|
�0120299�
<br />DEED OF TRUST
<br />(Continued) Page 3
<br />or assessments and shall authorize the approp�iate govemmental official to deliver to Lender at any time a wrftten
<br />statement of the taxes and assessments against the Property.
<br />Notice of Construction. Trustor shall notify Lender at least fifteen (15) days before any work is commenced, any
<br />services are fumished, or any materials are supplied to the Property, if any mechanic's Ilen, materialmen's Ifen, or
<br />other lien could be asserted on account of the work, services, or materials. Trustor will upon request of Lender
<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 insu�ing the Property are a part of this Deed of
<br />Trust.
<br />Maintenance of Insurance. Trustor shall procure and maintain poUcies of fire insurance with standard extended
<br />coverage endorsements on e replacement basis for the full insurable value covet�ng all Improvements on the Real
<br />Property in an amount sufficient to avoid appticatlon of any coinsurance clause, and with a standard mortgagee
<br />clause in favor of Lender. Trustor shall also procure and maintain comprehensive general Ifability insurance in such
<br />coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in such
<br />Ilability insurance policfes. Additionally, Trustor shall maintain such other insurance, including but not limited to
<br />hazard, business interruption, and boiler insurance, as Lender may reasonably require. Pol(cies 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 time to t(me the
<br />policies or certificates of insurance in form satisfactory to Lender, including stipulat(ons that coverages will not be
<br />cancelled or diminished without at least ten (10) days prior written 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 designated by
<br />tha Director of the Federa) Emergency Management Agency as a special flood hazard area, Trustor agrees to obtain
<br />and maintafn Federal Flood Insurance, if availabie, for the full unpaid principal balance of the loan and any 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 otherwfse required by Lender, and to maintain such insurance for the term of the loan.
<br />AppUcatlon of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may
<br />make proof of loss if Trustor fafls to do so within fifteen (15) days of the casualty. Whether or not Lender's
<br />security is impaired, Lender may, at Lenders election, recelve and retafn the proceeds of any insurance and apply
<br />the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Properry, or the restoration
<br />and repair of 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 />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 repa(r or restoratfon of
<br />the Property shall be used flrst to pay any amount owfng 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 full of the Indebtednass, such proceeds shali 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 onca a year, Trustor shall fumish
<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 date of the policy. Trustor shall, upon
<br />request of Lendar, have an independent appraiser satisfactory to Lender determine the cash value replacement cost
<br />of the Property.
<br />TAX AND INSURANCE RESERVES. Subject to any Ifmitations and consistent with any requirements set by applicable
<br />law, Lender may require Trustor to maintain with Lender reserves for payment of annual taxes, assessments, and
<br />insurance premiums, which reserves shall be created by an initial deposit and subsequent monthly payments, or
<br />payments at such othe� Interval as payments under the Note may be due, of a sum estimated by Lender to ba sufflclent
<br />to pay the total annual taxes, assessments, and insurance premiums Lender reasonably anUcipates to be paid from
<br />these reserves. The reserve funds shall be held by Lender as a general deposit from Trustor, which Lender may satisfy
<br />by payment of the taxes, assessments, and insurance premiums required to be paid by Trustor as they become due.
<br />Lender shall have the right to draw upon the reserve funds to pay such items, and Lender shall not be required to
<br />determ(ne the validity or accuracy of any item before pay(ng it. Nothfng in the Deed of Trust shall be construed as
<br />requiring Lender to advance other monies for such purposes, and Lender shall not incur any liability for anything it may
<br />do or omit to do with respect to the reserve account. Subject to any limitations set by applicable law, if the reserve
<br />funds disclose a shortage or deficiency, Trustor shall pay such shortage or deficiency as required by Lender. All
<br />amounts in the reserve account are hereby pledged to further secure the Indebtedness, and Lender is hereby authorized
<br />to withdraw and apply such amounts on the Indebtedness upon the occuRence of an Event of Default. Lender shail not
<br />be required to pay any interest or eamings on the reserve funds unless required by law or agreed to by •Lender in
<br />writing. Lender does not hold the reserve funds in trust for Trustor, and Lender is not Trustor's agent for payment of
<br />the taxes and assessments required to be paid by Trustor.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenc�d that would materially affect Lenders 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 Trustors failure to discharga 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 behalf may (but shall not be obligated to) take
<br />any action that Lerxler deems appropriate, including but not Ifmited to discharging or paying all taxes, liens, security
<br />interests, encumbrances and other claims, at any time levied or placed on the Property and pay(ng all costs for insuring,
<br />�intafning and presenring the Property. All such e�cpenditures incurred or paid by Lender for such purposes wlll 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 bec�me a part of the Indebtedness and, at Lenders option, will (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) 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 wlll secure payment of these amounts. Such tight shall be in addltlon to all other rights and remedies to
<br />which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TRLE. 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 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 flnal 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, and authority to execute and delive� this Deed of
<br />Trust ta Lender.
<br />Defense of Title. Subject to the exception (n the paragraph above, Trustor warrants and will forever defend the
<br />tftle to the Property against the lawful claims of all persons. In the event any acUon or proceeding is commenced
<br />that questions Trustors title or the interest of Trustee or Lender under this Deed of Trust, Trustor shali defend the
<br />
|