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2�110865�
<br />DEED OF TRUST
<br />Loan No: 2935477005 (Continued) Page 4
<br />security is impaired, Lender may, at 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. If Lender elects to apply the proceecls to restoration and repair, Trustor shalt repair or
<br />replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shafl, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br />repair or resforation 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 comm+tted 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 Yhe remainder, if any, shall be applied to the principal balance of the Indebtedness. tf Lender holds
<br />any proceeds after payment in full of the lndebtedness, such proceeds shall be paid to Trustor as Trustor's
<br />interests may appear.
<br />Trustor's Repo►t on Insurance. Upon request of Lender, however not more than once a year, Trustor sha�i 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; (4j the property insured, !he then current replacement value of such
<br />property, and the manner of determining that value; and (5} the expiration date of the policy. Trustor shaA, upon
<br />request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost
<br />of the Property.
<br />LENpER'S EXPENDITURES. If any action or proceeding is commenced that woutd materiaily 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 Tnastor is required to discharge or pay
<br />under this Deed of Trust or any Related Documents, Lender on 7rustor's behalf may {but shal� not be obligated toj take
<br />any action that lender deems appropriate, including but not limited to discharging or paying ali taxes, liens, securiry
<br />interests, 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. AII such expenses wiil become a part of the Indebtedness and, at Lender's option, will (A} be payabte on
<br />demand; (B} be added to the balance of the Note and tre apportioned among and be payable with any installment
<br />payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of
<br />the Note; or (C) be treated as a balloon payment which wilf 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 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 a part of this Deed
<br />of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and maricetable titie 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 Yhe exception in the paragraph above, Trustor warrants and will forever defend the
<br />tit(e 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 shall defend the
<br />action at Trustor's expense. Trustor may be the nominal parry 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 />Tnistor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time
<br />to permit such participation.
<br />Compllance 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 govemmental authorities.
<br />Survival of Representatlons and Warranties. Ali representations, warranties, and agreements made by Trustor in
<br />this Deed of Trust shail survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and
<br />shatl remain in fuli force and effect until such time as Trustor's Indebtedness shall be paid in full,
<br />GONDEMNATlON. 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 promptty notity Lender in writing, and
<br />Trustw shail promptly take such steps as may be necessary to defend the acUon and obtain the award. Trustor
<br />may be the nominal party in such proceeding, but Lender shali be entitied to participate in the proceeding and to be
<br />represented in the proceeding by counsei of its own choice, and Trustor wiit deliver or cause to be delivered to
<br />Lender such insfruments and documentation as may be reqeaested by Lender from time to time to permit such
<br />participation.
<br />Apptication 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 shaU mean the award after payment of all reasonable costs, expenses, and attorneys' fees
<br />incurred by Trustee or Lender in connection with the condemnation.
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