TRUSTEE'S SALE

NOTICE IS HEREBY GIVEN that on August 25, 2004, at 11:00 a.m. the office of Catherine L. Dullea, Attorney at Law, as Successor Trustee, 101 N. Fourth Avenue Suite 204, Sandpoint, ID, will sell at public auction to the highest bidder, for cash in lawful money of the United States of America, all payable at the time of sale, the following real property situated in the County of Bonner, State of Idaho, described as follows:

The North Half of the Southeast Quarter of the Southeast Quarter of the Northeast Quarter of Section 31, Township 56 North, Range 5 West, Boise Meridian, Bonner County, Idaho.

EXCEPTING THEREFROM County road right of way along the East line thereof.

The purported address is 402 Hoodoo Loop Road, Oldtown, Idaho.

For purposes of compliance with Idaho Code S60-113, information may be obtained from Catherine L. Dullea, Attorney at Law, Telephone (208)265-2276.

Said sale will be made, without covenant or warranty regarding title, possession or encumbrances, to satisfy the obligations secured by and pursuant to the power of sale conferred in the Deed of Trust executed by DAWN RICE, a single person, as Grantor to Sandpoint Title Insurance, as Trustee, and said Trustee having resigned and the Beneficiary having appointed Catherine L. Dullea, Attorney at Law, as Successor Trustee, for the benefit and security of LEON PHILLIPS, as his sole and separate property, as Beneficiary, said Deed of Trust having been recorded on November 12, 2002, as Instrument No. 612296, official records of Bonner County, Idaho.

THE ABOVE GRANTOR IS NAMED TO COMPLY WITH S45-1506(4)(a) IDAHO CODE. NO REPRESENTATION IS MADE THAT SHE IS, OR IS NOT, PRESENTLY RESPONSIBLE FOR THIS OBLIGATION.

The default for which the sale is to be made is the failure of the Grantor and/or assumptive Grantor(s) to make monthly payments of $967.00, each, for the months of February and March and April, 2004, failure to pay late charges in the amount of $50.00, each, for the same months, failure to pay default and attorney fees of $135.00, failure to reimburse Beneficiary for insurance premium in the amount of $424.00, and failure to pay the first half of the 2003 real property taxes.

The balance owing as of the date hereof on the obligation secured by said Deed of Trust is the amount of $134,312.25, plus accrued interest at the rate of 9.0% per annum from November 27, 2003, plus any other costs or expenses associated with this obligation or foreclosure as provided by the Deed of Trust or Deed of Trust Note or by Idaho law.

DATED this 23RD day of April, 2004.

CATHERINE L. DULLEA CHTD.

Attorney at Law

Successor Trustee

101 N. Fourth Avenue, Suite 204

Sandpoint, Idaho 83864

PHONE: (208) 265-2276

FAX: (208) 265-1556

Legal SNP# 5178

May 7, 14, 21, 28, 2004

LAKE PEND OREILLE SCHOOL DISTRICT NO. 84