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201200159
<br /> DEED OF TRUST
<br /> Loan No: 810121 (Continued) Page 3
<br /> clause 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 otfier insurance,iricluding but not limited to
<br /> hazard,businesS interruption, and boiler insurance,as Lender may reasonably require. Policies shall be written in
<br /> form, amounts, eoverages and basis reasonably accepta6le 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 that coverages will not be
<br /> cancelled�or diminished wRhout at least ten (10)days prior written notice to Lender. Each insurance policy also
<br /> shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way 6y any act,
<br /> � omission or default of Trustor or any other persan. Should the Reai 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 o�btain
<br /> and maintain Federal Flood I�surance, 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 maximum policy limits set under the Natio�nal Flood Insurance
<br /> � Program,or as otherwise required by Lender,and to maintain such insurance for the ierm of the loan.
<br /> Application of Proceeds. Trustor shall prompYly notity Lender�of any loss or damage m the Property. Lender may
<br /> make 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 insurance and apply
<br /> the proceeds to the reduction of the Indebtedness,payment of any lien affecting the Property,or the resYOration
<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 /> 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 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 Property shall be used first to pay any amount owing to Lender under this Deed of Trust,then to pay accrued
<br /> infe�est,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 below is
<br /> in effect, compliance with the insurance 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 Deed of Trust would constitute a duplication of insurance requirement. If any
<br /> proceeds from the insufance 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 m the hoider of the Fxisting 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 /> insured; (3) the amount of the policy; (4) the property insured, the then current replacement value of such
<br /> property,and the manner of determini�g that value;and (5) the expiration date of the policy. Trustor shall,upon
<br /> request of Lender,have an independent ap�praiser satisfactory 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,in�cluding
<br /> but not limited to Trustor's failure to comply with any obligation to maintain Existing Indebtedness in.good standing as
<br /> required 6elow,or to discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed of
<br /> Trust or any Related �ocuments, Lender on Trustor's behalf may (but shall not be obligated to) take any action that
<br /> Lender deems appropriate, induding but not limited to discharging or paying all taxes, liens, security interests,
<br /> encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring,
<br /> maintaining and preserving the Property. AII such expenditures incurred or paid by Lender for such purposes will then
<br /> bear interesi 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 instaflment -
<br /> paymen2s to become due during either (1) the term of any applicable insurance policy;or (2) the remaining term of
<br /> the Note;or (C) 6e treated as a balloon payment which will be due and payable at the Note's.maturity. The�eed 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 relating to ownership of the Property are a part of this Deed
<br /> of Trust:
<br /> Title. Trustor warrants that (a)Trustor holds good and marketable title 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 /> E�cisting Indebtedness section below or in any title insurance policy,title report,or final title opinion issued in favor
<br /> of,and accepted by,Lender i�connection with this 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 event any action or proceeding is commenced
<br /> that questions Trustor's title or the interesY of Trustee or Lender untlet 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 tt�e proceeding and to be eepresented 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 Wifh Laws. Trustor warrants that the Property and Trustor's use of the Property complfes with�all
<br /> existing applicatile laws,ordinances,and regulations of govemmental authorities.
<br /> Survival of Represerrtations and WarreMies�. All representations,warranties,and agreemeMS 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 remai�n in full force and effect until such time as 8orrower's Indebtedness shall be paid in full.
<br /> EXISTING INDEBTEDNESS. The Following provisions concerning E�isting Indebtedness are a part of this Deed of Trust:
<br /> F�:isting 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 2o the payrnent of,the Existing Indebtedness
<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 iNodification. Trustor shall not enter into any agreement with the holder of any mortgage, deed of trust, or
<br /> oYher 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. Trustor shall neither request nor
<br /> accept any future advances under any such security agreement without the prior written eonsent 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 condem:naFion is filed, Trustor shall promptly notify Lender in writing, and
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