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2 0 0 2 i 2 6 2 9 LOAN #: E0088363
<br />following your default, your right to any insurance proceeds resulting from damage to the Property prior to the acquisition shall pass
<br />to us to the extent of the sums secured by this Deed of Trust immediately prior to the acquisition.
<br />You shall not permit any condition to exist on the Property which would, in any way, invalidate the insurance coverage on the
<br />Property.
<br />5. Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. You shall not
<br />destroy, damage or substantially change the Property, allow the Property to deteriorate, or commit waste. You shall be in default if
<br />any forfeiture action or proceeding, whether civil or criminal, is begun that in our good faith judgment could result in forfeiture of
<br />the Property or otherwise materially impair the lien created by this Deed of Trust or our security interest. You may cure such a default,
<br />as provided in Section 17, by causing the action or proceeding to be dismissed with a ruling that, in our good faith determination,
<br />precludes forfeiture ofyour interest in the Property or other material impairment of the lien created by this Deed of Trust or our security
<br />interest. You shall also be in default if you, during the loan application process, gave materially false or inaccurate information or
<br />statements to us (or failed to provide us with any material information) in connection with the loan evidenced by the Agreement,
<br />including, but not limited to, representations concerning your occupancy of the Property as a principal residence. If this Deed of Trust
<br />is on a leasehold, you shall comply with the lease. If you acquire fee title to the Property, the leasehold and fee title shall not merge
<br />unless we agree to the merger in writing.
<br />6. Protection of Our Rights in the Property; Mortgage Insurance. If you fail to perform the covenants and agreements
<br />contained in this Deed of Trust, or there is a legal proceeding that may significantly affect our rights in the Property (such as a
<br />proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then we may do, and pay for,
<br />anything necessary to protect the Property's value and our rights in the Property. Our actions may include paying any sums secured
<br />by a lien which has priority over this Deed of Trust or over any advance under the Agreement or this Deed of Trust, appearing in
<br />court, paying reasonable attorney's fees, paying any sums which you are required to pay under this Deed of Trust and entering on
<br />the Property to make repairs. We do not have to take any action we are permitted to take under this Section; and amounts we pay under
<br />this Section shall become additional debts you owe us and shall be secured by this Deed of Trust. These amounts shall bear interest
<br />from the disbursement date at the rate established under the Agreement and shall be payable, with interest, upon our request. If we
<br />required mortgage insurance as a condition of making the loan secured by this Deed of Trust, you shall pay the premiums for such
<br />insurance until such time as the requirement for the insurance terminates.
<br />7. Inspection. We may enter and inspect the Property at any reasonable time and upon reasonable notice.
<br />8. Condemnation. The proceeds of any award for damages, director 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 us. If
<br />the Property is abandoned, or if, after notice by us to you that the condemnor offers to make an award or settle a claim for damages,
<br />you fail to respond to us within 30 days after the date the notice is given, we are authorized to collect and apply the proceeds, at our
<br />option, either to restoration or repair of the Property or to the sums secured by this Deed of Trust, whether or not then due. Unless
<br />we and you otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly
<br />payments payable under the Agreement and Section 1 or change the amount of such payments.
<br />9. No Release Upon Extension or Modification. Our granting ofany extension of time for payment or our agreement to modify
<br />the terms of repayment of the obligations under the Agreement or the requirements in this Deed of Trust shall not operate to release
<br />you from your obligations or liability under the Agreement or this Deed of Trust.
<br />10. Successors and Assigns Bound; Joint and Several Liability; Co- signers. The covenants and agreements of this Deed of
<br />Trust shall bind and benefit your successors and permitted assigns. Your covenants and agreements shall be joint and several. Anyone
<br />who co -signs this Deed of Trust but does not execute the Agreement: (a) is co- signing this Deed of Trust only to mortgage, grant and
<br />convey such person's interest in the Property; (b) is not personally obligated to pay the Agreement, but is obligated to pay all other
<br />sums secured by this Deed of Trust; and (c) agrees that we and anyone else who signs this Deed of Trust may agree to extend, modify,
<br />forbear or make any accommodations regarding the terms of this Deed of Trust or the Agreement without such person's consent.
<br />11. Loan Charges. If the loan secured by this Deed of Trust is subject to a law which sets maximum loan charges, and that law
<br />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;
<br />and (b) any sums already collected from you which exceed permitted limits will be refunded to you. We may choose to make this refund
<br />by reducing the principal owed under the Agreement or by making a direct payment to you. If a refund reduces principal, the reduction
<br />will be treated as a partial prepayment without any prepayment charge under the Agreement.
<br />12. Notices. Unless otherwise required by law, any notice to you provided for in this Deed of Trust shall be delivered or mailed
<br />by first class mail to the Property Address or any other address you designate by notice to us, and any notice to us shall be delivered
<br />or mailed by first class mail to our address stated above or any other address we designate by notice to you.
<br />13. Governing Law; Severability. The interpretation and enforcement of this Deed of Trust shall be governed by the law of
<br />the jurisdiction in which the Property is located, except as preempted by federal law. In the event that any provision or clause of this
<br />Deed of Trust or the Agreement conflicts with applicable law, such conflict shall not affect other provisions of this Deed of Trust or
<br />the Agreement which can be given effect without the conflicting provision. To this end the provisions of this Deed of Trust and the
<br />Agreement are declared to be severable.
<br />14. Transfer of the Property. If all or any part of the Property or any interest in it is sold or transferred without our prior written
<br />consent, we may, at our option, require immediate payment in full of all sums secured by this Deed of Trust. However, this option
<br />shall not be exercised by us if exercise is prohibited by federal law as of the date of this Deed of Trust.
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