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201201359
<br /> DEED OF TRUST
<br /> Loan No: 10001582 (Gontinued) Page 3
<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. Trustnr shail procure and maintain policies of fire insurance with standard extended
<br /> coverage endorsements on a replacement basis for the full insurable value covering afl Improvements on the Real
<br /> Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee
<br /> clause in favor of Lender,together with such other hazard and liability insurance as Lender may reasonably require.
<br /> Policies shaif be written in form,amounts,coverages and basis reasonably acceptable to Lender and issued by a
<br /> company or companies reasonably acceptable to Lender. Trustor, upon request of Lender,will deliver to Lender
<br /> from time to time the policies or certificates of insurance in form satisfactory to Lender,induding stipulations that
<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 wili not be impaired
<br /> in any way by any acY,omission or default of Trustor or 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 full unpaid principal bala�ce of
<br /> the loan and any prior liens on the property securing the loan, up to the mawmum policy limits set under the
<br /> National Flood Insurance Program,or as otherwise required by Lender,and to maintain such insurence for the term
<br /> of the loan.
<br /> Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to ihe Property. Lender may
<br /> make proof of loss if Trustor fails to do so within fifteen (151 days of the casualty. Whether or not Lender's
<br /> � security is im�paired,Lender may,at Lender's election,reeeive and retain the proceeds of any insurance and apply
<br /> fhe proceeds to the reductio�of the indebtedness,payment of any lien affecting the Property,or the restoration
<br /> and repair oi 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 /> saYisfactory 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 defauli 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 apptied to the principal 6alance of the Indebtedness. If Lender holds
<br /> any proceeds after payment in full of the IndebTedness, such proceeds shail be paid to�Trusior as Trustor's
<br /> interests may appear.
<br /> Compliance with Existing Indebtedness. Dunng the period in which any Exfsting Indebtedness described 6elow is
<br /> in effect, compGance with the. insurance provisions contained in the instrument evidencing such 6cisting
<br /> Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trust,to the extent
<br /> compfiance with the terms of this Deed of Trust would constitute a dupiication of insurance requirement. If any
<br /> proceeds from the insurance 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 to the holder of the Fxisting Indebtedness.
<br /> LENDER'S EXPENDITURES. If Trustor fails (A) to keep thie Property free of all taxes, liens, security interests,
<br /> encumbrances,and other claims, (B1 to provide any required insurance on the Property, (C) to make repairs to the
<br /> Property or to comply with any obligation to maintain Exisiing 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 m, 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 then bear
<br /> 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 Yhe balance of the Note and be apportioned among and be payable with any installment
<br /> payments to become due during either (l) the term of any applicable insurance policy;ar (2} the remaining term of
<br /> the Note;or (C) be treated as a balloo�payment which will be due and payable at the Note's maturity. The Deed of
<br /> Trust also will secure payment of these amounts. The rights provided for in this paragraph shall 6e in addition to any
<br /> other rights or any remedies to which Lender may be entitled on account oi any default. Any such action by Lender
<br /> shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relating to ownership of thB Property are a part of this Deed
<br /> of Trust:
<br /> Title. Trustor warrants that (a)Trustor holds good and marketable titie of record to the Property in fee simple,
<br /> free and clear of alf liens and.encumbrances other than those set forth in the Real Property description or in the
<br /> F�cisting Indebtedness section below or in any title insurance policy,title report,or final Yitfe opinion issued in favor
<br /> of,and accepted by,Lender in connection with this Deed.of Trust,and @)Trustor has tFe full right,power,and
<br /> authority to execuFe and deliver this Deed of Trust to Lender.
<br /> Defense of Title. Subject to ihe exception in the paragraph above,Trustor warrants and will forever defend the
<br /> _ iitie io the Property againsi the lawful claims of all persons. In the event any action or proceeding is commenced
<br /> �hat questions TrustoPs title or the interest of Trustee or Lender under this�eed 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 the proceeding and io be represented in the proceeding by counsel of Lender`s own choice, and
<br /> Trustor wiil deliver,or cause to be deltvered,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 /> existing applicable laws,ordinances,and regulations of govemmental authorities.
<br /> Suwiva! off Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall
<br /> survive the execution and delivery of this Deed of Trust,shall be continuing in nature and shall remain in full force
<br /> and effect until such time as Borrower's Indebtedness is paid in fuil.
<br /> EXISTING INDEBTEDNESS. The following provisions conceming Existing Inde6tedness are a part of this�eed of Trust
<br /> Existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an
<br /> exisxing lien. Trustor expressly covenanis and agrees to pay,or see to the payment of,the Existing Indebtedness
<br /> and to prevent any default on such indebtedness,any dzfault under the instruments evidencing such.indebtedness,
<br /> or any default under any security documents for such indebtedness.
<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 Deed of Trust by which thaT agreemeni is modified,
<br /> amended, extended;or renewed without ihe prior written consent of Lender. Trusmr 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 provisions relating to eondemnation 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 6e necessary io defend the action and obtain the award. Trustor �
<br /> may be the nominal party in such proceeding,bui Lender shall be entitled to part�cipate ia 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 oe requested by Lender from time to time to permit such
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