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<br /> DEE[� �F TRU��
<br /> Laan hlo: 'I�'[�3�"147 {��n��inued� Page 4
<br /> Applicatian o�Pra�e�ds. Trust�r shalf promptly natify Lender vf any loss or damage to #he Property. Lender may
<br /> make proa� ofi loss �f Trus�or fails to da so wi�hin fift�en �15y days of the casualty. Whether or na� Lender`s
<br /> security is impaired, Lender may, at L�nde�'s election, receiWe and retain�he proce�ds af any insuranc� and apply
<br /> the pr�ceeds �o the reduction �f the Indebtedness, payment of any lien affec�ing fihe Proper�y, ar the restoratian
<br /> and repair of�he Property. If Lender ele�ts �o apply the praceeds ta r�storation and repair, Trustar shall repair or
<br /> rep[ace �he damaged or destroyed Improvements in a manner satis�Factory to Lender. L�nder shall, upon
<br /> sa�isfactory pro�f �f such exp�nditure, pay or reimburse Trus�kor firom the proceeds far the reasflnab[e cost of
<br /> repair ar res�oration if Trustar is not in default under this Deed of Trus�. Any proceeds which ha�e nafi been
<br /> disbursed wi�hin 18❑ days a�fter their receipt and which Lender has nafi ��mmitted fio the repair or restaration o�
<br /> the Property shall be ussd first to pay any amoun� ❑wing �❑ Lender under xhis Deed �f Trust,�hen�� pay accrued
<br /> inte�es�, and �he remainder, i�F any, shail be applied to the p�incipa� balance of the Indebtedness. lf Lender ho[ds
<br /> any proceeds after payment in ful[ flf the Indek��edn�ss, such pr�ceeds shal[ be paid t❑ Trustor as Trus�ar's
<br /> interests may appear,
<br /> Trustor's Repart on Insu�ance. Upon r�quest of Lender, howe�er no�mor� than ❑n�e a y�arr Trustar shall furnish
<br /> to Lender a repor� on ea�h existing policy of insurance sh�wing: �1 f �he narne a# the insurer; {�y �he risks
<br /> insured; �3y the amount of the policy; �4} fihe property insured, the then current replacement �alue ��F SUCh
<br /> proper�y, and th� manner of deterrnining that valu�; and �5} �he expiration date ❑f tl�e policy, Trustar sha�l, upon
<br /> request of L�nder, have an ind�pendent appraiser satis�ac�ory�a Lender determine the cash�alue replacement cast
<br /> af�he Property.
<br /> LENDERrS EKPEND[TURES. �f�ny action or proc�eding is c�mmence� �hat wou�d ma�erially affe�� Lender's interes�in
<br /> �he Property ar if Trustar fails t� ��mp1y with any pra�ision af this De�d of Trust or any R�lated ❑ocumen�s, including
<br /> but not limited to Trustar's failure t❑ discharge or pay when due any amounts Trus'�or is required to discharge �r pay
<br /> under this De�d af Trust ar any Rela�ed D�cuments, Lender ❑n Trustar's behalf may �but shall not be Qbligated tay take
<br /> any a�tian �hat Lender deerns apprapriate, including hut not limited ta discharging �r paying a�[ faxes, liens, se�urity
<br /> interes�s,�ncurnhrances and other cla�ms, at any�ime�evied ar pla�ed❑n the Property and paying alf �flsts�or insuring,
<br /> rnaintaining and preser��ng �kha Praper�y. Ail such expenditures incurred ❑r paid hy Lender fvr such purpvses wifl then
<br /> bear interest at th� rate charged under the Note�fram the date in�urr�d or paid by L�nder to the date of repayment k�y
<br /> Trustor. All such expenses will #�ecame a part of�he �ndebt�dness and, at Lender's op�ion, will �A} be payable on
<br /> demand; {B} be added to �he balanc� of th� N��te and be apportianed among and be payable wi�h any installrnent
<br /> payments to be��me due during either ��� the term o�any applicable insurance po�icy; or �2) the r�maining term of
<br /> the N��e; ❑r �Cy be treated as a ball��n payment wh�ch will be due and payahle at th� Not�'s maturity. The Deed ❑f
<br /> Trust a[sa will secure paym�nt o��he$e amounts. 5uch right shall be in addition t❑ all ather rights and remedies t�
<br /> which Lender may b�en�Citled upon D�fault.
<br /> WARRANTY; DEFENSE�F TITLE. The follawing provisians relafiing ta �wnership af the Property ar�a part of this Deed
<br /> af Trus�:
<br /> Title. Trustar warrants that: {ay Trustar holds good and marketable title o� record t� the Pr�perty in �ee simple,
<br /> free and clear af ail liens and encumbrances other than �hose set �orth in the Real Property description �r in any
<br /> title insurance paiicy, titl� repor�, or final ti�le apinian issued in favar of, and acc�p�ed by, Lender in canne��ion
<br /> wifh this Deed ❑f Trust, and {b� Trustar has the full right, power, and authari�ty�o�xe�u�e and deli�er�his Deed of
<br /> Trust to Lender.
<br /> Defense vf Title. Suk�ject ta the exception in the �aragraph abo�e, Trustor warrants and will foreU�r de�Fend �he
<br /> tEtle ta the Prap�rty agains�the lawful �laims ❑�F ai! persons. In the even� any ac�i�n or praceeding is Gammenced
<br /> that ques�ians Trustor's�itle ar the interes�of Trustee ar Lender under this Qeed o�F Trus#,Trustor shall defend the
<br /> action at Trustor's exp�nse. Trustor rnay be the naminal par�y in such praceeding, bu� Lender shall be entitled ta
<br /> pa�ticipate in the proceeding and ta be represented in the praceeding by counse� o� Len�er's own chaice, and
<br /> Trustar will deli�er, ar�aus�to �e deli�ered, �❑ Lender such instruments as Lender may request fram�Cime t❑time
<br /> to permit such par�ticipa�ion.
<br /> Compliance Vlli�#h Laws, Trustor warrants that �he Praperty and Trustor's use ofi the Pr�perty �om��ies with all
<br /> exis�ing applica�le laws, �rdinanees, and regulatians of go�ernmental authorities.
<br /> Survi�al o� R�pres�ntafiions and VlJarranfii�s. All representa�ions, warranties, and agreements made by Trustor in
<br /> this Deed o�Trus�shall survi�e the execu�ion and deli�ery o�this ❑eed ❑f Trusf, shall be can�inuing in nature, and
<br /> shall remain in full force and ef�e�t until suGh tim� as Borrower's Indeht�dness shall be paid �n full.
<br /> CONDECUINATIDN. The foll�wing pro�isions relating ta condemnatian praceedings are a part of tl�is Deed of Trust:
<br /> Proceedings. �f any praceeding in condemnatian is �riled, Trus�ar �i�ali p�vrr�p�iy ��ti�y Lender in writing, and
<br /> Trustar shall pramptly take such st�ps as rnay be necessary �o defend the actian and ob�ain the award. T�-ustor
<br /> may lae the nominal party in such pro�eeding, bu�Lender shall be en�itEed�o participate in the proceeding and t❑ be
<br /> represented in the prace�ding Iay caunsel of its �wn cha�ce, and Trus�or will deli�er or cause ta be deli�ered t❑
<br /> Lender such instrumen�ts and docurnentatian as rnay be requested by L�nder fram tEme to time �a permit such
<br /> participation.
<br /> Application of Ne�Proceeds. Ef all ❑r any part of the Property is candemned by eminent domain prviceedings or by
<br /> any pro�eeding �r pur�hase in lieu o�f�andemnation, Lender may at i�s election require that ali oc any portion of�he
<br /> net proceeds �f �the award be applied to the Indebtedness or the repair or restoration of fhe Property. Th� net
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