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20�2U4063
<br />DEED OF TRUST
<br />Loan No: 11093393 (Contlnued) Page 3
<br />security is impalred, Lender may, at Lender's election, receive and retain the proceeds of any insurance and appiy
<br />the proceeds to the reduction of the Indebtedness, payment of any Ifen 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 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 />repair or restoration if Trustor is not in default under this Deed of Trust. Any proceeds wh(ch have not been
<br />disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration 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 balan� 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 with 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 Exlsting
<br />Indebtedness shall constitute compliance with the (nsurance provisions under this Deed of Trust, to the extent
<br />compliance with the terms of this Deed of Trust would constitute a duptication of insurance requirement If any
<br />proceeds from the insurance become payable on loss, the provisions in this Deed of Trust for division of praceeds
<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 materially affect Lender's interests in the
<br />Property, then Lender on Trustor's behalf may, but is not required to, take any actlon 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 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 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 enUtled 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 otherwise 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 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 description or in the
<br />F�cisting Indebtedness section below or in any tltle insurance policy, title report, or flnal Utle 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 TIUe. Subject to the exception in the paragraph above, Trustor warrants and wfll forever defend the
<br />Utle to the Property against the lawFul claims of all persons. In the event any action or proceeding is commenced
<br />that questions Trustors tiUe 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 parly 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 deliver, or quse to be delivered, to Lender such instruments as Lender may request from tlme to tlme
<br />to permit such participation.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all
<br />existing applicable laws, ordinances, and regulations of govemmental authorities.
<br />5urvival of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall
<br />surv'rve the execution 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 TrustoPs Indebtedness is paid in full.
<br />DOSTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br />Exlsting Llen. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to the Ilen
<br />securing payment of an existing obligation. The existing obligation has a current principal balance of approximately
<br />$187,310.00. The obligation has the following payment terms: $1,905.00 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 evldencing 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 mod'rfied,
<br />amended, extended, or renewed without the prior written consent of Lender. Trustor shall neither request nor
<br />acxept 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 filed, Trustor shall prompUy notify Lender in writing, and
<br />Trustor shall prompUy take such steps as may be necessary to defend the actlon and obtain the award. Trustor
<br />may be the nominal party in such proceeding, but Lender shall be entiUed 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 />Applicatlon o� Nat Procseds. 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 eledion 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 conneckion 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:
<br />Current Taxes, Fees and Charges. Upon request by Lender, Trustor shall execute such documents in addition to
<br />this Deed of Trust and take whatever other action fs requested by Lender to pertect 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, pe�fecUng or contlnuing this Deed of Trust, including without limitation all taxes, fees,
<br />documentary stamps, and other charges for recording or registering this Deed of Trust.
<br />Taues. The following shall constitute taxes to which this sedion 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 Deed of Trust; (2) a specfic tax on
<br />Trustor which Trustor is authorized or required to deduct from payments on the Indebtedness secured by this type
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