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201108475
<br /> DEED OF TRUST
<br /> Loan No: 10000320 (ContlnUed) Page 3
<br /> security is impaired, Lender may,at Lender's eler.tion,receive and retain the proceeds of any insurance 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 elecis to apply the proceeds to restoration and repair,Trustor sFtall repair 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 reimburse Trustor from ihe uroceeds for the reasonable cost of
<br /> repair or restoration if Trustor is not in default under this Deed of Trust.. Any proceeds which have not 6een
<br /> d�s6ursed within 180 days aiter their receipt and which Lender has not committed m the repair or restoration of
<br /> the Prope�rty shall be used first to pay any amount tiwing to Lender under this DeEd oi Trust,then to pay accrued
<br /> infierest, and the remainder,if any, shall be applied to the principa!balance of the Indebtedness. If Lender holds
<br /> any proceeds after paymen[ in full of the Indebteclness, such proceeds shall 6e p8id to Trustor as Trustor's
<br /> interests may appear.. �
<br /> Compliance with E;cisting Indebtedness. During the period in which any Existing Indebtedness described below is
<br /> in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing
<br /> Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trust, to the extent
<br /> compliance v�ith the terms of this Deed of Trust would constitute a duplication of insurance requirement. If any
<br /> proceeds from the insurance hecome payable on loss,the provisions in this Deed of Trust for tlivisfon of proceeds
<br /> shall apply only to that portion of the proceeds not payable to the liolder of the Eausting Indebtedness. ��
<br /> LENDER'S EXPENDITURES. if Trustor fails (A) to keep the Property free of all taxes, liens, security interests,
<br /> enr.umbrances, and other claims, (B1 to provide any required insurance on the Property, (C) to make�epairs to the
<br /> Property or to comply with any obligation to maintain Existing Indebtedness in good sta�ding as required below,then
<br /> Lender may do so. If any acfio� or procceding is commenced that would materially affect Lender's interests in tlZe �
<br /> Property, 6hen Lender on Trustor's behalf may, 6ut is noY required to, take any action that Lender believes to be
<br /> appropriate to protect Lender's interests. A(I expenses incurred or paid by Lender for such purposes wilf then bear
<br /> interesi at the rate charged under the Note from the date incurred or paid by Lender t� the date of repayment by
<br /> Trustor. All such expenses will become a part of the Indebtedness and, at Lentler's option, tvifl (A) be payable on
<br /> demand; (B7 6e added �o the balance of the Note and be apportioned among and be payable with any installment
<br /> payments to become due during.either (1� the term of any apµlicabie insurance policy;or (2) the remaining term of
<br /> the Note;or (C) be treated as a 6alloon payment which will be due and payable at ihe Note's maturity. The Deed of
<br /> Trust also will secure payment of ihese amounts. The rights provided for in this paragraph shall be in addition to any
<br /> other rights or any remedies to wli.ich Lender may be entitled on account of any default. Any such action by Lender
<br /> shall not be construed as cunng the defaule so as to bar Lender from any remedy that it otherwise wou4d have had.
<br /> WARRANTY;DEFENSE OF TITLE. The follo�aing provisions rclating to ownership of the Property are a part of this Deed
<br /> af Trust:
<br /> Title. TrusYOr warrants that: (a) Trustor holds good and marlcetable title of record to the Property in fee simple,
<br /> free and dear of all liens and encumbrances nther than those set fnrCh in the Real Property description or in The
<br /> Existing Indebtedness section below or in any title insurance policy,title report,or finai title opinion issued in favor
<br /> of,and accepted by, Lender in connecUon with this Deed of Trust,and (b}Trustor has ihe rull right, po�ver,and
<br /> authority to execute and deliver this Deed�of Trust to Lender.
<br /> Defense of Titie. Subject to the exception in the paragraph above,Trustor warrants and willforever defend the
<br /> title to the Property againsf the la�nrful claims oi 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 TrusY,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 Lerttler�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 permiY�such participation. �
<br /> Compliance With Laws. Trustor wareants 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 Promises. Ail promises, agreements, and statements Trustqr has made in.this Deed of Trust shall
<br /> survive the execution and delivery of this Deed oi Trust,�hall be coniinuin�in nature and shall remain in full force
<br /> and effect until such time as Trustor's Indebtedness is 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 Trust securing the Indebtedness may be secondary anci inferior to an
<br /> existing lien. Trustor expreSSly covenants and agrees to pay,or sec m the payment of,the ExisLiny Indebtedness
<br /> and to prevent any default on such indebtedness,any default under the insVUments 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 ofi Trust 6y Uihich that agreement is modified,
<br /> amended, eMended, or renewed without the prior written consent of Lencier. Ttuster shall neiCher request nor �
<br /> accept any future advances under any such.security ayreement without ttie prior written consent of Lender.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are�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 tq defend the action and o6tain the award. Trustor
<br /> may be the nominal party in such proceeding,but Lender shall be entitled to participate in ihe proceeding and to 6e
<br /> represented in[he proceeding by counsel of its own choice, and Trustar will deliver or cause fo be delivered to
<br /> Lender such instruments and documentation as m�y 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 proceedings or by
<br /> any proceeding or purchase in lieu oi condernnation,Le�der may at its election require that all or any portion of the
<br /> net proceeds of the award be applied to the Indebtedness or ihe 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�ender in connection with the condemnation.
<br /> IMPOSITION OF TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The foilowing provisions relating
<br /> io govemmental taxes,fees and cfiarges are a part of this Deed of Trusti
<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 Property. Trustor shall reim6urse Lender for atl taxes, as described below,together with all expenses
<br /> incurred in recording, perfecting or conti�nuing this Deed of Trust,�includin.g without limitation all taxes,. fees, �
<br /> documentary stamps,and�othzr charges for recording or registering this Dced of Trust.
<br /> Taxes. The following shall constitute taxes tio which this section applies: i11 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; (2) a specific tax on
<br /> Trustor v��hich Trustor is authorizeci or required to deduct from payments on the Ind�ebtedness secured by ihis type
<br /> of Deed oF Trust; (3) a tax on this type of Deed of Trust chargea6le against ihe Lender or ttie holder of the Note;
<br /> and (4} a specitic tax on all or any portion of the Indebtedness or on payments of principai and interest made by
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