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201206366
<br /> DEED OF �RtJST
<br /> Loan No: 89009024 (Coil$illued) Page 3
<br /> form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies
<br /> reasonably acceptable to Lender, Trusto�, upon request ofi Lender, wiil deliver to Lender from time to time tihe
<br /> policies or certificates of insurance in form satisfiactory to Lendet, including stipulations that coverages will not be
<br /> cancelled or diminished without at least ten ('I O) 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 defiault of Trustor or any other person. Should the Reai Property be located in an area designaTed by
<br /> the Director of the Federal Emergency Management Agency as a special flood hazard area,Trustor agrees to obtai.n
<br /> and maintain Federal Flood Insurance, ifi available, for the full unpaid principal balance of the lo�an and any prior
<br /> Iiens on tne 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 of the loan.
<br /> Application of Proceeds. Trustor shall promptly notiiy Lender ofi any loss or damage to the Property. Lender may
<br /> make proof of Ioss ifi Trustor fails to do so within fifteen (15) days ofi the casualty. Whether 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 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 repair or
<br /> replace the damaged or destroyed I�mprovements i�n a manner satisfactory to Lender. Lender shall, upon
<br /> satisfactory proof of such expenditure, pay or reimburse Trustor firom the proceeds for the reasonable cost of
<br /> repair or resto�retion ifi Trustor is not in default under this Deed ofi Trust. Any proceeds which have not been
<br /> disbursed within 180 days after tneir receipt and whi.ch Lender has not committed to the repair or �estoration 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 tfie remainder, ifi any, shall be applied to the principat balance of the Indebtedness. If Lender holds
<br /> any proceeds after payment in fiull of the Indebiedness, 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 shall furnish
<br /> to Lender a report on each existing policy of insurance showing: ("I) 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 ofi the policy. Trustor shall, upon
<br /> request of Lender, have an fndependent appraiser satisfactory to Lender determine the cash value replacement cost
<br /> of the Property.
<br /> LENDER'S EXPENDITURES. Ifi any action or proceeding is commenced that would materially affect Lender's interest in
<br /> the Property or if Trustor fiails to comply with any provision of this Deed of Trust or any Related Documents, induding
<br /> but not limited to Trustor's failure to discharge or pay when due any amounts Trustor is required to discharge or pay
<br /> under this Deed ofi Trust or any Related Documents, Lender on TrustoPs behalf may (but shall not be obligated to) take
<br /> any action that Lender deems appropriate, induding but not limi[ed to discharging or paying alI taxes, Iiens, security
<br /> interests, encumbrances and other claims, at any time levied or placed on the Property and paying aIl costs for insuring,
<br /> maintaining and preserving the�. Property. All such expenditures incurred or paid by Lender for such purposes will then
<br /> bea�r 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 Inde6tedness 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 witn any installment
<br /> � payments to become due during either (1) the term of any applicable insurance policy; or (2) tne 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 will secure payment ofi these amounts. Such right shall be in addition to all other rights and remedies to
<br /> which Lender may be entitled upon Default.
<br /> WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownersnip ofi tne Property are a parY of this Deed
<br /> of Trust:
<br /> Title_ Trustor warrants thaY: (a) Trustor holds good and marketable tiile of record to the Property in fiee 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 poli�cy, title 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 full right, power, and auihority to execute and deliver this Deed o#
<br /> Trust to Lende�r. .
<br /> Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the �
<br /> title to the Property against the fawful claims of all persons_ In the event any action or proceeding is commenced
<br /> tliat questions Trustor's title or tt�e 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 Lendei:�shall�be entitled to
<br /> participate in the proceeding and to be represented in the proceed�ing 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 thai the Property and Trustor's use of the Property complies with all
<br /> existing applicable laws, ordinances,and regulations of governmental authorities.
<br /> Survival of Representations and Warranties�. All representations, warranties, and agreements made by Trustor in
<br /> this Deed of Trust shall survive the exeeution and defivery ofi this Deed of Trust, shall be continuing in nawre, and
<br /> shall remain in full force and effect unrtil such iime as Trustor's Indebtedness shall be paid in fiull.
<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 fi�led, Trustor shall promptly notify Lender in writing, and
<br /> Trustor shall promptly take such steps as may be necessary to defiend the action and obtain the award. -Trustor
<br /> may be tne nominal party in such proceeding,but Lender shall be entitled to participate in the proceeding and to be
<br /> represented in the proceeding by counsel of its own choice, and Trustor witl deliver or cause to be delivered to
<br /> Lender such instruments and documentation as may be requested by Lender firom time to ti.me to permit sucn
<br /> participation.
<br /> Application of Net Proceeds. If all or any part ofi the Property is condemned by eminent domain proceedings or by
<br /> any proceeding or purchase in lieu ofi condemnation, Lender may at its election require that alf or any portion of the
<br /> net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net
<br /> proceeds of the award shall mean the award afiter payment of all reasonable costs, expenses, and attorneys' feES
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES, FEES AND CiiARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br /> to governmental taxes,fiees and charges are a part of this Deed of Trust:
<br /> Current Ta�ces, Fees and Charges. Upon request by Lender, Trustor shall execute such documents in addition to
<br /> tnis Deed of Trust and take whatever other action is requested by Lender to perfect and continue Lender's lien on
<br /> the Real Property. Trustor shall reimburse Lender for atl taxes, as described below, together witn all expenses
<br /> incurred in recording, perFecting or continuing this Deed of Trust, including without limitation all taxes, fees,
<br /> documentary stamps, and other charges for recording or registering this Deed of Trust..
<br /> Ta�ces. The following shalf constitute t�es to which this section applies: (1) a specifiic tax upon this type of
<br /> Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trust; (2) a specifiic taic on
<br /> Trustor which Trustor is authorized or req�uired to deduct from payments on the Indebtedness secured by this type
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