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<br />�� DEED OF TRUST 2 012 0 2 6 4�
<br />Loan No: 101251264 (Continued) Page 4
<br />make proof of loss if Trustor fails to do so within fifteen (15) days of the cesualty. Whether or not Lender's
<br />security is impaired, Lender may, et Lender's election, receive and retain the proceeds of any insurance end apply
<br />the proceeds to the reduction of the Indebtedness, peyment of eny lien affecting the Property, or the restoration
<br />and repair of the Property. If Lender elects to apply the proceeds to restoretion end repeir, Trustor shall repair or
<br />replace the damaged or destroyed Improvements in a manner satisfectory to Lender. Lender shall, upon
<br />satisfectory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br />repair or restoretion if Trustor is not in default under this Deed of Trust. Any proceeda which hsve 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 pey any emount owing to Lender under this Deed of Trust, then to pey accrued
<br />interest, end the remainder, if any, shall be applied to the principal balence of the Indebtedness. If Lender holds
<br />any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor es Trustor's
<br />interests may appear.
<br />Compflance wkh Existing 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 shell 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 duplicetion of insurence requirement. If any
<br />proceeds from the insurence become payeble on loss, the provisions in this Deed of Trust for division of proceeds
<br />shall apply only to that portion of the proceeds not payeble to the holder of the Existing Indebtedness.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than 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 lnsured, the then current replacement value of auch
<br />property, and the manner of determining that value; and (5) the expiration date of the policy. Trustor shall, upon
<br />request of Lender, have en independent appraiser satisfactory to Lender determine the cesh velue replacement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. if any action or proceeding is commenced that would meterielly affect Lender's interest in
<br />the Property or if Trustor fails to comply with eny provision of this Deed of Trust or any Related Documents, including
<br />but not limited to Trustor's failure to comply with any obligation to maintain Existing Indebtedness in good standing es
<br />required below, or to discharge or pay when due eny amounts Trustor is required to discharge or pay under this Deed of
<br />Trust or any Related Documents, Lender on Trustor's behelf may (but shell not be obligeted to) take eny action that
<br />Lender deems appropriate, (ncluding but not limited to discharging or peying all texes, liens, security interests,
<br />encumbrances and other claims, at any time levied or placed on the Property and paying all 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 end, at Lender's option, will (A) be payable on
<br />demand; (B) be added to the balance of the Note and be apportioned among and be peyable with eny installment
<br />payments to become due during either (1) the term of any applicable insurance policy; or 12) the remaining term of
<br />the Note; or (C) be treated es a belloon payment which will be due and payable at the Note's maturity. The Deed of
<br />Trust also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to
<br />which Lender mey be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a pert 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 end clear of all liens and encumbrences other than those set forth in the Real Property description or in the
<br />Existing Indebtedness section below or in eny titie insurance 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 has the full right, power, end
<br />authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the peragraph above, Trustor warrants and will forever defend the
<br />title to the Property egainst tha lawfut cleims of all persons. In the event any action or proceed(ng fs commenced
<br />that questions Trustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustor ahall 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 represented in the proceeding by counsel of Lender's own choice, end
<br />Trustor will deliver, or ceuse to be delivered, to Lender such instruments as Lender may request from tfine to time
<br />to permit such participation.
<br />Compliance With Laws. Trustor werrants that the Property and Trustor's use of the Property complies with all
<br />existing appliceble laws, ordinances, and reguletions of governmental authorities.
<br />Survival of Representations and Warrarnies. All representetions, warranties, and agreements made by Trustor in
<br />this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and
<br />shall remain in full force and effect until such time as Borrower's Indebtedness shall be paid in full.
<br />EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br />Existlng 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, eny default under the instruments evidencing such indebtedness,
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