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�� ' DEED OF TRUST � p i 2 0 3� 1 v
<br />Loan No: 11093543 (Continued) Page 3
<br />security fs impaired, Lender may, at Lenders election, receive and retain the proceeds of any insurance and epply
<br />the procseds to the reductfon of the Indebtedness, payment of any lien affecting the Property, or the restoration
<br />and repafr of the Properly. 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 satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proc�eds for the reasonable cost of
<br />repair or restoration if Trustor is not in default under this Deed of Trust. Any pro�eds 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 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 appiled 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 />Compllance wlth Existlng Indebtedness. During the pe�iod in which any Existing Indebtedness described below is
<br />in effect, complfance with the insurance provisions contained in the instrument evidencing such Existing
<br />Indebtedness shall constitute compl(ance 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 toss, the provisions in this Deed of Trust for division of proc�eds
<br />shall apply only to that po�tion of the proceeds not peyable to the holder of the Existing Indebtedness.
<br />LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, lieris, security interests,
<br />encumbranoes, arid o�er claims, (B) to provide any required i�uranoe on the Properly, (C) to make repairs to the
<br />Properly or to comply with any obligatlon to main�in Existlng In�btedness in good standing as required below, then
<br />Lender may do so. If any acdon or prooeeding is �mmenced that would materially affect Lenders inte� in the
<br />Properiy, then Lender on Trustor's behalf may, but is not required to, take any adion thffi Lender believes to be
<br />appropriate to protect Lenders interests. AII e�e� incurred or pafd by Lerxler for such purposes will then bear
<br />interest at the rate charged under the Note from the date incurred or paid by Lender to 1he date of repaymerrt by
<br />Trustor. All such e�er�ses wfll become a part of the Indebtedness and, at Lender's option, will (A) be payeble on
<br />d�nand; (B) be ad�d to the balanoe of the Note and be apporUoned amorig and be �yable with any installmerrt
<br />paymerns to become due duri� either (1) the term of any applicable ir�uranoe policy; or (2) the re.rnaining term of
<br />the Note; or (C) be treated � a balloon paymerrt which will be due and payable at the Note's maturity. The Deed of
<br />Trust also will �re paymerrt of these amounts. The rights provided for in this paraggraph shall be in additlon to any
<br />otl�er rights or arry remedies to which Lender may be entftled on acxount of arry default. Any such adion by Lender
<br />shall not be construed as curing the default so as to bar Lender from arry remedy that it othervvise would have had.
<br />WARRANTY; D�ENSE 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 title of record to the Property in fee simple,
<br />free and clear of all Ifens and encumbrances other than those set forth in the Real Property descriptlon or in the
<br />Existing Indebtedness section below or in any title insurance policy, title report, or flnal 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, and
<br />authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exceptlon in the paragraph above, Trustor waRants and will forever defend the
<br />title to the Property against the lawful claims of all persons. In the event any acUon or proceeding is commenced
<br />that questions TrustoPs title or the interest of Trustee or Lender under this D�d 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 entitled to
<br />participate in the proceeding and to be represented in the proceeding by counsel of Lenders own choice 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 Wlth Laws. Trustor wanants that the Property and Trustors use of the Properly complies with all
<br />existing app8cable laws, ordinan�s, and regulations of govemmental authorities.
<br />Survlval of Promises. All promises, agreerr�rits, and statements Trustor has made in this Deed of Trust shall
<br />survive the execuUon and delivery of this Deed of Trust, shall be conUnuing in nature and shall remain in futl force
<br />and effect untll such time � Trustor's Indebtedne.ss is paid in full.
<br />EXISTiNG INDEBTEDNESS. The following provisions conceming Existing Indebtedness are a part of this Deed of Trust:
<br />Existlng Lien. The Ilen of this Deed of Trust securing the Indebtedness may be secondary and inferfor to the Ilen
<br />securing payment of an existing obligation. The existing obUgaUon has a current principal balance of approximately
<br />$148,000.00. The obligaUon has the following payment terms: $1,233.00 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 fndebtedness, any default under the instruments evidencing such indebtedness, or any default under any
<br />security documents for such indebtedness.
<br />No Modificatlon. 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 phor written consent of Lender. Trustor shall nefther request nor
<br />accept any future advanc�s under any such secur(ty agreement without the p�for 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 prooeeding in condemnadon is flled, Trustor shall promptly noUry Lender in wriUng, and
<br />Trustor shall prompUy take such steps � may be neoessary to defend the actlon and obtain the award. Trustor
<br />may be the nominal party In such proc�eding, but Lender shall be eMiUed to participate in the prooeeding and to be
<br />represerrted in the pr�ooeedirig by counsel of its own choice, and Trustor will deliver or ca� to be �livered to
<br />Lender such instrumeMs and documerrtation � may be requested by Lender' from Ume to time to permit sudi
<br />partidpatlon.
<br />AppllcaUon oi Net Proceeds. If all or a� part of the Property is �ndemned by eminerrt domain prooeedings or by
<br />any prooeeding or purchase in lieu of �rMemnatlon, Lender may at its etection require that all or arry portion of the
<br />net prooeeds of the award be applied to the Indebtedn� or the repair or restoration of the Property. The net
<br />prooeeds of the award shall mean the award after paymerrt of all r�ornable c�sts, exper�ses, and attomeys' fees
<br />incurt�ed by Trustee or Lender in connection with the oondemnaUon.
<br />IMPOSITION OF TAXES, FEESS AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relaUng
<br />to govemmental taxes, fees and charges are a part of this Deed of Trust:
<br />Current Taxes, Fe�s 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 Lend�r to perfect and continue Lender's lien on
<br />the Real Property. Trustor shall reimburse Lender for all ta�ces, as described below, together with all expenses
<br />incuRed in recording, perfecting or continuing this Deed of Trust, including without limitation all ta�ces, fees,
<br />documentary stamps, and other charges for rec�rding or registering this Deed of Trust.
<br />Tax�. The following shall constitute taxes to whfch 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 D�d of Trust; (2) a specific tax on
<br />Trustor which Trustor fs authorized or required to deduct from payments on the Indebtedness secured by this type
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