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200409601
<br />2) Title. Trustor is the owner of the Property, has the right and authority to convey the
<br />Property and warrants that the lien created hereby is a first and prior lien on the Property
<br />and the execution and delivery of the Deed of Trust does not violate any contract or other
<br />obligation to which Trustor is subject.
<br />3) Taxes, Assessments. To pay, before delinquent, all taxes, special assessments and all
<br />other charges against the Property now or hereafter levied.
<br />4) Insurance. To keep the Property insured against damage by fire hazards included with the
<br />term "extended coverage" and such other hazards as Lender may require in amounts and
<br />with companies acceptable to Lender, naming Lender as an additional named insured
<br />with loss payable to the Lender. In case of loss under such policies, the Lender is
<br />authorized to adjust, collect and compromise all claims thereunder and shall have the
<br />option of applying all or part of the insurance proceeds (i) to any indebtedness secured
<br />hereby and in such order as Lender may determine (ii) to the Trustor to be used for the
<br />repair or restoration of the Property, or (iii) for any other purpose or object satisfactory to
<br />Lender without affecting the lien of this Deed of Trust for the full amount secured hereby
<br />before such payment ever took place. Any application of proceeds to indebtedness shall
<br />not extend or postpone the due date of any payments under the Note, or cure any default
<br />thereunder or hereunder.
<br />5) Escrow. Upon written demand by Lender, Trustor shall pay to Lender, in such manner as
<br />Lender may designate, sufficient sums to enable Lender to pay as they become due one or
<br />more of the following: (i) all taxes, assessments and other charges against the Property:
<br />(ii) the premiums on the property insurance required hereunder, and (iii) the premiums on
<br />any mortgage insurance required by Lender.
<br />6) Maintenance, Repairs and Compliance with Laws. Trustor shall keep the Property in
<br />good condition and repair; shall promptly repair, or replace, any improvement which may
<br />be damaged or destroyed; shall not commit or permit any waste or deterioration of the
<br />Property; shall not remove, demolish or substantially alter any of the improvements on
<br />the Property; shall not commit, suffer or permit any act to be done in or upon the Property
<br />in violation of any law, ordinance or regulation; and shall promptly discharge at Trustor's
<br />cost and expense all liens, encumbrances and charges levied, imposed or assessed against
<br />the Property or any part thereof.
<br />7) Eminent Domain. Lender is hereby assigned all compensation, awards, damages and
<br />other payments or relief (hereinafter "Proceeds ") in connection with condemnation or
<br />other taking of the Property or part thereof, or for conveyance in lieu of condemnation.
<br />Lender shall be entitled at its option to commence, appear in and prosecute in its own
<br />name any action or proceedings, and shall also be entitled to make any compromise or
<br />settlement in connection with such taking or damage. In the event any portion of the
<br />Property is so taken or damaged, Lender shall have the option, it its sole and absolute
<br />discretion, to apply all such Proceeds, after deducting therefrom all costs and expenses
<br />incurred by it in connection with such Proceeds, upon any indebtedness secured hereby
<br />and in such order as Lender may determine, or to apply all such Proceeds, after such
<br />deductions, to the restoration of the Property upon such conditions as Lender may
<br />determine. Any application of Proceeds to indebtedness shall not extend or postpone the
<br />due date of any payments under the Note, or cure any default thereunder or hereunder.
<br />Any unapplied funds shall be paid to Trustor.
<br />8) Performance by Lender. Upon the occurrence of an Event of Default hereunder, or if any
<br />act is taken or legal proceeding commenced, which materially affects Lender's interest in
<br />the Property, Lender may in its own discretion, but without obligation to do so, and
<br />without notice to or demand upon Trustor and without releasing Trustor from any
<br />obligation, do any act which Trustor has agreed but fails to do and may also do any other
<br />act it deems necessary to protect the security hereof. Trustor shall, immediately upon
<br />demand therefor by Lender, pay to Lender all costs and expenses incurred and sums
<br />expended by Lender in connection with the exercise by Lender of the foregoing rights,
<br />together with interest thereon at the default rate provided in the Note, which shall be
<br />added to the indebtedness secured hereby. Lender shall not incur any liability because of
<br />anything it may do or omit to do hereunder.
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