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DEED OF TRUST 2005018.49
<br />Loan No: 101205442 (Continued) - Page 3
<br />under the National Flood Insurance Program, or es otherwise required by Lender, and to maintain such insurance for the term of the
<br />oan.
<br />Application of Proceeds. Truster shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss
<br />if Truster fells to do so within fifteen 1151 tlays of the casualty. Whether or not Lender 'a security is impaired, Lander may, at Lander'.
<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 Abe damaged or destroyed improvements in a manner satisfactory to Lender. Lander shall, upon
<br />satisfactory proof of such expenditure. pay or reimbume Truster 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 tlays 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, than to pay accrued interest, and the remainder, if any, shall he applied to the principal balance of the
<br />Indebtedness. If Lender holds any proceeds shat payment in full of the Intlebledness, such proceeds shall be paid to Trustor as
<br />Trostor's interests may appear.
<br />Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness des.dtaud below is in effect, compllsnce
<br />with the insurance provisions contained in the instrument evidencing each Existing
<br />Indebtedness terms ad th shell 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 e
<br />duplication of insurance requirement. If any proceeds from the insurance become payable on loss, the provisions in this Dead of Trust
<br />for division of proceeds shall apply only to that portion of the proceeds not payable Ao the holder of the Existing Indebtedness.
<br />LENDER'S EXPENDITURES. If Truster falls IA) to keep the Properly free of all taxes, liens, security interests, encumbrances, and other
<br />claims, 191 to provide any required insurance on the Property, ICI to make repairs to the Property or to comply with any obligation to
<br />maintain Existing Indebtedness in geed standing as required below, then Lender may do se. If any action or proceeding is commenced that
<br />would materially effect Lender's interests in the Property, then Lender on Truater's behalf may, but is not required tto,r 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 than bear
<br />interest at the rate charged under the Note from the data incurred or paid by Lender to the data of repayment by Trustor. All such
<br />expenses will become a part of the Indebtedness and, at Lender's option, will IAI be payable on demand; B) he atltletl to the balance of
<br />the Note and be apportioned among end be payable with any installment payments to become due during either ryl the term of any
<br />applicable insurance policy; or 121 the remaining term of the Note; or ICI 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 Lander may be entitled on account of any default. Any such action by Lender shall
<br />not be cchanced as curing the default so es to bar Lander from any remedy that it otherwise would have had.
<br />WARRANTY: DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a par[ of this Deed of Trust:
<br />This. Truster warrant. that/ let Trustar 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 in uranc r policy, title report, or final title opinion issued In favor of, and accepted by, Lender in connection with this Dead or
<br />Trust, and alb) Trustor has the full right, 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, 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 Trusters title or the
<br />Interest of Trustee or Lander 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 Lander shall be entitled re 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 />Compliance With Laws. Truster warrants that the Properly and Trustor's 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 Truster 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 m full force and effect until such time as Trustor s
<br />Indebtedness is Laid 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 Dead of True, securing the Indebtedness may be secondary and inferior to an existing lien. Trustor
<br />expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such
<br />indebtedness, any default under the instruments evidencing such indebtedness, or any default under any security documents for such
<br />Indebtedness.
<br />No Modification. Trustor shall not enter into any agreement with the holder of any mortgage, dead 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. Truster shall neither request nor accept any future advances under any such security agreement
<br />without the prior written consent of Lander.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />Procaetlire.. If any proceeding In condemnation is filed, Trustor shall promptly notiy Lender in writing, and Trustor shall promptly
<br />take such steps es may be necessary to defend the action and obtain the awartl. Theater may be the nominal parry 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 Truster 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.
<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 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
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