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Loan No: 11089183
<br />DE Con�t nued) � � � � O � � � � Page 3
<br />Applicetion of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may
<br />. make proof of. loss if .Trustor. fails to do so within fiftean (15) days of the, casualty. Whethee, or,.not Lender's
<br />security is impaired, Lender may, at Lender',s election,. receiv� and retain the proceeds. of any insuranc.e, end •apply
<br />the proceeds to the reduction of the Indebtedness, payment of any lien affecting the . Property, or the restoration
<br />end repair of the Property. If Lender elects to apply tha proceeds to restoration and repair, Trustor shail repeir or
<br />replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, • upon
<br />satisfactory proof of such expenditure, pay or Yeimburse Trustor from the proceeds for the reasonable cost of
<br />repair or restoration if Trustor is not in defauit under this Deed of Trust. Any proceeds which have not been
<br />disbursed within 180 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 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 p�oceeds shall be paid to Trustor as Trustor's
<br />interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall 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 amount of the policy; (4) the property insured, the then current replacement value of such
<br />property, and the manner of deterFnining that value; and {5) the expiration date of the policy: Trustor shall, 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 any action or proceeding is commenced that would materially 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 discharge or pay when due any amounts Trustor is required to discharge or pay
<br />under this Deed of Trust or any Related Documents, Lender on Trustor's behalf may (but shall not be obligated to) take
<br />any action that Lender deems appropriate, including but not limited to discharging or paying aIl taxes, liens, security
<br />interests, encumbrances end other claims, at any time levied or placed on the Property and paying aII 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 />demantl; {B) be added ta 2he balance oP 'the' Note and be apportioned among and be payable with any installment
<br />payments to become due during either 11) "the term of any applicable insur�nce policy; or (2) the remaining term of
<br />the Note; or (C) be treated as a balloon payment which will 6e due and payable at'the Note's maturity: TFie'Deed of
<br />Trust also will secure payment of thase amounts. Such right shall be in addition, to ,all other rights and r�medies to
<br />whiah 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
<br />of Trust:
<br />Title. Trustor warrants that: (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 than those set forth in the Real Property description or in any
<br />title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection
<br />with this Deed of Trust, and (b) Trustor has the full right, power, and authority to execute and deliver this Deed of
<br />Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the
<br />title to the Proparty 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 shall defend the
<br />8ction et Trustor's expense. Trustor r'nay be the nominal party in such proceeding, but Lender she11 he entit�ec! 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 ta be delivered, to Lender such instruments es Lender may request from time to time
<br />to permit such participation.
<br />Compliance With Laws. Trustor warrants 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 nature, and
<br />shall remein in full force and effeci until such time as Borrower's Indebtedness shall be paid in full.
<br />CONDEMNATIDN. T.he following provisions relating to condemnation proceedings are a part of this Deed 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 award. Trustor
<br />may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be
<br />represented in the proceeding by counsel of its own choice, and Trustor will deliver or cause to be deliveCed to
<br />Lender such ins,truments and documentation as may be requested by Lender from time to time to permit such
<br />participation.
<br />Appiication of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings 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 applied to the Indebtedness or the repair or restoration of the Property. The net
<br />proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees
<br />incurred by Trustee or Lender in connection with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br />to governmental taxes, fees and charges are a part of this Deed of Trust:
<br />Current Taxes, Fees and Charges. Upon request by Lender, Trustor shall execute such documents in addition to
<br />this Deed of Trust and take whatever other action is requested by Lender to perfect and continue Lender's lien on
<br />the Real Prqperty. Trustor shall reimburse Lender for all taxes, as described below, together with all expenses
<br />incurred in recording, perfecting-6r continufng 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: (11 a specific tax upon this type of
<br />Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trust; 12) a specific tax on
<br />Borrower which Borrower is authorized or required to deduct from payments on the Indebtedness secured by this
<br />type of Deed of Trust; (3) a tax on this type of Deed of Trust chargeable against the Lender or the holder of the
<br />Note; and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest
<br />made by Borrower.
<br />Subsequent Taxes. lf any tax to which this section applies is enacted subsequent to the date of this Deed of
<br />Trust, this event shall have the same effect as en Event of Default, and Lender may exercise any or aU of its
<br />available remedies for an Event of Default as provided below unless Trustor either (1) pays the tax before it
<br />becomeg delinguent,. or (2? contests the tax as provided above in the T$xes and Liens section and deposits with
<br />lender cash or a sufficientcorporate surety 6ond or other security satisfactory to
<br />SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this` Deed of Trusf' as a
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