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201404185
<br /> DEED OF TRUST
<br /> Loan No: 10009881 (Coultlnued) Pag�e 3
<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 defaulE untler this Deed of Trust. Any proceeds which have not been
<br /> disbursed within 180 days afiter their receipt and which Lender has not committed to the repair or restoration of
<br /> ihe 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 remairider, 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 lndebtedness. 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 Deetl of Trust, to the extent
<br /> compliance with the terms of this Deed of Trust would constitute a dupiication of insurance requirement. If any
<br /> proceeds from the insurance become payable an loss, the provisions in this Deed of Trust for division of proceeds
<br /> shalf apply oniy to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br /> LENDER'S EXPENDITURES. if Trustor fails (A) to keep the Property free of all 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 indebtedness in good standing as required below, then
<br /> Lender may do so. If any action or proceeding is commenced that would materiaily affect Lender's interests in the
<br /> Property, then Lender on Trustor's behaif may, but is not required Co, 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 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 rthe Indebtedness and, at Lender`s option, will (A) be payable on
<br /> demand; (B) be added to the balance of the Note and be apportioned arnong 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 balioon payment which wiii be due and payable at the Note's maturity. The Deed of
<br /> Trust also will secure payment o#these amounts. The rights provided'for in this paragraph shall be in addition to any
<br /> other rights or any remediesi to which Lender may be entitied 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 of this Deed
<br /> of Trust:
<br /> Title. Trustor warrantsthat: (a) Trustor hoJds good and marketable title of record to the Property in fee simple,
<br /> free and clear of ail liens and encumbrances other than those set forth in the Real Property description or in �he
<br /> Existing Indebtedness section below or in any tifle insurance policy, titie report, or final title opinion issued in fiavor
<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 Deetl of Trust to Lender.
<br /> Defense of Title. Subject to the exception in,xhe paragraph above, Trustor warrants and will �orever defend ihe
<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 T�ustor's use of the Property complies with all
<br /> existing applicable laws,'ordinances, and regWations of governmental authorities.
<br /> Survival of Promises. AII promises, agreements, and statements Trustor has made in this Deed of Trust shall
<br /> survive the execution and delivery of this Deed of Trust, shall be continuing in nature and shall remain in full force
<br /> and effect until such time as Trustor's Indebtedness is paid in full.
<br /> EXISTWG 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,fhe Existing Indebtedness
<br /> and to prevent any de#ault on such indebtedness, any de#ault under the instruments evidencing such indebtedness,
<br /> or any default untler any security documents#or such indebteciness.
<br /> No Modification. Trustor shall not enter into`any agreement with the holder af a�y mortgage, deed of trust, or
<br /> other secur'sty agreement which has priority,over this Deed of Trust by which that agreement is modified�
<br /> amended, extended, or renewed wiihout the prior written consent of Lender. Trustor shall r�either requesrt nor
<br /> accept any future advances under any such security agreemenfi wifhout the prior written consent of Lender.
<br /> COIVDEMNATION. The following provisions relating to condemnation p�oceedings 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 rtominal 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, and Trustor will deliver or cause to be delivered to
<br /> Lender such instruments and documentation 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 pu�chase in lieu ofi condemration, ��entler may at its election require that aiI 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 the award shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees
<br /> incurred by Trustee or Lender in connection with the'eondemnation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br /> to governmental taxes,fees and charges are a part of this Deed of Trust:
<br /> Current Taxes, Fees and Charges. Upon request 6y Lender, Trustor shall execute such documents in addition to
<br /> this Deed of Trust and talce whatever other action is requested by Lender to perfect and conrtinue 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 without limitation all taxes, fe�s,
<br /> documentary stamps, and other charges for recording or registering this Deed of Trust.
<br /> Taxes. The following shall constitute taxes to which this section appiies: ('!) a specific tax upon this type of
<br /> Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trust; (2} a specific tax an
<br /> Trustor which Trustor is autfiorized or required to ded�:ct from payments on the Indebtedness secured by fhis type
<br /> of beed of Trust; (3) a tax on this type of Deec! of Trust chargeable against the Lenaer or tF�e holder of the Note,
<br /> and (4) a specific tax on all or any portion of'the Indebtedness or on payments of pri'ncipaf and interest made by
<br /> Trustor.
<br /> Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Deed of
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