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201109704
<br /> DEED OF TRUST
<br /> Loan No: 810286 �Continued) Page 3
<br /> reasona6ly acceptable to Lendec 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 6e
<br /> cancelled or diminished without at least ten (10)days prior written notice to Lender. Each insurance policy also
<br /> shall include an endorsement providing that coverage in favor of Lender wilt not be impaired in any way by any act,
<br /> omission or default of Trustor or any other person. Should the Real Property be located in.an area designated by
<br /> the Director of the Federal Emergency Management Agency as a speciai flood hazard area,Trustor agrees to obtain
<br /> and maintain Federal Flood Insurance, if available, for the full unpaid principal balance of the loan and any prior
<br /> liens on the property securing the loan, up to the ma�i.mum policy limits set under the National Flood Insurence
<br /> Program,or as otherwise required 6y Lender,and to maintain such insurance for the term of the loan. .
<br /> Appiication 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 Le�der's
<br /> � secuYity is impaired,Lender may,af Lender's election�receive and retain the proeeeds of any insurance and apply
<br /> the proceeds to the reducTion of the Indebted�ess,payment of any lien affecting the P�operty,or the restoration
<br /> and repair of the Property. If Lender elects to�apply the proceeds to resioration and repair,Trustor shall repair or
<br /> replace fhe damaged or desVOyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfactory proor of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br /> repair or restoration if Trustor is not in defiault 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 Trusf,then to pay accrued
<br /> interest and the remainder,if any,shall be applied 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 /> Compliance with 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 consxitute compliance with the insurance provisions under this Deed of Trust, to the extent
<br /> compliance with the terms of this Deed of Trust wauld constitute a duplication of insurance requirement. If any
<br /> proceeds from the insurance 6ecome 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 property insuretl, the then current replacement value of such
<br /> property,and the manner of determining that value;and (5) the expiretion date of ihe 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 is commencetl that would materially affect Lender's interest in
<br /> the Property or if Trustor fails to comply with any provision of this Deed of TrusY or any Related Documents, including
<br /> but not limited to Trustor's failure to comply with any obligation to maintain Existing Indebtedness in good standing as �
<br /> required below,or to discharge or pay when due any amounts Trustor is required to tlischarge or pay untler this Deed of
<br /> Trust or any Related �ocuments, Lender on Ttustor's tiehalf may(tiut shall not be obligaied to) take any action that
<br /> Lender deems appropriate, including but not limited to discharging or paying sll texes, liens, security interests,
<br /> encumbrances and otfier claims, at any time levied or placed on the Property and paying aIl costs for insuring,
<br /> maintaining and preserving the Property. AII such expendiwres 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 6y Lender to the date of repayment by
<br /> Trustor. All such expenses wiil 6ecome a part of the Indebtedness and, at Lender's option,will (A) be payable on
<br /> demand; (B) be added to the balance of the Note and be apportioned among and 6e payable with any installment
<br /> paymenYS 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 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 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: la)Trustor holds good and marketable title of record to the Property in fee simple,
<br /> free and dear of all liens and encumbrances 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 ihis 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 /> vtle to the Property against the lawful claims oi all persons. In the event any action or proceedi�ng 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 /> 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 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 cornplies 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 T�ustor 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 remain in fuli force and effect until such time as Trustor's Indebtedness shall be paid in full.
<br /> EXISTING IN�EBTEDNESS. The following provisions concerning Existing Indebtedness are a parc of this Deed of Trust:
<br /> Existing Lien. The lien of Yhis Deed of Trust securing the Indebtedness may be secondary and inferior to an
<br /> existing lien. Trustor expressly covenants and agrees to pay,or see to�the payment of,the Existing Indebtedness
<br /> and to prevent any default on such indebtedness,any default under the instruments eyidencing such indebtedness,
<br /> or any default under any security documerrts for such inde6tedness.
<br /> No Modification. Trustor shall not enter inio any agreement with the holder of any mortgage, deed of trust, or
<br /> other security �greement which has priority over this Deed of Trust by which that agreement is modified,
<br /> amended, e�ended,br renewed without the prior written consent of Lender. Trustor shall neither request nor
<br /> accept any 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 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 6e entitled to participate in the proceeding and to be
<br /> represented in the proceeding 6y counsel of its own choice,and Trustor will deliver 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 /> pariicipation.
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