|
DEED OF TRUST
<br />Loan No: 101244688 (Continued) 2 01 � 0'7 7 0 9 Page 4
<br />in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing
<br />Indebtedness shall constitute compliance with the insurence provisions under this Deed of Trust, to the extent
<br />compliance with the terms of this Dead of Trust would constitute a duplication of insurance requirement. If any
<br />proceeds from the insurance become payable on loss, the provisions in thls Deed of Trust for division of proceeds
<br />shall apply only to that portion of the proceeds not peyeble to the holdar of the Existing Indebtedness.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shell furnish
<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 replecement value of such
<br />properry, end the manner of determining that velue; and (5) the expiration date of the policy. Trustor shell, upon
<br />request of Lender, have an Independent appraiser satisfactory to Lender determine the cash value replacement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. If eny action or proceeding is commenced that would materielly affect Lender's interest in
<br />the Property or if Trustor fails to comply with any provision of this Deed of Trust or any Related Documents, including
<br />but not limited to Trustor's failure to comply with any obligation to maintain Existing Indebtedness in good standing 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 may (but shall not be obligated to) take any action that
<br />Lender deems appropriate, including but not limited to discherging or peying all taxes, liens, security interests,
<br />encumbrances and other claims, at 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 peid by Lender for such purposes will then
<br />bear interest et 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 e part of the Indebtedness and, et Lender's option, will (A) be payable on
<br />demand; (B) be added to the balance of the Note end be apportioned among and be payable with any instaliment
<br />payments to become due during either (11 the term of any applicable insurance policy; or (2) the remaining term of
<br />the Note; or (C) be treated es a balloon peyment which will be due and payable et 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 may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are e part of this Deed
<br />of Trust:
<br />Title. Trustor warrants that: (a? Trustor holds good end marketable title of record to the Property in fee simple,
<br />free end clear of all liens end 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 lb) Trustor has the full right, power, and
<br />authority to execute and deliver thls Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph ebove, Trustor warrants and will forever defend the
<br />title to the Property ageinst the lawful claims of ell persons. In the event any ection or proceeding is commenced
<br />that questions Trustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustor shall 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 ceuse to be delivered, to Lender such instruments as Lender mey request from time to time
<br />to permit such participation.
<br />Compliance With Laws. Trustor warrents that the Property and Trustor's use of the Property complies with all
<br />existing applicable laws, ordinances, and regulations of governmental authorities.
<br />Survival of Representations and Warranties. All representations, 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 neture, and
<br />shall remain in fuil force and effect untll such time as Trustor's Indebtedness shall be paid in full.
<br />EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br />Existing Lien. The lien of this Deed of 7rust securing the Indebtedness may be secondery and inferior to an
<br />existing lien. Trustor expressly covenants and agrees to pay, or sae 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 Modification. Trustor shall not enter into any agreement with the holder of any mortgage, deed of trust, or
<br />other security agreement which has priority over this Deed of Trust by which that egreement 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 condemnetion proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shell promptly notify Lender in writing, and
<br />Trustor shall promptly take such steps es may be necessary to defend the action and obtain the award. Trustor
<br />may be the nominal pany in such proceeding, but Lender shell be entitled to participate in the proceeding and to be
<br />represented in the proceeding by counsel ot its own choice, and Trustor will daliver or cause to be delivered to
<br />Lender such instruments end documentation as mey be requested by Lender from time to time to permit such
<br />participation.
<br />
|