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DEED OF TRUST 2� 12 U 5 71 � page 3
<br />Loan No: 71093583 (COntltlued)
<br />make proof of loss if Trustor fails to do so within flfteen (15) days of the casualty. Whether or not Lender's
<br />security is impaired, Lender may, at Lender's etection, recefve and retain the proceeds of any insurance and apply
<br />the proceeds to the reduction of the Indebtedness, payment of any Ilen affecting the Properly, 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 which have not been
<br />disbursed withfn 180 days after their receipt and which Lender has not committed to the repair or restoration 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 prfncipal balance of the Indebtedness. If Lender holds
<br />any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Tnastor as Trustor's
<br />interests may appear.
<br />Compllance with ExlsUng Indebtedness. During the pe�lod in which any Existing Indebtedness described below. is
<br />in effect, complianc� with the insuranc� provfsions contafned in the instrument evidencing such Existing
<br />Indebtedness shall constitute Rompliance with the insurance provisions under this Deed of Trust, to the extent
<br />compliance with the terms of fhfs Deed of Trust would constitute a duplicatfon of insurance requirement. If any
<br />proceeds from the fnsurance become payable on loss, the provisions in this Deed of Trust for division of proceeds
<br />shall appiy only to that portion of the proc�eds not payable to the holder of the Existing Indebtedness.
<br />LENDER'S EXPENDITURES. If Trustor fafls (A) to keep the Properly free of all taxes, Ilens, sec�urity interests,
<br />encxunbranoe.s, and otlier claims, (B) to provide any required i�uranc:e on the Properly, (C) to make repairs to the
<br />Property or to comply with any obliga�on to maintain Existlrig Indebtedr�e,ss in good stancling � required below, then
<br />Lender may do so. If any actlon or prooeeding is commenced that would materially affect Lerider's irrterests in the
<br />Property, then Ler�der on Trustors behalf may, but is not nequired to, take any actlon that Lender believes to be
<br />appropriate to protect Lenders interests. AII e�er�aes incurred or paid by Ler�der 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 repaymerrt by
<br />Trustor. AII such e�enses will become a part of the Indebtedness and, at Lender's optfon, will (A) be payable on
<br />demand; (B) be added to the balanoe of the Note and be apportioned among and be payable with any installmerrt
<br />paymerits to beoome due during either (1) the term of arry applicabte ir�uranoe policy; or (2) the remaining term of
<br />the Note; or (C) be treated as a f�lloon paymerrt which will be due and payabte at the Note's maturity. The Deed of
<br />Trust also will secx�re payment of these amour�ts. The rights provided for in this paragraph shall be in addiUon to any
<br />other rights or arry remedfes to which Lender may be entlUed on acxount of any default Any such acUon by Lender
<br />shall not be construed as curing the default so as to bar Lender from any rernedy that it othervvise would have had.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relaUng to ownership of the Property are a part of this De.ed
<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 Uens and encumbrancc�ss other than those set forth in the Real Property descriptlon or in the
<br />Existing Indebtedness section below or in any title insurance policy, title report, or flnal title opinion issu� in favor
<br />of, and acxepted 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 Title. Subject to the excepUon in the paragraph above, Trustor waRants and will forever defend the
<br />title to the Properly against the lawful claims of aIl pe�sons. 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 />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 clioice, 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 waRants that the Property and Trustor's use of the Property complies with all
<br />existing applicable laws, ordinances, and regulaUons of govemmental authorities.
<br />3urv(val oi Promises. AII promises, agreements, and statemerrts Trustor has made in this Deed of Trust shall
<br />survNe the exeartion and delivery of this Deed of Trust, shall be conUnuing in nature arid shall remain in full force
<br />and effect until such time as Trustors Ind�tedness is paid in full.
<br />EXISTING INDEBTEDNESS. The following provisions conceming Existing Indebtedness are a part of this Deed of Trust:
<br />ExisUng Lien. The tien of this Deed of Trust securing the Indebtedness may be secondary and inferior to the lien
<br />securing payment of an existing obligation. The existing obligation has a cunent p�incipal balance of approximatety
<br />$249,451.00. The obligaUon has the following payment terms: $2,377.00 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 eNdencing such indebtedness, or any default under any
<br />security documents for such indebtedness.
<br />No ModificaUon. Tnastor shall not enter into any agreement with the holder of any mortgage, dced of trust, or
<br />other security agreement which has priority over this Deed of Trust by which that agreement is modified,
<br />amended, extended, or renewed without the prior written consent of Lender. Trustor shall nefther request nor
<br />accept any future advances under any such security agreement without the p�for written consent of Lender.
<br />CONDEMNATION. The following provtsions relating to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any prooeeding in condemnaUon is filed, Trustor shall promptly notly Lender in wrftlng, and
<br />Trustor shall prompUy take such steps as may be neoe.ssary to defend the adion and obtain the award. Trustor
<br />may be the nomfnal pariy in such proc�eding, but Lender shall be entitled to partidpate in the prooeeding and to be
<br />r�resented in the proceeding by counsel of its own chofce, and Trustor will deliver or ca� to be delivered to
<br />Lender suc� instrvmerrts and dax��rrrentatlon as may be requested by Lender from tlme to Ume to permit such
<br />participatloe�.
<br />Application oi Net Proceeds. If all or any part of the Properly is condemned by eminerrt domain prooeedin� or by
<br />any prooeeding or purchase in I(eu of condemnatlon, Lender may at its electlon require that all or any portion of the
<br />net prooeeds of the award be applied to the Indebtedness or the repair or restorayon of the Properly. The net
<br />prooeeds of the award shall mean the award after paymerrt of all reagonable costs, e�er�es, and attomeys' fees
<br />incurred by Tn�stee or Lender in connecUon with the condemnatlon.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br />to govemmentat 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 D�d of Trust and take whatever other aeUon is requested by Lender to perfect and contfnue LendePs lien on
<br />the Real Properly. Trustor shall reimburse Lender for all taxes, as described below, together with atl e�cpenses
<br />incurred in recording, perfecting or continuing this Deed of Trust, including without Iimitation all taxes, fees,
<br />documentary stamps, and other charges for recording or registering this Deed of Trust.
<br />Tax�. The following shall constitute taxes to which this section 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 specific tax on
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