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<br />DEED OF TRUST
<br />(Continued)
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<br />200708452
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<br />Page 4
<br />
<br />Loan No: 87694
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<br />satisfactory proof of such expenditure, payor reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if
<br />Trustor 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 not 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 Trustor as
<br />Trustor's interests may appear.
<br />
<br />Unexpired Insurance at Sale. Any unexpired insurance shall inure to the benefit of, and pass to, the purchaser of the Property covered
<br />by this Deed of Trust at any trustee's sale or other sale held under the provisions of this Deed of Trust, or at any foreclosure sale of
<br />such Property.
<br />
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish to Lender a report
<br />on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4)
<br />the property insured, the then current replacement value of such property, and the manner of determining that value; and (5) the
<br />expiration date of the policy. Trustor shall, upon request of Lender. have an independent appraiser satisfactory to Lender determine
<br />the cash value replacement cost of the Property.
<br />
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if
<br />Trustor fails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Trustor's failure to
<br />discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender
<br />- on TruStor's be hall , may (but -!in-all' 'not be obligated to) take any action that Lender deems appropriate, including but not limited to
<br />discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and
<br />paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes
<br />will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All
<br />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
<br />balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of
<br />any applicable insurance policy; or (2) the remaining term of the Note; or (e) be treated as a balloon payment which will be due and
<br />payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. Such right shall be in addition to all other
<br />rights and remedies to which Lender may be entitled upon Default.
<br />
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust:
<br />
<br />Title. Trustor warrants that: (a) 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 (b) Trustor has the full right,
<br />power, and authority to execute and deliver this Deed of Trust to Lender.
<br />
<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 Trustee or Lender under this Deed of Trust, Trustor shall defend the action at Trustor'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 Trustor 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 />
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable
<br />laws, ordinances, and regulations of governmental authorities.
<br />
<br />Survival of Representations and Warranties. All representations, warranties, and agreements made by Trustor in this Deed of Trust
<br />shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and shall remain in full force and effect
<br />until such time as Borrower's Indebtedness shall be paid in full.
<br />
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />
<br />Notice of Proceedings. Trustor shall immediately notify Lender in writing should all or any part of the Property become subject to any
<br />condemnation or expropriation proceedings er other similar proceedings, including without limitation, any condemnation, confiscation,
<br />eminent domain, inverse condemnation or temporary requisition or taking of the mortgaged Property, or any part or parts of the
<br />Property. Trustor further agrees to promptly take such steps as may be necessary and proper within Lender's sole judgment and at
<br />Trustor's expense, to defend any such condemnation or expropriation proceedings and obtain the proceeds derived from such
<br />proceedings. Trustor shall not agree to any settlement or compromise or any condemnation or expropriation claim without Lender's
<br />prior written consent.
<br />
<br />Lender's Participation. Lender may, at Lender's sole option, elect to participate in any such condemnation or expropriation
<br />proceedings and be represented by counsel of Lender's choice. Trustor agrees to provide Lender with such documentation as Lender
<br />may request to permit Lender to so participate and to reimburse Lender for Lender's costs associated with Lender's participation,
<br />including Lender's reasonable attorneys' fees.
<br />
<br />Conduct of Proceedings. If Trustor fails to defend any such condemnation or expropriation proceedings to Lender's satisfaction,
<br />Lender may undertake the defense of such a proceeding for and on behalf of Trustor. To this end, Trustor irrevocably appoints Lender
<br />as Trustor's agent and attorney-in-fact, such agency being coupled with an interest, to bring, defend, adjudicate, settle, or otherwise
<br />compromise such condemnation or expropriation claims; it being understood, however, that, unless one or more Events of Default
<br />(other than the condemnation or expropriation of the Property) then exists under this Deed of Trust, Lender will not agree to any final
<br />settlement or compromise of any such condemnation or expropriation claim without Trustor's prior approval, which approval shall not
<br />be unreasonably withheld.
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<br />Application of Net Proceeds. Lender shall have the right to receive all proceeds derived or to be derived from the condemnation,
<br />expropriation, confiscation, eminent domain, inverse condemnation, or any permanent or temporary requisition or taking of the
<br />Property, or any part or parts of the Property ("condemnation proceeds"). In the event that Trustor should receive any such
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