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D (Con�t nu dj `� 0 9. 2 017 6� Page 3
<br />of the loan.
<br />Applicatlon of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may
<br />make proof of loss if Trustor fails to do so within flfteen (15) days of the casualty. Whether or not Lenders
<br />security is impafred, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply
<br />the proceeds to the reduction of the Indebtedness, payment of any Ilen affecting the Property, or the restoration
<br />and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or
<br />replacz 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 reasonabte 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 wtthin 180 days after their receipt and which Lender has not committed to the repair or restoration of
<br />the Properly shall be used flrst 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 efter payment in full of the indebtedness, such proc�eeds shall be paid to Trustor as Trustor's
<br />interests may appear.
<br />Compllance with Exlating Indebtedma§s. Diiting the period in which any Existing Indebtedness described below is
<br />in effect, compliance with the irisurance 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 of this Deed of Trust would constitute a duplicat(on 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 Properly free of all taxes, liens, security irrterests,
<br />encumbrances, and other claims, (B) to provide arry required insuran� on the Property, (C) to make repairs to the
<br />Property or to comply with any obligaUon to mairrtain Existing Indebtedness in good stand(ng as required below, then
<br />Lender may do so. If any acdon or prooeeding is commern�ed that would materially affect Lender's intere,sts in the
<br />Property, then Lender on Tnastor's behalf may, but is not required to, take any acUon that Lender believes to be
<br />appropriate to protect Lenders interests. AII expe� ina�rred or paid by Ler�der for such purposes will then bear
<br />interest at the rate c�arged under the Note from the date incurred or paid by Lencier to the date of repaymerrt by
<br />Trustor. All such expenses will becorr� a part of the Indebtedness and, at Lender's opUon, will (A) be payable on
<br />demand; (B) be added to the balanoe of the Note and be apporiioned among and be payable with any installment
<br />paymerds to become due during either (1) the term of any applicable ir�suranoe policy; or (2) the remaining term of
<br />the Note; or (C) be treated as a ball�n payment which will be due and payable at the Note's matu�ity. The Deed of
<br />Trust also will secure paymerrt of these amounts. The �ights provided for in this paragraph shall be in addition to any
<br />other rights or any �serr�edies to which Lender may be entitled on acc�unt of any default Any such actlon by Lerxler
<br />shall not be construed as curing the default so � to bar Lender from any remedy that it othervvise would have had.
<br />WARRANTY; DEFENSE OF T1TLE. The following provisions 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 fn the
<br />Existing Indebtedness section below or in any title insurance policy, title report, or flnal title opinion (ssued in favor
<br />of, and accepted by, Lender in connection with this Deed of Trust, and (b) Trustor has the full right, power, and
<br />authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of Tttle. 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 persons. In the event any action or proceeding is cor�menced
<br />that questions Yrustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the
<br />action at Trustors 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 the proceeding by counsel of Lender's own chofce, 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 />Compllance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all
<br />existing applicable laws, ordinances, end regulatfons of govemmental authorities.
<br />SurvNal of Promises. All promises, agreemeMs, and statements Trustor has made in this Deed of Trust shall
<br />survive the executlon ar�d delNery of this Deed of Trust, shall be continuing in nature and shall remaln in full force
<br />and effect until such Ume as Tn.istor's Indebtedness is pafd in full.
<br />EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br />Existing Lien. The Ifen of this Deed of Trust securfng the Indebtedness may be secondary and infe�(or to the Iien
<br />securing payment of an existing obligation. The existing obligatlon has a current p�incipal balance of approximately
<br />$38,934.00. The obligation has the following payment terms: $980.00 per Month. Tn.istor expressly covenants
<br />and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such
<br />fndebtedness, any default under the instruments evidencing such indebtedness, or any default under any security
<br />documents for such indebtedness.
<br />No Modiflcation. Trustor shall not enter (nto 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 agr�ment is modified,
<br />amended, extended, or renewed without the p�ior written consent of Lender. Trustor shall ne(ther request nor
<br />accept any future advances under any such secuMty agreement 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 />Proceedings. If any proceeding in condemnation is flled, Trustor shall prompUy noUfy Lender in writing, and
<br />Trustor shall prompUy take such steps as may be neoessary to defend the acUon ar�d obtain the award. Trustor
<br />may be the nominal party in such prooeeding, but Lerider shall be enUUed to part(cipate in the prooeeding ar� to be
<br />represented in the proc�eeding by c:ounsel of its own choioe, and Trustor will deliver or cause to be deUvered to
<br />Lender such insYruments and da�mentadon ffi may be requested by Lender from time to Ume to permft such
<br />partiGpatlon. . . .
<br />AppllcaUon of Net Proceeds. If alt or any part of the Property is condemned by eminerrt domain pra�edi�s or by
<br />any proc�eeding or purc�ase in lieu of condemnation, Lender may at its etection require that all or any portion of the
<br />net prooeeds of the award be applied to the Indebtedness or the repafr or restoration of the Property. The net
<br />prooeeds of the award shall mean the award after paymerrt of all reasor�able costs, exper�ses, and attomeys' fees
<br />incurred by Trustee or Lender in connectlon with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIE3. The following provisions relat(ng
<br />to govemmental taxes, fees and charges are a part of this Deed of Trust:
<br />Current Taxes, Fe� and Charges. Upon request by Lender, Trustor shall execute such documents in addition to
<br />this Deed of Trust and take whatever other action is requested by Lender to perfect and continue Lender's Uen on
<br />the Real Property. Trustor shail 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 limitation all taxes, fees,
<br />documentary stamps, and other charges for recording or registe�ing this Deed of Trust.
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