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<br />200600299
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<br />DOC ID #: 00012383096801006
<br />13. Governing Law; Severability. The state and local Jaws applicable to this Deed of Trust shall be the
<br />laws of the jurisdiction in which the Property is located. The foregoing sentence shall not limit the
<br />applicability of federal law to this Deed of Trust. In the event that any provision or clause of this Decd of
<br />Trust or the Note conflict'l with applicable Jaw, such conflict shall not affect other provisions of this Deed of
<br />Trust or the Note which can be given effect without the conflicting provision, and to this end the provisions of
<br />this Deed of Trust and the Note are declared to be severable. As used herein, "cost'l," "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
<br />Trust at the time of execution or after recordation hereof.
<br />15. Rehabilitation Loan Agreement. Borrower shall fulfill all of Borrower's obligations under any
<br />home rehabilitation, improvement, repair, or other loan agreement which Borrower enters into with Lender.
<br />Lender, at Lender's option, may require Borrower to execute and deliver to Lender, in a form acceptable to
<br />Lender, an assignment of any rights, claims or defenses which Borrower may have against parties who supply
<br />labor, materials or services in connection with improvement,> made to the Property.
<br />16. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or
<br />any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and
<br />Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require
<br />immediate payment in full of all sums secured by this Deed of Trust. However, this option shall not be
<br />exercised by Lender if exercise is prohibited by federal law as of the date of this Deed of Trust.
<br />If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall
<br />provide a period of not less than 30 days from the date the notice is delivered or mailed within whieh
<br />Borrower must pay all sums secured by this Deed of Trust. If Borrower fails to pay these sums prior to the
<br />expiration of this period, Lender may invoke any remedies permitted by this Deed of Trust without further
<br />notice or demand on Borrower.
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<br />NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows:
<br />17. Acceleration; Remedies. Except as provided in paragraph 16 hereof, upon Borrower's breach
<br />of any covenant or agreement of Borrower in this Deed of Trust, including Borrower's failure to pay, by
<br />the end of 10 calendar days after they are due, any sums secured by this Deed of Trust, Lender prior to
<br />acceleration shall give notice to Borrower as provided in paragraph 12 hereof specifying: (1) the breach;
<br />(2) the action required to cure such breach; (3) a date, not less than 20 days from the date the notice is
<br />mailed to Borrower, by which such breach must be cured; and (4) that failure to cure such breach on or
<br />before the date specified in the notice may result in acceleration of the sums secured by this Deed of
<br />Trust and sale of the Property. The notice shall further inform Borrower of the right to reinstate after
<br />acceleration and the right to bring a court action to assert the nonexistence of a default or any other
<br />defense of Borrower to acceleration and sale. If the breach is not cured on or before the date specified in
<br />the notice, Lender, at Lender's option, may declare all of the sums secured by this Deed of Trust to be
<br />immediately due and payable without further demand and may invoke the power of sale and any other
<br />remedies permitted by applicable law. Lender shall be entitled to collect all reasonable costs and
<br />expenses incurred in pursuing the remedies provided in this paragraph 17, including, but not limited to,
<br />reasonable attorneys' fees.
<br />If the power of sale is invoked, Trustee shall record a notice of default in each county in which the
<br />Property or some part thereof is located and shall mail copies of such notice in the manner prescribed
<br />by applicable law to Borrower and to the other persons prescribed by applicable law. Mter the lapse of
<br />such time as may be required by applicable law, Trustee shall give public notice of sale to the persons
<br />and in the manner prescribed by applicable law. Trustee, without demand on Borrower, shall sell the
<br />Property at public auction to the highest bidder at the time and place and under the terms designated in
<br />the notice of sale in one or more parcels and in such order as Trustee may determine. Trustee may
<br />postpone sale of all or any parcel of the Property by public announcement at the time and place of any
<br />previously scheduled sale. Lender or Lender's designee may purchase the Property at any sale.
<br />Upon receipt of payment of the price bid, Trustee shall deliver to the purchaser Trustee's deed
<br />conveying the Property sold. The recitals in the Trustee's deed shall be prima facie evidence of the truth
<br />of the statements made therein. Trustee shall apply the proceeds of the sale in the following order: (a) to
<br />all reasonable costs and expenses of the sale, including, but not limited to, Trustee's fees actually
<br />incurred reasonable attorneys' fees as permitted by Applicable Law; (b) to all sums secured by this
<br />Deed of Trust; and (c) the excess, if any, to the person or persons legally entitled thereto.
<br />18. Borrower's Right to Reinstate. Notwithstanding Lender's acceleration of the sums secured by this
<br />Deed of Trust, due to Borrower's breach, Borrower shall have the right to have any proceedings begun by
<br />Lender to enforce this Deed of Trust discontinued at any time prior to the earlier to occur of (i) the fifth day
<br />before the sale of the Property pursuant to the power of sale contained in this Deed of Trust or (ii) entry of a
<br />judgment enforcing this Deed of Trust if: (a) Borrower pays Lender all sums which would be then due under
<br />this Deed of Trust and the Note had no acceleration occurred; (b) Borrower cures all breaches of any other
<br />covenant'l or agreements of Borrower contained in this Deed of Trust; (c) Borrower pays all reasonable
<br />expenses incurred by Lender and Trustee in enforcing the covenants and agreement'l of Borrower contained in
<br />this Deed of Trust and in enforcing Lender's and Trustee's remedies as provided in paragraph 17 hereof,
<br />including, but not limited to, rea,>onable attorneys' fees; and (d) Borrower takes such action as Lender may
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<br />.-76(NE) (0407) CHL (08/04) Page 4 of 6 Form 3828
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