|
DEED OF TRUST
<br />Loan No: 775229 200210026 (Continued) _ Page
<br />act, omission or default of Truster or any other parson. Should the Real Property be located in an area designated by the Director of
<br />the Federal Emergency Management Agency as a special flood hazard area, Truster agrees to obtain and maintain Federal Flood
<br />Insurance, if available, within 65 days after notice is given by Lender that the Property is located in spacial flood hazard area, for the
<br />full unpaid principal balance of the loan and any prior liens on the property s ring the loan, up to the maximum policy limits act
<br />under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the
<br />loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lander may make proof of loss
<br />if Trustor fails to do so within fifteen (15) 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 restoration and repair of the Property. If Lander 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 Lender. Lander shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Truster from the proceeds for the reasonable cost of repair or restoration if
<br />Traitor 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 net committed to the repair or restoration 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 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 Truster as
<br />Trustor's interests may appear.
<br />LENDER'S EXPENDITURES. If Truster fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other
<br />claims, (e) to provide any required in n the Property, or (C) to make repairs to the Property then Lander may do so If any
<br />action or proceeding is commenced that would materially affect Lender's interests in the Property, then Lender on Truster's behalf may,
<br />but is not required to, take any action that Lender believes to be appropriate to protect Lender's interests. All expanses incu r red or paid by
<br />Lander for such purposes will then bear interest at the rata charged under the Note from the date incurred or paid by Lender to the data of
<br />repayment by Truster. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand;
<br />(B) be added to the balance of the Nate and be apportioned among and be payable with any installment payments to become due during
<br />either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment
<br />which will he due and payable at the Note's maturity. The Dead of Trust also will secure 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 Lender may be entitled on account of any default.
<br />Any such action by Lander 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. The following provisions relating to ownership of the Property are a part of this Deed of Trust:
<br />Title. Truster warrants that: (a) Truster holds good and marketable title of record to the Property in fee simple, free and clear of a1I
<br />lien s 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 Dead of Trust, and (b) Truster has the full right,
<br />power, and authority to execute and deliver this Dead of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Truster 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 ced that questions Trustor's title or the
<br />interest of Trustee or Lander under this Dead of Trust, Truster shall defend the action at Tmstor's expense. Truster may be the
<br />nominal party in such proceeding, but Lender shall he entitled to participate in the proceeding and to be represented in the proceeding
<br />by counsel of Lender 'a 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. Tractor warrants that the Property and Treader '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 Dead 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 affect until such time as Trustor's
<br />Indebtedness is paid in fall.
<br />CONDEMNATION. The following provisions colors, to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lander in writing, and Trustor shall promptly
<br />Take such steps as may ben sary to defend the action and obtain the award. Truster may be thenominal party in such
<br />proceeding, but Lender ahall 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 />Lander from time to time to permit such participation.
<br />Application of Not 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 contlemnation. Lander 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 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 Lander, Trustor shall execute such documents in addition to this Dead 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, lagether with all expenses incurred in recording, perfecting or continuing this Deed
<br />of Trust, including without limitation all taxes, fees, documentary stanms, 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 />
|