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<br />Loan No: 107255392
<br />DEED OF TRUST 2 012 U 6 41 G
<br />(Continued) Page 4
<br />security is impaired, Lender may, at Lender's election, recelve 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 restoration
<br />and repeir of the Properry. 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 setisfactory to Lender. Lender shall, upon
<br />satisfectory 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. A�y proceeds which heve 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 amount owing to Lender under this Deed of Trust, then to pey eccrued
<br />interest, and the remainder, if any, shall be epplied to the principal balance of the Indebtedness. If Lender holds
<br />any proceeds after payment (n full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's
<br />interests may appear.
<br />Compliance wlth Existing Indebtedness. During the perlod in which any Facisting Indebtedness described below is
<br />in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing
<br />tndebtedness shall constitute compliance with the insurance provisions under this Deed of Trust, to the entent
<br />compliance with the terms of this. Deed of Trust would constitute a duplication of insurance requirement. It any
<br />proceeds from the insurance become peyable on loss, the provisions in this Deed of Trust for division of proceeds
<br />shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish
<br />to Lender e report on each existing poticy of insurance showing: (1) the neme of the insurer; (21 the risks
<br />insured; (3) the emount of tNe policy; (4) the property insured, the then current replacement value of such
<br />property, and the manner of determining thet velue; and (5) the expiration date of the policy. Trustor shall, upon
<br />request of Lender, have an independent appreiser satisfactory to Lender determine the cash value replacement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. If any ection or proceeding is commenced that would materielly affect Lender's interest in
<br />the Properry or if Trustor fails to cori�ply with any provision of this Deed of Trust or any Related Documents, including
<br />but not limited to Trustor's failure to comply with any obligation to maintain Existing Indebtedness in good standing as
<br />required below, or to discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed of
<br />Trust or eny Related Documents, Lender on Trustor's behelf iney (but shell not be obligated to) take any action thet
<br />Lender deems appropriate, including but not limited to discharging or paying all texes, Uens, security interests,
<br />ehcumbrances and other claims, at arty time levied or placed on the Property and paying ell costs for insuring,
<br />maintaining end 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 paid by Lender to the date of repeyment by
<br />Trustor. All such expenses will become a part of the Indebtedness and, et Lender's option, will (A) be payable on
<br />demend; (B) be added to the balance of the Note and be apportioned atnong and be payable with any installment
<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 belloon payment which will be due and payable et the Note's maturity. 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 pert of this Deed
<br />of Trust:
<br />Title. Trustor warrants that: (al Trustor holds good end marketeble title of record to the Property in fee simple,
<br />free and clear of all liens and encumbrances otYier then those set forth in the Real Property description or in the
<br />Existing Indebtedness section below or in any title insurence policy, title report, or final title opinion issued in fevor
<br />ot, and accepted by, Lender ih connection with this Deed of Trust, and (b) Trustor has the full right, power, and
<br />authority to execute a�d deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragreph above, Trustor v�rarrants and will fotever defend the
<br />title to the Property against the lawful cla(ms of all persons. In the event eny action or proce�ding is commenced
<br />that questions Trustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustor shell defend the
<br />action at Trustor's expense. Trustor may be the Y�ominal perty 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, and
<br />Trustor will deliver, or cause to be delivered, to Lender such instrur'nents as Lender may request from time to time
<br />to permit such participation.
<br />Complience With Laws. Trustor warrahts that the Property and Trustor's use of the Property complies with all
<br />existing applicable laws, ordinances, and regulations of governmental authorities.
<br />Survivel of Representations and Warranties. All representations, warranties, end egreements mede by Trustor in
<br />this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and
<br />shall remain in full force and effect until such time as Trustor's Indebtedness sNall be paid in full.
<br />EXISTING INDEBTEDNESS. The following provisiohs concerning Existtng Indebtedness ere a part of this Deed of Trust:
<br />Existing Lien. The tien of this Deed of Trust securing the Indebtedness mey be secondary and inferior to an
<br />existing lien. Trustor expressly covenants and agrees to pey, or see to the payrtient of, the Existing Indebtedness
<br />artd to prevent any default on such indebtedness, any default under the instrumerlts evidencing such indebtedness,
<br />or any default under any security documents for such indebtedness.
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