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2( 1300320
<br /> deliver to Lender, in a form acceptable to Lender, an assignment of any rights, claims or defenses which Borrower may have against parties
<br /> who supply labor, materials or services in connection with improvements made to the Property.
<br /> 17. Waiver of Homestead Exemption. To the extent permitted by law, Borrower hereby waives the benefit of the homestead
<br /> exemption as to all sums secured by this Security Instrument.
<br /> 18. Waiver of Statutes of Limitation. To the extent permitted by law, Borrower hereby waives statutes of limitation as a defense
<br /> to any demand or obligation secured by this Security Instrument.
<br /> 19. Merger.There shall be no merger of the interest or estate created by this Security Instrument with any other interest or estate
<br /> in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender.
<br /> 20. Notice of Transfer of the Property;Advances after Transfer. Borrower shall give notice to Lender, as provided in paragraph
<br /> 12 hereof, prior to any sale or transfer of all or part of the Property or any rights in the Property. Any person to whom all or part of the
<br /> Property or any right in the Property is sold or transferred also shall be obligated to give notice to Lender, as provided in paragraph 12
<br /> hereof, promptly after such transfer.
<br /> Even if Borrower transfers the Property, Borrower will continue to be obligated under the Credit Agreement and this Security
<br /> Instrument unless Lender releases Borrower in writing.As a condition to Lender's consent to any proposed transfer or as a condition to
<br /> the release of Borrower, Lender may require that the person to whom the Property is transferred sign an assumption agreement
<br /> satisfactory to Lender and Lender may impose an assumption fee. The assumption agreement will not entitle the person signing it to
<br /> receive advances under the Credit Agreement.
<br /> 21. Transfer of the Property. Subject to applicable law, Lender shall have the right to accelerate,that is,to demand immediate
<br /> payment in full of all sums secured by this Mortgage or Deed of Trust, if Borrower,without the written consent of Lender,sells or transfers
<br /> all or part of the Property or any rights in the Property.
<br /> If Lender exercises the option to accelerate, Lender shall give Borrower notice of acceleration in accordance with paragraph
<br /> 12 hereof.The notice shall provide a period of not less than 30 days from the date of the notice within which Borrower may pay the sums
<br /> declared due. If Borrower fails to pay those sums prior to the expiration of such period, Lender may, without further notice or demand
<br /> on Borrower, invoke any remedies permitted by paragraph 22 hereof.
<br /> 22. Default;Termination and Acceleration;Remedies.Each of the following events shall constitute an event of default("event
<br /> of default")under this Security Instrument:(1)Borrower commits fraud or makes a material misrepresentation in connection with this
<br /> Security Instrument or the Credit Agreement; (2) Borrower does not meet the repayment terms of the Credit Agreement; or (3)
<br /> Borrower's action or inaction adversely affects the Lender's rights in the Property secured by this Security Instrument. If an event of
<br /> default occurs, then prior to exercising any right or remedy provided for in this Security Instrument and prior to acceleration, Lender
<br /> shall give notice as provided in paragraph 12 hereof and as required by applicable law. The notice shall specify: (a) the event of
<br /> default; (b) the action required to cure the event of default; (c) a date not less than twenty days (or any longer period required by
<br /> applicable law)from the date the notice is given to Borrower by which the event of default must be cured; (d)that failure to cure the
<br /> event of default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument
<br /> and sale of the Property; and (e) any other information required by applicable law. The notice shall further inform Borrower of the
<br /> right to reinstate after acceleration, if applicable, and the right to bring a court action to assert the nonexistence of an event of default
<br /> or any other defense of Borrower to acceleration and sale. If the event of default is not cured on or before the date specified in the
<br /> notice, Lender, at Lender's option, without further notice or demand, may declare default, may declare all sums secured by this
<br /> Security Instrument to be immediately due and payable, and may invoke the power of sale and any other remedies permitted by
<br /> applicable law. Lender shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in
<br /> this paragraph 22, including, but not limited to, reasonable attorneys'fees.
<br /> If the power of sale is invoked, Trustee shall record a notice of default in each county in which the Property or some part
<br /> thereof is located and shall mail copies of such notice in the manner prescribed by applicable law to Borrower and to the other persons
<br /> prescribed by applicable law. After the lapse of such time as may be required by applicable law, Trustee shall give public notice of
<br /> sale to the persons and in the manner prescribed by applicable law. Trustee, without demand on Borrower, shall sell the Property at
<br /> public auction to the highest bidder at the time and place and under the terms designated in the notice of sale in one or more parcels
<br /> and in such order as Trustee may determine.Trustee may postpone sale of all or any parcel of the Property by public announcement
<br /> at the time and place of any previously scheduled sale. Lender or Lender's designee may purchase the Property at any sale.
<br /> Upon receipt of payment of the price bid,Trustee shall deliver to the purchaser Trustee's deed conveying the Property sold.
<br /> The recitals in the Trustee's deed shall be prima facie evidence of the truth of the statements made therein. Trustee shall apply the
<br /> proceeds of the sale in the following order:(a)to all reasonable costs and expenses of the sale, including, but not limited to,Trustee's
<br /> fees actually incurred of not more than %of the gross sale price, reasonable attorneys'fees and costs of title evidence; (b)
<br /> to all sums secured by this Security Instrument; and (c)the excess, if any, to the person or persons legally entitled thereto.
<br /> 23. Borrower's Right to Reinstate. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of
<br /> this Security Instrument discontinued at any time prior to the earlier of (i) five days (or such other period as applicable law may specify
<br /> for reinstatement) before sale of the Property pursuant to any power of sale contained in this Security Instrument or (ii) entry of a
<br /> judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which would then be due
<br /> under this Security Instrument and the Credit Agreement had no acceleration occurred; (b) cures all events of default under this Security
<br /> Instrument and the Credit Agreement; (c) pays all reasonable expenses incurred in enforcing this Security Instrument, including, but not
<br /> limited to, reasonable attorneys'fees; and (d)takes such action as Lender may reasonably require to assure that the lien of this Security
<br /> Instrument, Lender's rights in the Property and Borrower's obligation to pay the sums secured by this Security Instrument shall continue
<br /> unchanged. Upon reinstatement by Borrower,this Security Instrument and the obligations secured hereby shall remain fully effective as
<br /> if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraph 21.
<br /> 24. Reconveyance. This Security Instrument secures a revolving line of credit and advances may be made, repaid, and remade
<br /> from time to time, under the terms of the Credit Agreement.When, according to the terms of the Credit Agreement, no more advances
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