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201208792
<br /> DEED OF -fRUST
<br /> , Loan No: '10004387 (Cont9nued) Page 3
<br /> and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or
<br /> replace tne 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 /> repait or restoraYion if Trustor is not in default under this De�d of Trust. Any proceeds which have not been
<br /> disbursed within 1 80 days after thei.r receipt and wnich Lender has not comm�.itted to the repair or restoration of�
<br /> the Property shall 6e 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 payment in full of the Indebtedness, such proceeds shall be paid Lo 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 e'Ffect, compliance with the insurance provisions contai�ned in the instrument evidencing such Existing
<br /> Indebiedness shall constitute compliance with the insurance provisions under this Deed. ofi 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 insura�ce become payable on loss, the provisions in.this Deed of TrusY for division of proceeds
<br /> shall apply only to that portion of the proceeds not payable to tFne nolder of the Existing Indebtedness.
<br /> LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free ofi atl 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 Intlebted�ness in good standing as required below, ihen
<br /> Lender may do so. If a.ny action or proceeding is commenced that would materially affect Lender's interests in the
<br /> Property, then Lender on Trustor's behaff 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 will thet� bear
<br /> interest at the rate charged under the N�ote 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 (ndebtedness and, at Lender's option, will (A) be payable on
<br /> demand; (B) be added to the balance ofi the Noie and be apportioned among and be payable with any i�nstaifinent
<br /> payments to become due during either (1) the term of any applicable ins.urance policy; or (2)� the remaining term of
<br /> the Note; or (C) be treaied as a balloon payment which wili 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 /> other ri�ghts or any remedies to wFTicn Lender may be eMitled on account of any default. Any such action by Lender
<br /> shall not be consttued as curing the defiault so as to bar Lender firom any temedy that it otherwise would f�ave had.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relating 40 ownershi�p of the Property are a part of this Deed
<br /> of Trust:
<br /> Titie. Trustor warrants that: (a) Trustor nolds good and marketable title of record to the Property i.n fee simple,
<br /> firee and clear of all liens and encumbrances other than those set forth in the Reaf Property description or in the
<br /> Existing Indebtedness section below or in any title insurance po��licy, title report, or fiinal title opinion issued in favor
<br /> of, and accepted by, Lender in connection with this Deed ofi Trust, and (b) Trustor has the fufi right, power, and
<br /> authority to execute and deliver tfiis 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 /> 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 /> aciion at Trustor's expense, Trustor may be rthe nominal party in such proceedi�.ng, but Lend�er shall be entitled to
<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 to time
<br /> to permit such participation.
<br /> Compliance With Laws. Trustor warrants ihat the Property and Trustor's use of the Property complies with all
<br /> existing app(icable laws,ordinances, and regulations of governmental authorities.
<br /> Surviva7 of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall
<br /> � survive the execution and delivery o€tl�is Deed of Trust,shall be continuing in nature and shall remain in full force
<br /> and effect until sucn time as Trustor's Indebtedness is paid in full.
<br /> EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part ofi this Deed of Trust:
<br /> Existing Lien. TF�e lien ofi this Deed of Trust sscuring 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 defiauk on such indebtedness, any default under the instruments evidencing such indebtedness,
<br /> or any default under any secuYiiy documents for such indebtedness.
<br /> No Mo�iification_ Trustor shall not enter into any agreement with the holder of any mortgage, deed ofi 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 conseM of Lender. Trustor shall 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 relati.ng to aondemnation proceedings are a part of this �eed 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 6e necessary to defend ihe action and obtain the award. Trustor
<br /> may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be
<br /> represented in the pro�ceeding by counsel of i'ts own choice, and Trustor will deliver or cause to be delivered to
<br /> Lender such instruments and do�cumentation as may be requested by Lender from time to time to permit such
<br /> participation.
<br /> Application of Net Proceeds. If all or any part of the Property 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 ofi the
<br /> net proceeds ofi the award be applied to the Indebtedness or the repair or restoration of the Property. The net
<br /> proceeds of the award shall mean the award after payment ofi all reasonable costs, expenses, and�attorneys` fees
<br /> i�curred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMEIVTP.L AUTHORITIES. The #ollowing prov9sions relating
<br /> �o governmental taxes,fees and charges are a part ot th9s Deed of Trust:
<br /> Current Taxes, Fees and Charges. Upon request by �ender,. Tr�stnr shall execute such documents in addition to
<br /> this Deeci of Trust and take whatever other action is requested by Lender to perfect and continue Lender's lien on
<br /> the Real Proper[y. Trustor shall reimburse Lender for all taxes, as described below, together with all expenses
<br /> incurred in recording, perfecting or continuing this Deed ofi Trust, including without limitation alf taxes, fees,
<br /> documentary stamps, and other charges for recording or registering this Deed of Trust.
<br /> Ta�ces. The following shall constitute taxes to which this section applies: ("I) a speci#ic tax upon this type of
<br /> Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trusr, (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 o€Trust; (3) a tax on this type of Deed of Trust chargeable agai.nsY the Lender or the hofder of the Note;
<br /> and (4) a specific iax on all or any portion of the Indebtedness or on payments ofi principal and interest made by
<br /> Trustor.
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