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201208016
<br /> DEED OF TRUST
<br /> Loan No: 10003728 (Con$inued) Page 3
<br /> satisfactory proof of such expenditure, pay or reimburse Trustor ftom the proceeds for the reasonable cost of
<br /> repair or restoration if Trustor is not in default under this Deed of Trust. Any proceedls which have not been.
<br /> disbursed within 7 80 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 ihis Deed of Trust, then to pay accrued
<br /> interest, and the remainder, if any, shall be applied to the pri.ncipal balance of the Indebtedness. If Lender holds
<br /> any proceeds after payment in fuli of the Indebtedness, such proceeds shall 6e 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 th�e insurance provisions contained in tne instrument evidencing such Exisiing
<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 Trus2 for division of proceeds
<br /> shali apply oniy to that portion ofi the proceeds not payable to the holde�r of ihe 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 maintain Existing Indebtedness in good standing as required below, then
<br /> Lender may do so. If any actiion or proceeding is commenced that would materially affect Lender's interests in the
<br /> Property, then Lender on Trusior's behalf may, but is not requi�red to, take any action that Lender believes to be
<br /> appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes wilt then bear
<br /> interest at the rate charged under the Note from the� date incurred or paid 6y Lender to the daie of repayment by
<br /> Trustor. All such expenses will become a part of the Indebtedness and, at Lender's o�tion, will {A)�� be payable on
<br /> demand; (B) be added to the balance of the Noie anu' be apportioned among and be paya6le with any installment
<br /> payments to become due during either (1) the term of any applicable insurance poficy; or (2) the remaining term ofi
<br /> The Note; or (C) be treated as a balloon payment which will be due and payabie 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 Yo any
<br /> other rights or any remedies to which Lender may be entitled on accouM 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 otf�erwise would have had.
<br /> WA.RRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of ihis Deed
<br /> of Trust:
<br /> Title. Trustor warrants that: (a) Trustor nolds good and marketable title ofi record to the Property in fee simple.,
<br /> firee and clear of all liens and encumbrances other than those set forth in the Real Property description or in the
<br /> Exisiing Indebtedness seciion below or in any title insurance policy, title report, or final title o�pinion issued in fiavor
<br /> of, and accepted by, Lender in connection with this Deed of Trust, and (b) Trustor has the fuil right, power, and
<br /> authority to execute and deliver this Deed of Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph above, Trustor warraMs and will forever defiend the
<br /> title to the Property against tne lawful claims of all persons. In the event any action or proceedi�g is commenced
<br /> that questions Trustor's title or the interest of TrusYee 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 to
<br /> participate in the proceeding and to be represented in the proceeding by counsel of Le�der'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 Weth Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all
<br /> exisiing applicable laws, ordinances, and regulations ofi govemmental authorities. .
<br /> Survival ofi Promises_ All promises, agreements, and statements Trustor F�as made in this Deed of Trust shall
<br /> survive the e.xecution and delivery of tnis Deed of Trust, shall be continuing in nat�re and snall remain in.fiuli force
<br /> and effect until such time as Trustor's Indebtedness is paid in full.
<br /> EXISTING INDEBTEDNESS. The folfowing provisions conceming Existing Yndebtedness are a part of this Deed of Trust:
<br /> F�cisting Lien. The lien ofi 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 Existing Indebtedness
<br /> and to prevent any default on such indebtednes5, any default under the instruments evidencing such indebtedness,
<br /> or any default undet any securiYy documents for such indebtedness.
<br /> No Modificafion. 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, extended, or renewed without the prior written. consent ofi Lender. Trustor sha❑ neither request 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 concJemnati�on proceedings are a part o#this Deed of Trust:
<br /> Proceedings. 1f any proceeding in condemnation is fifed, Trustor shall promptly notify Lender in writing, and
<br /> Trustor shall promptly take such steps as may be necessary to defiend the action anci obtain the award. TrusEor
<br /> may be ihe nominal party in such proceeding, but Lender shail be entiUed to partici�pate�in the peoceeding and to pe
<br /> represented in the proceeding by counsel ofi iYs 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 NeE Proceeds. Ifi all or any part ofi the Property is condemned by eminent domain proceedings or by
<br /> any proceed.ing 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 ofi the award shall mean 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 C�F TAXES. FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br /> to governmentaE taxes,fiees and charges are a part of this Deed.of Trust:
<br /> Current Taxes, Fees and Chaeges. Upon request by Lender, Trustor shall. execute such�. dlocuments in addition to
<br /> this Qeed of Trust and iake whatever other action is requested by Lender to perfect and continue Lender`s lien oa
<br /> the Reat Properry. Trustor shall reimburse Lender for all taxes, as described below, together with all expenses
<br /> incurred in recording, perfecting� or continu�ng this Deed of Trust, including without limitation all taxes, fiees,
<br /> documentary stamps, and other cnarges for recording or registering this Deed of Trust.
<br /> Taues. The following shall constitute taxes to wnich this section applies: ("I) a specific tax upon this type of
<br /> Deed of Trust or upon all or any part of Yne Indebtedness secured by this Deed of Trust; (2) a specific tax on
<br /> Trustor which Trustor is authorized or required to deduct from payments on the Indebtedness secured by this�type
<br /> of Deed ofi Trust; (3) a fax on this type ofi Deed of Trust chargeable against the Lender or the holder of the Note;
<br /> and (4} a specific tax on afl or any portion ofi the Indebtedness or on payments of principal and interest made by
<br /> Trustor.
<br /> Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Deed of
<br /> Trust, this event shal! have the sarne efifiect as an Event of Default, and Lender may exercise any or all of its
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