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201207609
<br /> • ' DEED OF TFiUST
<br /> Loan Nos 10004016 (COiltlllued) Page 3
<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 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 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 paymenY in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is
<br /> in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing
<br /> Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trust, to the extent
<br /> compliance with the terms of this Deed of Trust would constitute a duplication of insurance requirement. If 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 F�isting 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, B1 to provide any required insurance on the Property, (C) to make repairs to the
<br /> Property or to comply with any obligation to maintain 6cisting Indehiedness 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 the
<br /> Property, then Lender on T�ustor's behalf may, but is not required to, ta��ke any action that Lender believes to be
<br /> appropriate to proteci Lender's interests. All expenses incurred or paid by Lender 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 repayment by
<br /> Trustor. All such expenses will become a part of the Inde6tedness and, at Lender's option,will (FU tie payable on
<br /> demand; (B) 6e added to the balance of the Note and be apportioned among and be payable with any insiallment
<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 paragraph shall be in addition to any
<br /> othe�rights or any remedies to which Lender may be entitled on account of any default. 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 /> WARRANTY;DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this�eed
<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 liens and encumbrances other than those set forth in tfie Real Property description or in the
<br /> Existing Indebtedness section below or i�.n any titie 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 Ibt Trustor has fhe full right,power, and
<br /> authority to execute and deliverthis Deed of Trustto Lender.
<br /> Defense of Title. Subject to the exception in the paragraph 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 /> 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 fo
<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 instruments as Lender may request from time m time
<br /> to permit such participation.
<br /> Compleance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with aII
<br /> existing applicable laws,ordinances,and regulations of governmental authorities.
<br /> Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall
<br /> survive the execution and delivery of this Deed of Trust,shall be continuing in oature and shall remain in full force
<br /> and effect until.such time as Trustor's Indebtedness is paid in full.
<br /> EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:�
<br /> Existing Lien. The lien ofi tliis 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 paymeM of,the 6cisting Indebtedness
<br /> and to prevent a�y default on such indebtedness,any default under the instruments evidencing such indebtedness,
<br /> or any default under any security documents for such indebtednesS.
<br /> No Modification. Trustor stiall not enter into any agreement with the holder of any mortgage, deed of trust, or
<br /> oiher 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 neither requesY nor
<br /> accept any future advances under any such security agreement without the prior written consent of Lender.
<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 may be necessary to defend the action and obtain the award. Trustor
<br /> may be the nominal party in such proceeding,but Lender shall 6e entitletl to participate in the proceeding and to be
<br /> represented in the proceeding by counsel of its own choice, and Trustor will deliver or cause to be delivered to
<br /> Lender such instruments and documentation as may be requested by Lender firom time to time to permit such
<br /> participation.
<br /> Application of Net Proceeds. If all or any part of the Properiy is condemned by eminent 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 applietl to the Indebtedness or the repair or restoration of the Property. The net
<br /> proceeds of the award shall meao the award after payment of all reasonable costs,expenses,and attorneys'fees
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES,PEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The folfowing provisions relating
<br /> to governmentalta�ces,fees and charges are a part of this Deed of Trusi:
<br /> Current Taxes.Fees and Charges. Upon request by Lender,Trustor shall execute such documen€s 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 /> incurted in recording, perfecting or continuing this Deed of Trust, including without limitation all taxes, fees,
<br /> documentary stamps,and other charges for recording or registering this Qeed of Trust.
<br /> Ta�ces. The following shall constitute taxes to which this section applies: {1) a specific tax upon 2his 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 authorized or required m deduct from payments on the Indebtedness secured by This type
<br /> of Deed of Trust; I3) a tax on this type of Deed of Trust chargeabie against The Lender or the holder of the Note;
<br /> and (4) a specific tax on all or any portion of the Indeptedness or on payments of principal and interest made by
<br /> Trustor.
<br /> Subsequent Tases. Ifi any tax to which tHis seciion applies is enacted subsequent to the date of ihis Deed of
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