Short Form Deed of Trust

DEED OF TRUST

After Recording Return To:

DEFINITIONS

A. Security Instrument means this document, which is dated

B. Borrower is of

C. Lender is of

D. Trustee is of

E. Property means the property described in Exhibit A and located at

F. Loan means the debt in the original principal amount of $ payable in payments of and xx/100 Dollars $ plus interest at the rate of per annum.

Borrower has promised to pay this debt in regular monthly Periodic Payments on the first day of each month and to pay the debt in full not later than

G. Applicable Law means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders as well as all applicable final, non-appealable judicial opinions.

H. Community Association Dues, Fees, and Assessments means all dues, fees, assessments and other charges imposed on Borrower or the Property by a condominium association, homeowners association or similar organization.

I. Escrow Items means those items described in Section 3.

J. Miscellaneous Proceeds means any compensation, settlement, award of damages, or proceeds paid by any third party for damage to, or destruction of, the Property; condemnation; conveyance in lieu of condemnation; or misrepresentations of, or omissions as to, the value and/or condition of the Property.

K. Periodic Payment means the regularly scheduled amount due for principal and interest, plus any amounts under Section 3.

M. Successor in Interest of Borrower means any party that has taken title to the Property, whether or not that party has assumed Borrower’s obligations under the Loan and/or this Security Instrument.

This Security Instrument secures to Lender the repayment of the Loan and the performance of Borrower’s covenants and agreements under this Security Instrument and the Loan. Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the Property described in Exhibit A attached hereto and made a part hereof located in which currently has the address

Borrower covenants that Borrower is lawfully of the estate hereby conveyed and has the right to grant and convey the Property and that the Property is unencumbered, except for encumbrances of record.

This Security Instrument combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property.

Borrower and Lender covenant and agree as follows:

1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges.

Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Loan and any prepayment charges and late charges due under the Loan. Upon receiving written notice from Lender, Borrower shall also pay funds for Escrow Items pursuant to Section 3.

2. Application of Payments or Proceeds.

All payments accepted and applied by Lender shall be applied in the following order of priority: interest due; principal due; amounts due under Section 3.

3. Funds for Escrow Items.

Borrower shall pay to Lender on the day Periodic Payments are due under the Loan, until the Loan is paid in full, a sum to provide for payment of amounts due for taxes, leasehold payments, and insurance required by Lender.

4. Charges; Liens.

Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any.

5. Property Insurance.

Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire and other hazards required by Lender.

6. Protective Advances.

This Security Instrument secures any advances Lender may make under Section 8 to protect Lender’s interest in the Property and rights under this Security Instrument.

7. Preservation, Maintenance and Protection of the Property; Inspections.

Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property.

8. Protection of Lender’s Interest in the Property and Rights Under this Security Instrument.

If Borrower fails to perform the covenants and agreements contained in this Security Instrument, Lender may do and pay for whatever is reasonable or appropriate to protect Lender’s interest in the Property and rights under this Security Instrument.

9. Assignment of Miscellaneous Proceeds; Forfeiture.

All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender.

10. Borrower Not Released; Forbearance By Lender Not a Waiver.

Extension of the time for payment or modification of amortization granted by Lender shall not operate to release the liability of Borrower.

11. Joint and Several Liability; Co-signers; Successors and Assigns Bound.

Borrower’s obligations and liability shall be joint and several.

12. Loan Charges.

If the Loan is subject to a law which sets maximum loan charges, any excess charges shall be reduced or refunded as required.

13. Notices.

All notices given by Borrower or Lender in connection with this Security Instrument must be in writing.

14. Governing Law; Severability; Rules of Construction.

This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located.

15. Borrower’s Copy.

Borrower shall be given one copy of this Security Instrument.

16. Transfer of the Property or a Beneficial Interest in Borrower.

If all or any part of the Property or any Interest in the Property is sold or transferred without Lender’s prior written consent, Lender may require immediate payment in full.

17. Borrower’s Right to Reinstate After Acceleration.

If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued.

18. Notice of Grievance.

Neither Borrower nor Lender may commence certain judicial actions until notice and a reasonable opportunity to cure have been provided.

19. Hazardous Substances.

Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property.

20. Acceleration; Remedies.

Lender shall give notice to Borrower prior to acceleration following Borrower’s breach of any covenant or agreement in this Security Instrument.

21. Re-conveyance.

Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to re-convey the Property.

22. Substitute Trustee.

Lender may from time to time remove Trustee and appoint a successor trustee.

23. Attorneys’ Fees.

Attorneys’ fees shall include those awarded by an appellate court.

24. Required Evidence of Property Insurance.

WARNING

Unless you provide evidence of the insurance coverage required by the contract or loan agreement, insurance may be purchased at your expense to protect the lender’s interest.

BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it.

Witnesses:

STATE OF OREGON

COUNTY OF

This instrument was acknowledged before me on by .

____________________________________

Notary Public

Print Name:

My Commission Expires:

STATE OF OREGON

COUNTY OF

This instrument was acknowledged before me on by .

____________________________________

Notary Public

Print Name:

My Commission Expires: