|
DEED OF T�iUST 2 012 0 4 9 7�
<br />Loan No: 10002440 (Continuj�d) Page 3
<br />security is impaired, Lender mey, at Lender's election, recdive and retain the proceeds of eny insurance and apply
<br />the proceeds to the reduction of the Indebtedness, peyment of any lien affecting the Property, or the restoretfon
<br />and repair of the Property. If Lender elects to apply the proceeds to restoration and repeir, Trustor shall repair or
<br />replace the dameged or destroyed Improvements in a�manner setisfactory 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 defeult under thi� Deed of Trust. Any proceeds which have not been
<br />disbursed within 180 days efter their receipt and which LBnder has not committed to the repair or restoration of
<br />the Property shall be used first to pay any amount owing tp Lender under this Deed of Trust, then to pay accrued
<br />interest, and the remainder, if any, shall be epplied to the I,principal belance of the Indebtedness. 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 />Compliance with Existing Indebtedness. During the periodIin which any Existing Indebtedness described below is
<br />in effect, compliance with the insurance provisions cdntained in the instrument evidencing such Existing
<br />Indebtedness shall constitute compliance with the insurarlce provisions under this Deed ot Trust, to the e�ctent
<br />compliance with the terms of this Deed of Trust would constitute a duplicetion of insurance requirement. If any
<br />proceeds from the insurence become payable on loss, the provisions in this Deed of Trust for division of proceeds
<br />shall apply only to thet portion of the proceeds not payable �o the holder ot the Existing Indebtedness.
<br />LENDER'S EXPENDRURES. If Trustor fails (A) to keep th� Property free of all taxes, liens, security interests,
<br />encumbrances, end 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 �ndebtedness in good standing as required below, then
<br />Lender may do so. If any action or proceeding is commencea that would materieliy affect Lender's interests in the
<br />Property, then Lender on Trustor's behelf iney, but is not required to, take eny ection thet 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 in urred or paid by Lender to the date of repayment by
<br />Trustor. Atl such expenses will become e part of the Indebte ness and, at Lender's option, will (A) be payable on
<br />demend; (B) be edded to the belance of the Note end be adportioned among and be payable with any installment
<br />payments to become due during either (1) the term of any ap�licable insurance policy; or (2) the remaining term of
<br />the Note; or (C) be treated as a balloon payment which will b8 due and payable et the Note's maturity. The Deed of
<br />Trust also will secure payment of these amounts. The rights provided for in this paragraph shell be in addition to any
<br />other rights or any remedies to which Lender mey be entitled On account of any default. Any such action by Lender
<br />shell not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have hed.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions rela�ing to ownership of the Property are a part of this Deed
<br />of Trust:
<br />Title. Trustor werrants that: (a) Trustor holds good and r�arketable title of record to the Properly in fee simple,
<br />free and clear of alt liens end encumbrences other than thbse set forth in the Real Property description or in the
<br />Existing Indebtedness section below or in any title insurenc� policy, title report, or final title opinion issued in favor
<br />of, and accepted by, Lender in connection with this Deed Qf 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 Title. Subject to the exception in the paragraph above, Trustor warrants end will forever defend the
<br />title to the Property egainst the lawful claims of all personai. In the event any action or proceeding is commenced
<br />that questions Trustor's title or the interest of Trustee or L�nder under this Deed of Trust, Trustor shall defend the
<br />action at Trustor's expense. Trustor may be the nominel p'arty in such proceeding, but Lender shall be entitled to
<br />participate in the proceeding and to be represented in th� 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 participation.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all
<br />existtng applicable laws, ordinances, end regulations of gov�rnmental authorities.
<br />Sunrival of Promises. All promises, agreements, and sta{ements Trustor has made in this Deed of Trust shall
<br />survive the execution end delivery of this Deed of Trust, shall be continuing in nature and shell remain in full force
<br />and effect until such time es Trustor's Indebtedness is paid pn full.
<br />EXISTING INDEBTEDNESS. The following provisions conceming Existing Indebtedness are e part of this Deed of Trust:
<br />Existing Lien. The lien of this Deed of Trust securing tFle Indebtedness mey be secondary and inferior to en
<br />existing lien. Trustor expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness
<br />and to prevent any defeult on such indebtedness, any defa�it under the instruments evidencing such indebtedness,
<br />or any detault under any security documents for such indeb edness.
<br />No Modfflcetton. Trustor shell not enter into eny agreem8nt with the holder of any mortgage, deed of trust, or
<br />other security agreement which has priority over this aeed of Trust by which thet agreement is modified,
<br />amended, extended, or renewed without the prior written' consent of Lender. Trustor shall neither request nor
<br />accept any future advences under any such security egreerrient without the prior written consent of Lender.
<br />CONDEMNATION. The following provisions relating to condemnAtion proceedings are a part ot this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is filed^ Trustor shall promptly notify Lender in writing, and
<br />Trustor shall promptly take such steps as may be necessery to defend the ection and obtein the award. Trustor
<br />may be the nominal party in such proceeding, but Lender sh;all be entitled to participate in the proceeding and to be
<br />represented in the proceeding by counsel of its own choi�'e, and Trustor will deliver or cause to be delivered to
<br />Lender such instruments and documentation as may be r¢�quested by Lender from time to time to permit such
<br />participation.
<br />Application of Net Proceeds. If all or any part of the Prope�Y is condemned by eminent domein proceedings or by
<br />any proceeding or purchase in lieu of condemnation, Lenderl may at its election require that all or any portion of the
<br />net proceeds of the eward be applied to the Indebtedness� or the repair or restoration of the Property. The net
<br />proceeds of the awerd shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees
<br />incurred by Trustee or Lender in connection with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMEII�ITAL AUTHORITIES. The following provisions relating
<br />to governmental taxes, fees and cherges are a part of this Deed Qf Trust:
<br />Currerrt Taues, Fees and Charges. Upon request by Lende , Trustor shall execute such documents in addition to
<br />this Deed of Trust and teke whatever other action is reque�ted by Lender to perfect and continue Lender's lien on
<br />the Real Property. Trustor shall reimburse Lender for eli taxes, as described below, together with all expenses
<br />incurred in recording, perfecting or continuing this Deed iof Trust, including without limitetion all taxes, fees,
<br />documentary stamps, and other charges for recording or registering this Deed of Trust.
<br />Taxes. The following shall constitute texes to which this �section applies: (1) e specific 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
<br />Trustor which Trustor is authorized or required to deduct fr m payments on the Indebtedness secured by this type
<br />of Deed of Trust; (3) a tex on this type of Deed of Trust chargeable against the Lender or the holder of the Note;
<br />and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by
<br />
|