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Loan Na: 1Q1237326
<br />DEED OF TRUST
<br />IContinued) 2 01 U� 9�i 9 G
<br />Page 4
<br />Trustor's Report on Insurance. Upon reques[ of Lender, however no# more than nnce a year, Trustor shall 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 of the policy; (4)
<br />the property insured, the then current replacement value of such property, and the manner of determining that value; and (5) the
<br />expiration date of the policy. Trustnr shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine
<br />the cash value.replacement cost of.the Property.
<br />LENDEFt'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 bocuments, including but not limited to Trustor's failure to
<br />discharge or pay when due any amounts Trustor is required #o discharge or pey under this Deed of Trust or any Related Documents, Lender
<br />on Trustor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to
<br />discharging or paying all taxes, liens, security interests, encum6rances and other claims, at any tims levied or placed on the Property and
<br />paying all cvsts 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 6y Lender to the date of repayment by 7rustor. All
<br />such expenses will become a part of the Indebtedness and, at Lander's option, will (A) be payable on demand; (�1 be added tn the
<br />balance of the Note and be apportioned among and be payable with any instaliment payments to become due during either (1) the term of
<br />any applicable insurance policy; or (2) the remaining term of the Nate; or (C) be treated as a balloon payment which will be due and
<br />paya6le at the Note's maturity. 7he Deed of 7rust also will secure payment of these amounts. 5uch right shall be in addition to all other
<br />rights and remedies to which l.ender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITI.E. 7he 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 marketa6le 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 insuranca 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 />pawer, and authority to execute and deliver this Deed of Trust to l.ender.
<br />befense 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 af 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 Trustnr's expense. Trustor may be the
<br />nominal party in such prpceeding, but Lender shall be entitled to participate in the praceeding and to 6e represented in the proceeding
<br />by counsel of Lender's own choice, and Trustor will deliver, or cause to be delivered, ta Lender such instruments as Lender may
<br />request trom 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 gavernmental authorities.
<br />Survival of Representations and Warranties. All representations, warranties, and agreements made by Trustar in this Deed of Trust
<br />shall survive the execution and delivery of this Deed 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. 7he 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 dafend the action and obtain the award. 7rustor may be the nominal party in such
<br />proceeding, but Lender shall be entitled ta 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.
<br />Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or 6y any prnceeding or
<br />purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net procaeds 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 ettorneys' fees incurred by Trustee or Lender in connection with the condemnation.
<br />IMPOSITION OF 7AX�S, FEES AND CHARGES BY GOVERNMENTAL AU7HORITIES. The following provisions relating to governmental
<br />taxes, fees and chargas are a pert of this �eed of Trust:
<br />Gurrent Taxes, Fees and Charges. Upon request by Lender, Trustor shall execute such documents in addition to this Deed of Trust
<br />and take whatever o#her aation is requested by Lender to perfect and continue Lender's lien on the Real Property, 7rustor shall
<br />reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or cvntinuing 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.
<br />Taxes. The following shall constitute taxes to which this sectinn applies: 11) 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 Borrawer which Borrower is authorized or
<br />required to deduct from payments on the Indebtedness secured by this type of Deed vf Trust; (3) a tax on this type of Deed of Trust
<br />chargea6le against the Lender or the holder of the Note; and 14) a specific tax on all or any portion of the Indebtedness or on
<br />payments of principal and interest made by Borrower.
<br />5ubsequent 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
<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 provisions relating to this Deed of Trust as a security agreement are a
<br />part of this Deed af 7rust:
<br />Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutas fix#ures, and
<br />Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time.
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