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DEED OF' TRUST 2 0 9 0 7 214
<br />s ~ '' ' ! (Continued)
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<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage 'to the Pro~erty. 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 secunt~y is impaired, Lender may, at Lender's
<br />election, receive and retain the proceeds of any insurance and apply the proceeds to the redu tion 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 sari factory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the rea Doable 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 1$C) 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 pplied 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 />Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness d~scribed 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 to s, the provisions in this bead of Trust
<br />fpr division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than oncca a year, rustor shall furnish to Lender a report
<br />on each existing policy of insurance showing: (1) the Hama of the insurer; (2) the risks insur d; (3) the amount of the policy; l4)
<br />the property insured, the then current replacement value of such property, and the manner of~determining that value; and 15) the
<br />expiration date of the policy. Trustor shall, upon request of Lender, have an independent appr rser satisfactory to Lender determine
<br />the Dash value replacement cost of the Property.
<br />LENDER'S EXPENDITURES. if any action or proceeding is commenced that would materially affect Lender's interest in the Property or it
<br />Trustor fails to comply with any provision of this Deed of Trust or any Related Documents, includin but not limited to Trustor's failure to
<br />comply with any obligation to maintain Existing Indebtedness in good standing as required below, r to discharge or pay when due any
<br />amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Document Lender on Trustor's behalf may (but
<br />shall not be obligated tot take any action that Lender deems appropriate, including but not: limited to discharging or paying all taxes, liens,
<br />security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring,
<br />maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such ~turposes will then bear interest at the
<br />rate charged under the Note from the date incurred or paid by Lender to the date of repayrnent by Trustor. All such expenses will become
<br />a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (ES) be add d to the balance of the Note and be
<br />apportioned among and be payable with any installment payments to become due during either (1)~the term of any applicable insurance
<br />policy; or (Z) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's
<br />maturity. The Deed of Trust also will secure payment of these amounts. Such right shall be in addi ion to all other rights and remedies to
<br />which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Prop rty 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 Exi ring Indebtedness section below or in
<br />any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, 4ender in connection with this Deed of
<br />Trust, and (b) Trustor has the full right, power, and authority to execute and deliver this Deed op Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will fPrever 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 nr Lender under this Deed of Trust, Trustor shall defend the action at Try stor's expense. Trustor may be the
<br />nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding a d to be represented in the proceeding
<br />by counsel of Lender's own choice, and Trustor will deliver, or cause to be delivered, to Le der such instruments as Lender may
<br />request from time to time to permit such participation.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Propert complies with all existing applicable
<br />laws, ordinances, and regulations of governmental authorities.
<br />Survival of Representations and Warranties. All representations, warranties, and agreements ode by Trustor in this Deed of Trust
<br />shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, ar~d shall remain in full force and effect
<br />until such time as Borrower's Indebtedness shall be paid 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 Deed of Trust securing the Indebtedness may be secondary a 'd inferior to an existing lien. Trustor
<br />expressly covenants and agrees to pay, or see to the payment of, the Existing Inclebtednes and to prevent any default on such
<br />indebtedness, any default under the instruments evidencing such indebtedness, or any default nder any security documents for such
<br />indebtedness.
<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, arr1ended, 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.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this deed of Trust:
<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. Trust r may be the nominal party in such
<br />proceeding, but Lender shall be entitled to participate in the proceeding and to be represented i the proceeding by counsel of its own
<br />choice, and Trustor will deliver or cause to be delivered to Lender such instruments and do umentation as may be requested by
<br />Lender from time to time to permit such participation.
<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 th 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 hall mean the award after payment of
<br />all reasonable costs, expenses, and attorneys' fees incurred by Trustee or Lender in connection ith the condemnation.
<br />IMP051TION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The followi g 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 Lender, Trustor shall execute such docu ants in addition to this Daed of Trust
<br />and take whatever other action is requested by Lender to perfect and continue Lender's lie on the Real Property. Trustor shall
<br />reimburse Lender for all taxes, as described below, together with all expenses incurred in recor ing, perfecting or continuing this Deed
<br />of Trust, including without limitation all taxes, fees, documentary stamps, and other charges f r recording or registering this Deed of
<br />Trust.
<br />Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax u on this type of Deed of Trust or upon
<br />all pr any part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on 8orrgwer which Borrower is authorized or
<br />required to deduct from payments an the Indebtedness secured by this type of Deed crf 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 ny portion of the Indebtedness or on
<br />payments of principal and interest made by Borrower.
<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 availab a remedies for an Event of Default as
<br />provided below unless Trustor either (1) pays the tax before it becomes delinquent, or (2) co tests the tax as provided above in the
<br />Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or ~ther security satisfactory to Lender.
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