Transfer of

Rights in the Property.”

(G) “Loan” means the debt evidenced by the Note, plus interest, any prepayment charges and

late charges due under the Note, and all sums due under this Security Instrument, plus interest.

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(H) “Riders” means all Riders to this Security Instrument that are executed by Borrower. The

following Riders are to be executed by Borrower [check box as applicable]:

 Adjustable Rate Rider  Condominium Rider  Second Home Rider

 Balloon Rider  Planned Unit Development Rider  Other(s) [specify] _____________

 1-4 Family Rider  Biweekly Payment Rider

(I) “Applicable Law” means all controlling applicable federal, state and local statutes,

regulations, ordinances and administrative rules and orders (that have the effect of law) as well as

all applicable final, non-appealable judicial opinions.

(J) “Community Association Dues, Fees, and Assessments” means all dues, fees,

assessments and other charges that are imposed on Borrower or the Property by a condominium

association, homeowners association or similar organization.

(K) “Electronic Funds Transfer” means any transfer of funds, other than a transaction

originated by check, draft, or similar paper instrument, which is initiated through an electronic

terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize

a financial institution to debit or credit an account. Such term includes, but is not limited to,

point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone,

wire transfers, and automated clearinghouse transfers.

(L) “Escrow Items” means those items that are described in Section 3.

(M) “Miscellaneous Proceeds” means any compensation, settlement, award of damages, or

proceeds paid by any third party (other than insurance proceeds paid under the coverages

described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or

other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv)

misrepresentations of, or omissions as to, the value and/or condition of the Property.

(N) “Mortgage Insurance” means insurance protecting Lender against the nonpayment of, or

default on, the Loan.

(O) “Periodic Payment” means the regularly scheduled amount due for (i) principal and

interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument.

(P) “RESPA” means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.)

and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended

from time to time, or any additional or successor legislation or regulation that governs the same

subject matter. As used in this Security Instrument, “RESPA” refers to all requirements and

restrictions that are imposed in regard to a “federally related mortgage loan” even if the Loan

does not qualify as a “federally related mortgage loan” under RESPA.

(Q) “Successor in Interest of Borrower” means any party that has taken title to the

Property, whether or not that party has assumed Borrower’s obligations under the Note and/or

this Security Instrument.

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TRANSFER OF RIGHTS IN THE PROPERTY

This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals,

extensions and modifications of the Note; and (ii) the performance of Borrower’s covenants and

agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably

grants, bargains, sells, conveys and confirms to Trustee, in trust, with power of sale, the

following described property located in the ________________________________________ of

[Type of Recording Jurisdiction]

________________________________________:

[Name of Recording Jurisdiction]

which currently has the address of __________________________________________________

[Street]

__________________________________, Missouri _________________ (“Property Address”):

[City] [Zip Code]

TOGETHER WITH all the improvements now or hereafter erected on the property, and

all easements, appurtenances, and fixtures now or hereafter a part of the property. All

replacements and additions shall also be covered by this Security Instrument. All of the

foregoing is referred to in this Security Instrument as the “Property.”

BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby

conveyed and has the right to grant and convey the Property and that the Property is

unencumbered, except for encumbrances of record. Borrower warrants and will defend generally

the title to the Property against all claims and demands, subject to any encumbrances of record.

THIS SECURITY INSTRUMENT combines uniform covenants for national use and

non-uniform covenants with limited variations by jurisdiction to constitute a uniform security

instrument covering real property.

UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:

1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late

Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by

the Note and any prepayment charges and late charges due under the Note. Borrower shall also

pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this

Security Instrument shall be made in U.S. currency. However, if any check or other instrument

received by Lender as payment under the Note or this Security Instrument is returned to Lender

unpaid, Lender may require that any or all subsequent payments due under the Note and this

Security Instrument be made in one or more of the following forms, as selected by Lender: (a)

MISSOURI--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3026 1/01 (page 4 of 16 pages)

cash; (b) money order; (c) certified check, bank check, treasurer’s check or cashier’s check,

provided any such check is drawn upon an institution whose deposits are insured by a federal

agency, instrumentality, or entity; or (d) Electronic Funds Transfer.

Payments are deemed received by Lender when received at the location designated in the

Note or at such other location as may be designated by Lender in accordance with the notice

provisions in Section 15. Lender may return any payment or partial payment if the payment or

partial payments are insufficient to bring the Loan current. Lender may accept any payment or

partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or

prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not

obligated to apply such payments at the time such payments are accepted. If each Periodic

Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied

funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan

current. If Borrower does not do so within a reasonable period of time, Lender shall either apply

such funds or return them to Borrower. If not applied earlier, such funds will be applied to the

outstanding principal balance under the Note immediately prior to foreclosure. No offset or

claim which Borrower might have now or in the future against Lender shall relieve Borrower

from making payments due under the Note and this Security Instrument or performing the

covenants and agreements secured by this Security Instrument.

2. Application of Payments or Proceeds. Except as otherwise described in this

Section 2, all payments accepted and applied by Lender shall be applied in the following order of

priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under

Section 3. Such payments shall be applied to each Periodic Payment in the order in which it

became due. Any remaining amounts shall be applied first to late charges, second to any other

amounts due under this Security Instrument, and then to reduce the principal balance of the Note.

If Lender receives a payment from Borrower for a delinquent Periodic Payment which

includes a sufficient amount to pay any late charge due, the payment may be applied to the

delinquent payment and the late charge. If more than one Periodic Payment is outstanding,

Lender may apply any payment received from Borrower to the repayment of the Periodic

Payments if, and to the extent that, each payment can be paid in full. To the extent that any

excess exists after the payment is applied to the full payment of one or more Periodic Payments,

such excess may be applied to any late charges due. Voluntary prepayments shall be applied first

to any prepayment charges and then as described in the Note.

Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal

due under the Note shall not extend or postpone the due date, or change the amount, of the

Periodic Payments.

3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic

Payments are due under the Note, until the Note is paid in full, a sum (the “Funds”) to provide

for payment of amounts due for: (a) taxes and assessments and other items which can attain

priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold

payments or ground rents on the Property, if any; (c) premiums for any and all insurance required

by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by

Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with

the provisions of Section 10. These items are called “Escrow Items.” At origination or at any

time during the term of the Loan, Lender may require that Community Association Dues, Fees,

and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be

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an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid

under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives

Borrower’s obligation to pay the Funds for any or all Escrow Items. Lender may waive

Borrower’s obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such

waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when

and where payable, the amounts due for any Escrow Items for which payment of Funds has been

waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such

payment within such time period as Lender may require. Borrower’s obligation to make such

payments and to provide receipts shall for all purposes be deemed to be a covenant and

agreement contained in this Security Instrument, as the phrase “covenant and agreement” is used

in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and

Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under

Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to

Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any

time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall

pay to Lender all Funds, and in such amounts, that are then required under this Section 3.

Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit

Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the

maximum amount a lender can require under RESPA. Lender shall estimate the amount of

Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow

Items or otherwise in accordance with Applicable Law.

The Funds shall be held in an institution whose deposits are insured by a federal agency,

instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so

insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow

Items no later than the time specified under RESPA. Lender shall not charge Borrower for

holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow

Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to

make such a charge. Unless an agreement is made in writing or Applicable Law requires interest

to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on

the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the

Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as

required by RESPA.

If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall

account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of

Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by

RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in

accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of

Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by

RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in

accordance with RESPA, but in no more than 12 monthly payments.

Upon payment in full of all sums secured by this Security Instrument, Lender shall

promptly refund to Borrower any Funds held by Lender.

4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and

impositions attributable to the Property which can attain priority over this Security Instrument,

leasehold payments or ground rents on the Property, if any, and Community Association Dues,

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Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall

pay them in the manner provided in Section 3.

Borrower shall promptly discharge any lien which has priority over this Security

Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the

lien in a manner acceptable to Lender, but only so long as Borrower is performing such

agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in,

legal proceedings which in Lender’s opinion operate to prevent the enforcement of the lien while

those proceedings are pending, but only until such proceedings are concluded; or (c) secures from

the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security

Instrument. If Lender determines that any part of the Property is subject to a lien which can

attain priority over this Security Instrument, Lender may give Borrower a notice identifying the

lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or

take one or more of the actions set forth above in this Section 4.

Lender may require Borrower to pay a one-time charge for a real estate tax verification

and/or reporting service used by Lender in connection with this Loan.

5. Property Insurance. Borrower shall keep the improvements now existing or

hereafter erected on the Property insured against loss by fire, hazards included within the term

“extended coverage,” and any other hazards including, but not limited to, earthquakes and floods,

for which Lender requires insurance. This insurance shall be maintained in the amounts

(including deductible levels) and for the periods that Lender requires. What Lender requires

pursuant to the preceding sentences can change during the term of the Loan. The insurance

carrier providing the insurance shall be chosen by Borrower subject to Lender’s right to

disapprove Borrower’s choice, which right shall not be exercised unreasonably. Lender may

require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood

zone determination, certification and tracking services; or (b) a one-time charge for flood zone

determination and certification services and subsequent charges each time remappings or similar

changes occur which reasonably might affect such determination or certification. Borrower shall

also be responsible for the payment of any fees imposed by the Federal Emergency Management

Agency in connection with the review of any flood zone determination resulting from an

objection by Borrower.

If Borrower fails to maintain any of the coverages described above, Lender may obtain

insurance coverage, at Lender’s option and Borrower’s expense. Lender is under no obligation to

purchase any particular type or amount of coverage. Therefore, such coverage shall cover

Lender, but might or might not protect Borrower, Borrower’s equity in the Property, or the

contents of the Property, against any risk, hazard or liability and might provide greater or lesser

coverage than was previously in effect. Borrower acknowledges that the cost of the insurance

coverage so obtained might significantly exceed the cost of insurance that Borrower could have

obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of

Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate

from the date of disbursement and shall be payable, with such interest, upon notice from Lender

to Borrower requesting payment.

All insurance policies required by Lender and renewals of such policies shall be subject to

Lender’s right to disapprove such policies, shall include a standard mortgage clause, and shall

name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold

the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender

MISSOURI--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3026 1/01 (page 7 of 16 pages)

all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance

coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such

policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an

additional loss payee.

In the event of loss, Borrower shall give prompt notice to the insurance carrier and

Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and

Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying

insurance was required by Lender, shall be applied to restoration or repair of the Property, if the

restoration or repair is economically feasible and Lender’s security is not lessened. During such

repair and restoration period, Lender shall have the right to hold such insurance proceeds until

Lender has had an opportunity to inspect such Property to ensure the work has been completed to

Lender’s satisfaction, provided that such inspection shall be undertaken promptly. Lender may

disburse proceeds for the repairs and restoration in a single payment or in a series of progress

payments as the work is completed. Unless an agreement is made in writing or Applicable Law

requires interest to be paid on such insurance proceeds, Lender shall not be required to pay

Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third

parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole

obligation of Borrower. If the restoration or repair is not economically feasible or Lender’s

security would be lessened, the insurance proceeds shall be applied to the sums secured by this

Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such

insurance proceeds shall be applied in the order provided for in Section 2.

If Borrower abandons the Property, Lender may file, negotiate and settle any available

insurance claim and related matters. If Borrower does not respond within 30 days to a notice

from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate

and settle the claim. The 30-day period will begin when the notice is given. In either event, or if

Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender

(a) Borrower’s rights to any insurance proceeds in an amount not to exceed the amounts unpaid

under the Note or this Security Instrument, and (b) any other of Borrower’s rights (other than the

right to any refund of unearned premiums paid by Borrower) under all insurance policies

covering the Property, insofar as such rights are applicable to the coverage of the Property.

Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts

unpaid under the Note or this Security Instrument, whether or not then due.

6. Occupancy. Borrower shall occupy, establish, and use the Property as

Borrower’s principal residence within 60 days after the execution of this Security Instrument and

shall continue to occupy the Property as Borrower’s principal residence for at least one year after

the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be

unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower’s

control.

7. Preservation, Maintenance and Protection of the Property; Inspections.

Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or

commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower

shall maintain the Property in order to prevent the Property from deteriorating or decreasing in

value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration

is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid

further deterioration or damage. If insurance or condemnation proceeds are paid in connection

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with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or

restoring the Property only if Lender has released proceeds for such purposes. Lender may

disburse proceeds for the repairs and restoration in a single payment or in a series of progress

payments as the work is completed. If the insurance or condemnation proceeds are not sufficient

to repair or restore the Property, Borrower is not relieved of Borrower’s obligation for the

completion of such repair or restoration.

Lender or its agent may make reasonable entries upon and inspections of the Property. If

it has reasonable cause, Lender may inspect the interior of the improvements on the Property.

Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying

such reasonable cause.

8. Borrower’s Loan Application. Borrower shall be in default if, during the Loan

application process, Borrower or any persons or entities acting at the direction of Borrower or

with Borrower’s knowledge or consent gave materially false, misleading, or inaccurate

information or statements to Lender (or failed to provide Lender with material information) in

connection with the Loan. Material representations include, but are not limited to, representations

concerning Borrower’s occupancy of the Property as Borrower’s principal residence.

9. Protection of Lender’s Interest in the Property and Rights Under this

Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained

in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender’s

interest in the Property and/or rights under this Security Instrument (such as a proceeding in

bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain

priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has

abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to

protect Lender’s interest in the Property and rights under this Security Instrument, including

protecting and/or assessing the value of the Property, and securing and/or repairing the Property.

Lender’s actions can include, but are not limited to: (a) paying any sums secured by a lien which

has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable

attorneys’ fees to protect its interest in the Property and/or rights under this Security Instrument,

including its secured position in a bankruptcy proceeding. Securing the Property includes, but is

not limited to, entering the Property to make repairs, change locks, replace or board up doors and

windows, drain water from pipes, eliminate building or other code violations or dangerous

conditions, and have utilities turned on or off. Although Lender may take action under this

Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is

agreed that Lender incurs no liability for not taking any or all actions authorized under this

Section 9.

Any amounts disbursed by Lender under this Section 9 shall become additional debt of

Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate

from the date of disbursement and shall be payable, with such interest, upon notice from Lender

to Borrower requesting payment.

If this Security Instrument is on a leasehold, Borrower shall comply with all the

provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee

title shall not merge unless Lender agrees to the merger in writing.

10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of

making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance

in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be

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available from the mortgage insurer that previously provided such insurance and Borrower was

required to make separately designated payments toward the premiums for Mortgage Insurance,

Borrower shall pay the premiums required to obtain coverage substantially equivalent to the

Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower

of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by

Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall

continue to pay to Lender the amount of the separately designated payments that were due when

the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments

as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-

refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not

be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer

require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period

that Lender requires) provided by an insurer selected by Lender again becomes available, is

obtained, and Lender requires separately designated payments toward the premiums for Mortgage

Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and

Borrower was required to make separately designated payments toward the premiums for

Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance

in effect, or to provide a non-refundable loss reserve, until Lender’s requirement for Mortgage

Insurance ends in accordance with any written agreement between Borrower and Lender

providing for such termination or until termination is required by Applicable Law. Nothing in

this Section 10 affects Borrower’s obligation to pay interest at the rate provided in the Note.

Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain

losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the

Mortgage Insurance.

Mortgage insurers evaluate their total risk on all such insurance in force from time to

time, and may enter into agreements with other parties that share or modify their risk, or reduce

losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer

and the other party (or parties) to these agreements. These agreements may require the mortgage

insurer to make payments using any source of funds that the mortgage insurer may have available

(which may include funds obtained from Mortgage Insurance premiums).

As a result of these agreements, Lender, any purchaser of the Note, another insurer, any

reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or

indirectly) amounts that derive from (or might be characterized as) a portion of Borrower’s

payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer’s

risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of

the insurer’s risk in exchange for a share of the premiums paid to the insurer, the arrangement is

often termed “captive reinsurance.” Further:

(a) Any such agreements will not affect the amounts that Borrower has agreed to

pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not

increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle

Borrower to any refund.

(b) Any such agreements will not affect the rights Borrower has - if any - with

respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any

other law. These rights may include the right to receive certain disclosures, to request and

obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated

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automatically, and/or to receive a refund of any Mortgage Insurance premiums that were

unearned at the time of such cancellation or termination.

11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous

Proceeds are hereby assigned to and shall be paid to Lender.

If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or

repair of the Property, if the restoration or repair is economically feasible and Lender’s security is

not lessened. During such repair and restoration period, Lender shall have the right to hold such

Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure

the work has been completed to Lender’s satisfaction, provided that such inspection shall be

undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or

in a series of progress payments as the work is completed. Unless an agreement is made in

writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender

shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds.

If the restoration or repair is not economically feasible or Lender’s security would be lessened,

the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument,

whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds

shall be applied in the order provided for in Section 2.

In the event of a total taking, destruction, or loss in value of the Property, the

Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether

or not then due, with the excess, if any, paid to Borrower.

In the event of a partial taking, destruction, or loss in value of the Property in which the

fair market value of the Property immediately before the partial taking, destruction, or loss in

value is equal to or greater than the amount of the sums secured by this Security Instrument

immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender

otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the

amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount

of the sums secured immediately before the partial taking, destruction, or loss in value divided by

(b) the fair market value of the Property immediately before the partial taking, destruction, or loss

in value. Any balance shall be paid to Borrower.

In the event of a partial taking, destruction, or loss in value of the Property in which the

fair market value of the Property immediately before the partial taking, destruction, or loss in

value is less than the amount of the sums secured immediately before the partial taking,

destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the

Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether

or not the sums are then due.

If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that

the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for

damages, Borrower fails to respond to Lender within 30 days after the date the notice is given,

Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or

repair of the Property or to the sums secured by this Security Instrument, whether or not then due.

“Opposing Party” means the third party that owes Borrower Miscellaneous Proceeds or the party

against whom Borrower has a right of action in regard to Miscellaneous Proceeds.

Borrower shall be in default if any action or proceeding, whether civil or criminal, is

begun that, in Lender’s judgment, could result in forfeiture of the Property or other material

impairment of Lender’s interest in the Property or rights under this Security Instrument.

MISSOURI--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3026 1/01 (page 11 of 16 pages)

Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in

Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender’s

judgment, precludes forfeiture of the Property or other material impairment of Lender’s interest

in the Property or rights under this Security Instrument. The proceeds of any award or claim for

damages that are attributable to the impairment of Lender’s interest in the Property are hereby

assigned and shall be paid to Lender.

All Miscellaneous Proceeds that are not applied to restoration or repair of the Property

shall be applied in the order provided for in Section 2.

12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of

the time for payment or modification of amortization of the sums secured by this Security

Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not

operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender

shall not be required to commence proceedings against any Successor in Interest of Borrower or

to refuse to extend time for payment or otherwise modify amortization of the sums secured by

this Security Instrument by reason of any demand made by the original Borrower or any

Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy

including, without limitation, Lender’s acceptance of payments from third persons, entities or

Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a

waiver of or preclude the exercise of any right or remedy.

13. Joint and Several Liability; Co-signers; Successors and Assigns Bound.

Borrower covenants and agrees that Borrower’s obligations and liability shall be joint and

several. However, any Borrower who co-signs this Security Instrument but does not execute the

Note (a “co-signer”): (a) is co-signing this Security Instrument only to mortgage, grant and

convey the co-signer’s interest in the Property under the terms of this Security Instrument; (b) is

not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that

Lender and any other Borrower can agree to extend, modify, forbear or make any

accommodations with regard to the terms of this Security Instrument or the Note without the co-

signer’s consent.

Subject to the provisions of Section 18, any Successor in Interest of Borrower who

assumes Borrower’s obligations under this Security Instrument in writing, and is approved by

Lender, shall obtain all of Borrower’s rights and benefits under this Security Instrument.

Borrower shall not be released from Borrower’s obligations and liability under this Security

Instrument unless Lender agrees to such release in writing. The covenants and agreements of this

Security Instrument shall bind (except as provided in Section 20) and benefit the successors and

assigns of Lender.

14. Loan Charges. Lender may charge Borrower fees for services performed in

connection with Borrower’s default, for the purpose of protecting Lender’s interest in the

Property and rights under this Security Instrument, including, but not limited to, attorneys’ fees,

property inspection and valuation fees. In regard to any other fees, the absence of express

authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as

a prohibition on the charging of such fee. Lender may not charge fees that are expressly

prohibited by this Security Instrument or by Applicable Law.

If the Loan is subject to a law which sets maximum loan charges, and that law is finally

interpreted so that the interest or other loan charges collected or to be collected in connection

with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the