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DEED OF TRUST 2 0� i o 0 0 5 8
<br />Loan No: 101237101 (Contlnued) Page 3
<br />insurance policy alsn shall include an endorsement providing that coverage in favor of Lender will not be impaired in eny way by any
<br />act, omission or default of Trustor or any other person, Should the Real Property be located in an area designated by the Director of
<br />the Federal �mergency Management Agency as a special flood hazard area, Trustor agrees to obtain and maintain Federal Flood
<br />Insurance, if available, for the full unpaid principal balance of the Ioan and any prinr liens on the property securing the loan, up to the
<br />maximum policy limits set under the National Flood Insurance Program, or as otherwise required by l.ender, and tv maintain such
<br />insurance for the term of the loan,
<br />Applicativn of Proceeds. 7rustor shall promptly notify Lender of any loss or damage to the Property. Lender may meke proof of loss
<br />if Trustor fails [o do so within fifteen (15) days of the casualty. Whather or not Lender's security is impaired, Lender may, at Lender's
<br />election, receive and retain the proceeds of any insurance and apply the pracaeds to the reduction of the Indebtedness, payment of
<br />any lien affecting the Property, vr the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and
<br />repair, Trustor shall repair or replaca the damaged or destroyed Imprnvements in a manner satisfactory to l.ender. Lender shall, upon
<br />satisfactory proof vf such expenditure, pay or reimburse Trustor from the proceeds for the reasonabls cost of repair vr restnration if
<br />Trustor is not in dafault under this Deed of Trust. Any proceeds which have not been disbursed within 9 8p days after their receipt
<br />and which Lender hes nnt 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 applied to the principal balance of the
<br />Indebtedness. If Lender holds any praceeds after payment in full of the Indebtedness, such proceeds shall be paid ta 7rustor as
<br />Trustor's interests may appear.
<br />LENDER'S �XPENDI7URES. If 7rustor fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other
<br />claims, (B) ta provide any required insurance on the Property, or (C) to make repairs tn the Property [hen Lender may do so. If any
<br />actinn or proceeding is commenced that would materially affect Lender's interests in the Property, then Lender on Trustor's behalf may,
<br />but is not required to, taka sny action that Lender believes to be appropriate to protect l.ender's interests. All expenses incurred or paid by
<br />Lender for such purpasas will then bear interest at the rate charged under the Note from the dete incurred or paid by Lender to the date of
<br />rapayment by Trustor. All such expenses will become a part of the Indebtadness and, at Lender's option, will (A) be payable on demand;
<br />(B) be added to the balance of the Note and be appartioned ampng and be paya6le with any installment payments to became due during
<br />either (1) the term of any applicabla insurence policy; or (2) the remaining term of the Note; or (C) be treated as a 6alloon payment
<br />which will be due and payable at the Note's maturity. The Deed of Trust also will secure paymant of these amounts. The rights provided
<br />for in this paragraph shall be in eddition to any other rights or any remedies to which Lender may be entitled on account of any default,
<br />Any such action by Lander shall not be construed as curing the default so as to bar l.ender frpm any remedy that it otherwise would have
<br />had.
<br />WARRANTY; DEFENS� OF TITI.E. The following provisions relating to ownership of the Property are a part of this Deed of Trust:
<br />Title. Trustor warrants thet: (a) Trustor holds good and marketable title of record to the Proparty in fee simple, free and clear of all
<br />liens and ancumbrances 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 connectian with this Deed of Trust, and (b) Trustor has the full right,
<br />power, and authority to execute and deliver this Deed 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 persans. 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 be represented in the proceeding
<br />by caunsel of Lender's own choice, and Trustor will delivar, ar cause to be delivered, to Lender such instruments as Lender may
<br />request from time to time to permit such participatian.
<br />Compliance With Laws. Trustor warrants that the Praperty and Trustor's use of the Property complies with all existing applicable
<br />laws, ordinances, and regulatinns of governmental authorities.
<br />Survival of Promises. All pramises, agreements, and statements Trustor has made in this Deed of 7rust shall survive the execution
<br />and delivery of this Deed of Trust, shall be continuing in nature and shall remain in full fvrce and effect until such time as Trustor's
<br />Indebtedness is paid in full.
<br />COND�IVINATION. The fqllowing 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 Lendar in writing, and Trustnr shall promptly
<br />take such steps as may be necessary to defend the action and obtain the award, Trustor may be the nominal party in such
<br />proceeding, but Lender shall be antitled to participate in the proceeding and to be represented in the proceeding by counsel of its own
<br />choice, and 7rustor will deliver or cause to 6e delivered to Lender such instruments and documentation as may 6e requested by
<br />Lender from time to time tb 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 mey at its election require thet all or any portion of the net proceeds of the award be applied
<br />tn the Indebtedness or the repair or restoration of the Property. The nat proceeds of the award shall mean the award after payment of
<br />all reasonable costs, expenses, and attorneys' fees incurred by Trustee ar Lender in connection with the condemnation.
<br />IMP051TION OF TAXES, FEES ANI] CHARG�S BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmantal
<br />taxes, fees and charges are a part of this Deed of Trust:
<br />Currant Taxes, Fees and Charges. Upon request by Lender, Trustor shall execute such documents in eddition to this Deed of Trust
<br />and take whatever other action is requested by Lander to parfect and continue Lender's lien nn the Real Property. Trustor shall
<br />reimburse Lender for all taxes, es descri6ed below, together with all expenses incurred in recording, perfecting or continuing this Deed
<br />pf 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 section applies: (1) a specific tax upon this type of Deed of Trust or upon
<br />all ar any part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on 7rustor which Trustor is authorized or
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