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DEED OF TRUST
<br />(Continued) � Q � � Q 5 � � � Page 3
<br />make proof of loss 'rf Trustor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is
<br />impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to
<br />the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the
<br />Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the damaged or
<br />destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expendi�ure,
<br />pay or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if Trustor is not in default
<br />under this Deed of Trust. My proceeds which have not been disbursed within 180 days after their receipt and which
<br />Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to
<br />Lender under this Deed of Trust, then to pay accrued interest, and the remainder, ff any, shall be applied to the principal
<br />balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds
<br />shall be paid to Trustor as Trustor's interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall fumish to
<br />Lender a report on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3)
<br />the amount of the policy; (4) the properly insured, the then current replacement value of such property, and the manner
<br />of determining that value; and (5) the expiration date of the policy. Trustor shall, upon request of Lender, have an
<br />independent appraiser satisfactory to Lender determine the cash value replacement cost of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceedin� is commenced that wo��ld materially affect Lenrlers interest in thc�
<br />Prope�'iy or if Trustor fails to comply with any provision of this Deed of Trust or any Related D6cuments, including but not
<br />Iimfted to Trustor's failure to discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed
<br />of Trust or any Related Documents, Lender on Trustor's behalf may (but shall not be obligated to) take any action that Lender
<br />deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and
<br />other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the
<br />Property. All such expendftures incurred or paid by Lender for such purposes will then bear interest at the rate charged
<br />under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such expenses will become
<br />a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the
<br />fVote and be apportioned among and be payable with any installment payments to become due during either (1) the term of
<br />any applicable insurance policy; or (2) the remaining term of the Note; or (C} be treated as a balioon payment which will be
<br />due and payabie at the Note's maturity. The Deed of Trust also will secure payment of these amounts. Such right shaii be in
<br />addition to all other rights and remedies to which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TiTLE. The following provisions relating to ownership of the Property are a part of this Deed of
<br />Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Property in fee simple, free and
<br />clear of aIl liens and encumbrances other than those set forth in the Real Property description or in any title insurance
<br />policy, ti�e report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust,
<br />and (b) Trustor has the full right, power, and authority to execute and deliver this Dead of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the ti�e to
<br />the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions
<br />Trustor's tiUe or the interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the action at Trustor's
<br />expense. Trustor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the
<br />proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Trustor will deliver, or
<br />cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation.
<br />Compllance Wlth Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing
<br />ap,plicabie laws, ordinances,.,and regulations of govemmental authorities.
<br />Survival of Representations and Warranties. All representations, warranties, and agreements made by Tcustor in this
<br />Deed of Trust shatl surv'Ne the execution and delivery of this Deed of Trust, shall be continuing in nature, and shall
<br />remain in full force and effect until such time as Trustor'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 />Proc�ed(ngs. If any proceeding in condemnation is flled, Trustor shali promptly notify Lender in writing, and Trustor
<br />shall promptly take such steps as may be necessary to defend the action and obtain the award. Trustor may be the
<br />nominal parly in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in
<br />the proceeding by counsel of its own choice, and Trustor will deliver or cause to be delivered ta Lender such instruments
<br />and documentation as may be requested by Lender from time to time to permit such participation.
<br />Applicatlon of Net Proc�eds. If all or any part of the Property is condemned by eminent domain pr�eedings or by any
<br />proceerling or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net
<br />proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net pr�eeds of
<br />the award shall mean the award after payment of all reasonable costs, expenses, and attomeys' fees incurred by Trustee
<br />or Lender in conn�tion with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The follow(ng provisions relating to
<br />govemmental taxes, fees and charges are a part of this Deed of Trust
<br />Current Tau�, F�s and Charges. Upon request by Lender, Trustor shall execute such documents in addition to this
<br />Deed of Trust and take whatever other action is requested by Lender to perfect and continue Lenders lien on the Real
<br />Property. �rustor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in
<br />recording, perfecting or continuing this Deed of Trust, including without limitation all taxes, fees, dacumentary stamps,
<br />and other charges for recording or registering this Deed of Trust.
<br />Taues. The following shall constitute taxes to which this section applles: (1) a spec'rfic tax upon this type of Deed of
<br />Trust or upon all or any part of the Indebtedness secured by this Deed of Trust; (2) a specific ta�c on Tn.istor which
<br />Trustor is authorized or required to deduct from payments on the Indebtedness secured by this type of De� of Trust;
<br />(3) a ta�c on this typb of Deed of Trust chargeable against the Lender or the holder of the fVote; and' �(4} a specific tax on
<br />alI or any portion of the Indebtedness or on payments of principal and irrterest made by Trustor.
<br />Subsequent Taxes. If any tax to which this ssction applies is enacted subsequent to the date of this Deed of Trust, this
<br />event shall have the same effect as an Event of Default, and Lender may exercise any or all of its available remedies for
<br />an Event of Defauft as provided below unless Trustor either (1) pays the tax before it becomes delinquent, or (2)
<br />contests the tax as provided above in the Taxes and Liens se�tion and deposits with Lender cash or a sufficient
<br />corporate surety bond or other security satlsfactory to Lender.
<br />SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Deed of Trust as a security
<br />agreement are a part of this Deed of Trust:
<br />Security Agreement. This instrumerrt shall constitute a Security Agreement to the extent any of the Property constitutes
<br />fixtures, and Lender shall have all of the rights of a secured party under the Un'rform Commercial Coda as amended from
<br />time to time.
<br />Securlty Interest. Upon request by Lender, Trustor shall take whatever action is requested by Lender to perfect and
<br />continue Lender's security interest in the Rer�ts and Personai Property. In addition to recording this Deed of Trust in the
<br />real properiy r�ords, Lender may, at any time and without further authorization from Trustor file executed counterparts,
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