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<br />. ' ° ' DEED OF TRUST
<br />Loan No: 138226 (Continued) Page 3
<br />the proceeds to the reduction of the Indebtedness, payment of any lien affect�ng the Property, or the restoration
<br />and repair of the Property. If Lender elects to epply the proceeds to restoration'and repair,,Trustor shall r.epair or
<br />replace the damaged or destroyed Improvements in a manner satisfactory to LendQr. Lender shall, upon
<br />satisfactory proof ,pf suefi expenditure, pay or reimburse Trustor from the pr.oceeds for the, reas.onable, cost of
<br />-repair or restor8ti�f�i if Trustor is' not in default under this Deeci of Trusf: Any proceeds, which, h@ve not been
<br />disbursed within 1�30�deys �fter their receipt and whPch Lende.!,has not committed to 4he repair or restoration ot
<br />the Property shall li� used first to pay any arri'ounf owing fo L��ader under this Deed of Trust, then to pay eccrued
<br />interest, and the remainder, if any, shall be applied to the priiicipal balance of the Indebtedness. If Lender holds
<br />any proceeds after payment in full of the Indebtedness, su�h proceeds shall be paid to Trustor as Trustor's
<br />interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish
<br />to Lender a report on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks
<br />insured; (3) the amount of the policy; (4) the property i�surad, the then current replacement value of such
<br />property, and the manner of determining that value; and (5) fhe expiration date of the policy. Trustor shall, upon
<br />request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost
<br />of the Property.
<br />LENDER'S EXPENOITe1RES. If any action or proceeding is commens ed that would materially affect Lender's interest in
<br />the Property or if Trustor fails to comply with any provision of this Deed of Trust or any Related Documents, including
<br />but not limited to 7rustOr's failure to discharge or pay when due �ny amounts Trustor is required to discharge or pay
<br />under this Deed of Trust or any Related Documents, Lender on Trus•tor's behalf may (but shall not be obligated to) take
<br />any action that Lsnder deems appropriate, including but not limite i to dis.charging or paying ail taxas, liens, security
<br />interests, encumbr3nces and other claims, at any time levied or pl�ced on the Property and paying all costs for insuring,
<br />maintaining and preserving the Property. All such expenditures inc�tred or paid by Lender for such purposes will then
<br />bear interest at :",e rate charged under the Note from the date inc«�red or paid hy Lender to the date of repayment by
<br />Trustor. All su:�h expenses wili become a part of the Indebtednes� and, at Lender's option, will (A) be payable on
<br />demand; (B) ?�e added to the balance of the Note and be appoi.+ionmd among and be payable with any installment
<br />payments to t�come due during either (1) the term of any applicuble inaurance policy; or (21, the remaining term of
<br />the Note; or i�) be treated as a bailoon payment which wilf be du�'and payable at the Note's maturity. The Deed of
<br />Trust also wfi�+ secure payment of these amounts. Such right shalt..be In addition to all other tights and`remedies to
<br />which Lende� be entitled upon Default.
<br />WARRAIIFT`"; DEFENSE OF TITLE. The following provisions relating to ,�wnershfp of:the Property are a part of; thi`.s Deed
<br />of'Trust:
<br />Titic�. Trustor warrants that: (a) Trustor holds good and marketat��u title of record to the Property in fee simple,
<br />fre. and clear of all liens and encumbrances other than those set fi��rth in the Real Property description or in any
<br />titl� msurance policy, title report, or final title opinion issued in favoa of, and aacepted by, Lender in connection
<br />v�;th this Deed of Trust, and (b) Trustor has the fuU right, power, ana ;uthority to execute and deliver this Deed of
<br />i7 _ 3t to Lender.
<br />De�ense of Tltle. Subject to the exception in the paragraph above, Tn^stor warrants and will forever defend the
<br />titic: to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced
<br />th�,r questions Trustor's title or the interest of Trustee or Lender under thi; Deed of Trust, Trustor shall defend the
<br />act��n at Trustor's expense. Trustor may be the nominal party in such pro�:eeding, but Lender shall be entitled to
<br />par'icipate in the qroceeding 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 a5 �ender may request from time to time
<br />to pgrmit such participatlon.
<br />Cort�ioliance Wtth Laws. Trustor warrants that the Property and Trustor's` ::ise of the Property complies wlth all
<br />exis�ing applicable laws, ordinances, and regulations of govemme�tal autho�iaies.
<br />Survaval of Representattons and Warranttes. All representations, warranties,, bnd agreements made by Trustor in
<br />this �?eed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and
<br />shall iemaln in full force and effect until such time as Trustor's fndebtedness:�h�l► be paid in full.
<br />CONDEMN�,TION. The following provisions relating to condemnation proceedings,�r� e part of this Deed of Trust:
<br />Procee�Jings. If any 'proceeding in condemnation is filed, Trustor shall pc�tnptly notify Lender in writing, and
<br />Trus#�r shell promptly take such sieps as may be necessary to defend the aetion and obtain the award. Trustor
<br />may te the nominel perty in such proceeding, but Lender shall be entitled to p��#icip�te in the proceeding and to be
<br />repr::sented in ihe proceeding by counsel of its own choice, and Trustor will .�lelivpr or cause to be delivered to
<br />Lertc�er such instruments and documentation as may be requested by Lenden ��rom tlme tb time to permit such
<br />par .',cipation.
<br />A��allcatlon of,Net Proceeds. If all or any part of the Property is condemned by s;�nent domain proceedings or by
<br />any proceeding or purchase in lieu of condemnatibn, Lender may at its election reqcire that all or any portion of the
<br />r�t proceeds of the award be applied to the Indebtedness or the repair or .restor�tion of the Property. The net
<br />E.roceeds of the award shall mean the awartl after payment of all reasoneble costs, �»xpenses, and attorneys' fees
<br />incurred by Trustee or Lender in connection with the condemnation.
<br />IMP�JSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. Tha following provisions relating
<br />to caovernmental taxes, fees and charges are a part of this Deed of Trust: � '
<br />Current Taxes, Fees end Cherges. Upon request by Lender, Trustor shall execute stlr.h documents in addition to
<br />this Deed of_Trust and take whatever other action is requested by Lender to perfecf Fard 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 witho:+t limitation all taxes, fees,
<br />documentary stamps, and other charges for recording or registering this Deed of Trusti!
<br />Taxes. The following shall constitute taxes to which this section applies: 11) a sp�$cific tax upon this type of
<br />Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of �'Fust; (2) a specific tax on
<br />Trustor which Trustor is authorized or required to deduct from payments on the Indeb��dness secured by this type
<br />of Deed of Trust; (3) a tax on this type of Deed of Trust chargeable against the LencF�r or the holder of the Note;
<br />andu (4) a specific tax on all or any portion of the Indebtedness or�on payments of p incipal and interest made by
<br />Trustor. •
<br />$ubsequent Taxes. If any tex to which this section applies is enacted subsequent �to the date of this Deed of
<br />Trust, this event shall have the same effect as an Event of Default, and Lender n�ay exercise any or all of its
<br />available remedies for an Event of Default as provided below unless Trustor eithe� (1) pays the tax before it
<br />becomes delinquent, or (2) contests the tax as provided above in the Taxes and Licns section and deposits with
<br />Lender cash or a sufficient corporate surety bond or other security satisfactory to Lei�der.,
<br />SECURITY AGREEMENT; FINANCINQ STATEMENTS. The following provisio�s relatir�;� to this Deed of Trust as a
<br />security agreement are a part of this Deed of Trust: . � ,
<br />3ecurlty Agreem�nt. This instrument shall constitute a�ecurity Agreement to yne extent any of 'the Property
<br />` constitutes fi�ctures, and Lender sFiall have all of the rights ��f a secured party unde�'the Uniform Commerci8l Code
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