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<br /> �]EE[] �F TI�LJ�T"
<br /> Lo�n I�a: '[�7�5�7�3 ��o�1t����d} Page 4
<br /> Applicativn vf Proceeds. Trustar shal� promptly no�i�y Lender o� any loss or dama�e �a the Pr�perty. Lender may
<br /> mal�e p�o�� a� loss i�F Trusfiar �ai[s �o do sQ within �i�teen �15} days of �he �asuafty. Whe�her ar no� L�nder's
<br /> securi�y is impaired f Lender may, a� L�nder's efection, receiWe and retain the proce�ds of any insurance and app�y
<br /> the proceeds �o t��e reduc�i�n of the [n�ebtedness, payment of any lien af�ect�n� the Praper�y, or �he restoration
<br /> and repair of the Property. Ef Lender �Iects t❑ apply the proc�eds 'to restoratian and repair, Trus�or shal! repair or
<br /> replace the damaged �r des�royed lmproWemen�s in a manner sa�is�actory �o Lender. Lender shall, upon
<br /> sat�sfactory pra�� ��f such �xpendi�ure, pay or reimburse Trustor irom the praceeds for th� reasonable cost of
<br /> repair �r restaratian i� Trust�r is not in default under this �eed of Trus�. Any praceeds which ha�e nat been
<br /> disbursed within 18� days a��er their receip�t and which L�nder has n�� commit�ed �o the repair or res�aration o�
<br /> the P�operty shall �e us�c� ffrst to pay any amoun� owing �o Lender under�his ❑��d of Trus�, �hen to pay aCcrued
<br /> in�erest, and �he rema�nder, if any, sha�l be applied to the principa[ balanc� of �he [ndebtedness. If Lender holds
<br /> any proceeds after payment in ful! af the Indebtedness, such p�oceeds shall be paid to Trustor as Trus�or�'s
<br /> i���erests may appear.
<br /> T�ust�rrs R�pvrt an �nsuranc�. Upon request of Lender, howeWer no� more �han vnce a year, Trustor shall �urnish
<br /> �Q Lender a repart �n each existing policy of insurance showing; ��� �he name �f �h� insurer; �2� the risks
<br /> insured; �3y the amount o� �he pnlicy; �47 th� praperty insured, �h� fihen curren� replacemen� �a[ue ❑� such
<br /> pr�perty, and the manner o�determinin� that value; and �5} the expira�ion date o�the paiicy, Trus�;or shall, upon
<br /> request a� L�nder, ha�e an independen�appra�ser sa�isfactory�o L�nder de�ermine th�cash vafue r�placemen�cos�
<br /> of the Property.
<br /> LE�V[]ER'S E�PEND�TU�ES. �f any ac�i�n ❑r proceeding is cammen�ed tha�wau�d ma�erially affect Lender's interest in
<br /> �he Property ar if T�ustar �aiIs �o �amp�y with any pro�rision of this ae�d of Trus� or any Relat�d Documents, including
<br /> bu� not Iimi�ed �o Trus�or's failure to discharge or pay when due any amoun�s Trus�:�r is required �o discharge or pay
<br /> under this Deed of Trust�r any Re[ated Documents, Lend�r on Trust�r's behalf may �but shall na�he obfi�ated to} take
<br /> any a�tian fiha� Lend�r deems appropriate, including �u� no-� limi�ed �o discharging or payEng aii tax�s, I�ens, S�CUCIf�I
<br /> interestsf encumbranc�s and o�her claims, at any time le�ied ar pfaced �n�he Property and paying all cos�s for insuring,
<br /> main�aining and preser�rin� the Property. All such expenditures incurred or paid by Lender f�r such purpases will then
<br /> b�ar interes� at the rate charg�d under�he Note fr�m �he date in�urr�d ar paid by Lender �o the date af r�paymen� by
<br /> Trus�or. AII SLICI`� ��Cp2n5�5 will become a part of the lndebtedness and, at Lender`s ap�ion, will �A} be payable on
<br /> demand; {B} �e added to �he balance of the Nate and be apparti�ned amang and be payab[e with any installmen�
<br /> payments to be�ame du� during either {1} �:he term of any applica��e insuran�e policy; or t27 the remaining �erm of
<br /> �he hlate; or ��y be �reat�d as a balloon payment which will be due and payable at the Note's ma�ur�ty. The Deed of
<br /> Trust also will secure paymen� a� �hese amaunts. Su�h right shall be in addi�ion ta a11 other rights and remedi�s �o
<br /> wh�ch Lender may be entitled upon ❑efault. �
<br /> V1lARRANTY; DEFENSE❑F T1TLE. The foliowing proWisions rela�ing ta own�rship of�he Pr�perty are a part of this I3�ed
<br /> o�Trus�:
<br /> Tifile. Trus��r v�rarran�s �hat: {a� Trust�r holds good and mar[cetable title of record to the Property in ��� simpie,
<br /> free and clear �f ali liens and encumbrances o�her �han those se� far�:h �n the Real Property descrip�ion or in any
<br /> �itle insurance pQlicy, tit�e rep�rt, or final ti�le opinian issued in -�a�ar af, and accepted by, Lender in cannect�on
<br /> with this De�d �f Trust, and �b} Trustar has the full right, pov�rer, and authority to execute and deli�ver th�s De�d of
<br /> Trus��o Lender.
<br /> Deferrse a� Tifle, Subj�c� �o the excep�ion in fihe paragraph a�o�e, Trustor vvarrants and will forever defend fihe
<br /> tit�e to the Property against the faw�u! c[aims of a11 persons. ln �he e�ren� any action or pro���ding is commenced
<br /> that questions Trustor's title or the int�r�s�of Trus�e� or Lender under this Deed af Trust, T�ust�r shall defend�he
<br /> ac�ion at Trus�or's expens�. Trustor may be the nominal par�y in such proceeding, but L�nder shal! be enti�led to
<br /> participa�e in the proGeec�Eng and to be represen�ed in the proc�eding �y counsel of Lender's own cha�ce, and
<br /> Trustor will deli�er, or cause to bs de[ivered, �o Lender su�h instruments as Lender may requ�st from time �o time
<br /> to p�rmi�t such participation.
<br /> �vmplia��e Vlfitn Lav�rs. Trus�ar warran�s that the Prop�rty and Trustor`s use o� �the Praper�y campli�s with afl
<br /> exis�ing appEicab[e la�rvs, ordinances, and regulations of governmen�al authori�i�s.
<br /> Sur�ival o�F Represen�afions and 11�larran�ies. All representatians, warrant�es, and agre�ments made by Trustor in
<br /> �this Deed o�Trus�shall sur�ive the execu�ion and deii�ery of this Deed flf Trus�, shail be continuing in nature, and
<br /> shali remain �n�ull f�rce and e��ect un�i� such�ime as Borrower's Indeb�edness shall be paid in full.
<br /> �OIV�EiViNATiON. The�o�fowing pravisions rela�ing t� can�femna�ion praceedings are a par�of-�his ❑eed o�Trust:
<br /> Pro�e�dings. �� any pr�ceeding in condemnat�on is fiEed, Trust�r shall promp�ly notify Lender in wri�ring, and
<br /> Trus�or shail pramp�ly talce such 5���5 as may be nec�ssary to defend the action and obtain the award. Trustor
<br /> may be the nominal par�y in such proc�eding, bu� Lend�r shall be enti�l�d to part�cipate�n�he pra�eeding and to be
<br /> represen�ed �n the pro�eed�ng by caunsel of i�s own choice, and Trustor v�rill de[i�er or cause to be deli�ered ta
<br /> Lender such instrumen�rs and documentation as may be re�uest�d by Lender from time �o time to p�rmit such
<br /> participa�ion.
<br /> I�pplication ❑� Nefi Proceeds. If a!I or any part af�he Pr�perty is candemned by emin�n�domain proceedings �r by
<br /> any proceeding or purchase in lieu o�candemnati�n, Lender may a�its elecfiion require that a11 �r any po�tion of the
<br /> net pra�eeds af the award be applied to the lndeb�edness or the repair or res�ora�Eon afi �he Pr�per�y. The net
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