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201201010
<br /> DEED OF TRUST
<br /> Loan 1Vo: 872058457 (Continued) Page 3
<br /> coverages will not be cancelled or diminished without at least ten(10)days prior written notice to Lender. Each
<br /> insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired
<br /> in any way by any act,omission or default of Trustor ot any other person. Should the Real Property be located in
<br /> an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area,
<br /> Trustor agrees to obtain and mainTain Federal Flood Insurance, if available,for the maximum amount of T�ustor's
<br /> credit line and the iull unpaid principal 6alance of any pnor liens on the property securing the loan, up to the
<br /> maximum policy limits set under the National Flood Insurance Program,or as otherwise required by Lender,and to
<br /> maintain such insurance for the term of the loan.
<br /> Application af Proceeds. Trustor shall promptly notify Lender of any loss or damage to Ehe Properiy. Lender may
<br /> make ptoof 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 o-f any lien affecting the Property,or the restoration
<br /> a�d repair of the Property. If Lender elects to appiy the proceeds to restoraYion and repair,Trustor shall repair or
<br /> replace the damaged or destroyed fmprovements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfactory proof of such expenditure, pay or reimbursz Trustor from the proceeds for the reasonable cost of
<br /> repair or restoration if Trustor is not in defauR 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 /> interest, and the remainder,if any,shall be applied to the principai 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 /> Cnmpliance with Existing Inde6tedness. During the period in whieh any Existing Indebtedness desccibed below is
<br /> in effeci, compiiar,ce with the insurance provisions contained in the instrument evide�.ncing such Existing
<br /> Indebtedness shall constityte compliance with the insurance provisions under this Deed af Trust, to the extent
<br /> compliance N�ith the terms of this Deed of Trust would constitute a duplication of insurance requirement. If any
<br /> proceeds from the insurance become payable on loss,the provisions i�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 /> LENDEA'S EXPENDITURES. If Trustor fails (A} to keep the Property free of all taxes, liens, security interests,
<br /> encumbrances,and other claims, (H) to provide any required insurance on fhe Property, (C) to make repairs to the
<br /> Property or to comply with any obligation to maintain Existing Indebtedness in good standing as required below,then
<br /> Lender may do so. If any action or proceeding is commenced that would materially affect Lender's interests in the
<br /> Property, then Lender on Trustor's behalf may, but is not required to, take any action that Lender believes to be
<br /> appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will than bear
<br /> interest at the rate charged under the Credit Ag�eement from the date incurred or paid 6y Lender to the date of
<br /> repayment by Trustoc All such expenses will become a part of the Indebtedness and,at Lender's optian,will (A) be
<br /> payable on demand; (B) be added to the balance of the Credit Agreement and be apportioned among and be payable
<br /> with any instailment pzyments to bewme due during either (1) the term of any appiicable insurance policy;or (2� the
<br /> remaining term of the Credit Agreeme�t;or (Cl be treated as a tialloon payment which will be due and payable at the
<br /> Credit AgreemenYs maturity. The Deed of Trost also will secure payment of these amounts. The rights provided for in
<br /> this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on accourrt of
<br /> any default. Any such action by Lender shali not be construed as curing the default so as to bar Lender from any
<br /> remedy that it otherwise would have had.
<br /> WARRANTY;DEFENSE OP 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 Proper.y in fee simple,
<br /> free and clear of all liens antl encumbrances other than those set forth in the Real Properrv descripvon or in the
<br /> Existi�g Indebtedness section below or in any title insurance policy,titie repoe't,or fina[title opinion issued in favor
<br /> of,and accepted by,Lender in connection with this Deed of Trust;and (b!Trustor hss the fuV right,power,and.
<br /> authority to execute and deliver this Deed of Trust to Le�nder.
<br /> Defense of Title. Subject to the exception in the paragraph a6ove,Trustor warrants and witl 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 TrustoPs title or the interest of Trustee or Lender under this Deed of Trust,Trustor shall defend the �
<br /> action a2 Trustor's expense. Trustor may be the norninal 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 Le�der's own choice, and
<br /> Trustor will deliv2r,or cause to 6e delivered,to Lender such instruments as Lender may request from time to time
<br /> to permit such participation.
<br /> CompGance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies.with all
<br /> existing applicable laws,ordinances,and regula5ans of governmental.authorities.
<br /> Sur�iva! af Promises. All promises, a9reements, and statements Trustor has made in this Deed of Trust shall
<br /> surv'rve ihe execuCion and delivery of this Deed of Trust,shall be continuing in nature and shali remain in full�Force
<br /> and effect un�if such time as Trustor's Indebtedness is paid in ful(.
<br /> EXISTING INDEBTEDNESS. The following provisions concerning Existing indebtedness are a part of this Deed of Trust:
<br /> Existing 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 to the payment of,the Existing Indebtedness
<br /> and.to prevent any default on such indebtedness,any default under the insVUments evidencing such indeb�tedness,
<br /> or any defauli under any security documents for such iodebtedness.
<br /> No Modification. Trustor shall not enter into any agreement with the holder of any mortgage, deed of trust, or
<br /> other security agreement which has priority over this �eed 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 consent of Lender.
<br /> CONDEMNATION. The following provisi�ons relating to condemnation proceedings are a part of this Deed of Trust:
<br /> Proceedings. If any proceeding in condemnateon is filed, Trustor shall promptly notify Lender in writing, and
<br /> Trustor shall promptly take such steps as may be necessary to defend the actio�n and obtain the award. Trustor
<br /> may he the nominal party in such proce,eding,but Lender shall be entitled to participate in the proceeding and to be
<br /> . represented in the proeeeding by counsel of its own choice, and Trustor will deliver or cause to be delive�ed to
<br /> Lender such instruments and documentation as may be requested by Lender from time to time to permit such
<br /> participation.
<br /> Apptication of Net Proceeds. ff all or any part of the Property is condemned by eminent domain proceedings or 6y
<br /> any proceed��ing or purchase i.n 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 award shall mean the award after payment of all reasonabie 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,
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