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d "� . � „ �
<br />DEED OF TRUST 2 p 12 0 0 9 8'�
<br />(Continued) Page 3
<br />Application of Proceeds. Trustor shall promptly notlfy Lender of eny loss or damage to the Property. Lender may
<br />make proof of loss if Trustor fails to do so within fifteen (76) days of the casualty. Whether or not Lender's
<br />security is impaired, Lender may, at Lender's election, recefye and retain the proceeds of any inaurance and apply
<br />the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration
<br />and repair of the Properry. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or
<br />replace the damaged or destroyed Improvements in a menner setisfactory 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 restoration if Trustor is not in default under this Deed of Trust. Any proceeds which have not been
<br />disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of
<br />the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br />interest, and the remainder, if 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 shell furnish
<br />to Lender a report on each existing policy of insurence 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 expiration date of the policy. Truator shall, upon
<br />request of Lender, have an independent appraiser setisfectory to Lender determine the cash value replacement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. 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 Documents, Lender on Trustor's behalf may (but shall not be obligated to) take
<br />any action that Lender deems appropriate, including but not Umited to discharging or paying all taxes, liens, security
<br />interests, encumbrances and other claims, et any time levied or pleced on the Property and paying ell 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, wlll (A) be peyable on
<br />demand; (B) be added to the balance of the Note end be apportioned among and be payable with any installment
<br />payments to become due during either (11 the term of any applicable insurance policy; or (2) the remeining term of
<br />the Note; or (C) be treated as a balloon payment which wlll be due and payable at the Note's meturity. The Deed of
<br />Trust also will secure payment of these amounts. Such right shell be in addition to all other rights end remedies to
<br />which Lender may be entitled upon Default.
<br />WARRANTY; DEFEIVSE OF TITLE. The following provislons relating 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 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 sny
<br />title insurance policy, title report, or final title opinion issued in fevor 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 of Title. Subject to the exception in the paregraph above, Trustor warrants and will forever defend the
<br />title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced
<br />that questions Trustor's title or the interest of Trustee o� Lender under this Deed of Trust, Trustor shall defend the
<br />action at Trustor's expense. Trustor may be the nominal perty in such proceeding, but Lender shall be entitled to
<br />participete in the proceeding and to be represented in the proceeding by counsel of Lendar'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 participetion.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property compUea with all
<br />existing applicable laws, ordinances, and regulations of governmental authorities.
<br />Survival of Representations and Warranties. All representations, warranties, and agreement� made by Trustor in
<br />this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be conjtinul�g in neture, and
<br />shall remein in full force and effect until such time as Trustor's Indebtedness shall be pald in full.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are e part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is f(led, Trustor shall promptly notify L nder in writing, and
<br />Trustor shall promptly take such steps as may be necessery to defend the action and obtal� the eward. Trustor
<br />may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be
<br />represented in the proceeding by counsel of (ts own choice, and Trustor will deliver or cause to be delivered to
<br />Lender such instruments and documentat(on as mey 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 by 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 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, end attorneys' fees
<br />incurred by Trustee or Lender in connection wlth the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The followfng provisions relating
<br />to governmental texes, 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 docluments In addition to
<br />this Deed of Trust and take whatever other actlon is requested by Lender to perfect and confinue Lender's Uen on
<br />the Real Property. Trustor shall reimburse Lender for all taxes, as described below, together with all expenses
<br />incurred in recording, perfecting or continuing this Deed of Trust, including without Iimitatlon all texes, fees,
<br />documentary stamps, and other charges for recording or reg(stering this Deed of Trust.
<br />Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon thls rype of
<br />Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trust; 'd2) a specific tax on
<br />Trustor which Trustor is authorized or required to deduct from payments on the Indebtednesa secured by this type
<br />of Deed of Trust; (3) a tax on this type of Deed of Trust chargeable against the Lender or the holder of the Note;
<br />and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by
<br />Trustor.
<br />Subsequent Taxes. If eny tax to which this section applies is enacted subsequent to the date of this Deed of
<br />Trust, this event shall have the same effect as an Event of Default, and Lender mey exercise any or atl of its
<br />available remedies for an Event of Defeult as provided below unless Trustor elther (1) pays the tax betore it
<br />becomes delinquent, or (2) contests the tex as provided above in the Taxes and Liens section end deposits with
<br />Lender cash or a sufficient corporate surety bond or other security satisfectory to Lender.
<br />SECURITY AGREEMENT; FINANCINQ STATEMENTS. The following provisions relat(ng to this Deed of Trust as e
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