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<br />DEED OF TRUST
<br />Loan No: 1109364-3 (Continued) Page 3
<br />make proof of loss if Trustor fails to do so within fifteen (15) days of the casualry. Whether or not Lender's
<br />security is impaired, Lender may, at Lender's eleation, receive and retain the proceeds of any fnsurance and apply
<br />the proceeds to the redudion of the Indebtedness, payment of any lien affecting the Property, or the restoratlon
<br />and repair of the Property. If Lender elects to apply the proceeds to restoraUon and repafr, Trustor shall repair or
<br />replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />satlsfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br />repair or restoraUon if Trustor is not in default under this Deed of Trust. Any proceeds which have not been
<br />disbu�sed within 180 days after thefr receipt and which Lender has not committed to the repair or restoratlon of
<br />the Property shall be used flrst to pay any amount owing to Lender under this D�d of Trust, then to pay accrued
<br />interest, and the remainder, if any, shall be applied to the principal balancs of the Indebtedness. If Lender holds
<br />any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustors
<br />interests may appear.
<br />Compltance with Exlsting Indebtedness. During the period in which any Existing Indebtedness described below is
<br />in effect, compliance with the insurance provisfons contained in the instrument evidencing such Existing
<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 duplfcatfon of insurance requirement. If any
<br />proceeds from the insurance become payable on loss, the provisions in thfs Deed of Trust for division 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 />Property 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 materially affect Lender's 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. AII expenses incurred or paid by Lender for such purposes will then bear
<br />interest at the rate charged under the Note from the date incuRed 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 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 wili 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 addiGon to any
<br />other rights or any remedies to which Lender may be entitled on account of any default. Any such actlon by Lender
<br />shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had.
<br />WARRANTY; DEFENSE OF T1TLE. The following provisions relating to ownership of the Property are a part of this Deed
<br />of Trust:
<br />Title. Trustor waRants that: (a) Trustor holds good and marketable tiUe 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 descripUon or in the
<br />Existing Indebtedness section below or in any tiUe insurance policy, title report, or final title opinion issued in favor
<br />of, and accepted by, Lender fn connection wlth this Deed of Trust, and (b) Trustor has the full r(ght, power, and
<br />authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of TItJe. Subjed to the exception in the paragraph above, Trustor warrants and will forever defend the
<br />title to the Property against the lawful claims of all persons. In the event any actlon 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 />actlon at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shall be entlUed 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 delivered, to Lender such instruments as Lender may request from tlme to time
<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 />existing applicable laws, ord(nances, and regulations of govemmental authorities.
<br />Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall
<br />survNe the execuUon and delivery of this Deed of Trust, shall be continuing in nature and shall remain in full force
<br />and effect until such time as Trustor's Indebtedness is paid in full.
<br />EXISTING INDEBTEDNESS. The following provisions concerning E�cisting Indebtedness are a part of this Deed of Trust:
<br />Facisting Lien. The Ilen of this Deed of Trust securing the Indebtedness may be secondary and inferior to the Ifen
<br />securing payment of an existing obligation. The existing obligation has a cuRent principal balance of approximately
<br />$226,639.00. The obiigation has the following payment terms: $2,399.00 per Month. Trustor expressly
<br />covenants and agrees to pay, or s� to the payment of, the Existing Indebtedness and to prevent any default on
<br />such indebtedness, any default under the instruments ev(dencing 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 w�itten 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 writlng, 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 enUUed to participate in the proceeding and to be
<br />represented in the proceeding by counsel of its own choice, and Trustor will deUver or cause to be deUvered to
<br />Lender such instruments and documentation as may be requested by Lender from tlme to time to permit such
<br />participation.
<br />Appllcadon of Net Proceeds. If all or any part of the Property is condemned by eminent domafn proceedings or by
<br />any proceeding or purchase in lieu of condemnatlon, 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 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 fotlowing provisfons relating
<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 addiUon to
<br />this D�d of Trust and take whatever other action is requested by Lender to perfect and continue Lender's lien on
<br />the Real Property. Tn,istor shall reimburse Lender for all taxes, as described below, together with all expenses
<br />incurred in record(ng, perfecting or continuing this Deed of Trust, including without IimitaUon all taxes, fees,
<br />documentary stamps, and other charges for recording or registering this Deed of Trust.
<br />Taxes. The following shall constitute taxes to which this section applfes: (1) a speciflc tax 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 tax on
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