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DEED OF TRUST
<br />`'" �''� ° (Continued) 2 0110 9 4 9� Page 3
<br />improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of
<br />Trust.
<br />Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standerd extended
<br />coverage endorsements on a fair value basis for the full insurable value covering all Improvements on the Real
<br />Property in an amount sufficient to avoid application of any coinsu�ence clause, and with a standard mortgagee
<br />clause in favor of Lender. Trustor shell also procure and maintain comprehensive general liebility insurance in such
<br />coverage amounts as Lender may request with Trustee and Lender being named as additionel insureds in such
<br />liability insurance policies. Additionally, Trustor shall maintain such other insurance, including but not limited to
<br />hazard, business interruption, and boiler insurence, as Lender may reasonably require. Policies shall be written in
<br />form, amounts, coverages and basis reasonably acceptable to Lender and issued by e company or companies
<br />reasonably acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the
<br />policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be
<br />cancelled or diminished without at least thirty (30) deys prior written notice to Lender. Each insurance policy elso
<br />shall include an endorsement providing that coverage in fevor of Lender will not be impaired in any way by any ect,
<br />omission or default of Trustor or any other person. Should the Real Property be IoCeted in an area designated by
<br />the Direc#or of the Federel Emergency Manegement Agency as a speciel fl'ood haza�d area, Trustor agrees to .obtein
<br />and maintain Federal Flood Insurance, if aveilable, for the full unpaid principal balance af the loan' and any prior
<br />liens on the property securing the loen, up to the maximum policy limits set under the National Flood Insurence
<br />Program, or es 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. Lender may
<br />make proof of loss if Trustor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's
<br />security is impaired, Lender may, at Lender's election, receive and retein 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 proceeds to restoration and �epair, 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 reasonable cost of
<br />repair or restoration if Trustor is not in default under this Deed of Trust. Any proceeds which have not been
<br />disbursed within 180 deys 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 awing to Lender under this Deed of Trust, then to pay eccrued
<br />interest, and the remainder, if any, shall be epplied to the principal balance of the Indebtedness. If Lender holds
<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 />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 poflcy of Insurence 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 expiration dete 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 ls commenced thet 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) teke
<br />any action that Lender deems appropriate, including but not limitad to discharging or paying all taxes, liens, security
<br />interests, encumbrances and other claims, at any time levied or placed on the Property and payfng all costs for insuring,
<br />maintainfng: and pFessrving;the Property. RII such expenditures iricurred 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 e pert of the Indebtedness and, at Lender's option, will (A) be payable on
<br />demend; (B) be added to 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 applicable insurance policy; or (2) the remafning term of
<br />the Note; or (C) be treated as a balloon peyment which w(II 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 remedles to
<br />which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Properry are a part of this Deed
<br />of Trust:
<br />Tkle. Trustor warrants that: (a) Trustor holds good and marketeble title of record to the Property in fee simple,
<br />free and clear of all flens and encumbrances other then 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 eccepted by, Lender in connection
<br />with this Deed of Trust, and (b) Trustor has the full right, power, end authority to execute and deliver this Deed of
<br />Trust to Lender.
<br />Defense of TFtle. Subject to the exception in the paragraph above, Trustor warrants and wlll forever defend the
<br />title to the Property against the lawful claima of all persons. In the event any action or proceeding is commenced
<br />that questions Trustor's title or the interest of T�ustee or Lender under this Deed of Trust, Trustor shall defend the
<br />action at Trustor's expense. Trustor mey 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 Lender's own choice, and
<br />Trustor will deliver, or cause to be delivered, to Lender such instruments es Lender may request from tlme to time
<br />to permit such participation.
<br />Compliance Wtth Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all
<br />existing applicable laws, ordinances, and regulatlons of governmental authorities.
<br />Survival of Representations and Warranties. AII 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 ramain in full force and effect until such time as Borrower's Indebtedness shall be paid in full.
<br />CONDEMNATIOft1. The folFowing provi§lon§ relating to condemnetion proceedings are a parf 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 wiil deliver or cause to be deUvered 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 ell or any portion of the
<br />net proceeds of the awerd be applied to the Indebtedness or the repair or restoration of the Property. The net
<br />proceeds of the award shall mean the eward after payment of all reasonabie costs, expenses, and ettorneys' fees
<br />incurred by Trustee or Lender in connection with the condemnation.
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