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<br /> DEED �F TRUST
<br /> Loan N�: 11113D53 �Continued} Page 3
<br /> Insuran�e Program,or as❑therwise required by Lender, and to maintain such insuran�e for the term of the Ioan.
<br /> Application of Proceeds. Trustar shall pramptly notify Lender of any loss or damage to the Property. Lender may
<br /> make praaf of loss if Trustar fails to do so within fifteen �15} days of the casualty. �lVhether or not Lender's
<br /> security is impaired, Lender may, at Lender's election, re�ei�e and retain the pro�eeds of any insuran�e and apply
<br /> the pro�eeds 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 pro�eeds to restoration and repair, Trustar shall repair or
<br /> repla�e the damaged or destroyed Impro�ements in a manner satisfactary to Lender. Lender shall, upon
<br /> satisfactary praaf of such expenditure, pay or reimburse Trustar from the pro�eeds for the reas�nable cost of
<br /> repair or restoration if Trustar is not in default under this Deed of Trust. Any pro�eeds which ha�e not been
<br /> disbursed within 18D days after their receipt and which Lender has not cammitted 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 a��rued
<br /> interest, and the remainder, if any, shall be applied to the principal balan�e of the Indebtedness. If Lender holds
<br /> any pro�eeds after payment in full of the Indebtedness, such pro�eeds shall be paid to Trustar as Trustor's
<br /> interests may appear.
<br /> Campliance with Existing Indebtedness. During the period in which any Existing Indebtedness des�ribed belaw is
<br /> in effect, �omplian�e with the insuran�e pro�isions contained in the instrument e�iden�ing such Existing
<br /> Indebtedness shall constitute �omplian�e with the insuran�e pro�isions under this Deed of Trust, to the extent
<br /> �omplian�e with the terms of this Deed of Trust would constitute a duplication of insuran�e requirement. If any
<br /> pro�eeds from the insuran�e be�ome payable on loss, the pro�isions in this Deed of Trust for di�ision of pro�eeds
<br /> shall apply only to that partian of the pro�eeds not payable to the holder of the Existing Indebtedness.
<br /> Trustor's Repart on Insurance. Up�n request of Lender, howe�er not more than on�e a year, Trustar shall furnish
<br /> to Lender a repart on ea�h existin� policy of insuran�e shawing: (1} the name of the insurer; (2} the risks
<br /> insured; (3} the amount of the palicy; (4} the property insured, the then current repla�ement �alue of such
<br /> praperty, and the manner of determining that�alue; and (5} the expiration date of the palicy. Trustar shall, upon
<br /> request of Lender, ha�e an independent appraiser satisfactary to Lender determine the�ash�alue repla�ement cost
<br /> of the Property.
<br /> LEN�ER'S EXPENDITURES. If any actian or pro�eeding is �ommen�ed that would materially affect Lender's interest in
<br /> the Property or if Trustar fails to comply with any pro�ision of this Deed of Trust or any Related ❑ocuments, includin�
<br /> but not limited to Trustor's failure to comply with any obli�ation to maintain Existing Indebtedness in good standing as
<br /> required below, or to dis�harge or pay when due any amounts Trustar is required to dis�harge or pay under this Deed of
<br /> Trust or any Related ❑ocuments, Lender on Trustor's �ehalf may (but shall not be o�ligated to} take any actian that
<br /> Lender deems appropriate, includin� but not limited to dis�harging or paying all taxes, liens, security interests,
<br /> en�umbran�es and other claims, at any time le�ied or pla�ed on the Property and paying all casts for insurin�,
<br /> maintaining and preser�ing the Property. All such expenditures incurred or paid by Lender for such purposes will then
<br /> bear interest at the rate �harged under the Note from the date incurred or paid by Lender to the date of repayment by
<br /> Trustar. AI I such expenses wi II be�ome a part of the Indebtedness and, at Lender's aptian, wi II (A} be payable on
<br /> demand; �B� be added to the balan�e of the Note and be apportioned among and be payable with any installment
<br /> payments to be�ome due during either (1} the term of any appli�able insuran�e palicy; or (2} the remaining term of
<br /> the Note; or �C� be treated as a balloon payment which wi II be due and payable at the Note's matu rity. The Deed of
<br /> Trust als� will se�ure payment of these amounts. Su�h right shall be in addition to all other rights and remedies to
<br /> which Lender may be entitled upon Default.
<br /> INARRANTY; DEFENSE�F TITLE. The following pro�isions relatin� to ownership of the Property are a part of this Deed
<br /> of Trust:
<br /> Title. Trustar warrants that: �a7 Trustar holds good and marketable title of record to the Property in fee simple,
<br /> free and �lear of all liens and en�umbran�es other than those set forth in the Real Property description or in the
<br /> Existing Indebtedness section belaw or in any title insuran�e palicy, title repart, or final title opinion issued in fa�ar
<br /> of, and accepted by, Lender in connection with this Deed of Trust, and �b} Trustar has the full right, power, and
<br /> autharity to execute and deli�er this Deed of Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph abo�e, Trustar warrants and will fore�er defend the
<br /> title to the Property against the lawful claims of all persons. In the e�ent any actian or pro�eeding is�ommen�ed
<br /> that questions Trustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustar shall defend the
<br /> actian at Trustor's expense. Trustar may be the nominal party in such pro�eeding, but Lender shall be entitled to
<br /> participate in the pro�eeding and to be represented in the pro�eeding by �ounsel of Lender's own choice, and
<br /> Trustar will deli�er, or�ause to be deli�ered, to Lender such instruments as Lender may request from time to time
<br /> to permit such participatian.
<br /> Campliance INith Laws. Trustar warrants that the Property and Trustor's use of the Property �omplies with all
<br /> existin� appli�able laws, ordinan�es, and regulations of go�ernmental autharities.
<br /> SurWiWal of Representatians and INarranties. All representations, warranties, and agreements made by Trustar in
<br /> this Deed of Trust shall sur�i�e the execution and deli�ery of this Deed of Trust, shall be continuin� in nature, and
<br /> shall remain in full farce and effect until such time as Trustor's Indebtedness shall be paid in full.
<br /> EXISTING INDEBTEDNESS. The following pro�isions concerning Existing Indebtedness are a part of this Deed of Trust:
<br /> Existing Lien. The lien of this Deed of Trust se�uring the Indebtedness may be se�ondary and inferiar to an
<br /> existin� lien. Trustar expressly co�enants and agrees to pay, or see to the payment of, the Existing Indebtedness
<br /> and to pre�ent any default on such indebtedness, any default under the instruments e�iden�ing such indebtedness,
<br /> or any default under any security documents for such indebtedness.
<br /> No IVlodifi�ation. Trustar shall not enter i nto any agreement with the holder of any mort�a�e, deed of trust, or
<br /> other security agreement which has priority o�er this Deed of Trust by which that agreement is madified,
<br /> amended, extended, or renewed without the prior written consent of Lender. Trustar shall neither request nor
<br /> accept any future ad�an�es under any such security agreement without the prior written consent of Lender.
<br /> �QNDEMNATIQN. The following pro�isions relatin�to condemnation pro�eedings are a part of this Deed of Trust:
<br /> Praceedings. If any pro�eeding in condemnation is filed, Trustar shall pramptly notify Lender in writing, and
<br /> Trustar shall pramptly take such steps as may be ne�essary to defend the actian and obtain the award. Trustar
<br /> may be the nominal party in such pro�eeding, but Lender shall be entitled to participate in the pro�eeding and to be
<br /> represented in the pro�eeding by �ounsel of its own choice, and Trustar will deli�er or �ause to be deli�ered to
<br /> Lender such instruments and documentation as may be requested by Lender from time to time to permit such
<br /> participatian.
<br /> Application of Net Proceeds. If all or any part of the Property is �ondemned by eminent domain pro�eedings or by
<br /> any pro�eeding or pur�hase in lieu of condemnation, Lender may at its election require that all or any partian of the
<br /> net pro�eeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net
<br /> pro�eeds of the award shall mean the award after payrnent of all reas�nable costs, expenses, and attorneys' fees
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br /> II�IP�SITI�N �F TAXES, FEES AND CHARGES BY G4VERNMENTAL AUTH�RITIES. The following pro�isions relatin�
<br /> to go�ernmental taxes, fees and�harges are a part of this Deed of Trust:
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