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DEED OF TRUST 2 012 0 0 0 4�.
<br />Loan No: 101247823 (Continued) Page 4
<br />form, amounts, coverages and basis reasonabty acceptable to Lender and issued by a compeny or companies
<br />reasonebly 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 satiafactory to Lender, including stipulations that coverages wfll not be
<br />cancelled or dimin(shed without at least ten (10) days prior written notice to Lender. Each insurance policy also
<br />shall include an endorsement providing that coverage in fevor of Lender will not be impaired in eny way by any act,
<br />omission or default of Trustor or any other person. Should the Real Property be located in en area designated by
<br />the Director of the Federal Emergency Management Agency es a special 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 meximum policy limits set under the National Flood Insurance
<br />Program, or as otherwise required by Lender, and to maintein such insurance for the term of the loan.
<br />ApplicaUon of Proceeds. Trustor shall promptly notify Lender of any loss or damege to the Property. Lender may
<br />meke 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 retain the proceeds of any insurence and apply
<br />the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration
<br />end repair of the Property. If Lender elects to apply the proceeds to restoretion and repair, Trustor shall repair or
<br />replace the damaged or destroyed Improvements in a manner satisfectory to Lender. Lender shell, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasoneble cost of
<br />repair or restoration if Trustor is not in deteult under this Deed of Trust. Any proceeds which have nqt been
<br />disbursed wkhin 180 days after their receipt end which Lender has not committed to the repeir or restoretio� of
<br />the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay eccrued
<br />interest, and the remainder, if any, shell be applied to the principal belance 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 eny Existing Indebtedness described below is
<br />in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing
<br />Indebtedness shall constitute complience with the insurence provisions under this Deed of Trust, to the entent
<br />complience with the terms of this Deed of Trust would constitute a duplication of insurance requirement. If eny
<br />proceeds from the insurance become payable on loss, the prov(sions 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 />tnsured; (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; end (5) the expiration date of the policy. Trustor shell, upon
<br />request of Lender, have en independent appreiser setisfactory to Lender determine 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, including
<br />but not limited to Trustor's failure to comply with any obligetion to maintain Existing Indebtedness in good standing as
<br />requlred below, or to discherge or pay when due any emounts Trustor is required to d(scharge or pay under this Deed of
<br />Trust or any Related Documents, Lender on Trustor's behelf may (but shall not be obligated to) teke eny action thet
<br />Lender deems eppropriete, including but not limited to discharging or pay(ng all taxes, liens, security interests,
<br />encumbrances and other cleims, et any time levied or placed on the Property and peying ell 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 peid 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 peyable on
<br />demand; (B) be added to the balance of the Note and be apportioned among and be payable with any insteltment
<br />payments to become due during either (1) the term of eny applicable insurence policy; or (2) the remeining term of
<br />the Note; or (C) be treated as � balloon payment which will be due and payable at the Note's meturity. 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 releting to ownership of the Property are a part of this Deed
<br />of Trust:
<br />Tkle. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Property in fee simple,
<br />free end clear of all liens end encumbrances other then 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, end (b) Trustor has the full right, power, end
<br />authority to execute end deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception (n the paragraph above, Trustor warrants and will forever defend the
<br />title to the Property against the lewful cla(ms of all persons. In the event any action or proceed(ng is commenced
<br />thet questions Trustor's title or the (nterest of Trustee or Lender under this Deed of Trust, Trustor shell defend the
<br />action at Trustor's expense. Trustor may be the nominal perry in such proceeding, but Lender ahell be entitled to
<br />participete in the proceeding end to be represented in the proceeding by counsel of Lender's own cho(ce, and
<br />Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time
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