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DEED OF TRUST
<br />2 U O 3 t3 g 4 7 (Continued) Page 6
<br />CONDOMINIUM OR PLANNED UNIT DEVELOPMENT. If the Property is part of a planned unit development ( "PUD ") or if the property is
<br />part of a condominium project ( "Condo "), Grantor and Lender further covenant and agree as follows:
<br />Additional Property Subject to the Security Instrument. The Property includes, but is not limited to, a parcel of land improved with a
<br />dwelling, together with other such parcels and certain common areas and facilities, and is a part of a PUD or includes a unit in,
<br />together with an undivided interest in the common elements of a Condo.
<br />The Property also includes Grantor's interest in the owners /homeowners association or equivalent entity owning or managing the
<br />common areas and facilities of the PUD or Condo (the "Owners Association ") and the uses, benefits and proceeds of Grantor's
<br />interest.
<br />Obligations. Grantor shall perform all of Grantor's obligations under the Constituent Documents. The "Constituent Documents" are
<br />the (i) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association;
<br />and (iii) any by -laws or other rules or regulations of the Owners Association. Grantor shall promptly pay, when due, all dues and
<br />assessments imposed pursuant to the Constituent Documents.
<br />Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or
<br />"blanket" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the amounts (including
<br />deductible levels), for the periods, and against loss by fire, hazards included within the term "extended coverage," and any other
<br />hazards, including, but not limited to, arthquakes and floods, for which Lender requires insurance, then Grantor's obligation to
<br />maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the
<br />Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan.
<br />Grantor shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy.
<br />In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to
<br />common areas and facilities of the PUD or Condominium, any proceeds payable to Grantor are hereby assigned and shall be paid to
<br />Lender. Lender shall apply the proceeds to the sums secured by the Security Instrument, whether or not then due, with the excess, if
<br />any, paid to Grantor.
<br />Public Liability Insurance. Grantor shall take such actions as may be reasonable to insure that the Owners Association maintains a
<br />public liability insurance policy acceptable in form, amount, and extent of coverage to Lender.
<br />Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Grantor in connection with any
<br />condemnation or other taking of all or any part of the Property or the common areas and facilities of the PUD or Condo, or for any
<br />conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender.
<br />Lender's Prior Consent. Grantor shall not, except after notice to Lender and with Lender's prior written consent, either partition or
<br />subdivide the Property or consent to: (i) the abandonment or termination of the PUD or Condo, except for abandonment or termination
<br />required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent
<br />domain: (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express benefit of Lender; (iii)
<br />termination of professional management and assumption of self- management of the Owners Association; or (iv) any action which
<br />would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to
<br />Lender.
<br />Remedies. If Grantor does not pay dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender
<br />under this paragraph shall become additional debt of Grantor secured by this Security Instrument. Unless Grantor and Lender agree to
<br />other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with
<br />interest, upon notice from Lender to Grantor requesting payment.
<br />2 - 4 FAMILY. If the Property is 2 -4 unit family residence, Grantor and Lender further covenant and agree as follows:
<br />Use of Property; Compliance with Law. Grantor shall not seek, agree to or make a change in the use of the Property or its zoning
<br />classification, unless Lender has agreed in writing to the change. Grantor shall comply with all laws, ordinances, regulations and
<br />requirements of any governmental body applicable to the Property.
<br />Rent Loss Insurance. Grantor shall maintain insurance against rent loss in addition to the other hazards for which insurance is
<br />required.
<br />Assignment of Leases. Upon Lender's request after default, Grantor shall assign to Lender all leases of the Property and all security
<br />deposits made in connection with leases of the Property. Upon the assignment, lender shall have the right to modify, extend or
<br />terminate the existing leases and to execute new leases, in Lender's sole discretion. As used in this paragraph the word "lease" shall
<br />mean "sublease" if the Security Instrument is on a leasehold.
<br />WAIVER OF HOMESTEAD EXEMPTION. Trustor hereby releases and waives all rights and benefits of the homestead exemption laws of
<br />the State of Nebraska as to all Indebtedness secured by this Deed of Trust.
<br />Definitions. The following words shall have the following meanings when used in this Deed of Trust:
<br />BENEFICIARY. The word "Beneficiary" means Discover Bank, and its successors and assigns.
<br />BORROWER. The word "Borrower" means BETH E DIXON and CHARLES W DIXON and includes all co- signers and co- makers signing the
<br />Credit Agreement.
<br />CREDIT AGREEMENT. The words "Credit Agreement" mean the credit agreement dated September 5, 2003, with credit limit of
<br />$38,000.00 from Trustor to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of,
<br />and substitutions for the promissory note or agreement. The maturity date of this Deed of Trust is September 5, 2013.
<br />DEED OF TRUST. The words "Deed of Trust" mean this Deed of Trust among Trustor, Lender, and Trustee, and includes without
<br />limitation all assignment and security interest provisions relating to the Personal Property and Rents.
<br />ENVIRONMENTAL LAWS. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances
<br />relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response,
<br />Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ( "CERCLA "), the Superfund Amendments and
<br />Reauthorization Act of 1986, Pub. L. No. 99 -499 ( "SARA "), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.,
<br />the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or
<br />regulations adopted pursuant thereto.
<br />EVENT OF DEFAULT. The words "Event of Default" mean any of the events of default set forth in this Deed of Trust in the events of
<br />default section of this Deed of Trust.
<br />EXISTING INDEBTEDNESS. The words "Existing Indebtedness" mean the indebtedness described in the Existing Liens provision of this
<br />Deed of Trust.
<br />HAZARDOUS SUBSTANCES. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or
<br />physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when
<br />improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous
<br />Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or
<br />waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation,
<br />petroleum and petroleum by- products or any fraction thereof and asbestos.
<br />IMPROVEMENTS. The word "Improvements" means all existing and future improvements, buildings, structures, mobile homes affixed on
<br />the Real Property, facilities, additions, replacements and other construction on the Real Property.
<br />INDEBTEDNESS. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Credit
<br />Agreement or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the
<br />Credit Agreement or Related Documents and any amounts expended or advanced by Lender to discharge Trustor's obligations or expenses
<br />incurred by Trustee or Lender to enforce Trustor's obligations under this Deed of Trust, together with interest on such amounts as provided
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