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<br />Trustar's interests may appear.
<br />o�E� o� rRUST � U 10 0 S i 4;
<br />(Cantinued) Page 3
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shail 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 af tha policy; (4�
<br />the property insured, the then current replacement value of such property, and the manner af de#ermining that value; and (5) the
<br />expiration date of the policy. Trustor shall, upon request ot Lender, have an independent appraiser satisfactory to Lender determine
<br />the cash value replacement cnst of the Property.
<br />TAX AND INSURANCE RESERVES. Su6ject to any limitations and consistent with any requirements set by applicable law, Lender may
<br />require Trustor to maintain with Lender reserves for payment of annual taxes, assessments, and insurance premiums, which reserves shali
<br />be created 6y an initial deposit and su6sequent monthly payments, or payments at such other interval as payments under the Note may be
<br />due, of a sum estimated by Lender to be sufficient to pay the total annuai taxes, assessments, and insuranca premiums Lender reasonably
<br />anticipates to be paid from these reserves. The reserve funds shall be held by Lender as a general deposit from 7rustor, which Lender may
<br />satisfy by payment of the taxes, assessments, and insuranca pramiums required to ba paid by Trustor as they become due. Lender shall
<br />have the right to draw upan the reserve funds #o pay such items, and Lender shall not be required to determine the validity or accuracy of
<br />any item before paying it. Nothing in the Deed of Trust shall be canstruad as requiring Lender to advance other monies for such purposes,
<br />and Lender shall not incur any lia6ility for anything it may do or omit to do with respect to the reserve account. Subject to any limitations
<br />set 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 befault. Lender shall not be repuired to pay
<br />any interest ar earnings on the reserva funds unless requirad 6y law or agreed to by Lender in writing. Lender does not hald the reserve
<br />funds in trust for 7rustar, and Lender is npt Trustar's agant fpr payment af the taxes and assessments required to 6e paid 6y Trustor.
<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 Ralsted �acuments, Lender
<br />on 7rustor's behalf may (but shall not be obligated to) take any action that Lender deems apprppri�tB, including but not limited to
<br />discharging or paying sll taxes, lians, sacurity interests, encumbrances and other claims, at any #ime levied br 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 IA) be payable on demand; (B) be addad to the
<br />balance of the Note and be apportioned amang and he payabla 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 (C) be treated as a balloon payment which will be due and
<br />payable at the Note's maturity. The beed af Trust also will secure payment of these amounts. 5uch righ# shall be in addition to all other
<br />rights and remsdies to which Lender may be entitled upnn Default.
<br />WARRANTY; DEFENSE bF TITLE. The follawing provisions relating to awnership of the Property are a part af this bead of 7rust:
<br />Title. Trustor warran[s that: (a) Trustor holds good and marketable title of record to the Property in fee simple, free and clear of all
<br />liens and encum6rances pther than those set forth in the Real Property descriptipn or in any title insurance policy, title report, or final
<br />title npinion issued in favor of, and acceptad by, Lender in cnnnection with this Deed of Trust, and (b) Trustnr has the full right,
<br />power, and authority ta execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. 5ut�ject to the exception in the paragraph a6pve, Trustar 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 quss#ions Trustor's title qr the
<br />interest of Trustee or Lender under this Deed ot 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 />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 />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 peed 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 />CONDEMNATION. The following provisions relating to condemnation praceedings ere a part af this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is tiled, Trustor shell prpmptly nptify Lender in writing, and Trustor shall promptly
<br />take such steps as may be necessary to defend the action and obtain the award. 7rustor may be the nominal party in such
<br />proceeding, but Lender shall be entitled to participete in the proceeding and to 6e 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.
<br />Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain procsedings 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.
<br />IMPOSITION OF TAXES, FEES AND CHAFiGES 8Y GOVERNMENTAL AUTH�RITI�S. The following provisians 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, Trustar shall execute such dacuments in additipn to this Deed af Trust
<br />and take whatever other action is requested by Lender to perfect and cnntinue 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 wichout limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Deed of
<br />Trust.
<br />Taxes. The following shall constitute taxes to which this section applies: (7) a specific tax upon this type of beed of 7rust or upon
<br />all or any part of the Indebtedness secured by this Deed ot Trust; (2) a specific tax on Borrower which Borrower is authorized or
<br />required to deduct from payments on the Inde6tedness secured by this type of Deed of Trust; (3) a tax on this type of Deed of Trust
<br />chargea6le against the Lender or the hnldar of the Note; and (4) a specitic tax on all or any portion of the Indebtedness or on
<br />payments of principal and interest made k�y 8orrower.
<br />Subsequent 7axes. 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 &ame effect as an Evant of befault, and Lender may exercise any qr all of its available remedies for an Event of Default as
<br />provided below unless Trustor either (1) pays the tax before it becames delinquent, or (2) contasts the tax as provided above in #he
<br />Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender.
<br />SECURITY AGREEMENT; FINANCING STATEMENTS. The following pravisians relating tv this Deed of l'rust as a security agraament are a
<br />part vf this Deed of Trust:
<br />Security Agreement. This instrument shall constitute a Security Agreement to the extent any af the Property constitutas fixtures, and
<br />Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time.
<br />Security Interest. Upon request by Lender, Trustor shall take whatever actinn is requested by Lender to perfect and continue Lender's
<br />security interest in the Renta and Personal Property. In addition to recording this Deed of Trust in the real property records, Lender
<br />may, at any time and without further authorizatian from Trustor, file executed counterparts, capias or reproductions of this Deed of
<br />Trust as s financing statement. Trustor shall reimburse Lender for all expenses incurred in perfecting or continuing this security
<br />interest. Upon default, Trustor shall not remove, sever or detach the Personal Property from the Property. Upon default, Trustor shall
<br />assemble any Personal Property not affixed to the Property in a manner and at a place reasonably convanient to Trustor and Lender
<br />and make it availahle to Lender within three (3) days after receipt vf writtan demand from Lender to ths extent permitted by applicabla
<br />law.
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