|
' ' DEED OF TRUST
<br />(Continued) � o � � � � � {� (j Page 3
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property ere a pert of this Deed of
<br />Trust.
<br />Maintenance of Insurance. Trustor shall procure and malntain policies of fire insurance with standard extended
<br />coverage endorsements on e feir value basis tor the full insurable value covering all Improvements on the Real
<br />Property in an emount sufficient to avoid appNcation of any coinsurance clause, and with a standard mortgagee
<br />clause in favor of Lender. Trustor shall also procure and meintain 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. Additionelly, Trustor shall meintain such other insurance, including but not limlted to
<br />hazard, business interruption, 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 tlme to time the
<br />policies or cenificates of insurance in form satisfactory to Lender, including stipulations that coveragea will not be
<br />cancelled or diminished without at least thirty 130) days prior written notice to Lender. Each insurance policy also
<br />shall include an endorsement providing that coverege in favor of Lender will not be impaired in any way by any act,
<br />omission or defeult of Trustor or any other person. Should the Real Properry 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 obtain
<br />and maintain Federal Flood Insurance, if available, for the full unpaid principal balance of the loan end eny prior
<br />liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance
<br />Program, or as otherwise 'required by Lende�, end to maintain such insurance for the term of the loan.
<br />Application of P�oceeds. Trustor shali 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 (16) days of the casualty. Whether or not Lender's
<br />security is impaired, Lender may, et 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 restoration
<br />and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shell 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 repeir or restoration of
<br />the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pey 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 />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 determining that value; and (5) the expiration dete of the policy. Trustor shell, upon
<br />request of Lender, have an independent appraiser satisfectory to Lender determine the cash value replacement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. If any ection or proceeding is commenced that would materially affect Lender's Interest in
<br />the Property or if Trustor fails to comply with any provlsion 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 dtscharge or pey
<br />under this Deed of Trust or any Related Documents, Lender on T�ustor's behalf may (but shall not be obligated to) take
<br />any action that Lender deems appropriate, including but not limfted to discharging or paying all taxes, liens, security
<br />interests, 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. All such expenditures incurred or paid by Lender for such purposes will then
<br />bear interest at the rate charged under the Note trom 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 belance of the Note and be epportioned among and be payable with any installment
<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 (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 othar rights and remedies to
<br />which Lender may be entitled upon Defeult.
<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: (a1 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 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, end authority to execute and deliver 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 to the Property against the lawful claims of all persons. In the event any action or praceeding is commenced
<br />that questions Trustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustor ahall 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 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 />Compliance With Laws. Trustor werrants that the Property and Trustor's use of the Property complies with all
<br />existing applicable laws, ordinances, and regulations of governmental authorities.
<br />Survival of Representations and Wananties. All representations, warrantles, and agreements made by Trustor in
<br />this Deed of Trust shall survive the execution and detivery of this Deed of Trust, shell be continuing in nature, and
<br />shall remain ln full force and effect until such time as Borrower's Indebtedness shall be paid in futl,
<br />CONDEMNATION. The following provisions relating to condemnatfon proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and
<br />Trustor shall promptly take such steps as may be necessary to defend the action and obtain_the aw�rd. Ttustor
<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 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 />participetion.
<br />Application of Net Procaeds. If all or any part of the Property is condemned by eminent domain proceedings or by
<br />any proceeding or purchase ln 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 repeir or restoretion of the Property. The net
<br />proceeds of the award shall mean the awerd after payment ot all reasonable costs, expenses, and attorneys' fees
<br />incurred by Trustee or Lender in connection with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARQES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br />
|