Fillable Printable Sample Deed of Trust Form

Sample Deed of Trust Form

Sample Deed of Trust

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 trust or under this

Security Instrument.

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.

(H) “Riders” means all Riders to this Security Instrument that are execu ted 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 im posed 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.

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 and conveys to Trustee, in trust, with power of

sale, the following described property located in the _______________________ [Type

of Recording Jurisdiction] of __________________ [Name of Recording Jurisdiction]

which currently has the address of ___________________________________________

[Street] __________________ [City], California __________________ [Zip Code]

(“Property Address”):

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 aga inst 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) 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 paym ent 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 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 estim ates 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, 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 and

Borrower further agrees to generally assign rights to insurance proceeds to the holder of

the Note up to the amount of the outstanding loan balance. Lender shall have the right to

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

give to Lender 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 and Borrower further

agrees to generally assign rights to insurance proceeds to the holder of the Note up to the

amount of the outstanding loan balance.

In the event of loss, Borrower shall give prom pt 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 o r 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 resid ing in the

Property, Borrower shall maintain the Property in order to pre v ent 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 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 no t 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 specify ing 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 lega l 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 p rotect 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 Ins trument; (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 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 term s 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 r ights 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 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 th e 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