|
v�;� .,, r i 2 012 0 4 II 7'�
<br />DEED OF TRUST
<br />Loan No: 101253832 (Continued) Page 4
<br />security is impaired, Lender may, at Lender's election, receive end retein the proceeds of any insurance end epply
<br />the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration
<br />and repair of the Property. If Lender elects to apply the proceeds to restoration end repeir, Trustor shall repair or
<br />replece the dameged or destroyed Improvements in a manner satisfactory to Lender. Lender shell, upon
<br />satisfactory proof of such expenditure, pey 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 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 artlount owing to Lender under this Deed of Trust, then to pey eccrued
<br />interest, and the remainder, if any, shell be appiied to the principal balance of the Indebtedneas. If Lender holds
<br />any proceeds after payment in full of the Indebtedness, such proceeds shell be paid to Trustor as Trustor's
<br />interests may appear.
<br />Comptience 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 consUtute compliance with the insurence provisions under this Deed of Trust, to the extent
<br />compliance with the terms of this Deed of Trust would constitute e duplication of fnsurence requirement. If eny
<br />proceeds from the insurance become payable on loas, the provisions in this Deed of Trust for division of proceeds
<br />shall epply only to that portion of the proceeds not payeble to the holder of the Existing indebtedness.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, i'rustor sheil fiutnish
<br />to Lender a report on each existing poticy 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 replacement value of such
<br />property, and the manner of determining thet value; and (b) the expiration dete of the policy. Trustor shell, upon
<br />request of Lender, have an independent appraiser satisfactory to Lender determine the cash vatue replecement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced thet would materielly affect Lender's interest in
<br />the Property or if Trustor fails to comply with any provision of this Deed of Trust or any Releted Documents, including
<br />but not limited to Trustor's failure to comply with any obligetion to maintain Existing Indebtedness in good stending es
<br />required below, or to discharge or pay when due any emounts Trustor is required to discharge or pay under this Deed of
<br />Trust or eny Related Documents, Lender on Trustor's behalf may (but shell not be obligated to) take any action thet
<br />Lender deems appropriate, including but not limited to discharging or paying all texes, liens, security interesta,
<br />encumbrances and other claims, at any time levied or placed on the Property and paying ell costs for lnsuring,
<br />meintaining and preserving the Property. All such expenditures 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 peid by Lender to the date of repeyment by
<br />Trustor. All such expenses will become a pert of the Indebtedness end, et Lender's option, will (A) be payabie on
<br />demend; (B) be added to the balence of the Note and be apportioned among end be payeble with any installment
<br />peyments to become due during either 11) the term of any applicable insurance policy; or (2) the remeining term of
<br />the Note; or (C) be treated as a balloon payment whtch will be due and payable at the Note's meturity. The Deed of
<br />Trust also will secure peyment of these amounts. Such rfght shall be in addition to ell other rights and remedies to
<br />which Lender mey be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The fottowing provisions relating to ownership of the Property are e part of thia 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 aet forth in the Real Property description or in the
<br />Existing Indebtedness section below or (n any title inaurance policy, title report, or flnal titte opinion issued in fevor
<br />of, end accepted by, Lender in connection with thia Deed of Trust, end (b) Trustor has the fult right, power, and
<br />authority to execute and deliver this Deed of Trust to LeAder.
<br />Defense of Title. Subject to the exception in the peregraph ebove, Trustor warrants and wiil forever defend the
<br />title to the Property against the lawful claims of ell persons. In the event any ection or proceeding is commenced
<br />that questions Trustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustor ahell defend the
<br />action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shell 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 mey request from time to time
<br />to permit such perticipation.
<br />Compllance With Laws. Trustor werrants that the Property and Trustor's use of the Property complies with all
<br />existing applicable laws, ordinences, and reguletions of governmentel authorities.
<br />Survival of Represerrtetion� and Warrenties. All representetions, warranties, and agreements mede by Trustor in
<br />this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shail be continuing in neture, and
<br />shall remain in full force and effect until auch time as Trustor's Indebtedness shail be paid in full.
<br />EXISTING INDEBTEDNESS. The followtng provisions concerning Existing Indebtedness are a part of thia Deed of Trust:
<br />Existtng Lien. The lien of this Dead of Trust securing the Indebtedness may be secondery end inferior to en
<br />ex(sting Iten. Trustor expressly covenants end agrees to pay, or aee to the payment of, the Exiating Indebtedness
<br />and to prevent any default on such indebtedness, any default under the instruments evidencing such indebtedneas,
<br />or eny default under eny security documents for such indebtedness,
<br />
|