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201200123
<br /> DEED OF TRUST
<br /> Loan No: 87�295 (Con$iilUed) Page 3
<br /> liability insurance policies. Additionally, Trustor shall maintain such other insurance, including buY not limited to
<br /> hazard, business interruptio�n,and boiler insurance,as Lender may reasonably require. Policies shall be written in
<br /> form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies
<br /> reasonably 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 satisfactory to Lender,including stipulations thaY coverages will�ot be
<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 tYiat coverage in favor of Lender wilf 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 hazartl area,Trustor agrees to obtain
<br /> and maintain Federal Flood Insurance,if available,within 45 days after notice is given by Lender that the Property
<br /> is located in a special flood hazard area,for the full unpaid principal 6alance of the loan and any prior liens on the
<br /> � property securing the loan,up to the maximum policy limits set under the National Flood Insurance Program,or as
<br /> 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 fifteen (15) days of the casualry. Whether or not Lender's
<br /> security is impaired, Lender may,at Lender's eleciion,receive and retain the proceeds of any insurance and appiy
<br /> the proceeds to the reduction of the Indebtedness,payment of any fien affecti�g the Property,or the restoration
<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 Lendec Lender shall, upon
<br /> satisfactory proof 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 u:nder thfs 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 ProperCy shall be used first to pay any amount owing to Lender under this Deetl of Trust,then to pay accrued
<br /> interest,and the remainder, if any,shall be applied to the principal bafance of the Indebtedness. If Lender holds
<br /> any proceeds after payment in full of the Indebtedness, such proceeds shail be paid to Trustor as Trustor's
<br /> interests may appear..
<br /> Trustor's Report on Insurance. 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 replaceme�t value of such
<br /> property,and the manner of determining that�value;and (5) the expiration date of the�policy. Trustor shatl,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 commenced Yhat would materially affect Lender's inierest 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 m Trustor's fiailure to discharge or pay when due any amounts Trusfor is required to discharge or pay
<br /> under this Deed of Trus�t or any Related Documents,Lender on Trustor's behalf may(but shall not 6e obligated to)take
<br /> any action thaT Lender deems appropriate, i�duding but not limited to dischargi�g or paying all taxes, liens,security
<br /> interests,.encumbrances and other claims,at any time levied or placed on the Property and paying ail costs for insuring,
<br /> maintaining and preserving the Property. All such expenditures incurred or paid by Lender for sueh purposes will then
<br /> bear interest at the rate charged under 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 (A) be payable on
<br /> demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment
<br /> payments to become due during either (1) the term of any applicable lnsurance policy;or (2) the remaining term of
<br /> the Note;or (C) be teeated as a balloon payment which will be due and payable at the Note's maturi'ry. The Deed of
<br /> Trusi also will secure payment of these amounts. Such right shall be in addition to all other rights.and remedies to
<br /> which Lender may ba errtitled upon Defauli.
<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: (a)Trustor holds good an�J marlcetable title ofi record to the Property in fee simple,
<br /> free�and clear of all liens and encumbrances other than those seY forth�.in the Real Property descripiion 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 (b)Trustor has the full right,power,and authority to execute and deliver this Deed of
<br /> Trust to Lender.
<br /> Defanse 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 event any action or proceeding is commenced
<br /> that questions Trustor's title o�r the imerest oF Trustee or Lender under this Deed of Trust,Trustor shall defend the
<br /> action at Trustor's expense. Trustor may 6e the nominal party in such proceeding,6ut Lender shall 6e eniitled to
<br /> participate in the proceedi�g and to be represented irt 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 oT the Property complies 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 Trustor 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 full force and effect until such time as Trustor`s 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 filed, Trustor shaff 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 tie the nominal party in such proceeding,but Lender shall be entitled eo participate in the proceeding and.to be
<br /> represented in the proceeding by 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 /> participation.
<br /> Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by
<br /> any proceeding or purchase in lieu of condemnation,Lender may at its election require that all or any portion of the
<br /> net proceeds of the award be applied to the Indetrtedness or the repair or restoration of the Property. The net
<br /> proceeds of the award shall mean the award after payment of all reasona6le costs,expenses,and attorneys'fees
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES, The following provisions relating
<br /> to governmentaltaxes,fees and charges are a part ofthis Deed of Trust;
<br /> Current Ta�ces,Fees and Gharges_ Upon request by Lender,Trustor shall execute such documents in addition to
<br /> this Deed of Trust and take whatever other action is requested by Lender to perfect and continue Lender's lien on
<br /> the Real Property. Trustor shall reimburse Lender for alI taxes, as described below,together with ail expenses
<br /> incurred in recording, perfecting or continuing this Deed of Trust, inciuding without limitation aIl taxes, fees,
<br /> documentary stamps,and other charges for recortling or registering this Deed of Trust.
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