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20120595�
<br />DEED OF TRUST
<br />Loan No: 101255095 (Continued) Page 4
<br />and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repeir 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 restoretion if Trustor is not in default under this Deed of Trust. Any proceeds which havg not been
<br />disbursed within 180 days after their receipt and wNich Lender hes 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 shail be paid to Trustor as Trustor's
<br />interests may appear.
<br />LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests,
<br />encumbrances, and other claims, (B) to provide any required insurance on the Property, or (C) to make repairs to the
<br />Property then Lender rt�ay do so. If eny actioh or proceeding is comnlenced that would materialiy, affect Lender's
<br />interests in the Property, then Lender on Trustor's behalf iney, but is not required to, take any ection that Lender
<br />believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will
<br />then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment
<br />by Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be peyeble on
<br />demand; (B) be added to the balance of the Note and be epportioned among and be payable with any installmerlt
<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 maturity. The Deed of
<br />Trust also will secure payment of these amounts. The rights provided for in this paragreph shell be in additiorl to eny
<br />other rights or any remedies to which Lender may be entitled on account of any detault. Any such action by Lender
<br />shall not be construed as curing the default so as to ber Lender from any remedy thet it otherwise would have had.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a 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 end clear of all liens and encumbrances other then those set forth in the Real Property description or in any
<br />title insurance policy, title report, or final title opinion issued in favor of, end accepted by, Lender in connect(on
<br />with this Deed of Trust, and (b) Trustor has the full right, power, and authority to execute and deliver tNis Deed of
<br />Trust to Lender.
<br />Defense of TiUe. Subject to the exception in the paragreph above, Trustor warrants and will forever defend the
<br />title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced
<br />thet 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 mey be the nominal party in such proceeding, but Lender shall be entitled to
<br />participate in the proceeding ehd 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 instrurrents es Lender mey request from time to time
<br />to permit such perticipation.
<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 Promises. All promises, agreements, and statements Trustor has rnede in this Deed ot Trust shall
<br />survive the execution and delivery of this Deed of Trust, shall be continuing in nature end shall remain in full force
<br />end effect until such time as Borrower's Indebtedness is peid in full.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of 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 mey be necessary to defend the action and obtein the award. Trustor
<br />may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceedi�g and to be
<br />represented in the proceeding by counsel of its own choice, and Trustor will deliver or ceuse to be delivered to
<br />Lender sucll instruments and documentatiort as may be requested by Lender from time to time to permit such
<br />participation.
<br />Application of Net Proceeds. If ell or any part of the Property is condemned by emineht domain proceedings or by
<br />any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the
<br />net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net
<br />proceeds of the awerd shall mean the eward after payment of ell reasonable costs, expenses, and attorneys' fees
<br />incurred by Trustee or Lender in connection with the condemnaYion.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions releting
<br />to governmental taxes, fees and charges ere a pert of this Deed of Trust:
<br />Current Taues, Fees end Charges. Upon request by Lender, Trustor shall execute such documents in addition to
<br />this Deed of Trust and take whatever other action is requested by Lender to perfect and continue Lender's lien on
<br />the Real Property. Trustor shall reimburse Lender for all taxes, as described below, together with all expenses
<br />incurred in recording, perfecting or continuing this Deed of Trust, including without limitation ell taxes, fees,
<br />documentary stamps, and other charges far recording or registering this Deed of Trust.
<br />Taxes. The following shall constitute taxes to which this section eppl(es: (7) a specific tex upon this type of
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