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200100519
<br />SECTION TWELVE
<br />SUCCESSURS AND ASSIGNS BOUND; JOINT AND SEVERAL LIABILI'T'Y; CO- SIGNERS
<br />The covenants and agreements of this Security Instrument shall bind and benefit the
<br />successors and assigns of Lender and Borrower, subject to the provisions of Section Seventeen
<br />hereof. Borrower's covenants and agreements shall be joint and several. Any Borrower who
<br />co -signs this Security Instrument but does not execute the Note: (a) is co- signing this
<br />Security Instrument only to mortgage, grant and convey that Borrower's interest in the
<br />Property under the terms of this Security Instrument; (b) is not personally obligated to pay
<br />the sums secured by this Security Instrument; and (c) agrees that Lender and any other
<br />Borrower may agree to extend, modify forbear, or make any accommodations with regard to the
<br />terms of this Security Instrument or the Note without that Borrower's consent.
<br />SECTION THIRTEEN
<br />LOAN CHARGES
<br />If the loan secured by this Security Instrument is subject to a law which sets maximum
<br />loan charges, and that law is finally interpreted so that the interest or other loan charges
<br />collected or to be collected in connection with the loan exceed the permitted limits, then:
<br />(a) any such loan charge shall be reduced by the amount necessary to, reduce the charge to the
<br />permitted limit; and (b) any sums already collected from Borrower that exceeded permitted
<br />limits will be refunded to Borrower. Lender may choose to make this refund by reducinq the
<br />principal owed under the Note or by making a direct payment to Borrower. If a refund reduces
<br />principal, the reduction will be treated as a partial prepayment without any prepayment
<br />charge under the Note.
<br />SECTION FOURTEEN
<br />LEGISLATION AFFECTING LENDER'S RIGHTS
<br />If enactment or expiration of applicable laws has the effect of rendering any provision
<br />of the Note or this Security Instrument unenforceable according to its terms, Lender, at its
<br />option, may require immediate payment in full of all sums secured by this Security Instrument
<br />and may invoke any remedies permitted by Section Nineteen hereof.
<br />SECTION FIFTEEN
<br />NOTICES
<br />Any notices to Borrower provided for in this Security Instrument shall be given by
<br />delivering it or by mailing it by first class mail unless applicable law requires use of
<br />another method. The notice shall be directed to the Property Address or any other address
<br />Borrower designates by notice to Lender_. Any notice to Lender shall be given by first class
<br />mail to Lender's address stated herein or any other address Lender designates by notice to
<br />Borrower. Any notice provided for in this Security Instrument shall be deemed to have been
<br />given to Borrower or Lender when given as provided in this paragraph.
<br />SECTION SIXTEEN
<br />GOVERNING LAW; SEVERABILITY
<br />This Security Instrument shall be governed by federal law and the law of the
<br />jurisdiction in which the Property is located. In the event that any provision or clause of
<br />this Security Instrument or the Note conflicts with applicable law, such conflict shall not
<br />affect any other provision of this Security Instrument or the Note which can be given affect
<br />without the conflicting provision. To this end the provisions of their Security Instrument
<br />and the Note are declared to be severable.
<br />SECTION SEVENTEEN
<br />BORROWER'S COPY
<br />Borrower shall be given one conformed copy of the Note and of this Security Instrument.
<br />SECTION EIGHTEEN
<br />TRANSFER OE' THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER
<br />If all or any part of the Property or any interest in it is sold or transferred (or if
<br />a beneficial interest in Borrower is sold or transferred and Borrower is not a natural
<br />person) without Lender's prior written coiisent, Lender may, at its option, require immediate
<br />payment in full of all sums secured by this Security Instrument. However, this option shall
<br />riot be exercised by Lender, if exercise is prohibited by federal law as of the date of this
<br />Security Instrument.
<br />If Lender exercises this option, Lender shall give Borrower notice of acceleration.
<br />The notice shall provide a period of not less than thirty (30) days from the date the notice
<br />is delivered or mailed within which Borrower must pay all sums secured by this Security
<br />Instrument. If Borrower fails to pay these sums prior to the expiration of this period,
<br />Lender may invoke any remedies permitted by this Security Instrument without further notice
<br />or demand on Borrower.
<br />SECTION NINETEEN
<br />EVENTS OF DEFAULT
<br />Each of the following occurrences shall constitute an event of default hereunder,
<br />(hereinafter called an "Event of Default "): (a) Borrower shall- fail to pay when due any
<br />principal, interest, or principal and interest on the indebtedness; (b) Any warranty of
<br />title made by Borrower herein shall be untrue; (c) Borrower shall fail to observe or perform .
<br />any of the covenants, agreements, or conditions in this Deed of Trust; (d) Borrower shall
<br />fail to pay real estate taxes on the Property before the same become delinquent;
<br />(e) Any representation or warranty made by Borrower on any financial. statements or reports
<br />submitted to Lender by or on behalf of Borrower shall prove false or materially misleading;
<br />(f) Borrower shall fail to perform or observe any of the covenants, conditions or agreements
<br />contained in, or binding upon Borrower under any building loan agreement, security agreement,
<br />loan agreement, financing statement, or any other agreement, instrument or document executed
<br />by trustor in connection with the loan evidenced by the Note; (g) A trustee, receiver or
<br />liquidator of the Property or of Borrower shall be appointed, or any of the creditors of
<br />Borrower shall file a petition in bankruptcy against Borrower, or for the reorganization of
<br />Borrower pursuant to the Federal Bankruptcy Code, or any similar law, whether federal or
<br />state, arid if such order or petition shall riot be discharged or dismissed within thirty (30)
<br />days after the date on which such order or petition was filed; (h) Borrower shall file a
<br />petition pursuant to the Federal Bankruptcy Code or any similar law, federal or state, or if
<br />Borrower small be adjudged a bankrupt, or be declared insolvent, or shall make an assignment
<br />for the benefit of creditors, or shall admit in writing its inability to pay its debts as
<br />they become due, or shall consent to the appointment of a receiver of al _1 or any part of the
<br />Property; (i) Fi.nal Judgment for the payment of money shall be rendered against Borrower and
<br />Borrower shall not discharge the same, or cause it to be discharged, within thirty (30) days
<br />after the entry thereof, or shall not appeal therefrom or from the order, decree of process
<br />upon which or pursuant to which said judgment was granted, based, or entered, and secure a
<br />stay of execution pending such appeal; (j) Borrower shall sell or convey the Property, or
<br />any part thereof, or any interest therein, or shall be divested of its title, or any interest
<br />therein, in any manner or way, whether voluntarily or involuntarily, without the written
<br />consent of Lender being first had and obtained, or (k) If Borrower is a corporation or
<br />partnership aril more than fifty (50s) percent of the shares or beneficial interests in such
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