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DEED OF TRUST � 012 0 2 3 9 5
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<br />securfty is impaired, 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 lien affecting the Property, or the restoration
<br />and repair of the Property. If Lender elects to apply the proc�eds to restoration and repair, Trustor shall repair or
<br />replac� the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimbu�se Trustor from the proceeds for the reasonable cost of
<br />repair or restoration if Trustor is not (n default under this Deed of Trust. Any proceeds which have not been
<br />disbursed wfthin 180 days after their receipt and which Lender has not committed to the repair or restoration of
<br />the Property shall be us� flrst to pay any amount owing to Lender under this Deed of Trust, then ta 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 Trustors
<br />interests may appear.
<br />Compliance with ExisUng Indebtedness. During the period in which any Existing Indebtedness described below is
<br />in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing
<br />Indebtedness shall constitute complfance 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 duptication of insurance requirement. If any
<br />proceeds from the insurance become payable on loss, the provisions fn 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 iMerests,
<br />enc�mbranoes, and other daims, (B) to provide any required insuran� on the Property, (C) to make repairs to the
<br />Properly or to comply with ariy obligation to maintain F�dstlng Indebtedrress in good standing as required below, then
<br />Lender may do so. If any acdon or prooeeding is crommencxd that would materially affect Lender's interests in the
<br />Properly, then Lender on Tn,istors behalf may, but is not requfred to, take any action that Lender betieves to be
<br />appropriate to protect Lender's interests. AII c�e� incurred or paid by Lender for sudi purposes will then bear
<br />interest at the rate charged under the Note from the date incxirced or paid by Lender to the date of repaymerrt by
<br />Trustor. AII such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be �yable on
<br />demand; (B) be added to the balanoe of the Note and be appordoned among and be payable with any instaltment
<br />paymerrts to becorr� due during either (1) the term of any applicable ir�surance policy; or (2) the remaiNng term of
<br />the Note; or (C) be treated as a balloon paymerrt which wfll be due and payable at the Note's maturity. The Deed of
<br />Trust also wfll seaare payment of these amounts. The rights provided for in this paragraph shall be in addiUon to any
<br />other rights or any r�edies to which Lender may be entitled on account of any default Any such acUon by Lender
<br />shall not be construed as curing the default so � to tmr Lender from any remedy that it othervvise would have had.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed
<br />of Trust:
<br />Titte. Trustor warrants that: (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 fn the Real Property descriptlon 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 acxepted 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 Title. Subject to the exception in the paragraph above, Trustor waRants and will forever defend the
<br />tftle 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 or Lender under this Deed of Trust, Trustor shall defend the
<br />action at Trustor's e�cpense. Trustor may be the nominal party in such proceeding, but Lender shall be entftled to
<br />participate in the proceeding and to be represented in the proceeding by counsel of Lenders 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 />Compliance With Laws. Trustor warcants that the Property and Trustor's use of the Property complies with all
<br />existing applicable laws, ordinances, and regulations of govemmental authorities.
<br />Survival of Promises. All promises, agreements, and statements Trustor has rr�de in this Deed of Trust shall
<br />survive the exPCUtion arid delNery of this Deed of Trust, shall be conUnuing in nffiure and shall remain in full fores
<br />and effect until such time as Trustors Indebtedness is paid in full.
<br />EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br />ExisUng Llen. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to the I(en
<br />securing payment of an existing obligation. The existing obligation has a current principal balance of approximately
<br />$192,000.00. The obligation has the follawing payment terms: $987.00 per Month. Trustor expressly covenants
<br />and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such
<br />indebtedness, any default under the instruments evidencing such indebtedness, or any default under any security
<br />documents for such indebtedness.
<br />No Modlfication. 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 modifled,
<br />amended, extended, or renewed wfthout the prior written consent of Lender. Trustor shall netther request nor
<br />accept any future advanc�s under any such security agreement without the prior written consent of Lender.
<br />CONDEMNATION. The following provisions relatlng to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any prooeeding in condemnatlon is flled, Trustor shall prompUy noUfy Lender in w�lUng, and
<br />Trustor shatl promptiy take such steps � may be ►�o�ssary to defend the adion and obtain the award. Trustor
<br />may be the nominal party in such prooeeding, but Lender shall be entlUed to participate in the prooeeding and to be
<br />represeMed in the prooeeding by counsel of its own choice, and Trustor will deliver or cause to be delivered to
<br />Lender such instrumerrts and documerrtation as rrray be requested by Lender from time to tlme to permlt such
<br />partic�patlon.
<br />Applicatlon of.Net.Proceeds. If all or any part of the Properly is condemned by eminent domain proceedings or by
<br />any procceding or purchage in lieu of corrciemnadon, Lerxfer may at its electlon require that all or any portion of the
<br />net prooeeds of the award be applied to the Indebtedrress or the repair or restoratlon of the Property. The net
<br />prooeeds of the award shall mean the award after payment of all reasonable c�sts, exper�ses, and attomeys' fces
<br />inc�urred by Trustee or Lender in connecdon with the coridemnatlon.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisfons relating
<br />to govemmental taxes, fees and charges are a part of this Deed of Trust:
<br />Cunent Ta�ces, F� 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 Ilen on
<br />the Real Property. Trustor shall reimburse Lender for all taxes, as described below, together with all expenses
<br />incuRed in recording, perfecting or continuing this Deed of Trust, including without limitation all taxes, fees,
<br />documentary stamps, and other charges for recording or registering this Deed of Trust.
<br />Tau�. The following shall constitute taxes to which this section applies: (1) a speciflc tax upon this type of
<br />Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trust; (2) a speciflc tax on
<br />Trustor which Trustor is authorized or requfred to deduct from payments on the Indebtedness secured by this type
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