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200010977 (Page 3 of 5)
<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 the payments.
<br />If under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds
<br />resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by
<br />this Security Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments.
<br />Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of
<br />the Property and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of
<br />Trust is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's
<br />obligations under the declaration or covenants creating or governing the condominium or planned unit development, the
<br />by-laws and regulations of the condominium or planned unit development, and constituent documents.
<br />7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />then 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 the premiums required to
<br />maintain such 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 indebtedness 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 upon notice 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 may make or cause to be made reasonable entries upon and inspections of the Property,
<br />provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related
<br />to Lender's interest in the Property.
<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 the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby
<br />assigned and shall be paid to Lender, subject to the terms of any mortgage, deed of trust or other security agreement
<br />with a lien which has priority over this Deed of Trust.
<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 and all other parties who are or hereafter become secondarily liable shall not operate to release, in any
<br />manner, the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to
<br />commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization
<br />of the sums secured by this Deed of Trust by reason of any demand made by the original Borrower and Borrower's
<br />successors in interest. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by
<br />applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy.
<br />11. Successors and Assigns Bound; Joint and Several Liability; Co- signers. The covenants and agreements
<br />herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and
<br />Borrower, subject to the provisions of paragraph 16 hereof. All covenants and agreements of Borrower shall be joint and
<br />several. Any Borrower who co -signs this Deed of Trust, but does not execute the Note, (a) is co- signing this Deed of
<br />Trust only to grant and convey that Borrower's interest in the Property to Lender under the terms of this Deed of Trust,
<br />(b) is not personally liable on the Note or under this Deed of Trust, and (c) agrees that Lender and any other Borrower
<br />hereunder may agree to extend, modify, forbear, or make any other accommodations with regard to the terms of this
<br />Deed of Trust or the Note, without that Borrower's consent and without releasing that Borrower or modifying this Deed
<br />of Trust as to that Borrower's interest in the Property.
<br />12. Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to
<br />Borrower provided for in this Deed of Trust shall be given by delivering it or by mailing such notice by certified mail
<br />addressed to Borrower at the Property Address or at such other address as Borrower may designate by notice to Lender
<br />as provided herein, and (b) any notice to Lender shall be given by certified mail to Lender's address stated herein or to
<br />such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this
<br />Deed of Trust shall be deemed to have been given to Borrower or Lender when given in the manner designated herein.
<br />13. Governing Law; Severability. The state and local laws of the jurisdiction in which the Property is located shall
<br />apply except where such laws conflict with Federal law; in which case, Federal law shall apply. In the event that any
<br />provision or clause of this Deed of Trust or the Note conflicts with applicable law, such conflict shall not affect other
<br />provisions of this Deed of Trust or the Note which can be given effect without the conflicting provision, and to this end
<br />the provisions of this Deed of Trust and the Note are declared to be severable. As used herein, "costs," "expenses," and
<br />"attorneys' fees" include all sums to the extent not prohibited by applicable law or limited herein.
<br />14. Borrower's Copy. Borrower shall be furnished a conformed copy of the Note and of this Deed of Trust, if
<br />requested, at the time 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
<br />Lender's option, may require Borrower to execute and deliver to Lender, in a form acceptable to Lender, an assignment
<br />of any rights, claims or defenses which Borrower may have against parties who supply labor, materials or services in
<br />connection with improvements made to the Property.
<br />16. Transfer of the Property. If Borrower sells or transfers all or any part of the Property or an interest therein,
<br />excluding (a) the creation of a lien or encumbrance subordinate to this Deed of Trust, (b) a transfer by devise, descent,
<br />or by operation of law upon the death of a joint tenant, (c) the grant of any leasehold interest of three years or less not
<br />containing an option to purchase, (d) the creation of a purchase money security interest for household appliances, (e) a
<br />transfer to a relative resulting from the death of a Borrower, (f) a transfer where the spouse or children of the Borrower
<br />become an owner of the property, (g) a transfer resulting from a decree of dissolution of marriage, legal separation
<br />agreement, or from an incidental property settlement agreement, by which the spouse of the Borrower becomes an
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