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2� 17��8�5
<br /> I�EED �F TRUST
<br /> Loan Nv: 'I�'13�2'�44 ��ontinued} Page 4
<br /> Applicafiivn v� Proceeds. Trustor shall promptly noti�fy Lender ❑f any �oss ❑r damage ta the Proper�y. Lender may
<br /> make proo� o� lass i� Trus�ar fails fiv dv sv wi�hin fiifteen t15} days af �he casualty. Whether ar not Lender's
<br /> securi�y is impaired, Lender may, a� Lender's electian, recei�e and re�ain �he pro�eeds of any insurance and apply
<br /> the praceeds �a fihe reduct�on ❑�fihe Indebtedness, paymenfi of any lien a�fec�ing �he Property, or �he res�koration
<br /> and repair ❑f�khe Proper�y. If Lender elec�s to apply the proceeds ta rest�ra�ion and repair, Trustar shall repair or
<br /> r-eplace the dama�ed ar destrvyed Improvements ir� a manner satis�actory to Lender. Lender shall, up�n
<br /> satis�actory prao� �f such expendi�kure, pay ❑r re�mburse Trustar -�rom the prv�eeds �or the reasonable cos� of
<br /> repai� or restoration if Trus�ar is not in defaul� under �his aeed af T�ust. Any proceeds which ha�e nvfi been
<br /> disbursed within 18� days af�er their receipfi and which Lender has nat comm�tted to the repair or res�oratian a�
<br /> the Proper�y shall be used firs�to pay any amoun� owing to Lender under this Deed of Trust, �hen �o pay accrued
<br /> �nterest, and the �emainder, if any, shall he applied ta the principal 1aa�ance ofi fihe Indehfiedness. I� Lender holds
<br /> any proceeds afker payment in �fuli of the Indeb�edness, such proceeds sha�� be paid to Trustor as Trus�or's
<br /> in�terests may appear.
<br /> Trustor's Repor�on lnsuran�e. Upvn request vf Lende�-, hawe�er not more than onc� a year, Trus�or shall �Furn�sh
<br /> �❑ Lender a repar� on each existing policy vf insurance showing: ��} the name at the insurer; �2} the risks
<br /> insured; 43} �he amoun� af �he paiicy; {4} fihe proper�y insured, the then current replacement �alue af such
<br /> proper�y, and the manner of de�ermining that Walue; and {5} the expirat�on date ❑f the palicy. Trusfiar sha��, upan
<br /> � r�quest of Lender, ha�e an independent appraiser satis�actory�❑ Lender de�ermine the cash�alue replacement cast
<br /> ofi�he Prope�ty.
<br /> LENDER'S E�PENDITURES. �f any action ar proceeding is commenced�hat would ma�eria�ly a�ffect Lend�r's in�erest in
<br /> �he Property ❑r if Trustor�ails to camply wi�h any pro�ision of this Deed vf Trus� vr any Rela�ed Do�uments, including
<br /> but n�t limited ta Trus�vr's fai�ure to discha�-ge ❑r pay when due any amoun�s Trusta� is required to discharge ar pay
<br /> under this Deed v�Trust or any Rela�ed [3ocumen�s, Lender❑n Trus�ar's behalf may �bu�shall no��e ob�igated ta} take
<br /> any action �hat Lender deems appropriate, includ�ng but not limified to discharg�ng or paying all taxes, liens, securi�y
<br /> inte�-es�s, encumbrances and ❑�her claims, at any�ime le�ied or placed on�he Proper�y and paysng all c�sts fvr insuring,
<br /> mainta�n�ng and preser�ing th� Praperty. All such expendi�ures incurred or paid by Lender�or such purposes will then
<br /> bear inte��st at the rate charged under the No�e from �he date incurred or paid 1ay Lender to �he date v� repayment �y
<br /> Trustar. All su�h expenses wil� became a part of the Endebt�dness and, a� Lender's ❑ption, will �A} he payable �n
<br /> demand; {B} be added �v the balance v� the No�e and be appvrfiivned among and be payable w�th any insta�lment
<br /> payments �v become due during either ��� the term of any applicalale insurance palicy; or �2} the remainin� term of
<br /> the Note; ❑r �C� he trsa�ed as a balloon paymen�which will be due and payable at the No�e's maturity. The ❑eed ❑�F
<br /> T�-ust als� will secure paymenfi vfi�hese amvunfis. 5uch �igh� shall be �n addition ta all ❑ther rights and remedies t❑
<br /> which Lender may be entitled upon Defaul�.
<br /> 1NARRANTY; DEFENSE QF TITLE. The fallowing proWisians r�lating to awnership of�he Praperty are a par�❑�this ❑eed
<br /> of Trus�:
<br /> Ti#le. Trustor warrants thafi: ta� Trustvr holds gvod and marketable titl� of record to fihe Property in �ee simple,
<br /> free and clear ❑�f aff liens and encumbrances o�her than th�se se� forth in the Real Prvperty description or in any
<br /> title insuran�e palicy, �i�le report, ❑r fiinal title apinion issued in fa�vr vf, and accepted i�y, Lender in connection
<br /> wifih fihis ❑eed o�F Trus�, and {b} Trustor has the fulE right, power, and au�hari�y t❑execute and deliver this Deed ❑�
<br /> Trust t❑ Lender.
<br /> Defense v�Titie. 5ubject fiv the excep�ivn in the paragraph abo�e, Trus�tor warrants and will fore�er de�fend �he
<br /> �i�le�❑the Proper�y against the �awful claims ��all persons. ln fihe e�ent any ac�ion ar proceeding is �ommenced
<br /> �ha�quesfiions Trustor's�i�le or�he interest af Trustee or Lender under�his Deed o�F Trust,Trus�or shali defend�he
<br /> ac�ivn at Trus�vr's expense. Trustar may be the nominal parfiy in such praceeding, but Lender shall �e entit�ed�o
<br /> par�icipate fn the praceeding and to be represented in fihe prviceeding by counsel ❑fi Lender's �wn chvi�e, and
<br /> Trusfior will deliWer, ar cause to be de�EWered, �v Lender such instrumen�s as Lender may request fram time�v time
<br /> �v permit such participa�ian.
<br /> Complianc� Vllith Laws. Trust�r warran�s that the Prvperty and Trustor's use a€ the Pr�perty complies with all
<br /> exisfiing appliGahle [aws, vrdinances, and re�ulafiions v�goWernmenta� authari�ies.
<br /> 5urvi�ra[ v� Representa�ians and V�larran�ies. All representativns, warran�ies, and agreements made by Trus�ar in
<br /> �khis aeed o-�Trust shall surviWe the execu�ian and deli�ery�f�his Deed o�Trus�, shall be continuing in nature, and
<br /> shal� remain in�ull fivrce and efife�t unti!su�h time as Trustvr's Indebtedness shalE be paEd in fuiE.
<br /> ��NDEMNATIDN. The follovving pro�isions rela�ing tv �ondemnation proc�edings are a part❑f�his Deed of T�ust:
<br /> Proceedings. l� any praceeding in candemnation is filed, Trusto�r shall pramptly natify Lender in writing, and
<br /> Trustor shall promp�ly�ake su�h steps as may be necessary �o de�end the action and abtain the award. Trustor
<br /> may t�e the nominal par�y in such p�oceeding, but Lender shal[ be en�titfed t❑ participa�e in the proceeding and to be
<br /> represen�ed in the proceeding hy counsel of its ❑wn choice, and Trustor wifl deli�er ar cause tv be deli�ered fio
<br /> Lender su�h instruments and documenta�ion as may be requested by Lender firom time t� time -�o permit such
<br /> participa�ivn.
<br /> Appli�ation o�r Ne�Proceeds. 1�all or any part af�he Praperty is cQndemned 1�y eminent damain proceedings ar�by
<br /> any proceeding ❑r purchase in [ieu❑f condemnation, Lender may at its election require�hat al� vr any pvrtion v��he
<br /> net proce�ds ❑f the award be app�ied �❑ the lndebtedness or the repair or �estoration of the P�operty. The net
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