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201200�94
<br />DEED OF TRUST
<br />Loan No: 5863616932 (CO�tinued) Page 4
<br />the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration
<br />and repair of the Property. if Lender elects to apply the proceeds to restoradon and repair, Trustor shall repair or
<br />replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br />repair or restoratlon if Trustor is not in default under this Deed of Trust Any proceeds which have not been
<br />disbursed within 1 SO days after their receipt and which Lender has not committed to the repair or restoratlon of
<br />the Property shall be used ftrst to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br />interest, and the remainder, ff any, shall be applied to the principal balance of the Indebtedness. If Lender holds
<br />any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's
<br />interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall fumish
<br />to Lender a report on each existing policy of insurance showing: (1) the name of the insurer, (2) the risks
<br />insured; (3) the amount of the policy; (4) the property insured, the then current replacement value of such
<br />property, and the manner of determining that value; and (5) the expiretion date of the policy. Trustor shall, upon
<br />request of Lender, have an independent appraiser satlsfactory to Lender determine the cash value replacement cost
<br />of the Property.
<br />LENDER'S EXPENDRURES. If any action or proceeding is commenced that would materially affect Lender's interest in
<br />the Property or if Trustor fails to comply with any provision of this Deed of Trust or any Related Documents, including
<br />but not limited to Trustor's failure to discharge or pay when due any amounts Trustor is required to discharge or pay
<br />under this Deed of Trust or any Related Dacuments, Lender on Trustor's behalf may (but shall not be obligated to) take
<br />any action that Lender deems appropriate, including but not limited to discharging or pay(ng all taxes, liens, security
<br />interests, encumbrances and other claims, at any tlme levied or placed on the Property and peying all costs for insuring,
<br />maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then
<br />bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by
<br />Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, w111 (A) be payable on
<br />demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment
<br />payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining tertn of
<br />the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Deed of
<br />Trust also will secure payment of these amounts. Such right shall be in addkion to all other rights and remedies to
<br />which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relatlng to ownership of the Property are a part of this Deed
<br />of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable tlUe of record to the Property in fee simple,
<br />free and clear of all liens and encumbrances other than those set forth in the Real Property descripdon or in any
<br />t�le insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection
<br />with this Deed of Trust, and (b) Trustor has the full right, power, and authority to execute and deliver this Deed of
<br />Trust to Lender.
<br />Defense oi Tltle. Subject to the exception in the paragraph above, Trustor warrants and wilt forever defend the
<br />titie to the Property against the lawfut claims of att persons. In the event any action or proceeding is commenced
<br />that questlons Trustor's tiUe or the interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the
<br />action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shall be entitled to
<br />participate in the proceeding and to be represented in tha proceeding by counsel of Lender's own choice, and
<br />Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to tlme
<br />to permit such participatlon.
<br />Compltance Wlth Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all
<br />existlng applicable laws, ordinances, and regulatlons of govemmental authorities.
<br />SuMval of Representatlons and Warranties. All representations, warranties, and agreements made by Trustor in
<br />this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and
<br />shall remain in full force and effect until such time as Trustor's Indebtedness shall be paid in full.
<br />CONDEMNATION. The following provisions relatlng to condemnation proceedings are a pan of this Deed of Trust:
<br />Proceedings. If any proceeding in candemnation is filed, Trustor shall promptly notify Lender in writing, and
<br />Trustor shall prompdy take such steps as may be necessary to defend the action and obtain the award. Trustor
<br />may be the nominal party in such proceeding, but Lender shall be entltled to participate in the proceeding and to be
<br />represented in the proceeding by counsel of fts own choice, and Trustor will deliver or cause to be delivered to
<br />Lender such instruments and documentation as may be requested by Lender from tlme to tlme to permit such
<br />participation.
<br />Appticatlon of Net Proceeds. If all or any part of the Property is wndemned by eminent domain proceedings or by
<br />any proceeding or purchase in lieu of condemnaUon, Lender may at its election require that all or any portion of the
<br />net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net
<br />proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and attomeys' fees
<br />incurred by Trustee or Lender in connection with the condemnation.
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