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201300017
<br /> DEED OF TRUST
<br /> Loan No: 101260063 (Continued) Page 4
<br /> the proceeds to the reduction of 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 repair, Trustor shall repair or
<br /> replace the 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 /> 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 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 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 the insurance provisions contained in the instrument evidencing such Existing
<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 Trust for division of proceeds
<br /> shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<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 insured, the then current replacement 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 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 Trustor's failure to comply with any obligation to maintain Existing Indebtedness in good standing as
<br /> required below, or to discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed of
<br /> Trust or any Related Documents, Lender on Trustor's behalf may (but shall not be obligated to) take any action that
<br /> Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests,
<br /> encumbrances 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 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; IBI be added to the balance of the Note and be apportioned among and be payable with 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 payment which will be due and payable at the Note's maturity. The Deed of
<br /> Trust also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to
<br /> which Lender may be entitled upon Default.
<br /> WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed
<br /> of Trust:
<br /> Title. Trustor warrants that la) 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 Indebtedness 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 full 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 /> 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 /> 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, 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 that the Property and Trustor's use of the Property complies with all
<br /> existing applicable laws, ordinances, and regulations of governmental authorities.
<br /> Survival of Representations and Warranties. All representations, warranties, and agreements made 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 Borrower's Indebtedness shall be paid in full.
<br /> EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br /> Existing Lien. The lien of 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 indebtedness, any default under the instruments evidencing such indebtedness,
<br /> or any default under any security documents for such indebtedness.
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