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DEED OF TRUST
<br />Loan No: 1109353-3 (Co11t111ued) � o � 2 � 2 9 7� Page 3
<br />in any way by any act, omission or default of Trustor or any other person. Should the Real Property be located in
<br />an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area,
<br />Trustor agrees to obtain and maintaln Federal Flood Insurance, if available, for the full unpaid principal balan� of
<br />the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the
<br />National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term
<br />of the loan.
<br />Applfcatlon of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Properly. Lender may
<br />make proof of loss ff Trustor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's
<br />security 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 tien 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 />replace the damaged or destroyed Improvements In a manner saUsfactory to Lender. Lender shall, upon
<br />satlsfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br />repafr or restoratlon If Trustor is not in default under this D�d of Trust. Any proceeds which have not been
<br />disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoraUon of
<br />the Property shall be used first 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 after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's
<br />interests may appear.
<br />Compliance wlth 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 Existfng
<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 duplication of insurance requirement. If any
<br />proceeds from the insurance become payable on loss, the provisions in this Deed of Trust for dNision 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 interests,
<br />encumbrances, and other claims, (B) to provide any required insurance on the Property, (C) to make repairs to the
<br />Properly or to comply with any obligation to maintain Existing Indebtedness in good standing as required below, then
<br />Lender may do so. If any action or proceeding is commenced that would materiaity affect Lenders interests in the
<br />Property, then Lender on Trustor's behalf may, but is not required to, take any action that Lender believes to be
<br />appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will then bear
<br />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 and, at Lender's optfon, will (A) be payable on
<br />demand; (B) be added to the balance of the Note and be apportioned among and be payable 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 as a balloon payment which will be due and payable at the Note's maturity. The Deed of
<br />Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any
<br />other rights or any remedies to which Lender may be enUUed on account of any default Any such action by Lender
<br />shall not be construed as curing the default so as to bar Lender from any remedy that it otherw(se 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 />Title. Trustor warrants that: (a) Trustor holds good and marketable UUe 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 the
<br />Existing lndebtedness section below or in any title insurance•policy, title report, or final title opinfon issued 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 />Defsnse of Title. SubJect to the excepUon in the paragraph above, Trustor warrants and will forever defend the
<br />tiUe to the Property against the lawful claims of all persons. In the event any action or proceeding is commenc�d
<br />that questions Trustor's tiUe or the interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the
<br />action at Trustor's expense. Trustor may 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 LendePs own choice, and
<br />Trustor will deliver, or cause to be delNered, to Lender such instruments as Lender may request from time to Ume
<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 />existtng applicable laws, ordinances, and regulations of govemmental authorlties.
<br />Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall
<br />survive the execuUon and delivery of this Deed of Trust, shall be contlnuing in nature and shall remain in full force
<br />and effect until such time as Trustor's Indebtedness is paid in full.
<br />IXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this D�d of Trust:
<br />Exlsting Lien. The Ilen of this Deed of Trust secur(ng the Indebtedness may be secondary and inferior to the Ilen
<br />securing payment of an existing obligation. The existing obligation has a cuRent principat balance of approximately
<br />$196,645.00. The obligation has the following payment terms: $1,915.00 per Month. Trustor expressly
<br />covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on
<br />such indebtedness, any default under the instruments evidencing such indebtedness, or any default under any
<br />security documents for such indebtedness.
<br />No Modiflcatlon. 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 without the prior written consent of Lender. Trustor shall neither request nor
<br />accept any future advances under any such security 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 notify Lender in writing, and
<br />Trustor shall prompUy 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 shall be entitled to participate in the proceeding and to be
<br />represented in the proceeding by counsel of lts own choic�, and Trustor will deliver or cause to be delivered to
<br />Lender such instruments and documentatlon as may be requested by Lender from tlme to time to permit such
<br />participation.
<br />AppllcaUon of N�t Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by
<br />any proceeding or purchase in lieu of condemnation, 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 restoratlon of the Property. The net
<br />proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and attomeys' fees
<br />incurred by Trustee or Lender in connection with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br />to govemmental taxes, fees and charges are a part of this Deed of Trust:
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