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DEED OF TRUST �
<br />Loan No: 101243242 (COtlt111ued) � 0110 5 5� 8 Page 4
<br />disbursed within 1 SO days after their receipt and which Lender has not committed to the repair or restoration of
<br />the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br />interest, and the remeinder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds
<br />eny proceeds efter payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's
<br />interests may appear.
<br />Compliance with E�ctsting Indebtedness. During the period in which eny Existing Irldebtedness described below is
<br />in effect, compliance with the insurance provisions contained in the tnstrument evidencing such F�cisting
<br />Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trust, to the extent
<br />compliance with the terms of this Deed of Trust would constitute a duplication of insurence requirement. If any
<br />proceeds from the insurance become payable on loss, the provislons in this Deed of Trust for division of proceeds
<br />shall apply only to that portion of the proceeds not payable to the holder of the F�cisting Indebtedness.
<br />Trustor's Report on Insurance. Upon requast of Lender, however not more then once a year, Trustor shall turnish
<br />to Lender a report on each existing policy of insurance showing: (1! the name of the insurer; (2) the risks
<br />insured; (3) the emount of the policy; (4) the property insured, the then current replacement value of such
<br />property, and the manner of determining that value; and (5) the expiretion date of the policy. Trustor shell, upon
<br />request of Lender, have an independent appraiser satisfectory to Lender determine the cash value reptecement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding ia commenced that would materially affect Lender's Intereat in
<br />tNe Property or if Trustor fails to comply with eny provision of this Deed of Trust or any Related Documents, including
<br />but not limited to Trustor's failure to comply with any obligetion to maintain Existing Indebtedness in good stending as
<br />required below, or to discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed of
<br />Trust or any Related Documents, Lender on Trustor's behalf rriey (but shall not be obligated to) take any action that
<br />Lender deems appropriate, including but not Iimited to discharging or peying all taxes, liens, security interests,
<br />encumbrences and other claims, et any time levied or placed on the Property and paying all costs for insuring,
<br />maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then
<br />bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by
<br />Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on
<br />demand; (B) be added to the balance of the Note and be apportioned emong and be payable with any instaltment
<br />payments to become due during either (1) the term of any applicable insurence policy; or (2) the remalning term of
<br />the Note; or (C) be treated as a balloon payment which will be due end payable at the Note's maturity. The Deed of
<br />Trust also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to
<br />which Lender mey be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed
<br />of Trust:
<br />Title. Trustor warrants thet: (a) Trustor holds good and marketable title of record to the Property in fee simple,
<br />free and clear of all liens and encumbrances other then those set forth in the Real Property description or in the
<br />Existing Indebtedness section below or in any title insurance policy, title report, or final title opinion issued in favor
<br />of, and accepted by, Lender in connection with this Deed of Trust, and (b) Trustor has the full right, power, and
<br />authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of TiUe. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the
<br />title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced
<br />that questions Trustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustor shell defend the
<br />action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shall be entitled to
<br />participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and
<br />Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time
<br />to permit such perticipation.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property compties with all
<br />existing applicable laws, ordinences, and regulatlons of governmental authorities.
<br />Survival of Representatlons end Warranties. All representatlons, warranties, and agreements made by Trustor in
<br />this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and
<br />shall remain in full force and effect until such time as Trustor's Indebtedness shall be paid in full.
<br />EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness ere a part of this Deed of Trust:
<br />Existing Lien. The tien of this Deed of Trust securing the Indebtedness may be secondery and (nferior to an
<br />existing lien. Trustor expressly covenants end agrees to pay, or see to the payment of, the Existing Indebtedness
<br />and to prevent any default on such indebtedness, any default under the instruments evidencing such indebtedness,
<br />or any default under any security documents for such indebtedness.
<br />No Modificatlon. Trustor shall not enter into any agreement with the holder of eny mortgage, deed of trust, or
<br />other security agreement which has priority over this Deed of Trust by which that agreement is modified,
<br />amended, extended, or renewed without the prior written consent of Lender. Trustor shall neither request nor
<br />accept any future advances under any such security agreement without the prior written consent of Lender.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
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