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<br />Agreement or under this Security Instrument, and (c) agrees that Lender and any other Borrower hereunder may
<br />agree to extend, modify, forbear, or make any other accommodations or amendments with regard to the terms of
<br />this Security Instrument or the Credit Agreement, without that Borrower's consent and without releasing that
<br />Borrower or modifying this Security Instrument 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
<br />to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing such notice by
<br />certified mail addressed to Borrower at the Property Address or at such other address as Borrower may designate
<br />by notice to Lender as provided herein, and (b) any notice to Lender shall be given by certified mail to Lender's
<br />address stated herein or to such other address as Lender may designate by notice to Borrower as provided herein.
<br />Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender
<br />when given in the manner designated herein.
<br />13. Governing Law; Severability. The state and local laws applicable to this Security Instrument shall be the
<br />laws of the jurisdiction in which the Property is located. The foregoing sentence shall not limit the applicability of
<br />Federal law to this Security Instrument. In the event that any provision or clause of this Security Instrument or
<br />the Credit Agreement conflicts with applicable law, such conflict shall not affect other provisions of this Security
<br />Instrument or the Credit Agreement which can be given effect without the conflicting provision, and to this end
<br />the provisions of this Security Instrument and the Credit Agreement are declared to be severable. As used herein,
<br />"costs," "expenses" and "attorneys' fees" include all sums to the extent not prohibited by applicable law or
<br />limited herein.
<br />14. Prior Mortgage or Deed of Trust; Modification; Future Advance. Borrower shall not enter into any
<br />agreement with the holder of any mortgage, deed of trust or other security agreement which has priority over this
<br />Security Instrument by which that security agreement is modified, amended, extended, or renewed, without the
<br />prior written consent of the Lender. Borrower shall neither request nor accept any future advance under a prior
<br />mortgage, deed of trust, or other security agreement without the prior written consent of Lender.
<br />15. Borrower's Copy. Borrower shall be furnished a copy of the Credit Agreement and of this Security
<br />Instrument at the time of execution or after recordation hereof.
<br />16. Rehabilitation Loan Agreement. Borrower shall fulfill all of Borrower's obligations under any home
<br />rehabilitation, improvement, repair, or other loan agreement which Borrower may enter into with Lender. Lender,
<br />at Lender's option, may require Borrower to execute and deliver to Lender, in a form acceptable to Lender, an
<br />assignment of any rights, claims or defenses which Borrower may have against parties who supply labor,
<br />materials or services in connection with improvements made to the Property.
<br />17. Waiver of Homestead Exemption. To the extent permitted by law, Borrower hereby waives the benefit of
<br />the homestead exemption as to all sums secured by this Security Instrument.
<br />18. Waiver of Statutes of Limitation. To the extent permitted by law, Borrower hereby waives statutes of
<br />limitation as a defense to any demand or obligation secured by this Security Instrument.
<br />19. Merger. There shall be no merger of the interest or estate created by this Security Instrument with any
<br />other interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without
<br />the written consent of Lender.
<br />20. Notice of Transfer of the Property; Advances after Transfer. Borrower shall give notice to Lender, as
<br />provided in paragraph 12 hereof, prior to any sale or transfer of all or part of the Property or any rights in the
<br />Property. Any person to whom all or part of the Property or any right in the Property is sold or transferred also
<br />shall be obligated to give notice to Lender, as provided in paragraph 12 hereof, promptly after such transfer.
<br />Even if Borrower transfers the Property, Borrower will continue to be obligated under the Credit Agreement
<br />and this Security Instrument unless Lender releases Borrower in writing. As a condition to Lender's consent to
<br />any proposed transfer or as a condition to the release of Borrower, Lender may require that the person to whom
<br />the Property is transferred sign an assumption agreement satisfactory to Lender and Lender may impose an
<br />assumption fee. The assumption agreement will not entitle the person signing it to receive advances under the
<br />Credit Agreement.
<br />21. Transfer of the Property. Subject to applicable law, Lender shall have the right to accelerate, that is, to
<br />demand immediate payment in full of all sums secured by this Mortgage or Deed of Trust, if Borrower, without
<br />the written consent of Lender, sells or transfers all or part of the Property or any rights in the Property.
<br />If Lender exercises the option to accelerate, Lender shall give Borrower notice of acceleration in accordance
<br />with paragraph 12 hereof. The notice shall provide a period of not less than 30 days from the date of the notice
<br />within which Borrower may pay the sums declared due. If Borrower fails to pay those sums prior to the expiration
<br />of such period, Lender may, without further notice or demand on Borrower, invoke any remedies permitted by
<br />paragraph 22 hereof.
<br />22. Default; Termination and Acceleration; Remedies. Each of the following events shall constitute an event
<br />of default ( "event of default ") under this Security Instrument: (1) Borrower commits fraud or makes a material
<br />misrepresentation in connection with this Security Instrument or the Credit Agreement; (2) Borrower does not
<br />meet the repayment terms of the Credit Agreement; or (3) Borrower's action or inaction adversely affects the
<br />Lender's rights in the Property secured by this Security Instrument. If an event of default occurs, then prior to
<br />exercising any right or remedy provided for in this Security Instrument and prior to acceleration, Lender shall give
<br />notice as provided in paragraph 12 hereof and as required by applicable law. The notice shall specify: (a) the
<br />event of default; (b) the action required to cure the event of default; (c) a date not less than twenty days (or any
<br />longer period required by applicable law) from the date the notice is given to Borrower by which the event of
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<br />ENE995 (LASER) 6849LL Revised 10/2001
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