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DEED OF TRUST
<br />Loan No: 10124.6947' ' � ; � �� (Continued) 2 � � � o � � 7 ►� Page 4
<br />any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's
<br />interests may appear.
<br />Compliance wtth Existing 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 with the terms of this Deed of Trust would constitute a dupltcetion of insurance 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 appiy 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 property insured, the then current replacement value of such
<br />property, and the manner of determining that value; and (5) the expiretion date of the policy. Trustor shail, upon
<br />request of Lender, have an independent appraiser satisfectory to Lender determine the cash value replecement 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 comply with any obligation to meintain Existing Indebtedness in good standing as
<br />required below, or to discharge nr pay when due any amounts Trustor is required to discharge or pay under. this,peed of
<br />Trust or any Related Documents, Lender on Trustor's behalf may fbut shall not be obligeted to) take any action that
<br />Lender deems appropriate, including but not limited to discharging or paying all texes, 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 rete 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 end, at Lender's option, will (A) be payeble on
<br />demand; (B) be added to the balance of the Note and be apportioned emong and be payable with any instellment
<br />payments to become due during either (1) the term of eny epplicable insurance policy; or (2) the remaining term of
<br />the Note; or (C) be treated as a balloon payment which will 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 end 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 marketeble title of record to the Property in fee simple,
<br />free end clear of all liens end encumbrences other than 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 (b) 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 peragraph above, Trustor warrants and will forever defend the
<br />title to the Property against the lawful cleims of all persons. In the event any action or proceedfng 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 />perticipate in the proceeding and to be represented in the proceeding by counsel of Lender'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 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 euthorities.
<br />Survival of Representations and Warrar�ties. All representations, warrenties, and egreements mede by Trustor in
<br />this Deed of Trust shall survive the execution end delivery of this Deed of Trust, shall be continuing in nature, and
<br />shall remain in full force and effect untii such time as Borrower's Indebtedness shell 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 af this Deed of Trust securing the Indebtedness may be secondary end inferior to an
<br />existing lien. Trustor expressly covenents end agrees to pay, or see to the payment of, the Existing Indebtedness
<br />and to prevent any default on such indebtedness, eny defeult under the instruments evidencing such indebtedness,
<br />or eny default under any security documenta 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 consent of Lender. Trustor shell neither request nor
<br />eccept any future advances under any such security agreement without the prior written consent of Lender.
<br />CONDEMNATION. The following provisions relating to condemnetion proceedings ere 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 as may be necessary to defend the action and obtain the award. Trustor
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