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DEED OF TRUST ° ' Page 3
<br /> (Continued) 9 9 10 9 9 7 �ry
<br /> Trustor's Report on Insurance. Upon request of Lender, however not more than once a year,Trustor shall furnish to Lender a report on
<br /> each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4) the
<br /> property insured, the then current replacement value of such property, and the manner of determining that value; and (5) the expiration
<br /> date of the policy. Trustor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value
<br /> replacement cost of the Property.
<br /> LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if Trustor
<br /> fails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Trustor's failure to discharge or pay
<br /> when due any amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Trustor's behalf
<br /> may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes,
<br /> liens,security interests,encumbrances and other claims,at any time levied or placed on the Property and paying all costs for insuring,maintaining
<br /> and preserving the Property All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under
<br /> the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such expenses will become a part of the Indebtedness
<br /> and,at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable
<br /> with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the
<br /> Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Property also will secure payment of
<br /> these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon Default.
<br /> WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust:
<br /> Title. Trustor warrants that: (a)Trustor holds good and marketable title of record to the Property in fee simple,free and clear of all liens and
<br /> encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final title opinion
<br /> issued in favor of, and accepted by, Lender in connection with this Deed of Trust,and (b)Trustor has the full right, power,and authority to
<br /> execute and deliver this Deed of Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph above,Trustor warrants and will forever defend the title to the Property against
<br /> the lawful claims of all persons. In the event any action or proceeding is commenced that questions Trustor's title or the interest of Trustee or
<br /> Lender under this Deed of Trust,Trustor shall defend the action at Trustor's expense. Trustor may be the nominal party in such proceeding,
<br /> but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice,and
<br /> Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such
<br /> participation.
<br /> Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable laws,
<br /> ordinances,and regulations of governmental authorities.
<br /> Survival of Representations and Warranties. All representations,warranties, and agreements made by Trustor in this Deed of Trust shall
<br /> survive the execution and delivery of this Deed of Trust,shall be continuing in nature,and shall remain in full force and effect until such time
<br /> as Trustor's Indebtedness shall be paid in full.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br /> Proceedings. If any proceeding in condemnation is filed,Trustor shall promptly notify Lender in writing,and Trustor shall promptly take such
<br /> steps as may be necessary to defend the action and obtain the award. Trustor may be the nominal party in such proceeding, but Lender
<br /> shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Trustor will
<br /> deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit
<br /> such participation.
<br /> Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or
<br /> purchase in lieu of condemnation,Lender may at its election require that all or any portion of the net proceeds of the award be applied to the
<br /> Indebtedness or the repair or restoration of the Property. The net proceeds of the award shali mean the award after payment of all
<br /> reasonable costs,expenses,and attorneys'fees incurred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes,
<br /> fees and charges are a part of this Deed of Trust:
<br /> Current Taxes, Fees and Charges. Upon request by Lender,Trustor shall execute such documents in addition to this Deed of Trust and
<br /> take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Trustor shall reimburse Lender
<br /> for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Deed of Trust, including
<br /> without limitation all taxes,fees,documentary stamps,and other charges for recording or registering this Deed of Trust.
<br /> Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Deed of Trust or upon all or any
<br /> part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on Trustor which Trustor is authorized or required to deduct from
<br /> payments on the Indebtedness secured by this type of Deed of Trust; (3) a tau on this type of Deed of Trust chargeable against the Lender
<br /> or the holder of the Note;and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by
<br /> Trustor.
<br /> Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Deed of Trust,this event shall have the
<br /> same effect as an Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as provided below
<br /> unless Trustor either (1) pays the tax before it becomes delinquent, or (2) contests the tax as provided above in the Taxes and Liens
<br /> section and deposits with Lender cash or a sufficient corporate surety bond or other securiry satisfactory to Lender.
<br /> SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Deed of Trust as a security agreement are a part
<br /> of this Deed of Trust:
<br /> Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures or other
<br /> personal property, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to
<br /> time.
<br /> Security Interest. Upon request by Lender, Trustor shall execute financing statements and take whatever other action is requested by
<br /> Lender to perfect and continue Lender's security interest in the Rents and Personal Property. In addition to recording this Deed of Trust in
<br /> the real property records, Lender may, at any time and without further authorization from Trustor, file executed counterpaRs, copies or
<br /> reproductions of this Deed of Trust as a financing statement. Trustor shall reimburse Lender for all expenses incurred in perfecting or
<br /> continuing this security interest. Upon default, Trustor shall assemble the Personal Property in a manner and at a place reasonably
<br /> convenient to Trustor and Lender and make it available to Lender within three(3)days after receipt of written demand from Lender.
<br /> Addresses. The mailing addresses of Trustor(debtor) and Lender(secured party) from which information concerning the security interest
<br /> granted by this Deed of Trust may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this
<br /> Deed of Trust.
<br /> FURTHER ASSURANCES; AITORNEY-IN-FACT. The following provisions relating to further assurances and attorney-in-fact are a part of this
<br /> Deed of Trust:
<br /> Further Assurances. At any time,and from time to time,upon request of Lender,Trustor will make,execute and deliver,or will cause to be
<br /> made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or
<br /> rerecorded,as the case may be,at such times and in such offices and places as Lender may deem appropriate,any and all such mortgages,
<br /> deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance,
<br /> certificates,and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect,
<br /> continue, or preserve (1) Trustor's obligations under the Note, this Deed of Trust, and the Related Documents, and (2) the liens and
<br /> security interests created by this Deed of Trust as first and prior liens on the Property,whether now owned or hereafter acquired by Trustor.
<br /> Unless prohibited by law or Lender agrees to the contrary in writing, Trustor shall reimburse Lender for all costs and"expenses incurred in
<br /> connection with the matters referred to in this paragraph.
<br /> Attorney-in-Fact. If Trustor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of
<br /> Trustor and at Trustor's expense. For such purposes, Trustor hereby irrevocably appoints Lender as Trustor's attorney-in-fact for the
<br /> purpose of making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole
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