|
� DEED OF TRUST 2 p 12 01 � 0�
<br />Loan No: 101249434 (Continued) Page 4
<br />disbursed within 180 deys after their receipt and which Lender has not committed to the repair or reatoration of
<br />the Property shall be used first to pey any amount owing to Lender under this Deed of Truat, then to pey accrued
<br />interest, and the remainder, if any, shall be epplied to the principel belance of the Indebtedness. If Lender holds
<br />any proceeds after payment in full of the Indebtedness, such proceeds shell be paid to Trustor es Trustor's
<br />interests may appear.
<br />Compliance with Exlsting Indabtedness. During the per(od in which any Existing Indebtedneas described below is
<br />in effect, compliance with the insurence provisions conteined in the instrument evidencing such Existing
<br />Indebtednesa shell constitute compliance with the inaurance provisions under this Deed of Trust, to the extent
<br />complience with the terms of this Deed of Trust would constitute a duplication of insurance requirement. If any
<br />proceeds from the insurance become payable on loss, the provtsions in th(s Deed of Trust for division of proceeds
<br />shell apply only to that portion of the proceeds not peyable to the holder of the Existing Indebtedness.
<br />Truator's Report on Insurance. Upon request of Lender, however not more then once a year, Trustor shall furnish
<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, end the manner of determining that value; and (5) the expiretion date of the policy. Trustor shell, upon
<br />requeat of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. If any ectfon or proaeeding is commenced that would materfelly affect Lender's interest in
<br />the Property or if Trustor fails to compiy with eny provision of thts Deed of Truat or any Related Documents, including
<br />but not limited to Trustor's failure to comply with any obligation to meintafn Exiating Indebtednesa in good standing as
<br />raquired below, or to discharge or pay when due any amounts Trustor is requ(red to discharge or pay under this Deed of
<br />Trust or any Releted Documents, Lender on Trustor's behalf may (but shall not be obligated to) take any action thet
<br />Lender deems appropriate, including but not limited to discharging or peying all taxes, liens, security interests,
<br />encumbrances and other claims, at any time levied or pleced on the Property and paying all costs for insuring,
<br />mainteining end 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 dete incurred or paid by Lender to the dete of repayment by
<br />Trustor. All such expenses will become e part of the Indebtedness end, et Lender's option, will (A) be payeble on
<br />demand; (B) be added to the balance of the Note and be apportioned among end be payeble with any installment
<br />payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of
<br />the Note; or (C) be treated es a balloon payment which will be due and peyable et the Note's maturity. The Deed of
<br />Trust also will secure peyment of these amounts. Such right shall be in addition to all other rights and remedies to
<br />which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The follow(ng provis(ons relating to ownership of the Property are a part of this Deed
<br />of Trust:
<br />TiUe. Trustor warrents thet: (a) Trustor holds good and marketable title of record to the Property in fee simple,
<br />free and clear of all Ifens and encumbrances other than those set forth in the Real Property description or in the
<br />Existing Indebtedness section below or in any title inaurance policy, title report, or finel title opinion issued in favor
<br />of, and accepted by, Lender in connection with this Deed of Trust, and (b) Trustor hes the full right, power, and
<br />authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paregreph ebove, Trustor warrenta and wilt forever defend the
<br />title to the Property egainst the lawful cla(ma of all persons. In the event any action or proceeding is commenced
<br />that questions Trustor's t(tle or the interest of Trustee or Lender under this Deed of Trust, Truator shell defend the
<br />action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shell be entitled to
<br />participate in the proceeding end to be represented in the proceeding by counsel of Lender's own chotce, end
<br />Trustor will del(ver, or cauae to be delivered, to Lender such inatruments as Lender may request from time to time
<br />to permit such participation.
<br />Compliance Wkh Lews. Trustor warrents that the Properiy and Trustor's use of the Property complles with ell
<br />existing appliceble lews, ordinances, and regulations of governmental euthoritiea.
<br />Survival of Represerrtatlons and WarrenUes. All representations, werranties, and agreements mede by Truator in
<br />this Deed of Trust ahall survive the execution and delivery of this Deed of Truat, shall be continuing in nature, and
<br />shall remain in full force and effect until such time es Trustor's Indebtedness shall be paid in full.
<br />EXISTINCi INDEBTEDNESS. The following provis(ons concerning Existing Indebtedness are e part of this Deed of Trust:
<br />Existlng Lien. The lien of this Deed of Truat securing the Indebtedness may be aecondery end inferior to an
<br />existing lien. Trustor expressly covenants and agrees to pay, or aee to the payment of, the Exiating Indebtednesa
<br />and to prevent any default on such indebtedness, any defeult under the instruments 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 egreement which has priority over this Deed of Trust by which that agreement is modified,
<br />amended, extended, or renewed without the prior wrltten consent of Lender. Trustor shell neither requeat nor
<br />eccept eny future advences under any such security egreement without the prior written consent of Lender.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />
|