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201200746
<br /> DEED OF TRUST
<br /> Loan No:81000034 (COritlllued) Page 3
<br /> improvements. .
<br /> PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a.part of this Deed of
<br /> Trust
<br /> Maintenance of Insurance. TNstor shall procure and maintain policies of fire insurance with standard eMended
<br /> coverage endorsements on a.replacement basis for fhe fiull insurable value covering aIl Improvements on the Real
<br /> Property in an amouM sufficient to avoid application of any coinsurance clause, and with a�standard mortgagee
<br /> clause in favor of LendeY. 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 aoditional insureds in such
<br /> liability insurence policies. Additionaliy,Trustor shall maintain such other insurance, incfuding hut not fimited to
<br /> hazard,business interruption,and boiler insurance,as Lender may reasonably require. Policies shall be writien 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 irt form satisfactory to Lender,including stipulations that coverages will not be
<br /> cancelled or diminished without at least ten (10) days prior w�itten.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 by any act,
<br /> omission or default of Trustor or any other person. Should the Real Property be located in an area tlesignated by
<br /> the Director of the Federal Emergency Management Agency as 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 rnaximum policy limits set under the National Flood Insurance
<br /> Program,or as otherwise required by Lender,and to maintain such.insurance for tlte term of the loan.
<br /> Application of Proceeds. Trustor shali promptly notify Lender of any loss or damage to the Property. Lender may
<br /> make proof of loss if Trusto�fails to do so within fiiteen �15) days of the casualty. Whether or not Lender's
<br /> security is impaired, Lender may,at Lender's election,receive a�d 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 Property. If Lender elects to apply the proceeds to restoration and repair,T�ustor shalt 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 �eed of Trust. Any proceeds which have not been
<br /> dis6ursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of
<br /> the?roperty shall tie used first to pay any amount owing to Lender�under this Deed of Trust,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 fuil of the Indebtedness; such proceeds shall 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 furnish
<br /> to Lender a report on each existing policy of insurance showing: (1) the name of the insurer, (2) the riska �
<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 determining that value;and (5) the expiration date of the policy.�Trustor shall,upon
<br /> request of Lender,have an independent appraiser satisfacmry 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 discharge or pay when due any amounts Trustor is required�to discharge or pay
<br /> under this Deed of Trust or any Related Documents,Lender on Trustor's 6ehalf may(but shall not be o6ligated to)take
<br /> any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens,security
<br /> iMerests,encum6rances and other claims,at any time levied or placed on the Property and paying all costs for insuring,
<br /> maintaining and preserving the Property. All such expenditures incurred or pa.id by Lender for such 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, wiil (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 insurance policy;or (2) th�e remaining term of
<br /> � the Note;or �C) 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. Such right shall be in addition to all other rights and remedies to
<br /> which Lender may be entitled upon Default.
<br /> WARRANTY;�EFENSE 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 P�qperty in fee simple,
<br /> free and clear of��all liens and encumbrances oYher than fhose set forth in the Real Property description or irt any
<br /> title insurance policy,title report, or final tiYle 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�tleliver this Deed of
<br /> Trust to Lender. �
<br /> Defense of Title. Subject to the exception in the paragraph above,Trustor warrants and will forever defend the
<br /> � title io 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 2he interest of Trustee or Lender under this Deed of Trust,Trustor sliali defend the
<br /> action at Trustor's expense. Trustor may be the nominal party in such proceeding,but Lende�shall be entitled to
<br /> � participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and
<br /> Trustor wilE 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 of the Property complies with all
<br /> exsting applicable laws,ordinances,and regulations of governmental authorities.
<br /> Survival of Representations and Warranties. All represemations,warranties,and agreements made by Trustor in
<br /> this Deed of Trust sfiall survive the execution and delivery of ihis Deed of Trust,shall be continuing in nature,and
<br /> shafl remain in full force and effect until such time as Borrower'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 shall promptiy notify Lender in writing.., and
<br /> .Trustor shail promptly take such steps as may be necessary to defend the action and obtain the award. Trustor
<br /> may be the nominal party in such proceeding,but Lender shall 6e entitled to participate in the proceeding and to be
<br /> represented in the proceeding by counsel of its own choice, and Trustor wiil deliver or cause to be delivered to
<br /> Lender such instruments and documentation as may be requested try 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 domaih 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 Indebtedness or the repair or restoration of the Property. The net
<br /> proceeds of the awaed shall mean the awa�d after payment of all reasonable costs�expenses,and attorneys'fees
<br /> incurred by Trustee or Lender in�connection with the condemnation.
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