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D�ED OF TRUST 2 011 U U 12 5
<br />(Continued) �age 3
<br />election, receive and retain the proceeds of any insurance and apply the praceads to the reduction of the Indebtedness, payment of
<br />any lien affecting the Property, nr 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 satisfactory to Lender, Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from tha proceads fpr the reasona6le cost of repair or rastoration if
<br />Trustor is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 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 �eed 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 proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as
<br />Trustor's interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish to I�ender a report
<br />on each existing policy of insurance showing: (1) tha name of the insurer, (2) the risks insured; (3) the amount of the policy; (�+)
<br />the property insured, the then current replacement value of such prqparty, and the manner of determining that value; and (5) the
<br />expiration date of the policy. Trustor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine
<br />the cash value replacement cost of the Property.
<br />TAX AND INSURANCE RESERVES. Subject to any limitations and consistent with any requirements s�t by applicable law, L.ender may
<br />require Trustor to maintain with Lender reserves fpr payment af annual taxes, assessments, and insurance premiums, which reserves shall
<br />be created by an initial deposit and subsequent monthly payments, or payments at such other interval as payments under the Note may be
<br />due, of a sum estimated by Lender ro be sufficient to pay the tatal annual taxes, assessments, and insurance premiums Lender reasonably
<br />anticipates ta ba paid frqm thesa 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 insurance premiums required to be paid by Trustor as they become due. Lender shall
<br />have the right to draw upon ihe reserve funds to 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 af Trust shall be construed as requiring Lender to advance other monies for such purposes,
<br />and Lender shall not incur any liability far anything it may do or omit to do with respect to the reserve account. Subjeat to any limitations
<br />set by applicable law, if the reserve funds disclasa a shortage or deficiency, Trustor shall pay such shortage pr daficiency as required by
<br />Lender. All ampunts in the reserve account are hereby pledged to further secura the Indebtedness, and Lender is hereby authorized to
<br />withdraw and apply such amounts on the Indebtedness upon the occurrence of an Event of Default. Lender shall not be required to pay
<br />any interest or earnings on the reserve funds unless required by law or agreed to by Lender in writing. Lender does not hold the reserve
<br />funds in trust for Trustor, and Lender is npt Trustor's agant fpr payment of the taxes snd assassmants required ta be paid by Trustar.
<br />LENDER'S EXPENDITURES. If any action or proceeding is cammenced that would materially affect Lender's interest in the Property or if
<br />Trustor fails tp comply with any provision of this Deed of Trust or any Related Documents, including but not limited to 7rustor's failure tp
<br />discharge or pay when due any amounts Trustor is required to discharge or pay 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, sacurity interasts, encumbrances and other claims, at any time levied or placed on the Property and
<br />paying all costs for insuring, maintaining and preserving the Property. All such expendituras incurred or paid by Lender fpr such purppses
<br />will then 6ear interest at the rate cherged under the Note from the date incurred qr 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 (A) be payable on demand; (B) be added to 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 nf
<br />any applicable insurance policy; or (21 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. 7he Deed of 7rust also will secure payment of these amounts. Such right shall be in additian ta all pther
<br />rights and remedies to which Lender may 6e entitled upon Defeult.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Praperty ere a part of this Deed of 7rust:
<br />Title. Trustor warrants that: (a) Trustor holds gppd and marketable title of record to the Prpperty 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 insurance policy, title report, ar final
<br />title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Trustnr has the full right,
<br />power, and authority to execute and deliver this �eed af 7rust to l.ender.
<br />Defenso of Title. 5ubject to the exception in the paragraph above, Trustor warrants and will forever defend the title to the Property
<br />against the lawful claims o( 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 Trustor's expense. Trustnr may be the
<br />nominal party in such proceeding, but Lender shall be entitled to participate in the prpceeding 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 usa of the Property complies with all existing applicabte
<br />laws, ordinances, and regulations of governmental authorities.
<br />Survival of Representations and Warranties. All representations, werrantiss, and agreements made by Trustor in this Deed of Trust
<br />shall survive the execution and delivery of this Deed of Trust, shall be cnntinuing in nature, and shell remain in full force and effect
<br />until such time as Borrower's Indebtednass shall be paid in full,
<br />CONDEMNATI�N. 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 prvmptly notify Lender in writing, and Trustor shall promptiy
<br />take such steps as msy be necesssry to defend the action and obtain the award. Trustor may be the npminal party in such
<br />proceeding, but Lender shall be entitlsd to participate in the proceeding and to be represented in the proceeding by caunsel of its awn
<br />choice, and Trustor will deliver or cause to be delivared to Lender such instruments and documentation as may be requested 6y
<br />Lender from time to time to permit such participation.
<br />Application of Net I'roceeds. If all or any part of the Property is candemned 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 qr the repair or restoration of the Property. The net proceeds of the award shall mean the award atter payment of
<br />all reasonable costs, expenses, and attorneys' fees incurred by 7rustee ar Lender in connection with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GpVERNM�NTAL AUTHORITIES. The following 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 documents in addition to this Deed of 7rust
<br />and take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Trustor shall
<br />reimburse Lender for all taxes, as described below, together with all expensas incurred in recording, perfacting or continuing this Peed
<br />bf Trust, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Dead 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 or any pert of the Indebtedness secured by this Deed of 7rust; (2) a specific tax on Borrower which Borrower is authorized or
<br />required to deduct from payments on the Indebtedness secured by this type of paed of Trust; (3) a tax on this type of Deed of Trust
<br />chargeable against the Lender or the holder pf the Note; and (4) a specific tax on all br any portion of the Indebtedness or on
<br />payments of principal and interest made by Borrower.
<br />Subsequent Taxes. If any tax to whieh this section applies is enacted subsequent to the date o( this Deed of Trust, this event shall
<br />have the same affect as an Event of Default, and Lender may exercise any or all of its available ramadies fpr an Event of Default es
<br />provided below unless 7rustor either (1 � pays the tax before it becomes delinquent, or (2) contests the tax as provided above in the
<br />7axes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender.
<br />SECURITY AGREEMEN7; FINANCING STATEMENTS. The following provisions relating to this Deed of 7rust as a security agreement are a
<br />part of this Deed of Trust:
<br />Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and
<br />Lender shall have all of the rights of a secured party under the Uniform Commarcial Code as amended from time to time.
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