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2� 17�2�98
<br /> vEE� oF TRus-r
<br /> Lvan No: 'I�'I 3�41 DD �Continued� Page 4
<br /> the pro�eeds to the reductivn vf the Indebtedness, payment of any lien affecting the Property, vr the restoration
<br /> and r�pair af the Property. �f Lender elects ta apply the proceeds to restaration and repair, Trustvr shali repair ar
<br /> replace the damaged or destrayed Impro�ements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfactary provf of such expenditure, pay or reim�urse Trus�or #�om the praceeds f�r the reasonable �ost of
<br /> repair or restoratian if Trustor �s not �n defau�t under this Deed of Trust. Any proceeds whi�h ha�e not �een
<br /> disbursed within 18� days a#ter th�ir receipt and which Lender has not c�mmitted to the repair �r restaration of
<br /> the Praperty shafi b� used first t� pay any amaunt ❑wing to Lender und�r this Deed ❑f Trust, then t� pay a�crued
<br /> interest, and the remainde�, if any, sha�� he applied to the principal �alance ❑f the �ndebtedness. �f Lender h�lds
<br /> any proceeds aft�r paym�nt in full of the Indebtedn�ss, su�h praceeds sha�l be paid t❑ Trustar as Trustor's
<br /> interests may appear.
<br /> Compliance wi#h Exist�ng indebtedness. During the period in which any Existing lndebtedness described belvw is
<br /> in effect, compliance with the insurance pr��isions �antained in the instrument e�idencing such Existing
<br /> �ndebtedness shal� constitut� campliance with the insurance pra�isians under this Deed of Trust, to the extent
<br /> campliance with th� terms ❑f this Deed of Trust would constitute a duplication of insurance requirement. �f any
<br /> praceeds fram the insurance b�cvme payabie fln Ioss, the pro�isians in this Deed of Trust fvr di�ision of proceeds
<br /> sha�i appfy vn�y to that pvrtian of th� proceeds not payable to the hfl�der nf the Existing Indebtedness.
<br /> Trustor's Rspvrt on Insurance. Upan requ�st of Lender, haweW�r not more than ❑nce a year, Trustor shali furnisi�
<br /> to Lender a report on each existing policy af insurance shawing: �1) the name of the insur�r; t�y the risks
<br /> insured; �3f the am�unt of the pvlicy; {4} the prop�rty Ensured, the then current repla��ment �alue of such
<br /> property, and the manner flf determining tha� �alue; and �5y the expiration date ❑f the p�lfcy. Trustar shall, upan
<br /> request❑f Lender, have an �ndependent appraiser satisfactory ta Lender determin�the cash �alue repia�em�nt cast
<br /> of the Property.
<br /> LENDER'S EXPENDITURES. I� any action or proc�eding is cammen�ed that wauld materially af�e�t Lender's interest in
<br /> the Property ❑r if Trustor fails to c�mpiy with any prvvision of this Deed a� Trust vr any Related Documents, including
<br /> but not limited ta Trustor's failure to comply with any obligat�on t❑ maintain Existing f ndehtedness in good s�anding as
<br /> r�quired below, or to discharge or pay ►►vhen due any am�unts Trustor is required tt�dis�harge or pay under this ❑eed vf
<br /> Trust ar any Related Dacuments, Lender an Trustor's beha�f may �but shall not be nbliga�ed toy take any action that
<br /> Lender deems appr�priate, including but not iimited to discharging �r paying a!I taxes, liens, security interests,
<br /> encumbrances and ather claims, at any time le�ied o� placed on the Property and paying al� costs for insuring,
<br /> maintaining and preser�ing th� Property. All such expenditures incurred ar paid by Lender for such purposes will then
<br /> b�ar interest at the rate charged under the Not� from the date in�urred �� paid by Lender to the date ❑f repayment by
<br /> Trustar. All su�h expenses w�il become a part o� the Indebtedness and, at Lend�r's optian, will �Ay be payable an
<br /> demand; �By be added tv the balance of th� Note and he apportioned among and he payable with any installm�nt
<br /> payments t❑ became due during either ��� the term of any applicable insurance pn�icy; or �2� the r�maining term of
<br /> the N�te; vr ��} be treated as a �allovn payment which will be due and paya�le at the Note's maturi�y. The Deed ❑�
<br /> Trust alsv wi�� secure payment ot these amvunts. Such right shall be �n addiCivn to all oth�r rights and remedies to
<br /> which Lender may be entitled upan Default.
<br /> VIIARRANTY: DEFENSE�F TITLE. The foll�wing pro��sions relating tv ownership❑f the Property are a part af this De�d
<br /> ❑�Trust:
<br /> Title. Trust�r warrants that: ta� Trustor halds gnad and marketable title ❑f re�ard to the Pr�perty in fee s�mple,
<br /> free and �lear ❑f all liens and encumbrances ❑th�r than those set �orth in the Real Praperty description ar in the
<br /> Existing Indebtedn�ss sect�an below or in any title insurance po€icy, title report, or �inal title ❑pinion issued in fa�or
<br /> of, and a�c�pted hy, Lender in cannection with #his Deed �f Trus#, and �b} Trustor has �he fulf right, power, and
<br /> authority to execute and deli�er this ❑eed o€Trust to Lender.
<br /> Defense of Title. Subject to the ex�ep�i�n in the paragraph abo�e, Trustor warrants and wiI! fore�er de��nd the
<br /> title #o the Pr�p�rty against the law#ul claims vf all persar�s. In the e��nt any actian or proceeding is commenced
<br /> that questivns Trustor's title or the interest vf Trustee or Lende� under this ❑eed of Trust, Trustor shall defend the
<br /> action at Trustor's expense. Trust�r may b� the naminal party in such proceeding, �ut Lender shal! be entitfed to
<br /> participate in the prviceeding and ta be represented in the pr�ceeding by counsel �t Lender's own ch�ice, and
<br /> Trustor will deli�er, ❑r cause tv be deli�ered, to Lend�r such instruments as Lender may request from time t� time
<br /> ta permit such part�cipativn.
<br /> Cvmpliance With Laws. Trustor warrants that the Praperty and Trustar's use af the Property ��mplies with ali
<br /> existing applicable laws, ordinanGes, and regulations of go�ernmental authorities.
<br /> Survi�al vf Representations and Vllarranties. All representations, warranties, and agreer�'�ents made hy Trustvr in
<br /> this �e�d �f Trust shall sur�i�e th� execution and deli�ery a� this Deed of Trust, shall be cbnt�nuing in nature, and
<br /> sha�� remain in full force and ef�ect until su�h time as Trustor's Indebtedn�ss shali be paid in full.
<br /> EXISTING INDEBTEDNESS. The followEng pro�isions concerning Existing Indebtedness are a part af this Deed of Trust:
<br /> Existing Lien. The lien af this Deed af Trust securing the Indebtedness may be secnndary and inferior to an
<br /> existing lien. Trustor expressly co�enants and agrees to pay, or see #o the payment of, the Existing Indebtedness
<br /> and t� pre�ent any da�ault❑n such indebtedness, any defau�t under the instruments e�iden�ing such indebtedness,
<br /> ar any default under any security do�uments for such indebtedness.
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