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201206526
<br /> DEED OF TRUST
<br /> Loan No: 70003471 (Continuet!) Page 3
<br /> satisfactory proof of such expenditure, pay or reunburse 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 within 180 days after their receipt and whicfi Lender has not committed to the repair or restoration of
<br /> the Property shall be used fiirst to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br /> interest, and the remainder, ifi 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 shali 6e paid to Trustor as Trustor's
<br /> interests may appear. .
<br /> Compliance with 6cisting Indebtedness_ During the period in which any Existing Indebtedness described below is
<br /> in e-FFect, compliance with the insurance provisions contained in the instrumerlt evidencing� such Existing
<br /> Indebtedness shall constitute compliance wifh the insurance provisions under this Deed of Trust, to the extent
<br /> compliance with the terms of tnis Deed of Trust wouid constitute a duplication of insurance requirement. Ifi any
<br /> proceeds from the insurance become payable 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 /> 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, (C) to make repairs to the
<br /> Property or to comply with any obligation to maiMain Existing Indebtedness in good standing as required below, then
<br /> Lender may do so. If any action or proceeding is commenced that would materially affect Lender's interests in tne
<br /> Property, then Lender on Trustor's behalf may, but is not required to, take any action that Lender believes to be
<br /> appropriate to protect Lender's interests. AII expenses incurred or paid by Lender for such purposes wil:l then bear
<br /> interest at the rate chaeged under the Note from Yhe date incurred or paid by Lender to the date of repayment by
<br /> T�ustor_ AII such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on
<br /> demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment
<br /> payments to become due during either (7) the term of any applica6le 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 rignts provided for in this paragraph shall be in addition to any
<br /> other rights. or any remedies to W�n�cn Lender may be entitled on account of any defiault. Any such action by Lender
<br /> shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had.
<br /> WARRANTV; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a pari of this Deed
<br /> of TrusY:
<br /> Title. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Property in.fee simple,
<br /> firee and dear of all liens and encumbrances other than.those set forth in the Real Property description or in the
<br /> Existing Indebtedness section below or in any title insurance policy, title report, or final title opinion issued in favor
<br /> of, and accepted by, Lender in connection with this Deed of Trust, and� (b) Ttustor has the full right, power, and
<br /> authority to execute and.deliver this Deed ofi Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph above, TrusYor warrents and will forever defiend the
<br /> title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's title or the interest ofi Trusiee or Lender under this Deed of Trust,Trustor shall defe�nd the
<br /> action at Trustor's expense. Trustor may be the nominal patty in such proceeding, but Lender shall be entitled to
<br /> participate in the proceeding and to be represented in the proceeding by counsel. ofi Lender's own choice, 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 warrants tnat the Property and Trustor's use of the Property complies wiYh all
<br /> existing applicable Iaws, ordi�nances, and regulations ofi govemmental authorities.
<br /> Survival of Promises. All promises, agreements, and siatements Trustor has made in thfs Deed of Trust shall
<br /> survive tne execution and delivery of this Deed ofi Trust, shail be continuing in nature and shall remain in full force
<br /> and efifect until such time as Trustor's Indebtedness is paid in full.
<br /> EXISTING INDE6TEDNESS. Tne following provisions concerning Existing Indebtedness are a part of this Deed o'F Trust:
<br /> Ewsting Leen. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an
<br /> existing lien. Trustor expressly covenants and agrees to pay, or see to the payment of, the F�cisting Indebtedness
<br /> and to prevent any default on such indebtedness, any defiault under the instrumeMs evidencing such indebtedness,
<br /> or any default under any security documents fior such indebtedness.
<br /> No Modification. Trustor shall not enter into any agreement with the holder of any mortgage, deed of trust, or
<br /> other security agreement which has priority over this Deed of Trust by which that agreement is modified,
<br /> amended, e�ctended, or renewed without the prior written conseM of Lender. Trustor shall neither request nor
<br /> accepi any future advances under any such security agreement without the prfor written consent of Lender.
<br /> CONDEMNATION_ The following provisions relating to condemnation proceedings are a part of ttiis Deed of Trust:
<br /> Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notifiy Lender in writing, and
<br /> Trustor shall promptly take such steps as may be necessary to defend the action and obtain the award. Trustor
<br /> may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceedi�.ng and to be
<br /> represented in the proceeding by counsel of its own cnoice, and Trustor wifl deliver or cause to be delivered to
<br /> Lender sucn insfruments and documentation as may be requested by Lender from time to time to permit such
<br /> participation.
<br /> Application of Net Proceeds. If all or any part ofi the Property is condemned by eminent domain proceedings or by
<br /> any proceeding or purchase in lieu of condemnation, Lender may at its election require tnat all or any portion of the
<br /> net proceeds of the award be applied to the Indebtedness or Yhe repair or restoration of the Property. Tne net
<br /> proeeeds ofi the award shall mean the award after payment of all reasonable costs, expenses, and attomeys' fees
<br /> inc.urred by Trustee or Lender in connection wiih the condemnation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br /> to governmental taxes,fees and charges are a part of this Deed of Trust:
<br /> Current T�es, Fees and 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 Lendet to perfect and continue Lender's lien on
<br /> the Real Property. Trustor shall reimburse Lender for all taxes, as described below, together with aIl expenses
<br /> incurred in recording, perfecting or continui��ng this Deed of Trust, including without limitaiion all taxes, fees,
<br /> documentary stamps, and other charges for recording or registering this Deed of Trust.
<br /> Taxes. The following shall constitute taxes to which this section applies:. (1) a specifiic 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 authotized or required to deduct from payments on the Indebtedness secured by this type
<br /> ofi Deed of Ttust; (3) a tax on tnis type of Deed of Trust chargeable against tne Lender or tne nolder of the Note;
<br /> and (4) a specific tax on aIl or any portion of tne Indebtedness or on payments of princi.pal and interest made by
<br /> Trustor.
<br /> Subsequent Taxes. Ifi any tax to whicFi this section applies is enacted subsequent to the date of tkis Deed of
<br /> Trust, this event shall have the same effect as an Event of Defiault, and Lender may exercise any or all of its
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