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DEED OF TRUST
<br />Loan No: 101245912 (Col7tlnued) 2; o� 2 0���� Page 4
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<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 has not committed to the repair or restoration of
<br />the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay eccrued
<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 to Trustor as Trustor's
<br />interests mey eppear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more then once a year, Trustor shall furnish
<br />to Lender e 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 insured, the then current replecement value of such
<br />property, and the manner of determining that value; and (5) the 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 EXPENDITURES. If any action or proceeding is commenced that would materially effect 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 Trustor's failure to discherge or pay when due any amounts Trustor is required to discharge or pey
<br />under this Deed of Trust or any Related Documents, Lender on Trustor's behalf iney (but shell not be obligated to) take
<br />any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security
<br />interests, encumbrences and other claims, at any time levied or placed on the Property and.paying all costs for insuring,
<br />maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then
<br />bear interest at the rete charged under the Note from the date incurred or paid by Lender to the dete of repayment by
<br />Trustor. All such expenses will become e part of the Indebtedness and, at Lender's option, will (A) be payeble on
<br />demand; (B) be added to the balance of the Note and be epportioned among and be payeble with any installment
<br />payments to become due during either (7) the term of any applicable insurance policy; or (2) the remaining term of
<br />the Note; or (C) be treated es a balloon payment which will be due and peyeble at the Note's maturity. The Deed of
<br />Trust also will secure peyment of these amounts. Such right shall be in addition to all other rights and remedies to
<br />which Lender mey be entitled upon Defeult.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions releting to ownership of the Property are e part of 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 eny
<br />title insurance policy, title report, or final title opinion issued in favor of, and eccepted by, Lender in connection
<br />with this Deed of Trust, and (b) Trustor has the full right, power, and euthority to execute and deliver this Deed of
<br />Trust to Lender.
<br />Defense of Title. Subject to the exception in the paregreph 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 (nterest of Trustee 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 Lender's own choice, end
<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 that the Property and Trustor's use of the Property complfes with all
<br />existing epplicable laws, ordinances, and regulations of governmental euthorities.
<br />Survival of Representations and Warrenties. All representations, warrenties, and agreements mede by Trustor in
<br />this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and
<br />shall remain in full force and effect until such time as Trustor's Indebtedness shell be paid in full.
<br />CONDEMNATION. The follawing provisions relating to condemnation proceedings are a part of this Deed 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 be necessary to defend the 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 proceeding by counsel of its own choice, end Trustor will deliver or ceuse to be delivered to
<br />Lender such instruments and documantation es may be requested by Lender from time to time to perm(t 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 eny portion of the
<br />net proceeds of the award be epplied to the Indebtedness or the repeir or restoration of the Property. The net
<br />proceeds of the award shall mean the award after payment of all reasoneble 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 provisfons relating
<br />to governmental taxes, fees and charges are a part of this Deed of Trust:
<br />Current Taxes, Fees and Charges. Upon request by Lender, Trustor shall execute such documents in sddition to
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