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200207455
<br />DEED OF TRUST
<br />Loan No: 774576 [Continued) Page 3
<br />Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including
<br />stipulations that c vase,, will not be canceled or diminished without at least tan (10) days prior written notice to Lender. Each
<br />Insurance policy also shall include an endorsement providing that coverage In favor of Lender will not be impaired in any way by any
<br />art, oncleeion or default of Truster or any other person. Should the Real Property be located in an area designated by the Director of
<br />the Federal Emergency Management Agency as a spacial flood hazard area, Trustor agrees to obtain and maintain Federal Flood
<br />Insurance, if available, within 45 days after notice Is given by Lender that the Property is located in a special flood hazard area, for the
<br />full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set
<br />under the National Flood Insurance Program, or as otherwise required by Lentler, and to maintain such Insurance for the term of the
<br />ran.
<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 Trustor fails to do so within fifteen 115) days at the casualty. Whether or net Lender's security is impaired, Lander may, at Lender's
<br />action, 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 restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and
<br />repair, Truster shall repair or replace the damaged or destroyed Improvements In a manner satisfactory to Lentler. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Truster from the proceeds for the roosonable cost of repair or restoration If
<br />Truster Is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt
<br />and which Lender has oat committed to the repair or reiteration of the Property shall be used first to pay any amount owing to Lender
<br />under this Deed of Trust, then to pay accrued Interest, and the remainder, it 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 Truslor as
<br />Truster', interests may appear.
<br />Compliance with Existing Indebtedness. During the parted in which any Existing Indebtedness described below is in effect, compliance
<br />with the insurance provisions contained in the Instrument evidencing such Existing Indebtedness shall constitute compliance with the
<br />Insurance provisions under this Deed of Trust, to the extent compliance with the terms of this Deed of Trust would constitute a
<br />duplication of insurance requirement. If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust
<br />for duanion of proceeds shall apply only to that portion of the proceeds not payable to the holder of the, Existing Indebtedness.
<br />LENDER'S EXPENDITURES. If Truster fails (A) to keep the Property free of all taxes, liens, Security Interests, a umbrances, and other
<br />claims, (B) to provide any required insurance on the Property, 1Q to make repairs to the Property or to comply with any obligation to
<br />maintain Existing Indebtedness in good standing as required below, then Lender may He so. If any action or prnceedng Is conarranced that
<br />would materially affect Lender's Interests In the Property, then Lender on Trustor 'a behalf may, but Is not required to, take any action that
<br />Lender believes to be appropriate to protect Lender s interests. All expenses incurred or paid by Lender for such purposes will then bear
<br />interest at the rate charged under the Nate from the date incurred or paid by Lender to the date of repayment by Truster. All such
<br />expenses will become a part of The Indebtedness and, at Lender, nation, will (A) he payrblr on demand; (RI be added to the balance of
<br />the Note and be apportioned among and be payable with any installment payment, to become due during .;that (1) the term of any
<br />applicable insurance policy; or 121 the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable
<br />at Via Note's maturity. The Deed of Trust 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 o account of any default. Any such action by Lender shall
<br />not be construed as Cluing the default so as to bar Lender from any remedy trial it olherwiso 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. Truslor warrants that: (a) fowler holds good and marketable title of record to the Property in fee simple, free and clear of eII
<br />liens and encumbrances other than those set forth in the Reel Property description or n the Existing Indebtedness section below or
<br />any title insurance policy, title repot,, or final tide opinion Issued In favor of, and accepted by, Lender in connection with this Deed of
<br />Trust, and (b) 1 roster 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. Truetor warrants and will lorevcr delcnd the title to the Property
<br />against the Iewful ularne of all parsons. In the event any action or proceeding is commenced that questions Trustor 'a title or the
<br />Interest of Trustee or Lender under this Deed of Trust, Tractor shall defend the action at Trustor's expense. Truster may be the
<br />nominal party in such proceeding, but Lender shall be untitled 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 Trustor's trod of the Property complies with all existing' appllrsble
<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 Dead 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 Decd of Trust securing the Indebtedness may be secondary and Inferior to an existing lirn. Truster
<br />expressly covenants and agrees to pay, or ee to the payment ol, the Existing Indebtedness and to prevent any default on such
<br />'rode redness, any default under the Instruments evidencing such indebtedness, or any default under any security documents for such
<br />Intlebtetlness.
<br />No Modification. Trustor shall not enter Into any agreement with the holder of any mortgage, deed of trust, or other sucarity
<br />agreement which has priority over this Deed of Trust by which that agreement Is modified, amended, extended, or wed without
<br />the prior written consent of I ender. Truster shall neither request nor accept any future advances under any such security agreement
<br />without the Prior Walton consent of Lander.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust,
<br />Proceedings. If any proceading in condemnation is filed, Truster shall promptly notify Lender in writing, and Truster shall promptly
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