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201206278
<br /> DEED OF TRUST
<br /> Loan iVo: 872058675 (Continued) Page 3
<br /> PROPERTY DAMAGE INSURANCE. The following proyisions relating to insuring 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 Improvements on the Real
<br /> Proper[y 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 6asis reasonably acceptable to Lender antl issued 6y 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 shall include an endorsement providing that coverage in favor of Lender will not 6e impaired
<br /> in any way by any act,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 Federel Emergency Management Agency as a special flood hazard area,
<br /> Trustor agrees to obtain and maintain Federal Flood Insurance,if available,for the m�imum amount of Borrower's
<br /> credit line and the full unpaid principal balance of any prior 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 of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may
<br /> make proof of foss 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,eeceive and retain the proceeds o#any insurance and apply
<br /> the praceeds to the reduction of the Indebtedness, payment of any Iien affecting the Property,or the restoration
<br /> and repair of the Property. If Lender elects to apply the proceeds to restoration and repair,Trustor shalf 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 �ot 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 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 principal 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 /> Compliance with Existing Inde6tedness. During the period in which any Existing Indebtedness descri6ed 6elow is
<br /> in effect, compliance with the insurance provisions contained in the instrument evidencing such F�cisting
<br /> Inde6tedness shall constitute compliance with the insurance provisions under this Deed of Trust, to the extent
<br /> compliance with 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 in this Deed of Trust for division of proceads
<br /> shall apply only to that portion of the proceeds not payable to the holder of the F�cisting Indebtedness.
<br /> LEN�ER'S IXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests,
<br /> encumbrances,and other claims, {B) to provide any required insurance on the Property, �C) to make repairs to Fhe
<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 thai would materially affect Lender's interests in the
<br /> Property, then Lender on Trustor's behalf may, 6ut is not required to, take any action that Lender believes to 6e
<br /> appropriate to protect Lender's interests. AIl expenses incurred or paid 6y 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. All such expenses will 6ecome a part of the Inde6tedness and,at Lender's option,will (A) be
<br /> payable on demand; IB) be added to the balance of the Credit Agreement and be apportioned among and be payable
<br /> with any installment payments to become due during either (1) the term of any applicable insurance policy;or f2) the
<br /> remaining term of the Credit Agreement;or (C) be treated as a balloon payment which will be due and payable at the
<br /> Credit AgreemenYs maturity. The Deed o#Trusi also wiil 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 /> 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 maeketable titie 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 the
<br /> Existing Indebtedness section below or in any title insurance policy,title report,or final title opinion issued in favor
<br /> of,and acceptetl by, Lender in connection with this Deed of Trust,and (b)Trustor has the full right, power,and
<br /> authority to execute and deliver this Deed of Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph above,Trustor warrants and will forever defend the
<br /> tiUe to the Property against the lawfuf claims of all persons. In the event any acvon 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 eMitled 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 laws,ardinances,and regulations of governmental authorities.
<br /> Survival of Promises. AIl promises, agreements, and statements Trustor has made in this �eed of Trust shall
<br /> survive the execution and delivery of this Deed of Trust,shall be continuing in nature and shalf remain in full force
<br /> and effect until such time as Borrower's Indebtedness is paid in full.
<br /> EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br /> 6cisting 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 ihe payment of,the Existing Inde6tedness
<br /> and to prevent any default on such indebtedriess,any default under the instruments evidencing such indebtedness,
<br /> or any default under any security documents for such indebtedness.
<br /> No Modifieation. Trustor shall not enter into any agreement with the holder of any mortgage; deed of trust, ar
<br /> other security agreement which has priority over this Deed of�Trust by which that agreemeni is modified,
<br /> amended, extended, or renewed without the prior written consent of Lender. Trustor shall neithe� request nor
<br /> accept any future advances under any such security agreement without the prior written consent of Lende[.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust;
<br /> Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lende� in w�iting, and
<br /> Trustor shall promptly take such steps as may 6e necessary to defend the action and obtain the award. Trustor
<br /> may be the nominal party i�such proceeding,but Lender shall be entitled to participate in the proceeding and to be
<br /> represe�ted in the proceeding by counsel of its own choice, and Trustor will deliver or cause to be delivered to
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