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201206066
<br /> DEED OF TFiIJST
<br /> Loan No: 81000950 (Continuet!) Page 3
<br /> form, amounts, coverages and basis reasonably acceptable to Lend�er and issued by a company or companies
<br /> reasonably acceptable to Lender. Trusto�r, upon request of Lender, wili deliver to Lender from time to time the
<br /> poficies or certificates of insurance in form satisfaciory to Lender, incfuding stipu[ations that coveraaes wilt not be
<br /> canceiled or diminished witfiout at least ten (10) days prior written notice to �ender. Each insurance policy also
<br /> snall include an endorsement providing that coverage in favor ofi Lender will not be impaired in any way by any act,
<br /> omission or default o#Trustor or any other person. Should the Real Property be located in an area designated by
<br /> the Director of the Federai Emergency Management Agency as a special flood nazard area, Trustor agrees to obtain
<br /> and maintain Federal Fiood Insurance, ifi available, 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 otherwise required by Lender, and to maintain such insurance for the term ofi the loan.
<br /> Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may
<br /> make proof of loss tf Trustor fails �to do so within fifteen (9 5) days of the casualty. Whetner or not Lender's.
<br /> security is impaired, Lender may, at Lender'S eleciion, receive and retain the proceeds of any insurance and apply
<br /> the proceeds to the reduction of tne 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 repair or
<br /> replace the damaged or destroyed Improvements in a manner satisfactory tc Lender. Lender shall, upon
<br /> satisfactory proofi ofi such expenditure, pay or reimburse Trustor from. ihe 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 repair or restoration ofi
<br /> the Property shall be used first to pay any amount owing to Lender under this Deefl of Trust, then to pay accrued
<br /> interest, and the remainder, if any, shall be applied to the principal 6atance 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 shail furnisn
<br /> to Lender a report on eacn existing policy ofi insurance showing- (1) the name of the insurer; (2) the risks
<br /> insured; (3) the amount ofi the policy; (4) the property insured, the then current replacemeni value of sucn
<br /> property, and the manner of determining that value; and (5) the expiration date ofi the policy. Trustor shalf, upon
<br /> request of Lender,have an indepandent appraiser satisfactory ta Lender determine tfie cash vatue replacement cost
<br /> of tne Property.
<br /> LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender°s interest in
<br /> the Property or if Trustor fails to comply with any provision of this Deed of Trust or any Related Documents, including
<br /> but not limited to Trustor's failure Yo discharge or pay when due any amounts Trustor is required to discharge or pay �
<br /> under this Deed of Trust or any Related Documen�ts, Lender on Trustor's behalf may (but shall not be obligated to) take
<br /> any action that Lender deems appropriate, including but not limited 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 from the date incurred or paid by Lender to the date of repayment by
<br /> Trustor, All such expenses wi11 become a part of the Indebtedness and, at Lender's 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 i�nstallment
<br /> payments to become due during either (7) the term of any applicable insurance policy;. or (2) tne remaining term oi
<br /> the Note; or (Cj be treated as a balloon payment which will be due and payable at the IVote`s maturity. The Deeci of
<br /> Trust also wili secure payment of these amounts. Such right snall be in addition to ali oti�er rights and remedies to
<br /> which iender may be entiYled upon Default.
<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: (a) Trustor holds good and marketable title of record to the Property in fee simple,
<br /> free and clear of ali liens and encumbrances other than those set forth in the Real Property description or in any
<br /> title insurance policy, fitle 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 fuil right, power, and authoriiy to execute and deliver this Deed of
<br /> Trust to Lender.
<br /> Defense of Title_ Subject to the excepYion in the paragraph above, Trustor warrants and will forever defend the
<br /> title to the Property against the lawfiul claims of all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's title or tne interest ofi Trustee or Lender under this Deed of Trust, Trustor shall defend Yhe�
<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 proceedinq 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#rom time to ti�m�e
<br /> to permi�su�ch participation.
<br /> Compliance With Laws. Trustor warrants that the Property ana Trustor's use of the Property complies with ali
<br /> existing applicable laws, ordinances, and regulations of governmental authorities.
<br /> . Survival ofi Representations and Warranties. All representations, warranties, and agreements made by Trustor in
<br /> this Deed of Trust shaii survive the execution and delivery of this Deed of Trust, shall be�continuing in nature, and
<br /> shaii remain in full force and effect until sucn time as Trustor's Indebtedness snall be paid in full�.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this D�eed of Trust- �
<br /> Proceedings. If any proceeding in condemnation is filed, Trustor snall promptly notifiy Le�nder in writing, and
<br /> Trustor shall promptly take such steps as may be necessary to defend the action and obtain the award. Trustor
<br /> may be the nomi�al party in such proceeding, but Lender shail be entitled to�p�articipate in tne proceeding and to be
<br /> represented in the proceeding by counsel of its own choice, and Tsustor will deliver or causc- Lo be delivered to
<br /> Lender such instruments and documentatio�n as may be requested by �ender firom time to time to permit sucn �
<br /> participation.
<br /> Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by
<br /> any proceeding or purcnase in lieu of condemnation, Lender may at its election require that all or any portion of the
<br /> net proceeds of the award 6e applied to the Indebtedness or the rep�air or restoration of the Property. The net
<br /> proceeds of the award snall mean the award after payrnent of all reasonable costs, expenses, and attorneys' fees
<br /> incurred by Trustee or Lender in connection with the condemnatio�n.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERIVMENTAL AUTHORITIES. The following provisions relati�ng
<br /> to governmental taxes, fees and charges are a part ofi this Deed of Trust:
<br /> Current Ta�ces, Fees and Chaiges. Upon request by Lender, Trustor shali execute such documents in addition to
<br /> this Deed of Trust and take wi�a'tever otFi.er action is requested by Lender to perfect and continue Lender's lien on
<br /> the Real Property_ Trustor shaU reimburse Lender for aIl taxes, as described befow, together with ali expenses
<br /> incurred in recording, perfecting or continuing ihis Geed� o� Trust, incfuding without limitation all taxes, #ees,
<br /> documentary stamps, and other charges for recording or registering this Deed of Trust.
<br /> Taxes. The following snall constitute taxes to which Yhis section applies (1) a specifiic tax upon this type of
<br /> Deed of Trust or upon all or any part ofi the Indebtedness secured by this Deed of Trust; (2) a specific tax on
<br /> Trustor which Trustor is authorized or required to deduct firom payments on the Indebtedness secured by this type
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