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DEED OF TRUST 9 9 11214 9 Page 4
<br /> (Continued)
<br /> the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any
<br /> applicable insurance policy; or (21 the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable
<br /> at the Note's maturity. The Property also will secure payment of these amounts. The rights provided for in this paragraph shall be in
<br /> addition to any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall
<br /> not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had.
<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
<br /> liens and encumbrances other than those set forth in the Real Property description or in the Existing Indebtedness section below or in
<br /> any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of
<br /> Trust, and (b) Trustor has the full right, power, and authority to 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
<br /> against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Trustor's title or the
<br /> interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the action at Trustor's expense. Trustor may be the
<br /> nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding
<br /> by counsel of Lender's own choice, and Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may
<br /> request from time to time to permit such participation.
<br /> Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable
<br /> laws, ordinances, and regulations of governmental authorities.
<br /> Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall survive the execution
<br /> and delivery of this Deed of Trust, shall be continuing in nature and shall remain in full force and effect until such time as Trustor's
<br /> Indebtedness is paid in full.
<br /> EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br /> Existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to the lien securing payment of
<br /> an existing obligation. The existing obligation has a current principal balance of approximately S37331. Trustor expressly covenants
<br /> and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such indebtedness, any default
<br /> under the instruments evidencing such indebtedness, or any default under any security documents for such indebtedness.
<br /> No Modification. Trustor shall not enter into any agreement with the holder of any mortgage, deed of trust, or other security
<br /> agreement which has priority over this Deed of Trust by which that agreement is modified, amended, extended, or renewed without
<br /> the prior written consent of Lender. Trustor shall neither request nor accept any future advances under any such security agreement
<br /> without the prior written consent of Lender.
<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
<br /> take such steps as may be necessary to defend the action and obtain the award. Trustor may be the nominal party in such
<br /> proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own
<br /> choice, and Trustor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by
<br /> Lender from time to time to permit 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
<br /> to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of
<br /> all reasonable costs, expenses, and attorneys' fees incurred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GObERNMENTAL AUTHORITIES. The following provisions relating to governmental
<br /> taxes, 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
<br /> and take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Trustor shall
<br /> reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Deed
<br /> of Trust, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Deed of
<br /> 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
<br /> all or any part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on Trustor which Trustor is authorized or
<br /> required to deduct from payments on the Indebtedness secured by this type of Deed of Trust; (3) a tax on this type of Deed of Trust
<br /> chargeable against the Lender or the holder of the Note; and (4) a specific tax on all or any portion of the Indebtedness or on
<br /> payments of principal and interest made by Trustor.
<br /> Subsequent Taxes. If ar�y tax to which this section applies is enacted subsequent to the date of this Deed of Trust, this event shall
<br /> have the same effect as an Event of Default, and Lender may exercise any or all of its availab�e remedies for an Event of Default as
<br /> provided below unless Trustor either �1) pays the tax before it becomes delinquent, or (2) contests the tax as provided above in the
<br /> Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender.
<br /> SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Deed of Trust as a security agreement are a
<br /> part 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
<br /> other personal property, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended
<br /> from time to time.
<br /> Security Interest. Upon request by Lender, Trustor shall execute financing statements and take whatever other action is requested by
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