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<br />D�ED OF TRUST 2 Q 1 1 O O� 9 rr Page 3
<br />(Continued)
<br />if Trustor fails to do so within fifteen (15) days of the casualty, Whether or npt Lender's security is impaired, Lender mey, at Lender's
<br />election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction 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 satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if
<br />Trustar is not in default under this �eed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt
<br />and which Lander 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 appliad to the principal balance vf the
<br />Indebtedness. If Lender holds any procesds aftar payment in full qf the Indabtadnass, such prqceeds shell be paid to Trustvr as
<br />7rustpr's interests may appear.
<br />Trustor's Report on Insurance. Upon request of l.ender, however not more than once a year, Trustor shall furnish to l.ender a report
<br />on each existing policy of insurance showing: 11 � the nama of the insurer; (2) the risks insured; 13) the amount of the policy; (4)
<br />the property insured, the then current replacement value vf such property, and the manner of datermining that value; and (5) the
<br />expiration date of the policy. Trustor shall, upon request qf Lender, have an independent appraiser satisfactory to Lender determine
<br />the cash value replacement cost of the Property.
<br />LENDER'S EXPENDITURES. If any action or praceading is commenced that wauld matarially aftect Lender's interest in the Property or if
<br />Trustor fails to comply with any provisipn nf 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 Related Documents, Lender
<br />on Trustor's behalf may (but shall not be obligated to) take any actian that Lender deema appropriate, including but not limited to
<br />discharging or paying all taxes, liens, security interests, encumbrances and oth�r claims, at any time levied pr placed pn the Proparty 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 rata 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 Inde6tedness 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 installment payments to become due during either (1) the term of
<br />any appliceble 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 Deed af Trust alsp will seaure payment of these amounts. Such right shall be in addition to all pther
<br />rights and remedies to which Lender may be entitled upan Default.
<br />WARRANTY; DEFENSE OF TITLE. The fallowing 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 Property in fee simple, free and clear of ali
<br />liens and encumbrances other than those sat forth in the Real Property description or in any title insuranCe policy, title report, or final
<br />title ppinion issued in favor pf, and accepted 6y, Lender in connectipn with this Deed of Trust, and (b) Trustor has the tull right,
<br />power, end authority ta exacute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject ta the exception in tha paragraph abave, Trustor warrants and will foraver defend the title to the Property
<br />against tha lawful plaims of all perspns. In the event any eCtipn qr proceeding is commenced that questions Trustar's title or the
<br />interest qf Trustee or Lender under this Deed of Trust, Trustor shall defand the action at Trustbr's expense. Trustor may 6e 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 wili deliver, or cause to be deiivered, 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 pf governmental authorities.
<br />5urvival nf 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 Deed of Trust, shall be cqntinuing in nature, and shall remain in full force and effect
<br />until such time as 8orrower's Indebtedness shall be paid in tull.
<br />CONDEMNATIDN. 7he following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is filad, 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. Trustor may be the nominal party in such
<br />,: procaading, but Lender shall be entitled to 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 documantation 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 pf the Prvperty is candemnad by eminent domain prqceedings or by any proceeding or
<br />purchase in lieu of condemnatipn, Lander may at its election require that all qr any pprtion bf the net prqceeds of the award 6e 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 ot
<br />all reasona6le costs, expenses, and attorneys' fees incurred by Trustee or Lender in connection with the condemnation.
<br />IMPpSIT10N pF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental
<br />taxas, fees and charges are a part of this Deed of Trust:
<br />Currant Taxes, Faas and Charges. Upon request by Lender, Trustor shall execute such documents in addition to this Deed of Trust
<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 expenses incurred in recording, pertecting or continuing this Deed
<br />of Trust, including without limitation all taxes, fees, documentary stamps, and other charges for recording ar registering this Qeed 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 part of the Indebtedness sacurad by this beed pf 7rust; (2) a specific tax on Borrower which Borrower is authorized or
<br />required to deduct from paymants pn the Indebtadness sacured by this type of Daed pf Trust; (3) a tax on this type of Desd of Trust
<br />chargeable against the Lender or the holder pf the Note; and (4) a specifiC tax on all or any portion of the Inde6tedness or on
<br />payments of principal and interest mede by Borrower.
<br />Subsequent Taxas. If any tax to which this section applies is enacted subsequent to the date of this Deed of Trust, this event shall
<br />haue the same effect as an Event vf pafault, and Lender may exercise �ny or all nf its available remedies for an Event nf Default as
<br />provided pelow unless Trustor either (1) pays the tax before it becomes delinquent, or (2) contests the tax as provided above in the
<br />Taxes and Lians section and deposits with Lender cash or a suff�cient corporate surety band or other security satisfactvey ta Lender.
<br />SECURI7Y AGREEMENT; FINANCING STATEM�NTS. The following provisions relating to this Daad of Trust as a security agreement are a
<br />part of this Deed of Trust:
<br />Security Agreement. This instrument shall constitute a Security Agreement tn the extent any of the Property constitutes 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 action is requested by Lender to perfect and continue Lender's
<br />security interest in the Rents 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 authorization from Trustor, file executad counterparts, copies or reproductions of this Deed of
<br />Trust as a financing statement. Trustor shall reimburse Lender fpr all axpenses incurred in pgrfecting or continuing this security
<br />interest. Upon default, Trustor shall not remove, sever or detach the Persnnal Property from the Property. Upon default, Trustor shall
<br />assemble any Persnnal Property not affixed to the Property in a manner and at a place reasonably convenient to Trustor and l.ender
<br />and make it available to Lender within thrae (3) days after reaeipt of written demand from Lender ta the extent permitted by applicable
<br />law.
<br />Addresses. The mailing addresses of 7rustor lde6tor) and Lender (secured party) from which information concerning the security
<br />interest granted by this �eed of Trust may be obtained (each as required by the Uniform Commercial Code) are as stated on the first
<br />page of this Deed of Trust.
<br />FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relating to further assurances and attorney-in-fact are a part of
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