|
201208550
<br /> DEED OF TRUST
<br /> Loan No_ 10004098 (C01�t9nUed) Page 3
<br /> oT the loan.
<br /> Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may
<br /> make proo# of loss if Trustor fails to do so within fifteen ("15) days of the casualty. Whether or not Lender's
<br /> securiiy is impaired, Lender may, at Lender's election, receive and reiain the proceeds of any insurance and apply
<br /> the proceecis to �he reduction ofi the Indebtedness, payment of any lien affecting the Property, or the restoration
<br /> and repair of the Property. If Lender electS to apply the proceeds to restoration and repai.r, Trustor shall repair or
<br /> replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br /> � satisfiactory proof of such expenditure, pay or reimburse TrusCor from tne proceeds for the reasonable cost of
<br /> repair or restoration ifi Trustor is not in default under this Deed ofi 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 restoraiion of
<br /> the Property shail be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br /> interest, and the remainder, ifi any, shail be appli:ed to the principal balance of ihe Indebiedness. If Lender holds
<br /> any proceeds aFter payment in full of the Indebtedness, such proceeds shali be paid io Trustor as Trustor's
<br /> interests may appear.
<br /> Compliance with ExisYing 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 compiiance 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 ofi proceeds
<br /> � shall appiy only to that portion of the proceeds not payable Yo the hoider of the Existing Indebtedness.
<br /> LENDER'S EXPENDITURES. Ifi Trustor fails (A) to keep the Property free of ali taxes, i�i�ens, security interests,
<br /> encumbrances, and other claims, (B) to provide any required insurance on the Property, (C) to make repaits to the
<br /> Property or to comply with any obl.igaiion to maintain 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 the
<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. All expenses incurred or paid by Lender for such purposes wi�ll 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 Indebtedness and, at Lender's option, will (A) be payable on
<br /> demand; (B) be added tio the balance ofi the Note and be apportioned among and be payable wiYh any installment
<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 paymen�t which will be due and paya6le at the Note's maturity. The Deed of
<br /> Trust aiso will secure payment 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 m�ay 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 ofi this Deed
<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 the Real Property description or in 'the
<br /> Existing Indebfedness 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) Trustor has the fuli 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 warrants and will forever defend the
<br /> tiile to the Property against tf�e lawful claims of all�persons. in the event any action or proceeding is commenced
<br /> that questions Trustor's titile or the interest oif Trustee or Lender under this Deed of Trust,Trustor shaii defend ti�e
<br /> action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shail be entitted to
<br /> participate in the proceeding and to be represented in the proceeding by counsei of Lender's own choice, anci
<br /> Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from tim�e to time
<br /> to permit such participation.
<br /> Compliance With Laws_ Trustor warrants that the Prope�rty and Trustor's use of the Property complies with all
<br /> existing applicable laws, ordinances, and regulations ofi govern�mental authorities.
<br /> Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall
<br /> survive the execution and deiivery ofi this Deed of Trust,shall be continuing in nature and shali remain in full force
<br /> and effiect until such time as Trustor's Indebtedness is paid in full.
<br /> EXISTING INDEBTEDNESS. The foliowing provisions concerning Existing Indebtedness are a part ofi this Deed of Trust:
<br /> 6cisting L'een. The lien of this Deed of Trust securing the Indebtedness may be seco�dary and i.nfierior to an
<br /> existing lien. Trustov expressiy covenants and agrees to pay, or see to the payment of, the Existi.ng Indebtedness
<br /> and to prevent any defauft on such indebtedness, any default under the instruments.eviclencing such indebtedness,
<br /> or any dePault unde�r any security documents for such indebtedness, �
<br /> No Modification_ Trustor shali not enter into any agreement witn the noider of any mortgage, deed of trust, or
<br /> otner security agreement which has priority over this Deed of Trust by which that agreement is modified,
<br /> amended, exte�nded, or renewed without the prior written consent of Lender. Trustor snall neither request nor
<br /> accept any future advances under any sucn security agreement without the prior written consent ofi Lender.
<br /> CONDEMNATION_ The following provisions relating to condemnation proceedings are a part ofi tnis Deed of Trust:
<br /> Proceed[ngs. If any proceeding in condemnation is filed, Trustor shall promptiy notify Lender in writing, and
<br /> Trustor shall promptly take such sieps as. may be necessary to defiend ihe aciion and obtain Lhe award. Trustor
<br /> may be the nominal party i.n such proceeding, but Lender shall be entitled to participate in the proceeding and to be
<br /> represented in the proceeding by counse� of its own choice, and Trustor will deliver or cause m be delivered to
<br /> Lender such instruments and documentation as may be requested by Lender frorn time to time to permit such
<br /> participation.
<br /> Application of Net Proceeds. If all oc any part of the Property is condemned by emi�ent domain proceedings or by
<br /> any proceeding or purchase in lieu of condemnatio�, 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 of tne award shall mean the award af[er payment of all reasonable costs, expenses, and. attorneys' fees
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BV GOVERNMENTAL AUTIiORITIES. The following provisions relating
<br /> to governmental taxes,fees and charges are a part o�F this Deed of 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 tf�is Deed of Trust,. induding without limitation al9 taxes, fees,
<br /> documentary stamps, and other charges fior recording or registering this Deeu'of Trust.
<br /> Taxes. The following shall constitute taxes to which this section applies. (1) a specifiic tax upon this type of
<br />
|