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DEED OF TRUST
<br />Loan No: 777482 2 0 0 3 0 5 5 91 (Continued) .. Page 3
<br />the Property, or the restoration and repair of the Properly. If Lender elects to apply the proceeds to restoration and repair, Trustor shall
<br />repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such
<br />expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if Trustor is not in default under this
<br />Dead of Trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the
<br />repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br />interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment
<br />In full of the Intlebtadness, such proceeds shall be paid to Trustor as Trustor's interests may appear.
<br />LENDER'S EXPENDITURES. If Trustor falls (A) to keep the Property has of all taxes, liens, security Interests, encumbrances, and other claims,
<br />(B) to provide any required insurance on the Property, or (C) to make repairs to the Property then Lender may do so. If any action or
<br />proceeding is commenced that would materially affect Lender's interests In the Property, then Lender on Truslor's behalf may, but is not required
<br />to, take any action that Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such
<br />purposes will then bear interest at the rate charged under the Note ham the date incurred or paid by Lender to the date of repayment by Trustor.
<br />All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance
<br />of 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 (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the
<br />Note's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be In addition to
<br />any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall not be construed as
<br />curing the default so as to bar Lander from any remedy that it otherwise would have had.
<br />WARRANTY; DEFENSE OF TITLE. The following provisiarre relating to ownership of the Property are a part of this Dead of Trust.
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable title of word 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 theorems policy, fide 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 authomy to
<br />execute and deliver this Deed of Trust to Lender.
<br />Defense M Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the fide to the Property against
<br />the lawful claims of all persons. In the event any action or proceeding is commenced that questions Trustors title or the interest of Trustee or
<br />Lender under this Dead of Trust, Trustor shall defend the action at Truslor's expense. Trustor may be the nominal party In such proceeding,
<br />but Lender shall be entitled to padblpme 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 Trustors use of the Property complies with all existing applicable laws,
<br />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 and
<br />delivery of this Dead of Trust, shall be continuing in nature and shall remain in full force and effect unfit such time as Trustor's Indebtedness
<br />is paid in full.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a pad of this Dead 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 chokeā¦, and Trustor will
<br />deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lentler from time to time to permit
<br />such participation.
<br />Application of Net Proceeds. If all ar any pan of the Property is condemned by eminent domaln proceedings as by any proceeding or
<br />purchase in two 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 shall man the award agar payment of all
<br />reasonable costs, expanses, and afforneys' fees incunetl 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 Torres, Fees and Charges. Upon request by Lender, Trustor shall execute such documents in addition to this Dead 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 warding, perfecting or continuing this Deed of Trust, Including
<br />without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Dead of Trust.
<br />Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Dead of Trust or upon all or any
<br />pan 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 tax on this type of Dead 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 man 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 pad
<br />of this Dead of Trust:
<br />Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender
<br />shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time
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