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201109745
<br /> DEED OF TRUST
<br /> Loan No: 810282 (Continued) Page 3
<br /> Notice of Construction. Trustor shall notify Lender at least fifteen�(151 days before any work is commenced,any
<br /> services are furnished,or any materials are supplied to the Property,if any mechanic's lien,materialmen's lien,or
<br /> other lien coWd be asserted on account of the work,services,or materiais. Trustor wi{I upon request of Lender
<br /> furnish to Lender advance assurances satisfactory to Lender that Trustor can and will pay the cost of such
<br /> improvemenis. �
<br /> PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the ProperCy are a part of this Deed of
<br /> Trust.
<br /> Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with stantlard extended
<br /> coverage endorsements on a replacement basis#or the�full insurabie value covering all Improvements on the Real
<br /> Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee
<br /> ciause in favor of Lender. Trustor shall also procure and maintain comprehensive general liability insurance in such
<br /> coverage amounts as Lender may request with Trustee and Lender being named as additional 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 insurance,as Lender may reasonably require. Policies shall be written in
<br /> form, amounts, coverages and 6asis reasonably acceptable to Lender and issued by a company or companies
<br /> reasonably acceptable io 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�vill not be
<br /> cancelled or dfminished without at least ten(10)days prior wri±ten notice to Lender. Each insurance policy also �
<br /> shail include art endorsement providing that coverage in favor of Lender will 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 special flood hazard area,Trustor agrees to obtain
<br /> and maintain Federal F{ood Insurance, if available,for the full unpaid principal balance of the loan and any prior
<br /> liens on tlie property securing the loan, up to the maximum policy limits set under the National Flood Insurance
<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. Lender may
<br /> make proof of loss if Trustor fails to do�so within Pifteen (15) days of the casuaity. Whether or not Lender's
<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 eeduction of the Indebtedness, payment of any lien affecfing the Property,or the resioration
<br /> and repair of the Property. If 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 /> satisfacto�y proof of such expenditure, pay or reimburse Trustor from the proceeds for the reaso�able cost of
<br /> repair or restoratio� if Trustor 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 Lentler has not committed�o 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 Yo pay accrued
<br /> interest,and the remainder, if any,shall be applied to the principal halance 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 Inse�rance. Upon request of Lender,however not more than once a year,Trustor shall fumish
<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 re:placement value of such
<br /> property,and the manner of determining that value;and �5) the expiration date of the policy. Trustor shall,upon �
<br /> request of Lender,have an independent appraiser satisfactory to Lender determl�e the cash value replacement 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,induding
<br /> but not limited to Trustor's failure to discharge or pay when due any amounts Trustor is required to d�ischarge or pay
<br /> under this Deed of Trust or any Related Documents,.Lender on Trustor's 6ehalf may(but shail.not be obligated xo)take .
<br /> any actiion that Lender deems appropriate, including 6ut not limited to discharging or paying all taxes, liens, security
<br /> interests,encumbrances and other daims,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 paitl by Lender to the date of repayment by
<br /> Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on
<br /> demand; (61 be added to the balance of the Note and 6e apportioned among and be payable with any instaliment
<br /> payments to 6ecome due during either �1) the term of any applicable insurance policy;or (2) the remaining term of
<br /> the Notej or (C) be treated as a balloon�payment which will he due and payable at the Note's maturity. The Deed of
<br /> Trust also will secure payment of these amounis. Such right shall�be in addition to all other rights and remedies to
<br /> which Lender may be entitled upon Default. ' .
<br /> WAt�RANTY:DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed
<br /> of Trust:
<br /> Titfe. Trustor warrants that: (a�Trustor holds good and marl<etable title of record to the Property in fee simple,
<br /> free and cJear of all liens and encumbra�ces other than those set forth in the Reaf 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 (bl Trustor has the full r[ght,power,and authority to execute and deliver this Deed of
<br /> Trust to Lender.
<br /> Defense of TitJe. Subject to the exception in the paragraph above,Trustor warrants and wil.lforever defend the
<br /> title to the Property against the lawful claims ofi all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's title or the interest of Trustee w Lender under this Deed of Trust,Trusfor shall defend the
<br /> action at Trustor's expense. Trustor may be the nominal parLy in such proceeding,but Lender shall be entitled m
<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 par[icipation.
<br /> Compliance�th Caws. 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 /> Survi�al of Representations and Warranties. All representations,warranties, and agreements matle by Trustor in
<br /> this Deed of Trust shall survive the ezecution and delivery of th�s Deed of Trust;shall be continuing in nature,and
<br /> shall remain in full force and effect until such time as BorrowePS Indebtedness shall be paid in full.
<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 flled, Trustor shail 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. Trusmr
<br /> may be the nominal party in such proceeding,but Lender shall be entiNed 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 tie delivered to
<br /> Ler.der such instruments and documentation as may be requested hy Lender from time to iime to permit such
<br /> participation.
<br /> Application of Net Proceeds. If all or any part of the Property is condemned by eminent doma�in proceedings or by .
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