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'<' DEED OF TRUST � o� cZ O� 2 6 8
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<br />Loan No: 101253367 (Continued) Page 4
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<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 Lendar's election, receive and retain the proceeds of any insurance and apply
<br />the proceeds to the reduction of the Indebtedness, peyment of eny lien affecting the Property, or the restoration
<br />and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shell repair or
<br />replace the demaged or destroyed Improvements in a menner satisfactory to Lender. Lender shell, 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 which have not been
<br />disbursed within 180 deys after their receipt and which Lender has not committed to the repair or restoretion 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 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 Existing
<br />Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trust, to the extent
<br />complience with the terms of this Deed of Trust would constitute a duplication of insurance requirement. If any
<br />proceeds from the insurance become payeble on loss, the provisions in this Deed of Trust for division of proceeds
<br />shall apply only to thet portion ot the proceeds not payable to the holder of the Existing Indebtedness.
<br />Trustor's Report on Insurence. Upon request of Lender, however not more than once a year, Trustor shell furnish
<br />ta Lender a report on each existing policy of insurence showing: (1) the name of the insurer; (2► the risks
<br />insured; (3) the amount of the policy; (4) the property insured, the then current replecement value of such
<br />propeny, and the manner of determining thet value; and (5) the expiration date of the policy. Trustor shall, upon
<br />request of Lender, have an independent appraiser satisfactory to Lender determine the cash velue replecement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially effect Lender's interest in
<br />the Property or if Trustor fails to comply with any provision of this Deed of Trust or any Related Documents, including
<br />but not limited to Trustor's failure to comply with any obligation to maintain Existing Indebtedness in good standing as
<br />required below, or to discherge or pay when due any amounts Trustor is required to discharge or pay under this Deed of
<br />Trust or eny Related Documents, Lender on Trustor's behelf may {but shall not be obligated to) take any action thet
<br />Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests,
<br />encumbrances and other claims, at any time levied or placed on the Properry and paying all costs for insuring,
<br />maintaining and preserving the Property. All such expanditures incurred or paid by Lender for such purposes will then
<br />bear interest at the rate charged under the Note from the date incurred or paid by Lendar to the date of repayment by
<br />Trustor. All such expenses will become a pert 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 payeble with any instellment
<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 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 mey be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property ere e 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 liens and encumbrances other than those sat forth in the Real Property description or in the
<br />Existing Indebtedness section below or in any title insurance policy, title report, or final 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 executa end deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragreph above, Trustor warrants end will forever defend the
<br />title to the Property against the lawful claims of all persons. In the event eny 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 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 Lender's 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 />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 governmental authorities.
<br />Survival of Representations and Warranties. All representations, warranties, end agreements made by Trustor in
<br />this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and
<br />shall remain in full force and effect until such time as Borrower's Indebtedness shatl be paid in fulf.
<br />EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br />F�dsting Lien. The lien of this Deed of Trust securing the Indebtedness mey be secondary end inferior to en
<br />existing lien. Trustor expressly covenents and agrees to pay, or see to the payment of, the Existing Indebtedness
<br />and to prevent any default on such indebtedness, any default under the instruments evidencing such indebtedness,
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