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DEED OF TRUST � � 1 � � � � � �`
<br />(Continued) Page 4
<br />but not limited to Trustor's failure to d(scharge or pay when due any emounts Trustor is required to discharge or pay
<br />under this Deed of Trust or any Related Documents, Lander on Trustor's behalf may (but shall not be obUgated tol take
<br />any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, secu�ity
<br />interests, 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 ftom 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, will (A) be payabie on
<br />demand; (B) be added to the balance of the Note and be apportioned among and be payeble with any installment
<br />payments to become due during either (1? the term of any appliceble insurance policy; or 12) the remaining term of
<br />the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's metu�ity. The Deed of
<br />Trust also wili secure payment of these amounts. Such right shall be in addition to all other rights end remedies to
<br />which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed
<br />of Trust:
<br />Tttle. 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 any
<br />title insurence policy, title report, or final title opinion fssued in favor of, and accepted by, Lender in connection
<br />with this Deed of Trust, and (b) Trustor has the full right, power, and autho�ity to execute and deliver this Deed of
<br />Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the
<br />title to the Property against the lawrful claims of all persons. In the event any ection or proceeding is commenced
<br />that questions Trustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustor shail defend the
<br />action at Trustor's expense. Trustor mey be the nominal party in such proceeding, but Lender shall be entiUed to
<br />participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and
<br />Trustor will deflver, 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 warrants that the Proparty and Trustor's use of the Property complies with all
<br />existing applicable laws, ordinances, and regulations of governmental authorities.
<br />Survrvel of Representations and Wartantles. All representetions, warranties, and agreements made by Trustor in
<br />this Deed of Trust shall survive the execution and delivery of this Daed of Trust, shalt be continuing in nature, and
<br />shall remain in full force end effect until such time as Trustor`s Indebtedness shall be paid in full.
<br />CONDEMNATIOIU. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />P7oceedings. If any proceeding in condemnation is filed, Trustor shell promptly notify Lender in writing, end
<br />Trustor shall promptly take such steps as may be necessary to defend the action and obtain the award. Trustor
<br />may be the nominal party in such proceeding, but Lender shali be entitted to participate in the proceeding and to be
<br />represented in the proceeding by counsel of its own choice, and Trustor will deliver or cause to be delivered to
<br />Lender such instruments and documentation as may be requested by Lender from time to time to permit such
<br />participation.
<br />Appflcatton of Wet Proceeds. tf all or any pert of the Pro�rty is condemned by eminent domain proceedings or by
<br />any proceeding or purchase in lieu of condemnetion, 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 efter peyment of all reasonable costs, expenses, and attorneys' fees
<br />incurrad by Trustee or Lender in connection with the condemnation.
<br />IMPOSRION OF TAXES, FEES AND CHARGES BY GOVERNIIAENTAL AUTHORITIES. The following provisions ralating
<br />to govemmental taxes, 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 documents in addition to
<br />this Deed of Trust end teke whatever other action is requested by Lender to perfect and continue Lender's Ifen on
<br />ihe Real Property. Trustor shall reimburse Lender for alI taxes, as described below, together with all expenses
<br />incurred in recording, perfecting or continuing this Deed of Trust, including withoert limitation all taxes, fees,
<br />documentary stamps, and other charges for recording or ragistering this Deed of Trust.
<br />Taues. The followirtg shall constitute taxes to which this section applies: (1) a specific tax upon this type of
<br />Deed of Trust or upon ail or any part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on
<br />Trustor which Trustor is authorized or required to deduct from payments on the Indebtedness 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 ali or any portion of the Indebtedness or on payments of principal and interest made by
<br />Trustor.
<br />Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Deed of
<br />Trust, this event shaQ have the same effect as an Event of Default, and Lender may exercise any or all of its
<br />availeble remedies for an Event of Default as provided below unless Trustor either !1) pays the tax before it
<br />becomes delinquent, or (2) contests the tax as provided ebove in the Taxes and Liens section and deposits with
<br />Lendar cash or e sufficient corporate surety bond or other security satisfactory to Lender.
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