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DEED OF TRUST 2 Q,� 1 Q 4� s�
<br />(Continued) Page 3
<br />and which Lender has not commltted 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 />Indebiedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shell 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 Lender a report
<br />on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; {3) the amount of the policy; (4)
<br />the property insured, the then current replacement value of such property, and the manner af determining that value; and 15) the
<br />expiretion date of the policy. Trustor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine
<br />the pash value replacement cost of the Property.
<br />TAX AND INSURANCE RESERVES. Subject to a�y limitations and consistent with any requirements set by applicable law, Lender may
<br />require Trustor to maintain with Lender reserves for payment of annual taxes, assessments, and insurance premiums, which �aserves shell
<br />be created by an initiel 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 to be sufficient to pay the total ennual texes, essessments, and insurance premiums Lender reasonably
<br />anticipates tp be paid from these reserves. The reserve funds shall be held by Lender as a general deposit from Trustor, which Le�der may
<br />satisfy by paymant of the taxes, assessments, and insurance premlums required to be paid by Trustor as they become due. Lender shail
<br />have the right to draw upon the reserve funds to pay such items, and Lendar shall not be required to determine the validity or accuracy of
<br />any item before paying it. Nothing in the Deed of Trust shall be construed as requiring Lender to advance other monias for such purposes,
<br />and Lender shell not incur any liebility for anything it may do or omit to do with respect to the reserve account. Subject to any limitations
<br />set by applicable Iaw, if the reserve funds disclose e shortege or deficiency, Trustor shal! pey such shortage or deficiency as required by
<br />Lender. Aif amounts in the reserve account are hereby pledged to further secure the Indebtedness, end 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 Lende� in writing. Lender does not hold the reserve
<br />funds in trust for Trustor, and Lender is not Trustor's agent for payment of the taxes and assessments required to be paid by Trustor.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if
<br />Trustor fails to comply with any provision of 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 Releted Documents, Lender
<br />an 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, security interests, ancumbrances and other claims, at eny time levied or placed on the Property and
<br />paying ell costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Le�de� for such purposes
<br />will than bear interest at the rate charged under the Note from the dete incurred or 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 payabie 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 applicable insurence 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 of Trust also will secura paymant of thsse amounts. Such right shall be in addition to all other
<br />rights and remedies to which Lender may be entitled upon pefault.
<br />WARRANTY; DEFENSE OF TITLE. The 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 Property 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, or final
<br />title opinion issued in favor of, and accepted by, Lender in connection with this Daed of Trust, and (b1 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 persons. In the event any action or proceeding is commenced that questions Trustor's title or the
<br />interest of Trustee or Lender under thfs Deed of Trust, Trustor shall defend the action at Trustor's expense. Trustor may be 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 will deliver, or cause to be delivered, to Lender such instruments es 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 eppliceble
<br />laws, ordinances, and regulations of governmental euthorities.
<br />Survival of Representations snd 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 continuing in nature, and shall remein in full force and effect
<br />until such time as Borrower's Indebtedness shall be paid in full,
<br />CONDEMNATION. 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 promptly notify Lender in writing, and Trustor shall promptly
<br />take such steps as mey be necessary to defend ihe action and obtain the award. Trustor may be the nominal party in such
<br />proceeding, but Lender shall be entitled to participate in the proceeding and to ba 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 documentetion as may be requested by
<br />Lender from time to time to permit such perticipation.
<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 may at its election require that ell or any portion of tha net proceeds of the award be applied
<br />to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the awerd after payment of
<br />all reasonable costs, expenses, and attornays' fees incurred by Trustee or Lender in connection with the condemnation.
<br />IMPOSITIOIV OF TAXES, FEES AND CHARGES BY GOVERIVMENTAL AUTHORITIES. The tollowing 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 Dead 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 ell expenses incurred in recording, perfecting or continuing this Deed
<br />of 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 or any part of the Indebtedness secured by this Deed of Trust; (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 Deed of Trust; (3) e tax on this type of Deed of Trust
<br />chargeable agai�st the Lender ar the holdar of the Note; and (4) a specific tax on all or any portion of the Indebtedness or on
<br />payments of principal and interest made by Borrower.
<br />Subsequent Taxes. If any tax to which this section applies is enacted subsequent to tha date of this Deed of Trust, this event shall
<br />have the same effect as an Eveni of Default, and Lender mey exercise any ar all of its available remedies for an Event of Default as
<br />provided below unless Trustar either (l) pays the tex before it becomes delinquent, or 12) contests the tax as provided above in the
<br />Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security sattsfactory to Lender.
<br />SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Deed 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 to the extent any of the Property constitutes fixtures, and
<br />Lender shall have all of the rights of a secured party undar the Uniform Commercial C�de as amended from time to time.
<br />Security Interest. Upon request by Lender, Trustor shall take whataver 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, Lander
<br />may, at any time and without further authorization from Trustor, file executed counterparts, copies or reproductions of this Deed of —_
<br />Trust as a financing statement. Trustor shall reimburse Lender for all expenses incurred in pertecting or continuing this security ==-
<br />interest. Upon default, Trustor shall not remove, sever or detach the Personal Property from the Property. Upon default, Trustor shall -
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