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200104825 (Page 3 of 5)
<br />7. Protection of Lender's Security. If Borrower fails to perform the covenants and agfreements contaned in this
<br />Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />the Lender, at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums, including
<br />reasonable attorneys' fees, and take such action as is necessary to protect Lender's interest. If Lender required mortgage
<br />insurance as a condition of making the loan secured by this Deed of Trust, Borrower shall pay premiums required to
<br />masuch insurance in effect until such time as the requirement for such insurance terminates in accordance with
<br />Borrower's and Lender's written agreement or applicable law. Any amounts disbursed by Lender pursuant to this
<br />paragraph 7, with interest thereon, at the applicable contract rate, shall become additional indebtness of Borrower
<br />secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts shall be
<br />payable uponnotice from Lender to Borrower requesting payment thereof. Nothing contained in this paragraph 7 shall
<br />require Lender to incur any expense or take any action hereunder.
<br />8 . Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender
<br />shall give Borrower notice prior to any inspection specifying reasonable cause for the inspection.
<br />9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br />condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby
<br />assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Deed of Trust,
<br />whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property, unless
<br />Borrower and Lender otherwise agree in writing, the sums secured by this Deed of Trust shall be reduced by the amount
<br />of the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the
<br />taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be paid to
<br />Borrower.
<br />y Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for
<br />damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to
<br />collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this
<br />Deed of Trust, whether or not then due.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such
<br />payments.
<br />10. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or
<br />modification of amortization of the sums secured by this Deed of Trust granted by Lender to any successor in interest
<br />of Borrower shall not operate to release the liability of the original Borrower and Borrower's successors in interest.
<br />Lender shall not be required to commence proceedings against any successor or refuse to extend time for payment or
<br />otherwise modify amortization of the sums secured by this Deed of Trust by reason of any demand made by the original
<br />Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be
<br />a waiver of or preclude the exercise of any right or remedy.
<br />11. Successors and Assigns Bound; Joint and Several Liability; Co- signers. The covenants and agreements of
<br />this Deed of Trust shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of
<br />paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co -signs this Deed of
<br />Trust but does not execute the Note, (a) is co-signing this Deed of Trust only to mortgage, grant and convey that
<br />Borrower's interest in the Property under the terms of this Deed of Trust, (b) is not personally obligated to pay the
<br />sums secured by this Deed of Trust and (c) agrees that Lender and any other Borrower may agree to extend, modify,
<br />forbear, or make any accommodations with regard to the terms of this Deed of Trust or the Note without that
<br />Borrower's consent and without releasing that Borrower or modifying this Deed of Trust as to that Borrower's interest
<br />in the Property.
<br />12. Notices. Any notice to Borrower provided for in this Deed of Trust shall be given by delivering it or by mailing
<br />it by first class mail unless applicable law requires use of another method. The notice shall be directed to the
<br />Borrower's Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given
<br />first class mail to Lender's address stated herein or any other address lender designates by notice to Borrower. Any
<br />notice provided for in this Deed of Trust shall be deemed to have been given to Borrower or Lender when given as
<br />provided in this paragraph.
<br />13. Governing Law; Severability. The state and local laws applicable to this Deed of Trust shall be the laws of the
<br />jurisdiction in which the Property is located. The foregoing sentence shall not limit the applicability of Federal law to this
<br />Deed of Trust. In the event that any provision or clause of this Deed of Trust or the Note conflicts with its applicable law,
<br />such conflict shall not affect other provisions of this Deed of Trust or the Note which can be given effect without the
<br />conflicting provision. To this end the provisions of this Deed of Trust and the Note are declared severable. As used
<br />herein, "costs ", "expenses" and "attorneys' fees" include all sums to the extent not prohibited by applicable law or limited
<br />herein.
<br />14. Borrower's Copy. Borrower shall be furnished a conformed copy of the Note and of this Deed of Trust at the time
<br />of execution or after recordation hereof.
<br />15. Rehabilitation Loan Agreement. Borrower shall fulfill all of Borrower's obligations under any home
<br />rehabilitation, improvement, repair, or other loan agreement which Borrower enters into with Lender. Lender, at Lender's
<br />option, may require Borrower to execute and deliver to Lender, in a form acceptable to Lender, an assignment of any
<br />rights, claims or defenses which Borrower may have against parties who supply labor, materials or services in connection
<br />with improvements made to the Property.
<br />16. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest
<br />in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural
<br />person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums
<br />secured by this Deed of Trust However, this option shall not be exercised by Lender if exercise is prohibited by federal laws
<br />as of the date of this Deed of Trust.
<br />If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of
<br />not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured
<br />by this Deed of Trust. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any
<br />remedies permitted by this Deed of Trust without further notice or demand on Borrower.
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