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<br />200805515
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<br />Loan No: 463504655
<br />
<br />DEED OF TRUST
<br />(Continued)
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<br />Page 3
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<br />the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued interest, and the
<br />remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of
<br />the Indebtedness, such proceeds shall be paid to Trustor as Trustor's interests may appear.
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<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.
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<br />Compliance with Existing Indebtedness. During the period 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 division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
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<br />TAX AND INSURANCE RESERVES. Subject to any limitations set by applicable law, Lender may require Trustor to maintain with Lender
<br />reserves for payment of annual taxes, assessments, and insurance premiums, which reserves shall be created by advance payment or
<br />monthly payments of a sum estimated by Lender to be sufficient to produce, amounts at least equal to the taxes, assessments, and
<br />insurance premiums to be paid. The reserve funds shall be held by Lender as a general deposit from Trustor, which Lender may satisfy by
<br />payment of the taxes, assessments, and insurance premiums required to be paid by Trustor as they become due. Lender shall have the
<br />right to draw upon the reserve funds to pay such items, and Lender shall not be required to determine the validity or accuracy of any item
<br />before paying it. Nothing in the Deed of Trust shall be construed as requiring Lender to advance other monies for such purposes, and
<br />Lender shall not incur any liability for anything it may do or omit to do with respect to the reserve account. Subject to any limitations set
<br />by applicable law, if the reserve funds disclose a shortage or deficiency, Trustor shall pay such shortage or deficiency as required by
<br />Lender. All amounts in the reserve account are hereby pledged to further secure the Indebtedness, and Lender is hereby authorized to
<br />withdraw and apply such amounts on the Indebtedness upon the occurrence of an Event of Default. Lender shall not be required to pay
<br />any interest or earnings on the reserve funds unless required by law or agreed to by Lender in writing. Lender does not hold the reserve
<br />funds in trust for Trustor, and Lender is not Trustor's agent for payment of the taxes and assessments required to be paid by Trustor.
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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, (8) to provide any required insurance on the Property, (C) 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 do so. If any action or proceeding is commenced that
<br />would materially affect Lender's interests in the Property, then Lender on Trustor's 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 Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such
<br />expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of
<br />the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any
<br />applicable insurance policy; or (2) the remaining term of the Note; or (e) be treated as a balloon payment which will be due and payable
<br />at the 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 on account of any default. Any such action by Lender shall
<br />not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have 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 the Existing Indebtedness section below or in
<br />any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of
<br />Trust, and (b) Trustor has the full right, 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 />EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br />
<br />Existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to the lien securing payment of
<br />an existing obligation to US Bank National Association described as: First Deed of Trust Lien. The existing obligation has a current
<br />principal balance of approximately $208,720.00 and is in the original principal amount of $208,720.00. Trustor expressly covenants
<br />and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such indebtedness, any default
<br />under the instruments evidencing such indebtedness, or any default under any security documents for such indebtedness.
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<br />No Modification. Trustor shall not enter into any agreement with the holder of any mortgage, deed of trust, or other security
<br />agreement which has priority over this Deed of Trust by which that agreement is modified, amended, extended, or renewed without
<br />the prior written consent of Lender. Trustor shall neither request nor accept any future advances under any such security agreement
<br />without the prior written consent of Lender.
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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 />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 or 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.
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<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.
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<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
<br />condemnation proceeds, Trustor agrees to immediately turn over and to pay such proceeds to Lender. AII.condemnation proceeds,
<br />which are received by, or which are payable to either Trustor or Lender, shall be applied, at Lender's sole option and discretion, and in
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