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<br />DEED OF TRUST
<br />Loan No: 101253472 (Continued)
<br />Page 4
<br />make proof of loss if Trustor fails to do so within fifteen (1 b) deys of the cesualty. Whether or not Lender's
<br />security is impeired, Lender may, at Lender's election, receive end retefn the proceeds of any insurence and apply
<br />the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration
<br />and repeir of the Property. If Lender elects to apply the proceeds to restoretion end repair, Trustor shall repair or
<br />replace the damaged or destroyed Improvementa in a manner satiafactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburae Trustor from the proceeds for the reasonable cost of
<br />repair or restoratfon 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 repeir or reatoration 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 epplied to the principel 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 Truator's
<br />interests may appear.
<br />CompOance with F�cistlng indebtedness. During the period in which any Existing Indebtedness deacribed below is
<br />in effect, compliance with the insurence provisiona conteined in the instrument evidencing such Exiating
<br />Indebtedness shell constitute compliance with the insurance. provis(ons under this Deed of Truat, to the extent
<br />compliance with the terms of this Deed of Truat would constitute a duplication of insurance requirement. If any
<br />proceeds from the insurance become payable on loss, the provis(ons in this Deed of Trust for division of proceeds
<br />shall apply 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 then once e year, Trustor shall furnish
<br />to Lender a report on each existing policy of fnaurence showing: (1) the neme of the insurer; (2) the risks
<br />insured; (3) the emount of the policy; (4) the property insured, the then current replacement velue of such
<br />properry, end the manner of determining that value; end (5) the expiration date of the policy. Trustor shall, upon
<br />request of Lender, have en independent eppraiser satisfectory to Lender determine the cash value replacement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceed(ng is commenced that would materially 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 feilure to comply with any obligetion to meintein Existing Indebtedness in good stending as
<br />required below, or to discharge or pay when due any amounta Trustor is required to discharge or pay under this Deed of
<br />Trust or any Related Documents, Lender on Trustor's behalf may (but shall not be obligated to) take any actton that
<br />Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security intereata,
<br />encumbrances and other claims, at any time levied or placed on the Properry end paying ell coata for insuring,
<br />maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then
<br />bear interest et the rate charged under the Note from the date incurred or paid by Lender to the dete of repeyment by
<br />Trustor. All such expenses will become e part of the Indebtedness and, at Lender's opt(on, will (A) be peyeble on
<br />demand; (B) be added to the batance of the Note end be epportioned among and be payable with eny instellment
<br />peyments to become due during either (1) the term of any eppliceble insurance policy; or (2) the remain(ng term of
<br />the Note; or (C) be treated as a balloon peyment which will be due end payeble et the Note's meturity. The Deed of
<br />Trust also will secure payment of these emounts. Such right shall be in addition to all other rights and remedies to
<br />which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property ere a part of this Deed
<br />of Trust:
<br />Thle. Trustor warrants that: (a) Trustor holds good and merketeble title 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 (n the
<br />Existing Indebtedness section below or in any title insurance policy, tftle report, or f(nal title opinion iasued fn favor
<br />of, and accepted by, Lender in connection with this Deed of Trust, end (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 fn the peragraph above, Trustor werrents and wlll forever defend the
<br />title to the Property egainst the lawful clafms of all persons. In the event any action or proceeding is commenced
<br />that quest(ons Trustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the
<br />action et 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, end
<br />Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from tlme to time
<br />to permit such participation.
<br />Compliance With Lews. Trustor werrants that the Property and Trustor's use of the Properry complies with ell
<br />existing applicable laws, ordinances, and regulations of governmental authorities.
<br />Survival of Representations and Warranties. All representations, warranties, end egreements made by Trustor in
<br />this Deed of Trust shall survive the execution end delivery of this Deed of Trust, shall be continuing in nature, and
<br />shall remain in full force and effect until such t(me as Borrower's Indebtedness shall be paid in full.
<br />EXISTING INDEBTEDNESS. The foilowing provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br />Existlng Lten. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an
<br />existing lien. Trustor expressly covenants and agreea to pay, or see to the payment of, the Exiating Indebtedness
<br />and to prevent eny default on such indebtedness, eny default under the instruments evidencing such indebtedneas,
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