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201109747
<br /> - ` DEED OF TRUST
<br /> Loan No: 10001021 (Cotltlnued) Page 3
<br /> an area designated by the Director of the Federal Emergency ManagemeM Agency as a special flood hazard area,
<br /> Trustor agrees to obtain and maintain Federal Flood Insurance,if available,.for the full unpaid principal balance of
<br /> the loan and any prior liens on the property securing the laan, up to the maximum policy limits set under the
<br /> National Flood Insurance Program,or as otherwise required by Lender,and to maintain such insurance for the term
<br /> 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 io 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 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 P�operty. If Lender elecYS to apply the proceeds to restoration and repair,Trustor shall repair or
<br /> replace the damaged oe destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfactory proof of such expenditure, pay or reimbutse Trustor from the proceeds for the reasonable cost of
<br /> repair or restaration if Trustor is not in defauk 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 Peoperty shall be used firsT to pay any amount owing to Lender under this Deed of Trust,then to pay accrued
<br /> interest, and the remai�der,if any,shall be applied m the principal balance of the I�ndebtedness. 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 Exisfing 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 compiiance with the insurance provisions under this Deed of Trust, to the eMent
<br /> compliance with the terms of this Deed of Trust would constitute a duplication of insurance requirement. If aoy ,
<br /> proceeds from tne insurance become 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 E�sting Indebtedness.
<br /> LENDER'S EXPENDITURES. If Trustor fails tA) to keep the Property f�ee of all taxes, liens, security interests,
<br /> encumhrances,and oiher claims, (8) to provide any required insurance on the Property, (C) to make repairs to the
<br /> Property or to cornpiy wi#h any obligation to maintain Existing Indebtedness in good�standing as required below,then
<br /> Lender may do so. If any action or proceeding is eommenced that would materially affect Lender's interests in the
<br /> Property, then Lender on Trustor's behalf may; but is not required to, take any action that Lender believes to be
<br /> approptiate fo protect Lender's interests. AIl expenses incurred or paid by Lender for such purposes wili the:n bear
<br /> interest at the rate charged undet 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 and, at Lender's option, will tA) be payable on
<br /> demand; (81 be added to the balance of the Note and be apportioned among and be payable with any installment
<br /> paymeMS to become due during either (1) Yhe term of any applicable insurance policy;or (2) the remaining term of
<br /> the Note;or (C) be treated as a balloon payment whi.ch will be due and payable at the Note's maturity. The Deed of
<br /> T�ust also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any
<br /> other rights ov any remedies to which Lender may be entitled on account of any default �Any such action by Lender
<br /> shall not be construed as curing the defauit so as to bar Lender from any remedy that it otherwise would have had.
<br /> WARRANTY;DEFENSE OF TITLE. The foliowi�g provisions relating to ownership of ihe Property are a part of This Deed
<br /> of Trust:
<br /> Title. Trustor warrants that: (a)Trustor holds good and marketable tiUe 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 the
<br /> 6cisting Indebtedness section below or in any title insurance policy,title report,or final title opinion i5su2d in favor
<br /> of,and accepted by, Lender in connection with tf�is 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 paragraph above,Trustor warrants and will forever defend the
<br /> title to the Property against the lawful claims of all-persons. In the evertt 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 party in such proceeding,but Lender shall be entitled to
<br /> participate in ihe proceedi�g 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 Prcperty and Trustor's use of the Property complies with all
<br /> existing applicable laws,ordinances,and.regulations of govemmental authorities�.
<br /> Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall
<br /> survive the execution and delivery of this Deed of Trust,shall be continuing in nature and shall remain in full force
<br /> and effect until such time as Trustor's I�debtedness is 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 of this �eed 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 IndeFrtedness
<br /> and to prevent any default on such indebtedness,any default under the instruments evidencing such indebtedness,
<br /> or any default under any security documents for such indebtedness.
<br /> No Modification. Trustor shall not enter into any agreement with the holder of any mortgage, deed of trust, or
<br /> othet 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. Trustot shali 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.prompily take such steps as may be necessary to defend the action and obtain.the award. Trustor
<br /> may be the nominal parry in such proceeding,but Lentler shall be entitled to participate in the proceeding and to be
<br /> represented in the proceeding by counsei 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 /> participation.
<br /> Application of Net Proceeds. If aIl or any part of the Property is condemned by eminent domain proceedings or by
<br /> any proceeding or purchase in lieu of co�demnation,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 shall mean the award after payment of all reasonable costs,expenses,antl attorneys'fees
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OP TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORiTIES. The following provisions relating
<br /> to governmental taxes,fees and charges are a part of this Deed of T�ust:
<br /> Current Taxes,Fees and Charges. Upon request by Lender,Trustor shall execute such documents in addition to
<br /> this Deed of Trusi and take whatever other action is requested.by Lender to perfect and continue Lender's lien on
<br /> the Real Property. TrusYOr shall reimburse Lender for all taxes, as described below,together wlth all expenses
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