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DEED OF TRUST
<br />Loan No: 17089113 (Continued) �, 0�,1 Q 6 4 � Page 3
<br />form, amounts, coverages and basis reasonably acceptable to Lender end issued by a compai
<br />reasonably acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from
<br />policies or certificates of insurance in form satisfactory to Lender, including stipuletions thet cove
<br />cancelled or diminished without at least ten (10) days prior written notice to Lender. Each insui
<br />shall include an endorsement providing that coverage in favor of Lender will not be impaired in any
<br />omission or default of Trustor or any other person. Should the Real Property be located in an ari
<br />the Director of the Federal Emergency Management Agency as a special flood hazard area, Trustor
<br />and maintain Federal Flood Insurance, if available, for the full unpaid principal balance of the lo
<br />liens on the property securing the loan, up to the maximum policy limits set under the National
<br />Program, or as otherwise required by Lender, and to maintain such insurance for the term of the lo
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Prope
<br />meke proof of loss if Trustor fails to do so within fifteen (15) days of the casualty. Whether
<br />security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insi
<br />the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, c
<br />and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trust
<br />replace the dameged or destroyed Improvements in a manner satisfactory to Lender. Ler
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the re�
<br />repair or restoration if Trustor is not in default under this Deed of Trust. Any proceeds whicl
<br />disbursed within 180 days after their receipt and which Lender has not committed to the repair
<br />the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, thei
<br />interest, and the remainder, if any, shall be applied to the principal balance of the Indabtedness.
<br />any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trus
<br />interests may appear.
<br />or companies
<br />ie to time the
<br />�es will not be
<br />ce policy also
<br />ay by any act,
<br />designated by
<br />Irees to obtain
<br />and any prior
<br />�od Insurance
<br />y. Lender may
<br />�r not Lender's
<br />ance and apply
<br />the restoration
<br />r shall repair or
<br />ler shall, upon
<br />�onable cost of
<br />have not been
<br />r restoration of
<br />to pay accrued
<br />If Lender holds
<br />�r as Trustor's
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Tru tor shall furnish
<br />to Lender a report on each existing policy of insurance showing: i7? the name of the insurer; (2) the risks
<br />insured; (3) the amount of the policy; (4) the property insured, the then current replaceme value of such
<br />property, and the manner of determining that value; and (5) the expiration date of the policy. Tr stor shall, upon
<br />request of Lender, have an independent eppraiser satisfactory to Lender determine the cash value � placement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Le der's interest in
<br />the Property or if Trustor fails to comply with any provision of this Deed of Trust or any Related Docu ents, including
<br />but not limited to Trustor's failure to discharge or pay when due any amounts Trustor is required to ischarge or pay
<br />under this Deed of Trust or any Related Documents, Lender on Trustor's behalf may (but shall not be o ligated to) take
<br />any action that Lender deems appropriate, including but not limited to discharging or paying all taxe , liens, security
<br />interests, encumbrances and other claims, at any time levied or placed on the Property and paying all c sts for insuring,
<br />maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such pu poses will then
<br />bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date f 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 among and be payeble with any installment
<br />payments to become due during either (1) the term of any applicable insurance policy; or (2) the re aining term of
<br />the Note; or (C) be treated as a balloon payment which will be due end payable at the Note's maturi . The Deed of
<br />Trust also will secure payment of these amounts. Such right shall be in addition to all other rights nd remedies to
<br />which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The foliowing provisions relating to ownership of the Property are a�#art of this Deed
<br />of Trust: I
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Prope 'y in fee simple,
<br />free and clear of all liens end encumbrances other than those set forth in the Real Property desc iption or in any
<br />title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lend r in connection
<br />with this Deed of Trust, and (b) Trustor has the full right, power, and authority to execute and deli er this Deed of
<br />Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will for ver defend the
<br />tiile to the Property against the lawful claims of all persons. In the event any action or proceedin is commenced
<br />that questions Trustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustor hall defend the
<br />action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender sh II be entitled to
<br />participate in the proceeding and to be represented in the proceeding by counsel of Lender's o n choice, and
<br />Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request fr m time to time
<br />to permit such participation.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property c{�mplies with all
<br />existing applicable laws, ordinances, and regulations of governmental authorities. I
<br />Survival of Representations and Warranties. All representations, warranties, and agreements ma e by Trustor in
<br />this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuin in nature, and
<br />shall remain in full force and effect 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 Dee of Trust:
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and
<br />Trustor shall promptly take such steps as may be necessary to defend the action and obtain the ward. Trustor
<br />may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proc eding and to be
<br />represented in the proceeding by counsel of its own choice, and Trustor will deliver or cause to be delivered to
<br />Lender such instruments and documentation as may be requested by Lender from time to time to permit such
<br />participation.
<br />Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain pr ceedings or by
<br />any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or e y portion of the
<br />net proceeds of the award be appiied to the Indebtedness or the repair or restoration of the Pr perty. The net
<br />proceeds of the award shall mean the eward after peyment of all reasonable costs, expenses, and attorneys' fees
<br />incurred by Trustee or Lender in connection with the condemnation.
<br />IMPpSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following pr¢visions relating
<br />to govemmental taxes, fees and charges are a part of this Deed of Trust: I
<br />Current Taxes, Fees and Charges. Upon request by Lender, Trustor shall execute such documen s in addition to
<br />this Deed of Trust end take whatever other action is requested by Lender to perfect and continue ender's lien on
<br />the Real Property. Trustor shall reimburse Lender for all taxes, as described below, together w th ell expenses
<br />incurred in recording, perfecting or continuing this Deed of Trust, including without limitation all taxes, fees,
<br />documentary stamps, and other charges for recording or registering this Deed of Trust.
<br />Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax u on this type of
<br />Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on
<br />Borrower which Borrower is authorized or required to deduct from peyments on the Indebtedness secured by this
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