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DEED OF TRUST
<br />(Continued) 200008125 Page 3 of 5
<br />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,
<br />the leasehold and the fee title shall 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, probate,
<br />for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the
<br />Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action
<br />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 Instrument.
<br />Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate
<br />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 coverage
<br />required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the
<br />mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect,
<br />from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall
<br />pay to Lender each month a sum equal to one - twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance
<br />coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance.
<br />Loss reserve payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the period that
<br />Lender requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums
<br />required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance
<br />with any written agreement between Borrower and Lender or applicable law.
<br />9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at
<br />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 or
<br />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 or not
<br />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 Property
<br />immediately before the taking is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the
<br />taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of
<br />the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the taking, divided by (b) the fair
<br />market value of the Property immediately before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the Property
<br />in which the fair market value of the Property immediately before the taking is less than the amount of the sums secured immediately before the
<br />taking, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall be applied to the
<br />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 settle a
<br />claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply
<br />the proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then
<br />due.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of
<br />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 of
<br />the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to release the liability of
<br />the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any successor in
<br />interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any
<br />demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy shall
<br />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 Instrument
<br />shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and
<br />agreements shall be joint and several. Any Borrower who 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 Property under the terms of this Security Instrument; (b) is
<br />not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to
<br />extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's
<br />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 law is
<br />finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed the permitted limits,
<br />then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already
<br />collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the
<br />principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial
<br />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 class mail
<br />unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address Borrower
<br />designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any other address
<br />Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or
<br />Lender when given as provided in this paragraph.
<br />15. Governing Law; Severability. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the
<br />Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict
<br />shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the
<br />provisions of this Security Instrument and the Note are declared to be severable.
<br />16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument.
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