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201200774
<br /> DEED OF TRUST
<br /> Loan No: 10001302 (COntitlued) Page 3
<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 resmration 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 restoration of
<br /> the Property shap be used first to pay any amount owing to Lender under this Deed�of Trust,then to pay accrued
<br /> inierest, and the remainder, if any,shall be applied to the principal bala�ce of the Indebtedness. If Lender holds
<br /> any proceeds aftee payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> Compliance with Fxisting Indebtedness. During the period in which any Existing I�ndebtedness described below is
<br /> in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing
<br /> Indebtedness shall constitute compliance�with the insurance provisions under this Deed of Trust,. to the extent
<br /> compliance with the terms o#this Deed of Trust would constitute a duplication of insurance requirement. If any
<br /> proceeds from the insurance become payable on loss,the provisions in this Deed of Trust for division of proceeds
<br /> shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness. �
<br /> LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests,
<br /> encumbrances, and other daims, (B) to provide any required insurance on the Property, (C) to make repairs to the
<br /> Property or to comply with any obligation to maintain Existing Indebtedness in good standing as required below,then
<br /> � Lender may do so. If any action or proceeding is commenced that would materially affect Lender's interests in the
<br /> Property, then Lender on Trustor's behalf may, but is not required to, take any action that Lender believes to be
<br /> appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will then bear
<br /> interest at the rate charged under the Note from the da2e incurred or paid by Lender to the date of repayment hy
<br /> Trustor. Ali such expenses wiil become a part of the Indebtedness and,at Lender's option,will (A) be payable on .
<br /> demand; (B) be add�d to the 6alance of the Note and be apportioned among and be payable with any installment
<br /> payments to become due during eithet (1) the term of any applicable insurance policy;or (2) the remaining term of
<br /> the Note;or (C) 6e treated as a balloon payment which will be due and payable at the Noie's maturity. The Deed of
<br /> � Trust also will secure payment of these amounts. The rights provided for in this paragraph shali be in addition to any
<br /> - other rights or any remedies to whicfi Lender may be entitled on account of any defauit. Any such action by Lender
<br /> shall not be construed as curing the defa�tit so as to bar Lender from any remedy thai it otherwise would have had.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relating to ownership oP the Property are a part of this Deed
<br /> of Trust:
<br /> TiYIe. Trustor warrants that: (a)Trustor holds good and marketable title 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 description or in the
<br /> Existing Indebtedness section below or in any title insurance policy,title report,or final title opinion issued in favor
<br /> of,and accepted by, Lender in connection with Yhis Deed of Trust,and (b�Trustor has the full right,power,and
<br /> authority to execute and deliver this Deed of TrusY to Lender. � �
<br /> Defense of Title. Subject to the exception in the paragraph above,Trustor warrants and will forever defend the
<br /> title to the Property against the lawful claims of all perso�s. In the event any action or proceeding is commenced
<br /> that questions Trustor's title or the interest of Trustee or Lender under thls 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 iepresented in the proceeding Fiy 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 time
<br /> to permit such participation. .
<br /> Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all
<br /> existing applicable laws,ordinances,and regulations of governmental authorities.
<br /> Survival ofi Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shail
<br /> survive the execution and delivery of this Deed of Trust,shall be continuing in nature and shall remain in full force
<br /> � and effect until such time as Trustor's Indebtedness is paid in full.
<br /> EXfSTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br /> Existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an
<br /> existing lien. Trustor expressly covenants and agrees to pay,or see to the payment of,the Existing Indebtedness
<br /> and to prevent any default on such indebtedness,any default under the instrumeMS evidencing such indebtedness,
<br /> or any default under any security documents for such indebtedness.
<br /> No Modification. Trustor shall not enter into any agreement with the holder of any mortgage, deed of trust, or
<br /> other security agreement which has priority over this Deed of Trust by which that agreement is modified,
<br /> amended, extended, or renewed without the prior written consent of Lender. Trustor shall neither request nor
<br /> accept any future advances under any such security agreement without the prior written consent of Lender.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trustr
<br /> Proceedings. ifi any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and
<br /> Trustor shall prompUy take such steps as may be necessary to defend the action and obtain the award. Trustor
<br /> may be the nominai party in such proceeding,but Lender shall be entitled to participate in.the proceeding and to be
<br /> represented i�the proceeding by counsel of its 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 time to time to permit such
<br /> participation. �
<br /> Application of Net Proceeds. If all or any part of the Property Is condemned liy eminent domain proceedings or by �
<br /> any proceeding or purchase in lieu of condemnation,Lender may at its election require that all or any portion of the
<br /> net proceeds of the award 6e applied to the Indebtedness or the repair or restoration of the Property. The net
<br /> proceeds of the award shall mea�ihe award after payment of all reasonable costs,expenses,and attorneys'fees
<br /> incurred by Trustee or Lender in connecvon with the condemnafion. �
<br /> IMPOSITION OP TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br /> to governmental taxes,fees and charges are a part of this Deed of Trust:
<br /> Current Taxes,Fees and Charges. Upon request by Lender,Trustor shall execute such documeMS in addition to �
<br /> this Deed of Trust and take whatever other action is requested by Lender to perfect and continue Lender's lien on
<br /> the Real Property. Trustor shall reimburse Lender for all taxes, as described below,together with all expenses
<br /> incurred in recording, perfeciing or continuing this Deed of Trust, induding without limitation all taxes, fees,
<br /> documentary stamps,and other charges for recording or registering this Deed of Ttust.
<br /> Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of
<br /> D2ed of Trust or upon all or any part of the I�debtedness secured by this Deed of Trust; (2) a specific tax on
<br /> TrusYOr which Trustor is auihorized or required to deduci from payments on the Indebted�ess secured by this type
<br /> of Deed of Trust; (3) a tax vn this type of Deed of Trust chargeable against the Lender or the holder of the Note;
<br /> and (4) a specifiic tax on all or any portion o€the Indebted�ess or on payments of principal and interest made 6y
<br /> Trustor.
<br /> Subsequent Taxes. If any tax to which this section applies is enacted supsequent to the date of this Deed of
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