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20110404�
<br />DEED OF TRUST
<br />� � � � (Continued)
<br />Page 3
<br />by nder, and to maintain such insurance for the term of the loan.
<br />Ap ication of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss
<br />if stor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's
<br />ele ion, receive and retain the proceeds of any insurance and apply ihe proceeds to the reduction of the Indebtedness, payment of
<br />an ien atfecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and
<br />rep r, Trustor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />sat factory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if
<br />Tr tor is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 7 80 days after their receipt
<br />an 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 />un r this Deed of Trust, then to pay accrued interest, and the remainder, if any, shali be applied to the principal balance of the
<br />In btedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as
<br />Tr tor's interests may appear.
<br />Tr tor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish to Lender a report
<br />on ach existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4)
<br />th property insured, the then current replacement value of such property, and the manner of determining that value; and (5) the
<br />ex ration date of the policy. Trustor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine
<br />th cash value replacement cost of the Property.
<br />LENDE S EXPENDITURES. It any action or proceeding is commenced that would materially affect Lender's interest in the Property or if
<br />Trustor ails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to 7rustor's failure to
<br />dischar 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 Tru or's behalf may lbut shall not be obligated to) take any action that Lender deems appropriate, including but not limited to
<br />discha ing or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and
<br />paying II costs for insuring, maintaining and preserving the Properry. All such expenditures incurred or paid by Lender for such purposes
<br />wil! th bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All
<br />such e enses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the
<br />balanc 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 ap icable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which wiii be due and
<br />payabl at the Note's maturity. The Deed of Trust also wilf secure payment of these amounts. Such right shall be in addifiion to all other
<br />rights d remedies to which Lender may be entitled upon Default.
<br />NTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust:
<br />e. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Property in fee simple, free and clear of all
<br />s and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final
<br />opinion issued in favor of, and accepted by, Lender in connecYion with this Deed of Trust, and (b) Trustor has the full right,
<br />er, and authority to execute and deliver this Deed of Trust to Lender.
<br />ense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the title to the Property
<br />inst the lawful claims of all persons. In the event any action or proceeding is commenced that questions Trustor's title or the
<br />rest of Trustee or Lender under this Deed of Trust, Trustor shall defend the action at Trustor's expense. Trustor may be the
<br />inal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be rapresented in the proceeding
<br />counsel of Lender's own choice, and Trustor wiff deliver, or cause to be delivered, to Lender such instruments as Lender may
<br />�uest from time to time to permit such participation.
<br />mpliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable
<br />vs, ordinances, and regulations of governmental authorities.
<br />rvival of Representations and Warranties. All representations, warranties, and agreements made by Trustor in th+s Deed of Trust
<br />311 survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and shall remain in full force and effect
<br />til such time as Borrower's Indebtedness shall be paid in full.
<br />MNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />�ceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and Trustor shall promptly
<br />:e such steps as may be necessary to defend the action and obtain the award. Trustor may be the nominal party in such
<br />�ceeding, but Lender shafl be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own
<br />oice, and Trustor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by
<br />nder from tima to time to permit such participation,
<br />�plication of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or
<br />rchase 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 />the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of
<br />reasonable costs, expenses, and attorneys' faes incurred by Trustee or Lender in connection with the condemnation.
<br />TION OF TAXES, FEES AND CHARGES BY GOVERNMENTA! AUTliORITIES. The fallowing provisions relating to governmental
<br />'ees and chargas are a part of this Deed of 7rust:
<br />rrent Taxes, Fees and Charges. Upon request by Lender, Trustor shall execute such documents in addition to this Deed of Trust
<br />d take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Trustor shall
<br />mburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Deed
<br />Trust, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Deed of
<br />xes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Deed of Trust or upon
<br />or any part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on Borrower which Borrower is authorized or
<br />auired to deduct from payments on the Indebtedness secured by this type of Deed of Trust; (3) a tax on this type of Deed of Trust
<br />argeable against the Lender or the holder of the Note; and (4) a specific tax on all or any portion of the Indebtedness or on
<br />yments of principal and interest made by Borrower.
<br />bsequent Ta�ces. It any tax to which this section applies is enacted subsequent to the date of this Deed of Trust, this event shall
<br />ve the same effect as an Event of Default, and Lender may exercise any or all of its availa6le remedies for an Event of Default as
<br />�vided below unfess Trustor either (1) pays the tax before it becomes delinquent, or (2) contests the tax as provided above in the
<br />xes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender.
<br />SEC�ITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Deed of Trust as a security agreement are a
<br />part f this Deed of Trust:
<br />curity Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and
<br />nder shall have all of the rights of a secured party under the Uniform Commercial Coda as amended trom time to time.
<br />curity Interest. Upon request by Lender, Trustor shall take whatever action is requested by Lender to perfect and continua Lender's
<br />curity interest in the Rents and Personal Property. In addition to recording this Deed of Trust in the real property records, Lender
<br />�y, at any time and without further authorization from Trustor, file executed courtterparts, copies or reproductions of this Deed of
<br />Jst as a financing statement. Trustor shall reimburse Lender for all expenses incurred in perfecting or continuing this security
<br />erest. Upon default, Trustor shall not remove, sever or detach the Personal Property from the Property. Upon default, Trustor shall
<br />semble any Personal Property not affixed to the Property in a manner and ai a place reasonably convenient to 7rustor and Lender
<br />d make it available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable
<br />es. The mailing addresses of Trustor (debtor) and Lender (secured party) from which information concerning Yhe security
<br />granted by this Deed of Trust may be obtained leach as required by the Uniform Commercial Code) are as stated on the fir�t
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