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201201531
<br /> , ' DEED OF TRUST
<br /> Loan No: 872058487 (ContlnUed) Page 3
<br /> fumish to Lender advance assurances satisfactory to Lender that Trustor can and will pay the cost of such
<br /> improvements.
<br /> PROPERTY DAMAGE INSURANCE. The following provisions relating to insuting the Property are a part of this Deed of
<br /> Trust.
<br /> Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended
<br /> coverage endorsements on a replacement basis for the fWl insurable value covering all Improvemenis 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 shall 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,including 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 shail include an endorsement providing that coverage in favor of Lender will not be impaired
<br /> in aoy way by any act,omission or default of Trustor or any other person. Should the Real Proper[y 6e located in
<br /> an area designated 6y the Director of the Federal Emergency Management Agency as a special fiood hazard area,
<br /> Trusmr agrees to obtain and maintain Federal Flood Insurance,if available,for the maximum amount of Borrower's
<br /> credit line and the full unpaid principal balance of any prior liens on the property securing the loan, up m 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 of Proceec&s. Trustor shall promptly notify 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 ihe 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 shall repafr 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 noi comm�tted to the repai�or restoration of
<br /> the Property shall be used first to pay any amount owi�g 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 Inde6tedness. If Lender holds
<br /> any proceeds after payment in full of the Indehtedness, 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 6cisting
<br /> Indebtedness shall constitute compliance with ihe insurance provisions under fhis Deed of Trust, to the exient
<br /> compliance with the terms of this Deed of Trust would constitute a duplication ofi 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 Existing Indebtedness.
<br /> LENDER'S EJCPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests,
<br /> encumbrances, and other daims, (B) to provide any required insurance on the 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 acfion or proceeding is wmmenced that would materially affect Lender's interests in the
<br /> Property; then Lender on Trustor's 6ehalf 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 then bear
<br /> interest at the rate charged under the Credit Agreement from the date incurred or paid by Lender to the date�of
<br /> repayment by Trustor. Afl such ezpenses will become a part of the Inde6tedness and,at Lender's option,will (A) be
<br /> payable on demand; (BI be added to the 6alance of the Credit Agreement and be apportioned�among and be payable
<br /> with any insiallment payments to become due during either (1) the term of any applicable insurance policy;or (2) the
<br /> remaining term of the Credit Agreement;or (C) be treated as a 6alloon payment which will be due and payable at the
<br /> Credit Agreement's maturity. The Deed of Trust 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 account of
<br /> any default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any
<br /> remedy that it otherwise would have had. �
<br /> WARRANN;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 thaF: (a1 Trustor holds good and marketable title of record to the Property in fee simple,
<br /> firee and clear of all liens and encumbrences other than those set forth in the Real Property description or in the
<br /> Existing Indebtedness section below or in any title insurance policy,title report,or final title opinion issued in favor
<br /> of, and accepted by,Lender in connection with this Deed of Trust,and (b)Trustor has the fup right,power,and
<br /> authority to execute and deliverthis Deed of Trust to Lender.
<br /> �efense of Title. Subject to the exception in the paragraph above,Trustor wa�taMS and will forever de'fend the
<br /> title to the Property against the lawful ciaims of all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's title or the interest of Trustee or Lender under 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 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 warrants that the Property and Trustor's use of the Property complies with all
<br /> existing applicable Iaws,ordinances,and regulations of governmental authorities.
<br /> Sarvival of 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 full.
<br /> EXISTING INDEBTEDNESS. The following provisions conceming 6cisting Indebtedness are a part of this Deed of Trust:
<br /> F�cisting 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*.o pay,or see to the payment of,the Existing Indebtedness
<br /> and to prevent any default on such indebteiiness,any default under the instruments evidencing such indebtedness,
<br /> or any default under any security documents for such indebtedness.
<br /> No Modification. Trustor shall not errter into any agreement with the holder of any mortgage, deed of trust,or
<br /> other security agreerneM which has priority over this Deed of Trust by which that agreement is modified,
<br /> amended, extended, or renewed withoui the 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 fiollowing provisions relating io condemnatio�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
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