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,` �. ^�� a.r �� DEED OF TRUST � p 12 0 3 5 9 3
<br />(Continued) P�ge 3
<br />AppUcetion of Proceeds. Trustor ahell promptly notify Lender of any loss or damage to the Property. Lender may
<br />make proof of loss if 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 epply
<br />the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoretion
<br />and repair of the Property. If Lender elects to apply the proceeds to restoration and repeir, Trustor shall repair or
<br />replace the damaged or destroyed Improvements in e manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br />repalr or restoration if Trustor is not in defeult under this Deed of Trust. Any proceeds which have not been
<br />disbursed withln 180 deys efter their receipt and which Lender has not committed to the repeir or restoration of
<br />the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pey accrued
<br />interest, and the remainder, if any, shall be applied to the principel balance of the Indebtednesa. If Lender holds
<br />any proceeds after payment in full of the Indebtedness, such proceeds shall be peid to Trustor as Trustor's
<br />interests may appear.
<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 amaunt of the poticy; (4) the property insured, the then current replacement value of such
<br />property, and the manner of determining thet value; end (5) the expiration date of the policy. Trustor shall, upon
<br />request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in
<br />the Property or if Trustor fails to compty with any provlsion of this Deed of Trust or any Related Documents, including
<br />but not limited to Trustor's failure to discharge or pay when due any amounts Trustor is required to dlscherge or pay
<br />under this Deed of Trust or any Releted Documents, Lender on Trustor's behalf may (but shall not be obligated to) take
<br />any ection thet Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security
<br />interests, encumbrances and other claims, et any time lev(ed or placed on the Property and peying all costs for insuring,
<br />maintaining end preserving the Property. All such expenditurea incurred or paid by Lender for such purposes wfll then
<br />bear intereat 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, wiil (A) be payeble on
<br />demand; (B) be edded to the balance of the Note and be epportioned among and be peyable with any installment
<br />payments to become due during either (11 the term of any epplicable insurence 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 meturity. 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 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 />Title. Trustor werrants that: (a) Trustor holds good and merketable 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 insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection
<br />with this Deed of Trust, and (b) Trustor has the full right, power, and authority to execute and deUver this Deed of
<br />Trust to Lender.
<br />Defense of Tttle. Subject to the exception in the paregraph above, Trustor warrants and will forever defend the
<br />title to the Property against the lawful cleims 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 expense. Trustor mey be the nominel party tn 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, and
<br />Trustor will deliver, or ceuse to be delivered, to Lender such instruments as Lender may request from time to time
<br />to permit such participation.
<br />Compltance With Laws. Trustor warrents that the Property and Trustor's use of the Property complies with all
<br />existing applicable laws, ordlnances, and regulations of governmentai authorities.
<br />Survival of Representations and Werrenties. All representations, warranties, and egreements made by Trustor in
<br />this Deed of Trust shall survive the execution end delivery of this Deed of Trust, shell be continuing in neture, and
<br />shall remein in full force and effect until such time as Trustor's Indebtedness shafl be peid in full.
<br />CONDEMNATION. The following provlsions relating to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnetion is filed, Trustor shall promptly notify Lender in writfng, and
<br />Trustor shall promptly take such steps as may be necessary to defend the ection and obtain the eward. 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 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 irom time to time to permit such
<br />participation.
<br />Appllcation of Net Proceeds. if all or any part of the Property is condemned by eminent domein 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 restoretion of the Property. The net
<br />proceeds of the award shall mean the awerd after payment of all reasonabie costs, expenses, and attorneys' 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 governmental taxes, fees end charges are a pert of this Deed of Trust:
<br />Cunent Texes, Fees and Chargas. Upon request by Lender, Trustor shall execute auch documents in addition to
<br />this Deed of Trust and teke whatever other action is requested by Lender to perfect and continue Lender's lien on
<br />the Real Property. Trustor shall reimburse Lender for all taxes, as described below, together with all expenses
<br />incurred in recording, perfecting or continuing this Deed of Trust, including without limitation all texes, fees,
<br />documentary stamps, and other cherges for recording or registering this Deed of Trust.
<br />Taxes. The following shall constitute taxes to which this section appliea: (1) a specific tex 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 specific tex on
<br />Trustor which Trustor is authorized or required to deduct ftom payments on the Indebtedness secured by this type
<br />of Deed of Trust; (3) e tex on this type of Deed of Trust chargeable ageinst the Lender or the holder of the Note;
<br />and (4) a speclflc tex on all 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 shall have the seme effect as an Event of Default, and Lender may exercise any or all of ita
<br />available 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 />Lender cash or a sufficient corporate surety bond or other security setisfactory to Lender.
<br />SECURITY AQREEMENT; FINANCING STATEMENTS. The following provisions relating to this Deed of Trust ea a
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