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201207757
<br /> DEED OF TFil1ST
<br /> Loan No: 10003950 (Continlled) Page 3
<br /> and repair ofi the Property. If Lender elects to apply the proceeds to restoration and repair,. Trustor Shall repair or
<br /> replace the d:amaged or destroyed� Improvements in a manner satisfactory to Lender. Lender shall, upo�
<br /> satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonabie cost ofi
<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 nas not committed Lo the repair or restorati�on of
<br /> the Property shali be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accr�ed
<br /> interest, and the remainde:r, if any, shall be applied to the principal balance of the Indebtedness. If Lender fiolds
<br /> any proceeds after payment in full of the Indebted:ness, 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 witn the insurance provisions contained in the instrument evidencing. such Existing
<br /> Indebtedness shall constitute compliance with the insuran.ce provisions under this Deed of Trust, to the ex2ent
<br /> compliance with the terms of this Deed of Trust would constitute a duplication ofi insurance requirement If any .
<br /> proceeds from the insurance becom�e paya�ble 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 Yhe Existing Indebtedness.
<br /> LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of ali taxes, fiens, security iMerests,
<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 maintain Existing indebtedness in good standing as required below, then�
<br /> Lender may do so. if any action or proceeding is commenced ihat would materially affect Lender`s interests in the
<br /> Property, then Lender on Trustor's 6ehalf may, but is not required to, talce any action that Lender believes to be
<br /> appropriate to protect 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 sucn expenses will become a part of the Indebtedness and, at Lender's option, wi❑ (A) be payable on
<br /> demandz (B? be added to tne balance of the Note and be apportioned among 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 t�rm of
<br /> the Note; or (C) be treaYed as a balloon payment which will be due and payable at the Note's maturity. The Deed ofi
<br /> Trust also will secure payme��nt of these amounts. The rights provided for in this paragraph shall be in addition to any
<br /> other rights or any remedies to which Lender may be ent�tled on account ofi any default Any such action by Lender
<br /> shall rtot be construed as curing the default so as to bar Lender from any remedy that it otherwise would nave 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 warrents tnat: (a) Trustor holds good and marketable title of record to the Property in fee simple,
<br /> free and clear ofi ali liens and encumbrances other ihan those set forth in the Reai Property description� oP in the
<br /> Existing Indebtedness section below or in any title insurance policy, titie report, or tinal title opinion issued in favor
<br /> ofi, and accepted by, Lender in connection with this Deed of Trust,. and (b) Trustor has the ful:l right, power, and
<br /> authority to execute and deliver this Deed of Trust to Lender.
<br /> De4ense of Title, Subject to the exception in the paragraph above, Trustor warrants and wili forever defend the
<br /> title to the Property against the lawful claims ofi all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's title or the interest ofi Trustee oe Lender under tnis Deed of Trust, Trustor shall defend the
<br /> action at Trustor's expense. Trustor may be the nominal party in.such proceeding, but Lernder shall be entitled to
<br /> participate in the proceeding and to be represe:nted in the proceeding by counsel of Lender's own choice, and
<br /> Trustor will deliver, or cause to be defivered, io Lender such instruments as Lender may rec�uest from time to time
<br /> to permit such participation.
<br /> Compliance Witn Laws. Trustor warrants that the Property and Trusfor's use of the Property complies witk ali
<br /> existing applicabie laws,ordinances, and regulations of governmentaf authorities.
<br /> Survival of Promises. All promises, agreements, and siatements Trustor has made in this Deed of Trust shafl
<br /> survive tne execution and delivery of this Deed of Trust, shall be continuing in nature and shall remai� in full force
<br /> and efifect until such time as Trustor's fndebtedness is paid in full.
<br /> EXISTING INDEBTEDNESS. The fiollowing provisions concerning Existing Indebtedness are a part of this Deed of TrusY:
<br /> F�cisting Lien_ The lien of this Deed o# 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�paymern of,. the Existing Indebtedness
<br /> and to prevent any default on such indebtedness, any default under the instruments evidencing sucn indebtedness,
<br /> or any default under any security documents for such indebtedness.
<br /> No Modi#ication. 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 ofi Trust by which that agreement is modified,
<br /> amended, extended, or renewed without the prior written consent of Lender. Trustor shall neither request nor
<br /> accept any future advances under any such security agreement without the priot written consent of Lender.
<br /> CONDEMNATION_ The following provisions relating to condemnation proceedings are a part of this Deed oi 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 i.n such proceeding, but Lender shall be entitled to parti.cipate�in the proceeding a.nd to be
<br /> reptesented in the proceeding by counsel of its own choice, and Trustor will deliver or cause to be delivered to
<br /> Lentler such instruments and documentation as may be requested by Lender from. time to time to permit such
<br /> participation.
<br /> Application of Net Proceeds. Ifi alI or any part.of ihe Property is condemned by eminent domain proceedings or by
<br /> any proceeding or purchase in lieu of condemnation, Lender may at its election require ti�af all or any portion ofi the
<br /> net proceeds of the award be applied to the Ind�ebtedness or tfie repair or restoration of ihe Property. Tfn.e net
<br /> proceeds of the award shall mean the award aiter payment of al1 reasonable costs, expenses, and attorneys' fees
<br /> incurred by Trustee or Lender in connection with 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 ofi this Deed ofi Trust:
<br /> Current Taxes,. Fees and Charges. Upon request by Lender, Trustor shall execute such documents in addition to
<br /> this Deed ofi 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 lirrcitation all taxes, fees,
<br /> documentary st�mps, and other charges fior recording o�r registering this Deed of Trusi.
<br /> Taxes. The followi�ng shall constitute taxes to which this section applies: (1) a specific 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 iax on
<br /> Trustor which Trustor is authorized or required to deduct from payments on the lndebtedness secured by this type
<br /> ofi Deed of TrusT; (3) a tax on this type ofi Deed ofi Trust chargeable against the Lender or the hold��er of the iVoYe;
<br /> and (4) a specific tax on all or any portion of Lf�e Indebtedness or on payments of principal and interest made by
<br /> Trustor.
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