Sample Document. Intended as reference only
Your actual closing documents will vary according to the lending institution
Page
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 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 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 .
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OHIO--Single Family--Fannie
Mae/Freddie Mac UNIFORM INSTRUMENT
Form
3036 1/01
Document Systems, Inc. (800)
649-1362
Page 7 of 12
OH30361.MTG
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