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� � � " ' DEED OF TRUST `� O � �. O � �'� �
<br />Loan No: 101240848 (Continued) Page 3
<br />endorsements on a fair value basis for the full insurable value covering all Improvements on the Reat Property in an amount sufficfent
<br />to avoid application of any coinsurance clsuse, and with a atandard mortgagee clause in favor of Lender, together with such other
<br />hezard and liebility insurance es Lender may reasonebly require. Policies shell be written in form, emounts, coverages end besis
<br />reasanably accepteble to Lender and issued by e company or companies reasonebly accepteble to Lender. Trustor, upon request of
<br />Lender, will deliver to Lender from time to time ths policies or certificatea of insurance in form setisfactory to Lender, including
<br />stipulations that coverages will not be cencelled or diminished without at least ten (10) days prior written notice to Lender. Each
<br />insurance policy also shall include en endorsement providing tF�at coverege in favor of Lender wlll not be impafred in any way by any
<br />act, omfssion or default of Trustor or any other person. Should the Real Property be located in an area designeted by the Director of
<br />the Federal Emergency Management Agency as a special flood haaerd area, Trustor egrees to obtein and mainta(n Federal Flood
<br />Insurence, if availebte, for the full unpaid principal balence of the toan end eny prior liens on the property securing the loen, up to the
<br />maximum policy Ifmits set under the Natlona! Flood Insurance Program, or es otherwise required by Lender, and to maintain such
<br />insurence for the term of the loan.
<br />Applicatfon of Proceeds. Trustor shall promptly notify Lender of eny loss or damage to the Property. Lender may make proof of lass
<br />if Trustor fails to do so within flfteen (16) days of the casualty. Whether or not Lender's securlty is impaired, Lendar may, at Lender's
<br />election, receive and retaln the proceeds of any insurance and epply the proceeds to the reduction of the Indebtedness, payment of
<br />any lien effecting the Property, or the restoration end repai� of the Property. If Lender elects to apply the proceeds to restoratfon and
<br />repair, T►ustor shell repeir or repface the damaged or destroyed Improvements in s manner satisfactory to Lander. lender shell, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if
<br />Trustor is not in default under thls Deed of Trust. Any proceeds which have not been disbursed within 1 SO days efter their receipt
<br />and which Lender has not committed to the repair or restoratfon of the Property shall be used first to pay eny amount owing to Lender
<br />under this Deed of Trust, then to pay eccrued interest, and the remainder, if any, ahall be applied to the principal balance of the
<br />Indebtedness. If Lender holds eny proceeds after payment in full of the Indebtedness, such proceeds shalt be paid to Trustor as
<br />Trustor's interests may eppear.
<br />Compliance with Existing Indebtedne�s. During the period in which any Existing Indebtedness described below is in effect, compliance
<br />wlth the insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute complience with the
<br />insurance provisions under this Deed of 7rust, to the extent compliance wfth the terms of this Deed of Trust would constitute a
<br />duplication of insurance requirement. If any proceeda from the lnsurance become payeble on loss, the provisiona in this Deed of Trust
<br />for division of proceeds shall apply only to thet portion of the proceeds not peyable to the holder of the Existing Indebtedness.
<br />LENDER'S EXPENDITURES. If Trustor fails (A1 to keep the Property free of all taxes, liens, security interests, encumbrances, end otF�er
<br />claims, (B) to provide any required insurance on the Property, (C) to make repairs to the Property or to comply with any obligatlon to
<br />meintain Existing Indebtedness in good standing as raqulred below, then Lender may do so. If any action or proceeding is commenced thet
<br />would materiatly affect Lender's interests in the Property, then Lender on Trustor's behalf iney, but is not required to, teke any action that
<br />Lender believes to be appropriate to protect Lender's interests. AIf expenses incurred or psfd by Lender tor such purposes will then bear
<br />interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such
<br />expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demend; (B) be added to the ba(ance of
<br />the Nota and be epportioned among and be payeble with eny instellment payments to 6ecome due during either (1) the term of any
<br />appliceble insurance policy; or (2) the remalning term of the Note; or (C) be treated as a balloon payment which will be due and payeble
<br />at the Note's maturity. The Deed of Trust also will secure payment of these emounts. The rights provided for in this paregraph shall be in
<br />addition to eny other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall
<br />not be construed as curing the default so as to bar Lender from any remedy thet it otherwise would heve had.
<br />WARRANTY; DEFENSE OF T1TLE. 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 marketeble title of record to the Properry in fea simple, free and clear of all
<br />liens and encumbrances other than those set forth in the Reel Property description or in the Existing tndebtedness section below or in
<br />any title insurence po(icy, title report, or final tttle opinion issued in tavor of, and accepted by, Lender in connection with this Deed of
<br />Trust, and (b) Trustor has the full right, power, end authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph ebove, Trustor warrants end will forever defend the title to the Property
<br />egainst the lewful claims of all persons. In the event eny action or proceeding ia commenced that questions Trustor's title or the
<br />interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the action et Trustor's expense. Trustor may be the
<br />nominel perty in such proceeding, but Lender shell be entitled to perticipate in the proceeding and to be represented in the proceeding
<br />by counsel of Lender's own choice, end Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender mey
<br />request from time to time to permit such participatfon.
<br />Compliance With Laws, Trustor warranta that the Property snd Trustor's use of the Property complies with all existing applicable
<br />laws, ordinances, and regulations of governmentel euthorities.
<br />Survival of Promises. All promises, agreemants, end statements Trustor hes mede in thfs Deed of Trust shall survive the execution
<br />and delivery of this Deed of Trust, shall be continuing in nature end shall remain in full torce and effect untll such time es Trustor's
<br />Indebtedness is paid in tu!!.
<br />EXISTINQ INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of thia Deed of Trust:
<br />Exlsting Uen. The llen of this Deed of Trust securing the Indebtednass may be secondary and inferior to an existing lien. Trustor
<br />expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such
<br />indebtedness, any default under the instruments evidencing such indebtedness, or any defeult under any security documents for such
<br />lndebtedness.
<br />No Modlficatton. Trustor shall not enter into any agreement with the holder of eny mortgage, deed of trust, or other security
<br />agreement which has priority over this Deed of Trust by which that agreement is modified, amended, eMended, or rertewed without
<br />the prior written consent of Lender. Trustor shall netther request nor accept any tuture edvances under eny such security agreement
<br />without the prior written consent of Lender.
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