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�O��U64�2
<br />DEED OF TRUST
<br />(Continued) � Page 3
<br />company or companles reasonably acceptable to Lender. Trustor, upon request of Lender, will deliyer to Lender
<br />'From time to time the policies or certlficates of insurance fn form satisfactory to Lender, including sU�ulations that
<br />coverages will not be cancelled or diminished without at least ten (10) days prior written notice to 4ender. Each
<br />insurance policy also shall include an endorsement providing that coverage in favor of Lender will no be impaired
<br />in any way by any act, omission or default of Trustor or any other person. Should the Real Property,be located in
<br />an area designated by the Director of the Federal Emergency Management Agency as a special floodj hazard area,
<br />Trustor agrees to obtain and maintain Federal Flood Insurance, if available, for the full unpaid princip'al balance of
<br />the loan and any prior liens on the property securing the loan, up to the maximum policy limits�et under the
<br />National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insuran for the term
<br />of the loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property.l, Lender may
<br />make proof of loss if Trustor fails to do so within fifteen (15) days of the casualty. Whether or,not Lenders
<br />security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurar�ce and apply
<br />the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration
<br />and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor �hall repair or
<br />replace the damagad or destrCyed Improvements ir� a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or refmburse Trustor from the p�oceeds for the reasonable cost of
<br />repair or restoration if Trustor is not in default under this Deed of Trust. Any proceeds which h�ve not been
<br />disbursed within 180 days after their receipt and which Lender has not committed to the repair or 'estoration of
<br />the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then t pay accrued
<br />interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds
<br />any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor, as Trustor's
<br />interests may appear. I
<br />Compllance with ExlsUng Indebtedness. During the period in which any Existing Indebtedness desc bed below is
<br />in effect, compliance with the insurance provisions contained in the instrument evidencing uch Existing
<br />Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trust, o the extent
<br />compliance with the terms of this Deed of Trust would constitute a duplication of fnsurance requir ment. If any
<br />proceeds from the insurance become payable on loss, the provisions in this Deed of Trust for divisio of proceeds
<br />shall apply only to that portion of the proceeds not payable to the holder of the F�cisting Indebtedness.
<br />LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, secu�ty interests,
<br />encumbrances, and other claims, (B) to provide any required insurance on the Property, (C) to make epairs to the
<br />Property or to comply with any obligatfon to maintain Existing Indebtedness in good standing as require� below, then
<br />Lender may do so. If any action or proceeding is commenced that would materially affect Lender's in�erests in the
<br />Property, then Lender on Trustor's behalf may, but is not required to, take any acUon that Lender bjelieves to be
<br />appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes uvill then bear
<br />interest at the rate charged under the Note from the date incurred or paid by Lender to the date of tepayment by
<br />Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) payable on
<br />demand; (B) be added to the balance of the Note and be apportioned among and be payable with a y installment
<br />payments to become due during either (1) the term of any applicable insurance policy; or (2) the rem ining tetm of
<br />the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's matu�ity. The Deed of
<br />Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in a dition to any
<br />other rights or any remedies to which Lender may be entitled on account of any default Any such ac on by Lender
<br />shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would hpve had.
<br />WAfiRAtdT1!; DEFENSE Or :TlTL�. Tho fallovring provi5ions retating to ownership of the Proparty are a part of thts Deed
<br />of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Property�n fee simple,
<br />free and clear of all liens and encumbrances other than those set forth in the Real Property descri tion or in the
<br />Existing Indebtedness section below or in any title insurance policy, title report, or flnal tiUe opinion i sued in favor
<br />of, and accepted by, Lender in connection with this Deed of Trust, and (b) Trustor has the full righ,�, power, and
<br />authority to execute and deliver this Deed of Trust to Lender. i
<br />Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forev r defend the
<br />title to the Property against the lawful claims of all persons. In the event any action or proceeding i commenced
<br />that questions Trustor's tiUe or the interest of Trustee or Lender under this Deed of Trust, Trustor sh II defend the
<br />acUon 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 ow choice, and
<br />Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request fro time to time
<br />to permit such pa�ticipation.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property corr�plies with all
<br />existing applicable laws, ordinances, and regulations of governmental autho�ities.
<br />Survtval of Promises. All promises, agreements, and statements Trustor has made in this Deed f Trust shall
<br />survive the execution and delivery of this Deed of Trust, shall be continuing in nature and shall rema�n in full force
<br />and effect until such time as Borrower's Indebtedness is paid in full.
<br />EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Dlsed of Trust:
<br />Existing Lien. The lien of this Deed of Trust secu�ing the Indebtedness may be secondary and infe or to the lien
<br />securing payment of an existing obligation. The existing obligation has a current principal balance of pproximately
<br />$71,920.00. The obligation has the following payment terms: $619.00 per Month. Trustor expre sly covenants
<br />and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any de ault on such
<br />indebtedness, any default under the instruments evidencing such indebtedness, or any default unde� any security
<br />documents for such indebtedness. I
<br />!do Modiffcatlon. Trustor shall no4 ei�ter into" any agreement �witN the; holtler of any mortgage; tle8d, of trvst, or
<br />other security agreement wh(ch has priority over this Deed of Trust by which that agreemenk is modified,
<br />amended, extended, or renewed without the prior written consent of Lender. Trustor shall neith�r request nor
<br />accept any future advances under any such secu�lty agreement without the prior written consent of �'�ender.
<br />CONDEMNATION. The following provisions relating to condemnation proceed(ngs are a part of this Deed �f Trust:
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender i wriUng, and
<br />Trustor shall promptly take such steps as may be necessary to defend the action and obtain the a�vard. Trustor
<br />may be the nominal party in such proceeding, but Lender shall be entitled to participate in the procee ing and to be
<br />represented in the proceeding by counsel of its own choice, and Trustor will deliver or cause to b delivered to
<br />Lender such instruments and documentatfon as may be requested by Lender from time to time t permit such
<br />participation.
<br />Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain pro edings or by
<br />any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the
<br />net proceeds of the award be applfed to the Indebtedness or the repair or restoration of the Prop�rty. The net
<br />proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and a�ttorneys' fees
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