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201109750
<br /> DEED OF TRUSI'
<br /> Loan No: 10000931 (Co7ltlnUed� Page 3
<br /> clause in favor of Lender,together with such oth0r hazard and liability insurance as Lender may reasonably require.
<br /> Policies shall be written in form, amounts, coverages and basis Yeasonably acceptable 2o Lender and issued by a
<br /> company or companies reasonably acceptable m Lender. Trustor, upon request of Lender,will deliver to Lender
<br /> from time to time the policies or certificates of insurance in form satisfactory to Lender,includi�g stipulations that
<br /> coverages will not be cancelled or diminished without at least ten(10)days prior written notice to Lender. Each
<br /> insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired
<br /> in any way by any act,omission or default of Trustor or any other person. Should the Real Property be located in
<br /> an area designated by the Director of the Federal Emergency Management Agency as a special flood haz�rd area,
<br /> Trustor agrees to obtain and maintain Federal Flood Insurance, if 2vailable,for the full unpaid principal balance of
<br /> � the loan and any prior liens on the property securing the loan, 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 to do so�within fifteen 115) 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, paymenY of any lien affecting the PropeYty,or'the restoration
<br /> and repair of the Property. If Lender elects to apply the proceeds to restoration and repair,Trustor shali repair or
<br /> replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfactory pFoof 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 6ee�
<br /> � distrursed within 180 days after their receipt and which Lendet has not committed to the repair or resmration of
<br /> the Property shall be used first to pay any amount owing to Lender under this Deed of T�usT,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 6elow is
<br /> in effect, co�mpliance with the insurence 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�eed of Trust would coqstitute a duplication of insurance requirement. If any
<br /> proceeds from the insurance become payable on loss,the provisions in this Deed of Trustfor division of proceeds
<br /> shall apply only to that portion of the proceeds not payaCle to the holder of the Existing Inde6tedness.
<br /> LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests,
<br /> encumbrances, and other daims, (B) to provide any required insurance on the Property, (C) to make repairs to the
<br /> Property or to comply witF�any obligation to maintain Existing Indebtedness in good standing as required below,then
<br /> Lender may do so. If any action or proceeding is commenced that would materially affect Lender's interests in the
<br /> Property, ihen Lender on Trustor's behalf may, but is not required to, take any action that Lender believes to be
<br /> appropriate to protect Lender's interests. All expenses incurred or paid 6y Lende� for such purposes will then bear .
<br /> interest at the rate chaeged under the Note from the date ineurred or paid 6y 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; (B) be added to the balance of the Note and be apportionetl among and be payable with any installmenY
<br /> payments to become due during either (1� the term of any applicable insurance policy;or (2) the remaining term of
<br /> the Note;or (C1 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. The rights provided for in this paragraph shall be in addition to any
<br /> other rights or 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 defauft so as to 6ar Lender rrom any remedy that it otherwise would have had.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relating to ownership of the Ptoperty are a.part of this Deed
<br /> of Trust:
<br /> Title. Trustor warrants that:. (a)Trustor holds good and marketable titie 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 /> 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)TrusYOr has the full right,power,and
<br /> authority to execute and deliver this Deed ofi Trust to Lender,
<br /> �efense of Title. Subject to the exception in the paragraph above,Trustor warrants and wlll forever defend the �
<br /> � title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's tiLle 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,trut Lendee shali be entitied.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 /> Compl'rance With Laws. Trustor warra�YS that the P�operty and Trustor's use ofi the Property complies with all
<br /> existing applicable laws,ordinances,and regulations of governmental 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 fuN force
<br /> and effect until such time as Trustor's Indebtedness is paid in full.
<br /> EXISTING INDEBTEDNESS. The following provisions conceming Existing Indebtetlness are a part of this Deed of Trust:
<br /> Existing Lien. The lien of this 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 Inde6tedness
<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, deetl of trusc, or
<br /> oiher security agreement which has priority over this Deed of Trust by which that agreement is modified,
<br /> amended, extended, or renewed without ihe prior wYitten consent of Lender. Trustor shall neither request nor
<br /> accept any fuYUre advances under any such security agreement without ffie prior written consent ofi Lende�. �
<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 prompNy notify Lender in writing, and
<br /> Trustor shall promptly take such steps as may be necessary to defend the action and o6tain 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 cfioice, and Trustor will deliver ar cause to be delivered to
<br /> Lender such instruments and documentafion 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 af the Proper[y is condemned by eminent domain proceedings or by
<br /> any proceeding or purchase in Iieu of condemnation,Lander may at its election require that all or any portion of the
<br /> net proceeds of tBe award be applied to the Indebtednsss 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,and attorneys'fees
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