NCG550019_Owner (Name Change)_20230817 (2)

Laserfiche
ROY COOPER
G'Qq erro
ELIZABETH S. RISER
sec' of ' s
RICHARD E. R_GGERS, JR_
0, ,
NPDES Certificate of Coverage (CoC)
NCG550000 OWNERSHIP CHANGE FORM
fNORfi.h C.ARC)LiNA
Ftwironrnentcrd [:jualiiy
Please enter the CoC number for which the change is requested.
RECEIVED
NCDEQ/DWP/NPDES
Certificate of Coverage
N I C I G 15 1 5 Q Q
II. Please provide the following for the requested hange (revised CoC).
a. Request for change is a result of: Change in ownership of the residence/property
Name change of the facility or owner
If other please explain:
b. CoC will be issued to (person's name
or company name, if applicable):
c. Owner: person legally responsible for
CoC:
Scott 61 sha vta_JW 6
First MI Last
ML ()la�9
Ti
B) �ac Ok po ro ,Drt; UPS
Permit Hold *UMailin Address r
city State Zip
019)(DR11-Woq sasha..numad,
Phone E- it Address C O )ri
d. Facility name (if applicable):
e. Facility address:
Address
City
State Zip
f. Facility contact person:
[if different from Owner]
First
MI Last
Phone
E-mail Address
III. Contact person (if different from the person legally responsible for the CoC)
First
MI Last
Title
Mailing Address
city
State Zip
Phone E-mail Address
,�EQ -) North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 1 1617 Mail Service Center I Raleigh, North Carolina 27699-1617
i 919.707.9000

IV
Page 2 of 2
Will this permitted facility continue to discharge the same volume and type of wastewater as
rioy to this ownership or name change?
Yes
No (please explain)
V. Required Items: THIS APPLICATION WILL BE RETURNED UNPROCESSED IF ITEMS
ARE INCOMPLETE OR MISSING:
❑ s completed application is required for both facility -name change and/or facility ownership
change requests.
Legal documentation of the transfer of ownership (such as a property deed, relevant pages of a
contract, or a bill of sale) is required for an ownership change request.
The certifications below must be completed and signed by the new applicant in the case of an ownership
change request.
APPLICANT CERTIFICATION
attest that this application for a name/ownership change has been reviewed and is accurate and
complete to the best of my knowledge. I understand that if all required parts of this application are not
completed and that if all required supporting info ation is not included, this application package will be
returned as incomplete. (�
Signature
Date
PLEASE SEND THE COMPLETE APPLICATION PACKAGE TO:
Mr. Charles H. Weaver
NC DEQ / DWR / NPDES
1617 Mail Service Center
Raleigh, NC 27699-1617
[e-mail]

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FOR RWG11ieQLiOCovEnglonR OF DEEDS
DIiR4nM COUt4TY . NC
2012 V 10 09 0 49 RTC
BK 7090 PG 510-596 FEE $60 00
[Space Above This Line For Recording Data]
DEED OF TRUST 120911 - 0/3 r?/F4
PREPARED BY: RETURN TO:
MATTHEW PERKINS DATAQUICK LENDING SOLUTIONS
ATTN: RECORDING DEPARTMENT
DEFINITIONS WILEPARKWAY, STE.100
MINGTON, DE1983
Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11,
13, 18, 20 and 21 Certain rules regarding the usage of words used in this document are also provided in
Section 16
(A) "Security Instrument' means this document, which is dated __OCTOBER 8 , 2012
together with all Riders to this document
(B) "Borrower" is (are) SCO_TT GORDON SHANAFELT
Borrower is the trustor under this Security Instrument
(C) "Lender" is STATE EMPLOYE S' CREDIT UNION Lenderis
a Corporation organized and existing under the laws of _ North Carolina
Lender's address is P.O. DRAWER 25279 RALEIGH, NC 27611-5279
Lender is the beneficiary under this Security Instrument
(D) "Trustee" is JAMES C. BLAINE
(E) "Note" means the promissory note signed by Borrower of evendate herewith or dat PCTUBER
The Note states that Borrower owes Lender
ONE HUNDRED FORTY TWO THOUSAND AND NO/100
Dollars (U S $ "" W -" . "" ) plus interest Borrower has promised to pay this debt in regular
Periodic Payments and to pay the debt in full not later than N O V E M B E R 1, 2 0 4 2
(F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property "
(G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due
under the Note, and all sums due under this Security Instrument, plus interest
(H) "Riders" means all Riders to this Security Instrument that are executed by Borrower The following Riders
are to be executed by Borrower [check box as applicable)
Y Adjustable Rate Rider ❑ Condominium Rider ❑ Second Home Rider
r i Balloon Rider ❑ Planned Unit Development Rider [ ] Other(s) [specityj
❑ 1-4 Family Rider ❑ Biweekly Payment Rider
North Carolina --Single Family-- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3034 3106
(page 1 of 13 pages)

(1) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations,
ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final,
non -appealable judicial opinions
(J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and
other charges that are imposed on Borrower or the Property by a condominium association, homeowners
association or similar organization
(K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by
check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument,
computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an
account Such term includes, but is not limited to, point -of -sale transfers, automated teller machine
transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers
(L) "Escrow kerns" means those dems that are described in Section 3
(M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by
any third party (other than insurance proceeds paid under the coverages described in Section 5) for (i)
damage to, or destruction of, the Property, (ii) condemnation or other taking of all or any part of the
Property, (iii) conveyance in lieu of condemnation, or (iv) misrepresentations of, or omissions as to, the value
and/or condition of the Property
(N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the
Loan
(0) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the
Note, plus (u) any amounts under Section 3 of this Security Instrument
(P) "RESPA" means the Real Estate Settlement Procedures Act (12 U S C Section 2601 et seq ) and its
implementing regulation, Regulation X (24 C F R Part 3500), as they might be amended from time to time, or
any additional or successor legislation or regulation that governs the same subject matter As used in this
Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a
"federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan"
under RESPA
(0) "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 Note and/or this Security Instrument
TRANSFER OF RIGHTS IN THE PROPERTY
This Security Instrument secures to Lender (i) the repayment of the Loan, and all renewals,
extensions and modifications of the Note, and (ii) the performance of Borrower's covenants and agreements
under this Security Instrument and the Note For this purpose, Borrower irrevocably grants and conveys to
Trustee and Trustee's successors and assigns, in trust, with power of sale, the following described property
located in the
County
[Type of Recording Jurisdiction]
which currently has the address of _
HILLSBOROUGH
ICity]
of DURHAM
[Name of Recording Jurisdiction]
SEE EXHIBIT A
1314 OAK FOREST DRIVE
[Street]
-- North Carolina 27278 _ _ _- - ("Property Address")
[Zip Code]
NORTH CAROLINA --Single Family— Fannie Mae/Freddie Mac UNIFORM INSTRUMENT FORM 3034 1101
(page 2 of 13 pages) �7

k.—.
TO HAVE AND TO HOLD this property unto Trustee and Trustee's successors and assigns, forever,
together with all the improvements now or hereafter erected on the property, and all easements,
appurtenances, and fixtures now or hereafter a part of the property All replacements and additions
shall also be covered by this Security Instrument All of the foregoing is referred to in this Security
Instrument as the "Property'
BORROWER COVENANTS that Borrower is lawfully seised 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 Borrower warrants and will defend generally the title to the Property against all
claims and demands, subject to any 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
UNIFORM COVENANTS 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 Note and any
prepayment charges and late charges due under the Note Borrower shall also pay funds for Escrow Items
pursuant to Section 3 Payments due under the Note and this Security Instrument shall be made in U S
currency However, if any check or other instrument received by Lender as payment under the Note or this
e Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent
rr payments due under the Note and this Security Instrument be made in one or more of the following forms, as
selected by Lender (a) cash, (b) money order, (c) certified check, bank check, treasurer's check or
cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal
agency, instrumentality, or entity, or (d) Electronic Funds Transfer
Payments are deemed received by Lender when received at the location designated in the Note or at
such other location as may be designated by Lender in accordance with the notice provisions in Section
15 Lender may return any payment or partial payment if the payment or partial payments are
insufficient to bring the Loan current If Borrower has breached any covenant or agreement in this
Security Instrument and Lender has accelerated the obligations of Borrower hereunder pursuant to
Section 22 then Lender may accept any payment or partial payment insufficient to bring the Loan current,
without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the
future, but Lender is not obligated to apply such payments at the time such payments are accepted If each
Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on
unapplied funds Lender may hold such unapplied funds until Borrower makes payment to bring the Loan
current If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or
return them to Borrower If not applied earlier, such funds will be applied to the outstanding principal
balance under the Note immediately prior to foreclosure No offset or claim which Borrower might have
now or in the future against Lender shall relieve Borrower from making payments due under the Note
and this Security Instrument or performing the covenants and agreements secured by this Security
Instrument
2. Application of Payments or Proceeds Except as otherwise described in this Section 2, all payments
accepted and applied by Lender shall be applied in the following order of priority (a) interest due under the
Note, (b) principal due under the Note, (c) amounts due under Section 3 Such payments shall be applied
-. to each Periodic Payment in the order in which it became due Any remaining amounts shall be applied first
to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal
balance of the Note
If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient
amount to pay any late charge due, the payment may be applied to the delinquent payment and the
late charge If more than one Periodic Payment is outstanding, Lender may apply any payment received
from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be
paid in full To the extent that any excess exists after the payment is applied to the full payment of one of more
Periodic Payments, such excess may be applied to any late charges due Voluntary prepayments shall be
applied first to any prepayment charges and then as described in the Note
Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the
Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments
NORTH CAROLINA --Single Family-- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3034 1/01
(page 3 of 13 pages)

3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due
under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for (a)
taxes and assessments and other items which can attain priority over this Security Instrument as a lien or
encumbrance on the Property, (b) leasehold payments or ground rents on the Property, if any, (c)
premiums for any and all insurance required by Lender under Section 5, and (d) Mortgage Insurance
premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance
premiums in accordance with the provisions of Section 10 These items are called "Escrow Items " At
origination or at any time during the term of the Loan, Lender may require that Community Association
Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments
shall be an Escrow Item Borrower shall promptly furnish to Lender all notices of amounts to be paid under
this Section Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's
obligation to pay the Funds for any or all Escrow Items Lender may waive Borrower's obligation to pay to
Lender Funds for any or all Escrow Items at any time Any such waiver may only be in writing In the
event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow
Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender
receipts evidencing such payment within such time period as Lender may require Borrower's obligation
to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and
agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section
9 If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the
amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount
and Borrower shall then be obligated under Section 9 to repay to Lender any such amount Lender may revoke
the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15
and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then
required under this Section 3
Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to
apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a
lender can require under RESPA Lender shall estimate the amount of Funds due on the basis of current
data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with
Applicable Law
The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality,
or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal
Home Loan Bank Lender shall apply the Funds to pay the Escrow Items no later than the time specified
under RESPA Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the
escrow account, or verifying the Escrow items, unless Lender pays Borrower interest on the Funds and
Applicable Law permits Lender to make such a charge Unless an agreement is made in writing or Applicable
Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or
earnings on the Funds Borrower and Lender can agree in writing, however, that interest shall be paid on the
Funds Lender shall give to Borrower, without charge, an annual accounting of the funds as required by
RESPA
If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to
Borrower for the excess funds in accordance with RESPA If there is a shortage of Funds held in escrow, as
defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to
Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12
monthly payments If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall
notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the
deficiency in accordance with RESPA, but in no more than 12 monthly payments
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund
to Borrower any Funds held 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 To the extent
that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3
NORTH CAROLINA --Single Family-- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3034 1/01
(page 4 of 13 pages)

Borrower shall promptly discharge any lien which has priority over this Security Instrument unless
Borrower (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to
Lender, but only so long as Borrower is performing such agreement, (b) contests the lien in good faith by,
or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent
the enforcement of the lien while those proceedings are pending, but only until such proceedings are
concluded, or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating
the lien to this Security Instrument If Lender determines that any part of the Property is subject to a lien which
can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien Within
10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the
actions set forth above in this Section 4
Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting
service used by Lender in connection with this Loan
5. Property Insurance Borrower shall keep the improvements now existing or hereafter erected
on the Property insured against loss by fire, hazards included within the term "extended coverage," and any
other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance
This insurance shall be maintained in the amounts (including deductible levels) and for the periods that
Lender requires What Lender requires pursuant to the preceding sentences can change during the term
of the Loan The insurance carrier providing the insurance shall be chosen by Borrower subject to
Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably Lender
may require Borrower to pay, in connection with this Loan, either (a) a one-time charge for flood zone
determination, certification and tracking services, or (b) a one-time charge for flood zone determination
and certification services and subsequent charges each time remappings or similar changes occur which
reasonably might affect such determination or certification Borrower shall also be responsible for the payment
of any fees imposed by the Federal Emergency Management Agency in connection with the review of any
flood zone determination resulting from an objection by Borrower
If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance
coverage, at Lender's option and Borrower's expense Lender is under no obligation to purchase any particular
type or amount of coverage Therefore, such coverage shalt cover Lender, but might or might not
protect Borrower, Borrowers equity in the Property, or the contents of the Property, against any risk, hazard
or liability and might provide greater or lesser coverage than was previously in effect Borrower acknowledges
that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that
Borrower could have obtained Any amounts disbursed by Lender under this Section 5 shall become additional
debt of Borrower secured by this Security Instrument These amounts shall bear interest at the Note rate from
the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower
requesting payment
All insurance policies required by Lender and renewals of such policies shall be subject to Lenders right to
disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee
and/or as an additional loss payee Lender shall have the right to hold the policies and renewal certificates
If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal
notices If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for
damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and
shall name Lender as mortgagee and/or as an additional loss payee
In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender
Lender may make proof of loss if not made promptly by Borrower Unless Lender and Borrower otherwise
agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender,
shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and
Lenders security is not lessened During such repair and restoration period, Lender shall have the right to hold
such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has
been completed to Lenders satisfaction, provided that such inspection shall be undertaken promptly Lender
may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as
the work is completed Unless an agreement is made in writing or Applicable Law requires interest to be paid on
NORTH CAROLINA --Single Family-- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3034 1/01
(page 5 of 13 pages) _ ��

such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such
proceeds Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the
insurance proceeds and shall be the sole obligation of Borrower If the restoration or repair is not
economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the
sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower
Such insurance proceeds shall be applied in the order provided for in Section 2
If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance
claim and related matters If Borrower does not respond within 30 days to a notice from Lender that the
insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim The 30-day
period will begin when the notice is given In either event, or if Lender acquires the Property under Section 22 or
otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not
to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights
(other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies
covering the Property, insofar as such rights are applicable to the coverage of the Property Lender may
use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or
this Security Instrument, whether or not then due
6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal
residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Properly
as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise
agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances
exist which are beyond Borrower's control
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
Whether or not Borrower is rending in the Property, Borrower shall maintain the Property in order to prevent the
Property from deteriorating or decreasing in value due to its condition Unless it is determined pursuant to
Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if
damaged to avoid further deterioration or damage If insurance or condemnation proceeds are paid in
connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or
restoring the Property only if Lender has released proceeds for such purposes Lender may disburse
proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is
completed If the insurance or condemnation proceeds are not sufficient to repair or restore the Property,
Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration
Lender or its agent may make reasonable entries upon and inspections of the Property If it has
reasonable cause, Lender may inspect the interior of the improvements on the Property Lender shall give
Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause
8. Borrower's Loan Application Borrower shall be in default if, during the Loan application process ,
Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent
gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender
with material information) in connection with the Loan Material representations include, but are not limited to,
representations concerning Borrower's occupancy of the Property as Borrower's principal residence
9 Protection of Lender's Interest in the Property and Rights Under this Security Instrument If
(a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a
legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security
Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a
lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has
abandoned the Property, then 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, including protecting and/or assessing
the value of the Property, and securing and/or repairing the Property Lender's actions can include, but are not
NORTH CAROLINA --Single Family-- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3034 1/01
(page 6 of 13 pages)

limited to (a) paying any sums secured by a lien which has priority over this Security Instrument, (b)
appearing in court, and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights
under this Security Instrument, including its secured position in a bankruptcy proceeding Securing the
Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board
up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous
conditions, and have utilities turned on or off Although Lender may take action under this Section 9, Lender
does not have to do so and is not under any duty or obligation to do so It is agreed that Lender incurs no liability
for not taking any or all actions authorized under this Section 9
Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured
by this Security Instrument These amounts shall bear interest at the Note rate from the date of
disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment
If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the
lease If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender
agrees to the merger in writing
10. Mortgage Insurance If Lender required Mortgage Insurance as a condition of making the
Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect If, for any
reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer
that previously provided such insurance and Borrower was required to make separately designated
payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to
obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially
equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate
mortgage insurer selected by Lender If substantially equivalent Mortgage Insurance coverage is not
available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were
due when the insurance coverage ceased to be in effect Lender will accept, use and retain these payments as a
non-refundable loss reserve, if permitted under Applicable Law, in lieu of Mortgage Insurance Such loss reserve
shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be
required to pay Borrower any interest or earnings on such loss reserve, if permitted under Applicable
Law Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the
amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes
available, is obtained, and Lender requires separately designated payments toward the premiums for
Mortgage Insurance If Lender required Mortgage Insurance as a condition of making the Loan and
Borrower was required to make separately designated payments toward the premiums for Mortgage
Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, if
permitted under Applicable Law, or to provide a non-refundable loss reserve, until Lender's requirement for
Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for
such termination or until termination is required by Applicable Law Nothing in this Section 10 affects Borrowers
obligation to pay interest at the rate provided in the Note
Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may
incur if Borrower does not repay the Loan as agreed Borrower is not a party to the Mortgage Insurance
Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter
into agreements with other parties that share or modify their risk, or reduce losses These agreements are on
terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these
agreements These agreements may requre the mortgage insurer to make payments using any source of funds
that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance
premiums)
NORTH CAROLINA --Single Family-- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3034 1101
(page 7 of 13 pages)

As a result of these agreements, Lender, any purchaser of the Note, another insurer, any
reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts
that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in
exchange for sharing modifying the mortgage insurer's risk, or reducing losses If such agreement provides
that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the
insurer, the arrangement is often termed "captive reinsurance " Further
(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for
Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the
amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund
(b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage
Insurance under the Homeowners Protection Act of 1998 or any other law These rights may include the
right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to
have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage
Insurance premiums that were unearned at the time of such cancellation or termination
11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
assigned to and shall be paid to Lender
If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of
the Property, if the restoration or repair is economically feasible and Lender's security is not lessened During
such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds
until Lender has had an opportunity to inspect such Property to ensure the work has been completed to
Lender's satisfaction, provided that such inspection shall be undertaken promptly Lender may pay for the
repairs and restoration in a single disbursement or in a series of progress payments as the work is
completed Unless an agreement is made in writing or Applicable Law requires interest to be paid on such
Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such
Miscellaneous Proceeds If the restoration or repair is not economically feasible or Lender's security
would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security
Instrument, whether or not then due, with the excess, if any, paid to Borrower Such Miscellaneous Proceeds
shall be applied in the order provided for in Section 2
In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous
Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
the excess, if any, paid to Borrower
In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value
of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the
amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss
in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument
shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction (a) the total
amount of the sums secured immediately before the partial taking, destruction, or loss of value divided by (b) the
fair market value of the Property immediately before the partial taking, destruction, or loss of value Any balance
shall be paid to Borrower
In the event of a partial taking, destruction, or loss of value of the Property in which the fair market value
of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the
sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender
otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security
Instrument whether or not the sums are then due
NORTH CAROLINA--Single Family— Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3034 1/01
(page 8 of 13 pages) _� _

If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the
Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages,
Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized
to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the
sums secured by this Security Instrument, whether or not then due "Opposing Party" means the third
party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of
action in regard to Miscellaneous Proceeds
Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's
judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the
Property or rights under this Security Instrument Borrower can cure such a default and, if acceleration has
occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a
ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of
Lender's interest in the Property or rights under this Security Instrument The proceeds of any award or
claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned
and shall be paid to Lender
All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in
the order provided for in Section 2
12. Borrower Not Released; Forbearance By Lender Not a Waiver Extension of the time for payment
or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or
any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in
Interest of Borrower Lender shall not be required to commence proceedings against any Successor in Interest of
Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this
Security Instrument by reason of any demand made by the original Borrower or any Successors in
interest of Borrower Any forbearance by Lender in exercising any right or remedy including, without
limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of
Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of
any right or remedy
13. Joint and Several Liability; Co-signers, Successors and Assigns Bound. Borrower
covenants and agrees that Borrower's obligations and Lability shall be joint and several However, any
Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer") (a) is co-signing
this Security Instrument only to mortgage, grant and convey the co-signers interest in the Property under the
terms of this Security Instrument, (b) is not personally obligated to pay the sums secured by this Security
Instrument, and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any
accommodations with regard to the terms of this Security Instrument or the Note without the co-signers consent
Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrowers
obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's
rights and benefits under this Security Instrument Borrower shall not be released from Borrower's obligations
and liability under this Security Instrument unless Lender agrees to such release in writing The covenants and
agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors
and assigns of Lender
14. Loan Charges. Lender may charge Borrower fees for services performed in connection with
Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this
Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees
In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific
fee to Borrower shall not be construed as a prohibition on the charging of such fee Lender may not
charge fees that are expressly prohibited by this Security Instrument or by Applicable Law
If the Loan is subject to a law which sets maximum loan charges, and that law is finally
interpreted so that the interest or other loan charges collected or to be collected in connection with the
Loan exceed the permitted limits, then (a) any such loan charge shall be reduced by the amount necessary to
reduce the charge to the permitted limit, and (b) any sums already collected from Borrower which
exceeded permitted limits will be refunded to Borrower Lender may choose to make this refund by reducing
NORTH CAROLINA- -Single Family-- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3034 1/01
(page 9 of 13 pages) �� _

the principal owed under the Note or by making a direct payment to Borrower If a refund reduces principal, the
reduction will be treated as a partial prepayment without any prepayment charge (whether or not a
prepayment charge is provided for under the Note) Borrower's acceptance of any such refund made by
direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out
of such overcharge
16. Notices All notices given by Borrower or Lender in connection with this Security Instrument
must be in writing Any notice to Borrower in connection with this Security Instrument shall be deemed to have
been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if
sent by other means Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable
Law expressly requires otherwise The notice address shall be the Property Address unless Borrower has
designated a substitute notice address by notice to Lender Borrower shall promptly notify Lender of
Borrower's change of address If Lender specifies a procedure for reporting Borrower's change of address, then
Borrower shall only report a change of address through that specified procedure There may be only one
designated notice address under this Security Instrument at any one time Any notice to Lender shall be
given by delivering it or by mailing it by first class mad to Lender's address stated herein unless Lender
has designated another address by notice to Borrower Any notice in connection with this Security Instrument
shall not be deemed to have been given to Lender until actually received by Lender If any notice required by
this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the
corresponding requirement under this Security Instrument
16. 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 All rights and
obligations contained in this Security Instrument are subject to any requirements and limitations of
Applicable Law Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be
silent, but such silence shall not be construed as a prohibition against agreement by contract In the event that
any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict
shall not affect other provisions of this Security Instrument or the Note which can be given effect without the
conflicting provision
As used in this Security Instrument (a) words of the masculine gender shall mean and include
corresponding neuter words or words of the feminine gender, (b) words in the singular shall mean and include the
plural and vice versa, and (c) the word "may" gives sole discretion without any obligation to take any action
17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security
Instrument
18 Transfer of the Property or a Beneficial Interest in Borrower As used in this Section 18, "Interest
in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those
beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow
agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser
If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not
a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior
written consent, Lender may require immediate payment in full of all sums secured by this Security
Instrument However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable -�
Law
If Lender exercises this option, Lender shall give Borrower notice of acceleration The notice shall
provide a period of not less than 30 days from the date the notice is given in accordance with Section
15 within which Borrower must pay all sums secured by this Security Instrument If Borrower fads to pay
these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security
Instrument without further notice or demand on Borrower
19 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 at any time prior to the
earliest of (a) five days before sale of the Property pursuant to any power of sale contained in this Security
Instrument, (b) such other period as Applicable Law might specify for the termination of Borrower's right to
reinstate, or (c) entry of a judgment enforcing this Security Instrument Those conditions are that Borrower
(a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no
acceleration had occurred, (b) cures any default of any other covenants or agreements, (c) pays all expenses
incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property
NORTH CAROLINA --Single Family-- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3034 1101
(page 10 of 13 pages)

inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the
Property and rights under this Security Instrument, and (d) takes such action as Lender may reasonably
require to assure that Lender's interest in the Property and rights under this Security Instrument, and
Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged
Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following
forms, as selected by Lender (a) cash, (b) money order, (c) certified check, bank check, treasurer's check or
cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a
federal agency, instrumentality or entity, or (d) Electronic Funds Transfer Upon reinstatement by Borrower, this
Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had
occurred However, this right to reinstate shall not apply in the case of acceleration under Section 18
20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the
Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower A
sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due
under the Note and this Security Instrument and performs other mortgage loan servicing obligations under
the Note, this Security Instrument, and Applicable Law There also might be one or more changes of the Loan
Servicer unrelated to a sale of the Note If there is a change of the Loan Servicer, Borrower will be
given written notice of the change which will state the name and address of the new Loan Servicer, the
address to which payments should be made and any other information RESPA requires in connection with a
notice of transfer of servicing If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other
than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the
loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note
purchaser unless otherwise provided by the Note purchaser
r Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an
individual litigant or the member of a class) that arises from the other party's actions pursuant to this
Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by
reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such
notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other
party hereto a reasonable period after the giving of such notice to take corrective action If Applicable Law
provides a time period which must elapse before certain action can be taken, that time period will be deemed to
be reasonable for purposes of this paragraph The notice of acceleration and opportunity to cure given to
Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18
shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20
21 Hazardous Substances As used in this Section 21 (a) "Hazardous Substances" are those
substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and
the following substances gasoline, kerosene, other flammable or toxic petroleum products, toxic
pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive
materials, (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is
located that relate to health, safety or environmental protection, (c) "Environmental Cleanup" includes any
response action, remedial action, or removal action, as defined in Environmental Law, and (d) an "Environmental
Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup
Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous
Substances, or threaten to release any Hazardous Substances, on or in the Property Borrower shall not
do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental
Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release
of a Hazardous Substance, creates a condition that adversely affects the value of the Property The
preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of
Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to
maintenance of the Property (including, but not limited to, hazardous substances in consumer products)
NORTH CAROLINA --Single Family-- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT worm 3034 1/01
[`__ (page 11 of 13 pages) ST

Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit
or other action by any governmental or regulatory agency or private party involving the Property and
any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any
Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release
of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous
Substance which adversely affects the value of the Property If Borrower learns, or is notified by any
governmental or regulatory authority, or any private party, that any removal or other remediation of any
Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary
remedial actions in accordance with Environmental Law Nothing herein shall create any obligation on Lender
for an Environmental Cleanup
NON -UNIFORM COVENANTS Borrower and Lender further covenant and agree as follows
22 Acceleration; Remedies Lender shall give notice to Borrower prior to acceleration
following Borrower's breach of any covenant or agreement in this Security Instrument (but not
prior to acceleration under Section 18 unless Applicable Law provides otherwise) The notice shall
specify (a) the default, (b) the action required to cure the default; (c) a date, not less than 30 days
from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to
cure the default on or before the date specified in the notice may result in acceleration of the sums
secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower
of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the
non-existence of a default or any other defense of Borrower to acceleration and sale If the
default is not cured on or before the date specified in the notice, Lender at its option may require
immediate payment in full of all sums secured by this Security Instrument without further demand and
may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be
entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22,
including, but not limited to, reasonable attorneys' fees and costs of title evidence
If Lender invokes the power of sale, and if it is determined in a hearing held in
accordance with Applicable Law that Trustee can proceed to sale, Trustee shall take such action
regarding notice of sale and shall give such notices to Borrower and to other persons as Applicable
Law may require. After the time required by Applicable Law and after publication of the notice
of sale, Trustee, without demand on Borrower, shall sell the Property at public auction to the
highest bidder at the time and place and under the terms designated in the notice of sale in one or more
parcels and in any order Trustee determines Lender or its designee may purchase the Property at any
sale
Trustee shall deliver to the purchaser Trustee's deed conveying the Property without any
covenant or warranty, expressed or implied. The recitals in the Trustee's deed shall be prima facie
evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the
sale in the following order: (a) to all expenses of the sale, including, but not limited to, Trustee's
fees of 5 % of the gross sale price: (b) to all sums secured by this Security Instrument, and (c) any
excess to the person or persons legally entitled to it The interest rate set forth in the Note shall apply
whether before or after any judgment on the indebtedness evidenced by the Note.
23 Release. Upon payment of all sums secured by this Security Instrument, Lender or Trustee shall
cancel this Security Instrument If Trustee is requested to release this Security Instrument, all notes evidencing
debt secured by this Security Instrument shall be surrendered to Trustee Borrower shall pay any recordation
costs Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a
third party for services rendered and the charging of the fee is permitted under Applicable Law
24. Substitute Trustee Lender may from time to time remove Trustee and appoint a successor trustee
to any Trustee appointed hereunder by an instrument recorded in the county in which this Security Instrument is
recorded Without conveyance of the Property, the successor trustee shall succeed to all the title, power
and duties conferred upon Trustee herein and by Applicable Law
25. Attorneys' Fees Attorneys' fees must be reasonable
NORTH CAROLINA --Single Family-- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3034 6107
(page 12 of 13 pages)

BY SIGNING UNDER SEAL 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
SCOTT GORDON SHANAF - Borrower - Borrower
- Borrower - Borrower
[Space Below This Line For Acknowledgment]
STATE OF NORTH CAROLINA, �k,^ _ County ss
I, M , a Notary Public of the County of
State of North Carolina, do hereby certify that 6.4. , f-4.. -CP I f
personally appeared before me this day and acknowledged to me that he or she voluntarily signed the foregoing
instrument for the purpose stated therein and in the capacity indicated
Witness my hand and official seal this k- , , day of v! z
My commission expires �u , U f t
M. A A.I.
Signature of Notary Public
NOtARy
M /
�0& PUBLIC v Printed or Typed Name, Notary Public
M N %%'
STATE OF NORTH CAROLINA,
, a Notary Public of the County of
State of North Carolina, do hereby certify that
County ss
personally appeared before me this day and acknowledged to me that he or she voluntarily signed the foregoing
instrument for the purpose stated therein and in the capacity indicated
Witness my hand and official seal this day of
t My commission expires
Signature of Notary Public
Printed or Typed Name, Notary Public
NORTH CAROLINA --Single Family-- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3034 6107
(page 13 of 13 pages)

EXHIBIT "A"
LYING AND BEING IN THE COUNTY OF DURHAM, STATE OF NORTH CAROLINA
AND DESCRIBED AS FOLLOWS:
BEING ALL OF LOT 27 AS SHOWN ON THE PLAT ENTITLED "OAK FOREST
PROPERTY OF GRAHAM HALL OAKLEY", SURVEYED BY GEORGE C. LOVE, JR.,
REGISTERED LAND SURVEYOR, DATED MARCH 5, 1965 AND RECORDED IN
PLAT BOOK 51, PAGE 48, DURHAM COUNTY REGISTRY, TO WHICH REFERENCE
IS HEREBY MADE FOR A MORE PARTICULAR DESCRIPTION OF SAME.
TAX ID: 188727.
Pn

CAPPED TWO-YEAR ARM RIDER SHANAFELT
RIDER TO THE SECURITY INSTRUMENT
NOTICE THIS SECURITY INSTRUMENT SECURES A NOTE WHICH CONTAINS A PROVISION
ALLOWING FOR CHANGES IN THE INTEREST RATE INCREASES IN THE INTEREST RATE MAY RESULT
IN HIGHER PAYMENTS DECREASES IN THE INTEREST RATE MAY RESULT IN LOWER PAYMENTS
This rider is made O C T O B E R 8 . 2012 1 and is incorporated Into and shall be
deemed to amend and supplement the Deed of Trust, Mortgage or Security Deed (the "Security Instrument") of the
same date given by the undersigned ("the Borrower') to secure Borrowers Note ("the Note") to
STATE EMPLOYEES' CREDIT UNION
(the "Note Holder) of the same date and covering the property described in the
Security Instrument and located at
1314 OAK FOREST DRIVE
roperty Address
MODIFICATIONS In addition to the covenants and agreements made in the Security Instrument, Borrower and
Note Holder further covenant and agree as follows
A INTEREST RATE AND MONTHLY PAYMENT CHANGES
The Note has an initial Interest rate of 3,250 % The Interest rate may be Increased or decreased every
24th month on each "Change Date" as described in the Note Changes in the interest rate are governed by
changes in the Index as defined in the Note The Index is the weekly average yield on United States Treasury
securities adjusted to a constant maturity of one year The maximum change in the interest rate at any one time is
1 .0 percentage points The maximum interest rate variation over the life of the loan is 6 . 0 percentage points
over or under the initial interest rate The interest rate will not change below 3— . 25.0%
The monthly payment amount may be adjusted every 24th month to take effect on the month following each
Change Date as described in the Note The new monthly payment amount is based on the interest rate in effect on
the Change Date and will remain in effect until the month following the next succeeding Change Date
B LOAN CHARGES
If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest
or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then (i)
the interest rate or any such loan charge shall be reduced by the amount necessary to reduce the charge to the
permitted limits, and (ii) any sums already collected from Borrower which exceeded limits shall be refunded to
Borrower The Note Holder may choose to make this refund by reducing the principal of the Note or by making a
direct payment to Borrower If a refund reduces principal, the reduction will be treated as a partial prepayment
C TRANSFER OF PROPERTY
Paragraph 18 of the Security Instrument is amended to read as follows
Transfer of the Property or a Beneficial Interest in Borrower If all or any part of the Property or an interest therein is
sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person)
without the Note Holders prior written consent, Note Holder may, at Note Holder's option, declare all the sums
secured by this Security Instrument to be immediately due and payable
SECU 640A (01/2012) Two Year ARM Rider
ti•

SHANAFELT
C TRANSFER OF PROPERTY (continued)
If Note Holder exercises such option to accelerate, Note Holder shall mail Borrower notice of acceleration in
accordance with Paragraph 15 hereof Such notice shall provide a period of not less than 30 days from the day the
notice is mailed within which Borrower may pay the sums declared due If Borrower fads to pay such sums prior to
the expiration of such period, Note Holder may, without further notice or demand on Borrower, invoke any remedies
permitted by Paragraph 22 hereof
The Note Holder shall have waived such option to accelerate if, prior to the sale or transfer, the Note Holder and the
person to whom the Property is to be sold or transferred reach agreement in writing that the credit of such person is
satisfactory to the Note Holder As a condition to waiving the Note Holder's right to accelerate, the loan terms,
including the interest rate payable on the Note, the Margin for future interest rate changes (as that term is defined
in the Note), and the maximum interest rate Cap of 6 . 0 % above or below the initial interest rate shall be subject
to modification by the Note Holder
Notwithstanding a sale or transfer, the Borrower will continue to be obligated under the Note and this Security
Instrument unless Note Holder has released Borrower in writing
D BORROWER'S RIGHT TO REINSTATE
Uniform Covenant 19 ("Borrower's Right to Reinstate") is amended to read as follows
Uniform Covenant 19 of the Security Instrument ("Borrower's Right to Reinstate") is deleted, provided, however, in
the event Lender sells, assigns or otherwise conveys its interest in the Note and this Security Agreement to the
Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, then Note Holder agrees
to permit reinstatement according to the Covenant 19 of the Security Agreement
E ASSIGNMENT OF RENTS, APPOINTMENT OF RECEIVER, LENDER IN POSSESSION
As additional security hereunder, Borrower hereby assigns to Lender the rents of the Property, provided that
Borrower shall, prior to acceleration under Paragraph 22 hereof or abandonment of the Property, have the right to
collect and retain such rents as they become due and payable
Upon acceleration under Paragraph 22 hereof or abandonment of the Property, Lender, in Person, by agent or by
judicially appointed receiver, shall be entitled to enter upon, take possession of and manage the Property and to
collect the rents of the Property including those past due All rents collected by Lender or the receiver shall be
applied first to payment of the costs of management of the Property and collection of rents, including, but not
limited to, receiver's fees, premiums on receiver's bonds and reasonable attorneys fees, and then to the sums
secured by this Deed of Trust Lender and the receiver shall be liable to account only for those rents actually
received
By signing this, Borrower agrees to all of the above
In Witness whereof, the undersigned has set his hand and adopted the word (Seal) appearing beside his signature
as his seal this the y nd date t bove appearing
(SEAL) (SEAL)
BorrowerSCOTT GORDON SHANAFELT Borrower
Borrower (SEAL)
Borrower (SEAL)
SECU 640B (02/2011) Two Year ARM Rider

WILLIE L COVINGTON
REGISTER OF DEEDS, DURHAM COUNTY
DURHAM COUNTY COURTHOUSE
�Y
200 E MAIN STREET
DURHAM, NC 27701
PLEASE RETAIN YELLOW TRAILER PAGE
It is part of recorded document, and must be submitted with original for re-recording
and/or cancellation
fRfi!*#tR#ttfl4R4f#f}R#RRt#Rtti*fitfi*f44ff R*ffif 4#RRttRRf*4*##*i*itRtR*#fifitf}ffftf RftRt}f}fiffiRf Rffiftif}ifftifii**f
Filed For Registration: 10110I2012 09 41 49 AM
- _ Book: RE 7090 Page: 570-586
Document No • 2012035960
D-T 17 PGS $60 00
Recorder* SHARON M CEARNEL
,
2012035960