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DEED OF TRUST 20,0;,203501
<br />Loan No: 773417 (Continued) Page 3
<br />loan.
<br />Application of Proceeds. Truster shall promptly notify Lender of any lass or damage to the Property. Lender may make proof of loss
<br />if Truster fails to do so within fifteen L! 5) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's
<br />election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of
<br />any lien affecting the Property, or the rasloralion and repair of the Property. If Lander elects to apply the proceeds to restoration and
<br />repair, Trustor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Landers. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration it
<br />Truster is not In default under this Deed of Trust Any proceeds which have nut been disbursed within 180 days after their receipt
<br />and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any convict owing to Lender
<br />under this Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the
<br />Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as
<br />Truswr's 'interests may appear.
<br />LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security Interests, encumbances, and other
<br />claims, 181 ID provide any required Ina ante on the Property, or (C) to make repairs to the Propeny then Lander may do so, If any
<br />anion or Proceeding is commenced that would materially affect Lenders interests in the Property, then Lender on Trustor's behalf may.
<br />but Is not required to, take any action that Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by
<br />Lander for such purposes will there bear Interest at the rate charged under the Note from the date incurred or paid by Lender to the data Of
<br />repayment by Trustor. All such expenses will become a part of the Indebtedness end, at Lander 'a option, will IAI be payable on demand;
<br />(B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become dine' Burring
<br />either 111 the term of any applicable insurance policy; or (2) the remaining term of the Note; or ICI be treated as a balloon ant
<br />which will be due and payable at the Note's' maturity The Deed of Trust also will as payment of these amounts. The rights provided
<br />for in this paragraph shall be in addition to any other rights or any remedies to which Lander may be enlitlod on account of any default.
<br />Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have
<br />had
<br />WARRANTY; DEFENSE OF TITLE. I he following provisions relating to ownership of the Property are a part of this Deed Of Trust:
<br />Title. Trustor warrants that: (o) 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 any title Insurance policy. title report, or final
<br />title opinion issued in favor of, and accepted by, Lender In connection with this Deed of Trust, and Ib) Trustor has the full right,
<br />power, and carbon, 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 Ireduce Or Lender under this Deed of Trust, Trustor shall defend the action at Trustoi 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 Truster 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 Truster 'a 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 antl effect until such time as Trustor 's
<br />IMebtedness is paid in I.L.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a pert 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 w be delivered to Lender such instruments antl documentation as may be requested by
<br />Lander from time to time to permit such participation.
<br />Application of Net Proceeds. If all Or any part of the Property is condemned by eminant 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 GOVERNMENTAL AUTHORITIES. The following provisions rulating to governmental
<br />taxes, fees and charges are a part of this Dead of Trust:
<br />Current Taxes, Fees and Charges. Upon request by Lender, Trustor shall execute such documents in addition to this Deed at Trust
<br />and take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Truecor shall
<br />reimburse Lender for all taxes, us 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 Dead of
<br />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
<br />all or nay part of the Indebtedness secured by this Dead of Trust (2) a specific tax on Trustor which Trustor Is authorized or
<br />requited 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 any tax to which this section applies Is' doubled subsequent to the date of this Deed of Trust, this event shall
<br />have the same effect as an Event of Default, and Lander may exercise any or ell of its available remedies for an Event of Default as
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