ADJUSTABLE RATE NOTE

(LlBOR Six-Monlh llIde;( (As Published In The WlIII Street Journal) - Rate CR.pS)

THIS NOTE CONTAINS PROVISIONS AIJ.OW1NG FOR CHANGeS IN MY INTEREST RATE AND MY MONTHLY PAYMENT. THIS NOTE llMITS THE AMOUNT MY INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE I MUST PAY.

Novel!lb= 11, 2005 [D.oe}

[elly)

, PHEN~X CXTX, AL 36869

Il'roJlCrtyA~.l

1. :BORROWER'S PROMlSE TO J?AY

In return for 0. loan that! have received, I prornlse to pa)' U.S. $ 283,500.00 (this amount is called

"Prlncipal"), plus interest, to the order of Lender. Lender Is !i:ncorQ CrGd.it corp. A CalifoJ:nia Corporation

I will make all payments under this Note in the form of cash, check or moDey order.

1 understand that Lender may transfer this Note. Lender OJ anyone who takes Ibis Note by transfer and who is entitled 10 receive payments under tbis Note .15 called the "Note Rolder ."

2. lN1'lm.EST

Iurerest will be charged on unpaid principal until the full amOUD! of Principal has been paid. I will payinterll$t at a

yearly rate of 7.740 %. The interest rate I will pay may change III aceerdance with Section 4 of tbi$ Note,

The Interest flue required. by this Sectlon 2. and Section 4 of this Note is the rate I will pay both before and after any def.ault described in Sectioll 7(9) of this Note.

3. PAYMENTS

(A) Tlme and Place of Payments

I will pay principal and UlIl!re5l by making a paymelll every month.

I will mako my manthly payments 011 the first d8¥ of each month beginning on Jan.uall:Y 01,2006,

1 will make these payments every montb until 1 have paid all of the principal and interest and any other cbargll$ described below that I may owe under !his NOle. EacbmoDUlly payment will be applied as of its scheduled due date an.d will be applied. to interest before Princlpal. Ir, on December 1" 2 035 , J 5@ owe amounts under 11Il$ Note. J will pay those amounts In full on \hal dare. which is called the 'Maturilj' Date.·

I will make my monthly payments at 1 B 33 Alton Parkway, !rvi.ne, CA 9260 6

or at a different place if required by the Note Holder, (5) Amount or My lnltial Monthly PlI;ymenls

Bach of my initial monthly pay.mcnlS wUl'bc in: lbe amount of U.S. $:2,029.07 • Tills amount

may change.

(C) Monthly PIIJ"DJant Changes

ClIanges In my monthly payment will reflect cbaoges in the unpaid pcinclpal of roy loan and in the Interest rate that I must pay. The Note Holc1cr will deletm.iJle my new interest rate and the changed amounc of illY monLhly payment in accordance with. Section 4 ohhis Note,

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MULTI51'ATE ADJUSTABLE flATE NOTE.- LIBOfl SIX·MONTH INOEX tAS PUBLISH EO IN THE WALL SrFlEET JOURNALISIngle FamilV • Fonnl. Ma. UNIFORM INSTRUMENT

Farm, :3620 1/01

IIMPMGRTGAUEfORMS'1800151.,.nD'p'Dt-\-

Ptg. 1 oJ 4 IntI.lIlJ.l.; _

4. INTEREST RATE AND MOl\"TJU.,Y PAYMENT CHANGES (A) Cbange Dates

The interest rate I will. pay may ehnnge on the first day ofD.eoemher r 2007 , aod on that day every

6th month thereafter. Each date on whicb my interest rate could change is called a 'Change Date. '.

(B) The Index

Beginning with. the fi rst Change Dale. my interest rate will be based on an Index. The "Index" is the average of Interbank offered rates for six month U.S. dollar-denominated deposits in the Loncon market ("LmOR'). !IS publlsncd ill The Walt Street Jourtlal. The most· recent. Index figJ.lre available ~ of the 'm( business day of the mofll:h immediately preceding the IIlO.IIth .in which !he Change Date occurs is called the "Current Index. H

If the Indelo: is no longer available, the Note: Holder will choose II new index thal Is based upon comparable information. The Note Holder will give me notice of this choice.

(C) Calculation of Cbanges

Before each Change Date, the Note Holder will calculate my new interest Tate by IlddLog five and ni:net¥:"'nine bundredth (s) percentage points ( 5 . 990 %) to the Current Index. The Note Holder will thea round the result of this addition [0 the nearest Doc-eighth of one pereeutage polm (0,125%). Subject 10 the l.imilS staled in Section 4(D) below. this rounded amount will be my new interest rate until the DeXI Change Dale.

The Note Holder will thea determine the amount of the monthly paymeot that would be su fflCieal 10 repay the unpaid principal ilia! 1 am expeote(l [0 owe at !he Change Date in fuU on the Marurity Dale at my new interest rate i a substanUally equal payments. The result of this calculation will be UltneW amounl ofm), monthly payment.

(D) Limits on Interest Rate Changes

The interest. rate I am required to pay ar Ule first Change Dall: will not be greater than 10 . 740 %

or less than 7 • 740 %. Thereafter, my interest TBIC will never be increased or decreased on any single

Change Dale by more than two percentage point(s) ( 2.0 DO %)

from the rare of interest I have been paying for the precedlng 6 moruhs. My interest rate will never be greater

than 14.740 % Or less !han 1.740 %. .

(E) Effective Date of Changes

My Dew interest rate will become effective 00 each Change Date, I will pay the amount of my new IllOntbly payment beginning on the f'lnIt monlhly payment date after the Change Date \Inti! the amount of my monthly paymenl changes again. (F) Notice of ChaDgcs

l'h~ Note Holder will deliver or mnill!) me a notice of any cb.anges in my interest rate and the arncuntcf my monlhly payment before the effective date of any cbange. The notlce will includeinformatlon required by taw to be given to me lind also the title and telepholle: Ill!1llber of a person who will answer any question I may have regarowlltbe notice.

5 .. BORROWER'S RIGHT TO l'REl.'AY

I have the right to make payments of PrinCipal III any time before they are due. A payment ot Principal ooly is known as a "Prepayment" WhC1l I make a Prepayment, I will teiI the Note Holder in writing that I am. doing so. r may not designate a payment as a Ptepayme:nt if 1 have not made all the monthly JHlymentB due under this Note.

I may make a full Prepaymeol or partial Prepayments without payiog any I>repayment charge, The Note Holder will use my Prepayment5 to reduce the lIJlI,Qunt of Principal tha( lowe under this Note. However, !he Note Holder rna)' apply my Prepayment to the: accrued and \lnpBldlnterest <Ill. the PI~yment amount before appl.ying my Prc,pllymc:ot to reduce the Principal amount of this Note. If 1 make a partial Prepayment, there will be no changes in the due dates of my monthly payments unless the Note Holder agrees In writing (0 lliose changes. My panlal PrepaylTlCOI may reduce the amount of my monthly paymems after tbe first Change Dale following my partial Prepayment. However. lIIzy reduction due to my partial Prepaym~m may-be offset by an Interest late Increase.

6. LOAN CHARGES

If a Jaw. which applies to thJ.s loan lUld which sets maximum loan charges. is ftilally Interpreted so that the interest or otb.1lr loan charges collected or 10 be coli eeted in connection with this loan exceed the peroJllttid timits. then: (II.) any sudI 10m charge shall be reduced by the amount necessazy 10 Ieduce the charge to the' penni.lt.cd llinil; atld(b) .IUIY S1iIllS already collecled from roe that exceeded permitted limits will be refunded to me. The Note Holder lIlay choose IQ make this refund by reducing l11,e Principal I owe under !his Note or by making a direct payment 10 me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment.

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7. BORROWER'S FAILURE TO Pi\Y ASREQlJlRED CAl Late Charges fOI.· Overdue Payments

]f the Nom Holder lias not received tae fulJ amount of any montbly payment by Iht: end of fiftae.n

calendar days after the dare It is due. I will pay II. lale charge [0 the Note Holder. The amount of the: charge ",m be 5 • 0 0 0 % of my overdue payment of pri~cipal and inte~est. I will pay this late charge promptly but

only once OJ] each late payment. (B) Default

If I do cot pay the full amount of each nwnlhl,y payment onthe dalei! is due, I will he in default, (C) Notice of Default

If I am in dccfa.ull, the Note Holder may send me a written notlce telling me that if 1 do 00! pay the overdue amount by a certain date, the Nole Holder may reqllile me 10 pay immediately the full amount of Principal that has 1I0! been pald and all the Interest that lowe 00 that amount. TII:u date must he at least 30 days after the date on which the notice is mailed fO me or delivered. by other means,

(I») No Walvc:rBy NoteHold.er

Even if. at a time when I am in default. the Note 1I0ldcc does not require me to pay immediately in full 9S described above, the Note Holder wl1l stili have llu: right to do 50 If I 11m In default at a later time.

(E) Payment ot Note Holder's Costs an!l E:'(penses

If the NOIe Holder bas required roe to pay immediately in fi1ll all desc.nbed above. the Note Holder wul have the right 10 be paid back by me fat all of ils costs WId expCf.1Ses in enforcing tbis. Note to the extenr not p.rohihiled by applicable law. Those expenses include, fot example, reasonable aneraeys' Iees,

8. ,GIVING OF NOTICES

Unless applicable law requires a different method, any notice thal. must be given to me under this Note will be given by deltvering it or by mailioG it by fi rst class mail to me atthe Property Address above or at a different address if I give the Note Holder a notice of my different address.

Unless the Note Holder requires a differeot method, 8I\.Y notice thaI must be given (0 the NOle Holder under ibis Note wlll. be given by mailiDg II by first class mail to the Note Holder at the address slated 10 Section 3(A) above or at a different address if I am glveo a nouce af that different address.

9. OBLrGATIONS OF PERSONS tJNDEk TBlS NOTE

If more than One person signs this Note, eaeh person Is fully and penonaJly Obligated to keep all of the promisee made In this Note, including the promise to pay the full amount owed. Any person who is a guarantor. surety or endorser of Ihb Note is alaoobligated II) do these Ihlngs, AD)' person wbo takes over these obllgatio.ns, tnelud log me obligatirms of a guarantor, surety or endorsee of this Note, is also obligate<! to keep 0.11 of the promises made in Ibis Note. The Note Holder may enforce its rights under this Note against eal:b personlndividuatly or agaln_st all of us together. ThIs means that any one of us, may be required to pay all of the amounts owed under this Note.

lO.WAIVERS

1 and au)' other PCl'SOD who has obligations under this Note waive the rlgb.u of Presentment and N.otlce of Dlshonor, 'Presentment" means the rigbt 10 reqI!lre the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to requite the Note Holder to give notice to other persollll Ibat amounts due have not been paid.

11. UNIFORM SECURED NOTE

'This Note is a uniform instrument with limited variaticns in some jurisdictions. In addition [0 the protections given 10 tlle Note Holder under lht~ Note, a MortgaJl,e. Deed of'rrust, or 8ecurlty Deed (the ·Security Instrument'), dated the same date as r.h.ls Note, prctccts the Note Holder frOID possible losses that might result if I do nOE keep the promises that I make in Ibis, Note, That Secllrily Instrument describes how and under wbat condlUOlls J may be required to make immediate payment in full of all amounts lowe under this Note. Some of those cendlrlons read as follows:

2516457

Pig, 3 01 C

"FnmNrer of the Propel'ly or II Beneficiallnlercsl in Borrower. M used in this Sectlon 18, "Interest in the Property" means any I.egal or beneficial interest ill the Properly, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales COl1fClICI or escrow agreement, the inlBllI of which is the transfer of title by narrower 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 Bcrrower is not a natural person and II beneficial interest in Borroweris SQld or transferred) without Lender' 5 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 /l.pplillilble Law. Lender also shall not exercise lhi$ option if: (a) Borrower causes 10 be submitted to Lender infonnation required by Lender [0 evaluate' the intended transferee as if II new loan were being made 10 the transferee; and (b) Lender reasonably determines that Lender's security will no! ·00 impaired by the loan assumption II11d that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender.

To the extent permitted by A~plic8ble Law, Lender mB)' ~blU'ge a reasonable fee as a condition 10 Lender' 5 consent to the loan assumptlon. Lender also may require the transferee to sigJI. an assumption agreement that is acceptable to Lender and that obligates the transferee 10 keep all the promises and agreemenio made in the Note and in this Security rnstrum~nt. Borrower will con tinu.c to be obi 19sted under th.e Note and tbls Security InstTum~[)t unless Lender releases Borrower in writing.

If Lender exercises the option to require immediate payment in run, Lender snall give Borrower notice of acceleranon. The notice shall provide a period of not less than 30 days from the date lhe notice is glven in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument, 1f Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by !hls Security instrument without furtfler notice or demand on BOfrower.

WITNESS TIlE HAND(S) AND SEALeS) OF THE UNDERSIGNED.

CAUTION - IT IS IMPORTANT THAT YOU THOROUGHLY READ THE CONTRACT BEFORE YOU SIGN 1T. (ALA CODE 6-19-6)

______________ (Seill)

~BorfaMr

PHYLLIS D. UORACE

______________ (Seal)

-BDrro,\ocr

(~al)

-Beeewer

______________ (Seal)

~Barrowct

______________ ~(S~al) -BouG'V/cr

________________ (Seal) ... BOHIlWCf

_______ .....:.... (Senl)

~80r'G'Wcr

________________ (~Ul) ·6ofTD\Vet

[Sign Original Only]

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PIQtI. 0'-4

Form 3520 lID 1

Pay To Tl1t:" Order Of

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