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<br />DEED OF TRUST
<br />( Continued)
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<br />200710288
<br />
<br />Page 3
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<br />loan No: 101214961
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<br />Application of Proceeds. Trustor shall promptly notify lender of any loss or damage to the Property. lender 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 lender 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 lender. lender shall, upon
<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.
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<br />LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other
<br />claims, (B) to provide any required insurance on the Property, or (C) to make repairs to the Property then lender may do so. If any
<br />action or proceeding is commenced that would materially affect lender's 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 />lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by lender to the date of
<br />repayment by Trustor. 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 Note 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 be due and payable at the Note's maturity. The Deed 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 lender shall not be construed as curing the default so as to bar lender from any remedy that it otherwise would have
<br />had.
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<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust:
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<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.
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<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.
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<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.
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<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 and effect until such time as Trustor's
<br />Indebtedness is paid in full.
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<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
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<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 to be delivered to lender such instruments and documentation as may be requested by
<br />lender from time to time to permit such participation.
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<br />Application of Net 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 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.
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<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:
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<br />Current Taxes. Fees and Charges. Upon request by lender, Trustor shall execute such documents in addition to this Deed 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, 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 Deed of
<br />Trust.
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<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 />required 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.
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<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
<br />have the same effect as an Event of Default, and lender may exercise any or all of its available remedies for an Event of Default as
<br />provided below unless Trustor either (1) pays the tax before it becomes delinquent, or (2) contests the tax as provided above in the
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