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purchase such insurance. Such amounts paid by the Lender shall be added to the Note secured by this Deed of Trust and
<br /> shall be due and payable by Borrower upon demand of the Lender.
<br /> 4. TAXES, ASSESSMENTS,CHARGES. Borrower shall pay all taxes,assessments and charges as may
<br /> be lawfully levied against the Property before the same shall become past due. In the event that Borrower fails to pay all
<br /> taxes,assessments and charges as required,then the Lender at its option may pay them and the amount paid shall be
<br /> added to the Note secured by this Deed of Trust and shall be due and payable by Borrower upon demand of the Lender.
<br /> 5, WASTE. The Borrower covenants that Borrower will keep the Property in as good order, repair and
<br /> condition,reasonable wear and tear excepted,and that Borrower will not commit or permit any waste on the Property.
<br /> 6. WARRANTIES. Borrower covenants with Trustee and Lender that Borrower is seized of the Property
<br /> in fee simple,has the right convey the same in fee simple,that title is marketable and free and clear of all encumbrances,
<br /> ad that Borrower will warrant and defend the title against the lawful claims of all persons whomever,except that title to
<br /> the Property is subject to the following exceptions:
<br /> (See Exhibit"B"attached hereto and incorporated herein by reference)
<br /> 7. SUBSTITUTION OF TRUSTEE. Borrower and Trustee covenant and agree that in case the Trustee,or
<br /> any successor trustee,shall die,become incapable of acting,renounce this trust,or for other similar or dissimilar reason
<br /> become unacceptable to the Lender,or if the Lender desire to replace the Trustee,then the Lender may appoint,in
<br /> writing,a trustee to take the place of the Trustee;and upon the probate and registration of the writing,the trustee thus
<br /> appointed shall succeed to all the rights powers and duties of the Trustee.
<br /> 8. CIVIL ACTIONS. In the event that the Trustee is names as a party in any civil action as trustee in this
<br /> Deed of Trust,the Trustee shall be entitled to employ an attorney at law,including himself if he is a licensed attorney,to
<br /> represent him in said action and the reasonable attorney's fees of the Trustee in such action may be paid by the Lender
<br /> and added to the Note secured by this Deed of Trust,and shall be due and payable by Borrower upon demand of the
<br /> Lender.
<br /> 9. PRIOR LIENS. Default under the terms of any instrument secured by a lien to which this Deed of Trust
<br /> is subordinated shall constitute default under this Deed of Trust.
<br /> 10. SUBORDINATION. Any subordination of this lien to additional liens or encumbrances shall be only
<br /> upon the written consent of the Lender.
<br /> In addition to the Loan,the Borrower has obtained a loan(the"First Deed of Trust Loan")from Central Carolina
<br /> Bank(the"Senior Lien Holder")in an original principal amount of $ ,which loan is secured by a
<br /> first lien on the Property (the`First Deed of Trust"). The documents evidencing or securing the First Deed of Trust Loan
<br /> are collectively referred to herein as the First Deed of Trust Loan Documents. The Beneficiary agrees that this Deed of
<br /> Trust is subordinate to the First Deed of Trust,recorded in the Orange County Registry.
<br /> 11. RIGHT TO INSPECT. To assure and protect its right in this Deed of Trust and the Property,the
<br /> Lender shall have right of access and inspection of the Property at reasonable times and with reasonable notice to the
<br /> Borrower.
<br /> 12. CONDEMNATION_ If the Property,or any part of the Property,be condemned under any power of
<br /> eminent domain,or acquired for public use,the damages,proceeds and the consideration for such acquisition,to the
<br /> extent of the full amount of indebtedness upon this Deed of Trust and the Note remaining unpaid,are hereby assigned by
<br /> the Borrower to the Lender and shall be paid to the Lender to be applied by the Lender on account of the indebtedness.
<br /> 13. WAIVER OF DEFAULT. No sale of the Property and no forbearance on the part of the Lender and no
<br /> extension of the time for the repayment of the debt secured hereby given by the Lender shall operate to release,discharge,
<br /> modify,change,or affect the original liability of the Borrower either in whole or in part. The lender can,in its complete
<br /> discretion,waive any default,and can waive by written instrument,in advance,any individual actions which might
<br /> constitute a default.
<br /> 14. TRANSFER OF PROPERTY. Beneficiary shall require immediate payment in full of all sums secured
<br /> by this Deed of Trust if: all or part of the Property or an interest therein is sold or transferred by Borrower without
<br /> Beneficiary's prior written consent;or the Property is not occupied by Borrower as his or her principal residence.
<br /> 15. NOTICES. Any notice to Borrower provided for in this Deed of Trust shall be given by delivering it or
<br /> mailing it by first class mail. The notice shall be directed to the Property Address or any other address Borrower
<br /> designates by notice to Beneficiary. Any notice to Beneficiary shall be given by first class mail to Beneficiary's address
<br /> stated herein or any address Beneficiary designates by notice to borrower. Any notice provided for in this Deed of Trust
<br /> shall be deemed to have been given to Borrower or Beneficiary when given as provided in this section.
<br /> 16. ACCELERATION IN CASE OF BORROWER'S INSOLVENCY. If Borrower shall voluntarily file a
<br /> petition under the Federal Bankruptcy Act,or under any Federal statute relating to bankruptcy,insolvency,arrangements
<br /> or reorganizations,or under any state bankruptcy or insolvency act or otherwise admits insolvency or is adjudged
<br /> insolvent or a receiver is appointed for Borrower or the Property,then Beneficiary may,at Beneficiary's option,declare all
<br /> of the sums secured by this instrument to be immediately due and payable without prior notice to Borrower. Any
<br /> attorney's fees and other expenses incurred by Beneficiary in connection with Borrower's bankruptcy shall be an
<br /> additional indebtedness of Borrower secured by this Deed of Trust.
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