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DEED OF TRUST 20�.1Q8599
<br />Loan No: 1�'F(389203' ' ; " � 4 :
<br />(Continued) Page 3
<br />Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lendec may
<br />make proof of loss if Trustor fails to do so within fitteen �15) days of the casualty. Whether or not Lender's
<br />security +s impaired, Lender may, af Lender's election, 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. It Lender elects to apply the proceeds to restoration and repair, Trustor shall 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 the proceeds for the reasonabie cost of
<br />repair or restoration if 7rustor is not in default 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, ff Lender ho�ds
<br />any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trusior's
<br />interests may appear.
<br />Compliance with Exist+ng lndebtedness. During the period in which any Existi�g indebtedness described below is
<br />in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing
<br />Indebtedness shal! constitute compliance with the insurance provisians under this Deed of Trust, to the extent
<br />compliance with the terms of this Deed of Trust would constitute a duplication of insuranee requirement, If any
<br />proceeds from the insurance become payable on loss, the provisions in this Deed of Trust for division of proceeds
<br />shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<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 properiy insured, the then current replacement value of such
<br />property, and the manner of determining that value; and 15) the expiration date of the policy. Trustor shali, 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 materiaHy affect Lender's interest in
<br />the Property or if 7rustor fails to comply with any provision of this Desd of Trust or any Related Documents, including
<br />but not limited to Trustor's failure to comply with any obligation to maintain Existing lndebtedness in good standing as
<br />required below, or to discharge or pay when due any amounts i"rustor is required to discharge or pay under this Deed of
<br />Trust or any Related Documents, Lender on Trustor's behalf may Ibut sha!! not be obligated to) take any action that
<br />Lender deems appropriate, including but not limited to discharging or paying 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 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. AH such expenses will become a part of Lhe Indebtedness and, at Lender's option, will (A) be payable on
<br />demand; 18� be added to the balance of the Note and be apportioned among and be payable with any installment
<br />payments ta become due during either (1) the term of any applicable insurance po�icy; or (2) the remaining term of
<br />the Note; or (C7 be treated as a balloon payment which wiU be due and payable at the Note's maturity. The Deed of
<br />Trust also will secure payment of these amounts. Such right shall be in addition to ali other rights and remedies to
<br />which Lender may be entitled upon Defautt.
<br />Wt#RRANTY; DEFENSE OF TITLE. The following provisions relating to ownership ot 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 fiee simple,
<br />free and clear of all liens and encumbrances other than those set farth in tfie Reai Property description or in the
<br />Existing Indebtedness section below or in any title insurance policy, titie report, or final title opinion issued in favor
<br />of, and accepted by, Lender in connection with this Deed of Trust, and (b1 Trustor has the full right, power, and
<br />authority to execute and deliver this Deed of 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 Property 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 shatt defend the
<br />action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shalt be ent+tled to
<br />participate in the proceeding and to be represented in the proceeding by counse( of Lender's own choice, and
<br />Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request trom 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 shali survive the execution and deiivery of this Deed of 7rust, shall be continuing in nature, and
<br />shall remain in fuli force and effect until such time as Borrower'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 Trust securing the Indebtedness may be secondary and inferior to an
<br />exist+ng lien. Trustor expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness
<br />a�d to prevent any detault 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 agreement is modified,
<br />amended, extended, or renewed without the prior written conseni of lender. Trustor shall neither request nor
<br />accept a�y future advances under any such security agreement without the prior written consent of Lender.
<br />CONDEMNATION. The 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 promp;�y take such steps as r�ray be necessary to defend the action and obtain the award. Trustor
<br />may be the nomina! 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 delivet 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 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 sha!! mean the award atter 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 GOVERNMEIV7Al AUTHORITIES. The following provisions relating
<br />to governmental taxes, fees and charges are a part of this Deed of Trust:
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