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20000 7006 DEED OF TRUST
<br />(Continued) Page 3 of 5
<br />Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in
<br />default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to
<br />provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to,
<br />representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold,
<br />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
<br />not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in this Security
<br />Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy,
<br />probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to
<br />protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien
<br />which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to
<br />make repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security
<br />Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement
<br />at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment.
<br />8. Mortgage Insurance. if Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument,
<br />Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance
<br />coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage substantially
<br />equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage
<br />insurance previously in effect, from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance
<br />coverage is not available, Borrower shall pay to Lender each month a sum equal to one - twelfth of the yearly mortgage insurance premium
<br />being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments
<br />as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage
<br />insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender again becomes
<br />available and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve,
<br />until the requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or applicable
<br />law.
<br />9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower
<br />notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br />10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation
<br />or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby 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 Security Instrument, whether
<br />or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the
<br />Property immediately before the taking is equal to or greater than the amount of the sums secured by this Security Instrument immediately
<br />before the taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced
<br />by the amount 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 Borrower. In the
<br />event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is less than the
<br />amount of the sums secured immediately before the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law
<br />otherwise provides, the proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due.
<br />If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or
<br />settle a claim for 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 Security
<br />Instrument, whether or not then due.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due
<br />date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments.
<br />11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization
<br />of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to release the
<br />liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any
<br />successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security
<br />Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in
<br />exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy.
<br />12. Successors and Assigns Bound; Joint and Several Liability; Co- signers. The covenants and agreements of this Security
<br />Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17.
<br />Borrower's covenants and agreements shall be joint and several. Any Borrower who co -signs this Security Instrument but does not
<br />execute the Note: (a) is co- signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the Property
<br />under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c)
<br />agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to the terms of
<br />this Security Instrument or the Note without that Borrower's consent.
<br />13. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum loan charges, and that
<br />law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed the
<br />permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and
<br />(b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make
<br />this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the
<br />reduction will be treated as a partial prepayment without any prepayment charge under the Note.
<br />14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first
<br />class mail unless applicable law requires use of 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 mail to Lender's address stated herein or any
<br />other address Lender designates by notice to 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.
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