|
DEED OF TRUST 2 012 0 6 3 2 i
<br />Loan No: 101255410 (Continued) Page 4
<br />liability fnsurance policies. Additionelly, Trustor shall maintain such other insurance, including but not limited to
<br />hazard, business interruption, end boiler insurance, as Lender may reasonably require. Policies shell be written in
<br />form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companiea
<br />reasonably acceptabte to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the
<br />policies or certificates of insurance in form satisfactory to Lender, including stipulations 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 coverege in fevor of Lender will not be impaired in any wey by any act,
<br />omission or default of Trustor or any other person. Should the Real Property be loceted in an area designated by
<br />the Director of the Federal Emergency Menagement Agency as a special flood hazard area, Trustor agrees to obtain
<br />and maintain Federal Flood Insurance, if avaitable, for the full unpaid principal balance of the loan end any prior
<br />liens on the property securing the loen, up to the maximum policy limits set under the Netional Flood Insurance
<br />Program, or as oiherwise required by Lender, and to maintein such insurance for the term of the loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damege to the Property. Lender may
<br />make proof of loss (f 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 retein the proceeds of any insurance and apply
<br />the proceeds to the reduction of the Indebtedness, payment ot eny lien effecting the Property, or the restoretion
<br />and repair of the Property. If Lender elects to apply the proceeds to restoretion and repair, Trustor shall repair or
<br />replace the damaged or destroyed Improvements in e manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pey 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 hes not committed to the repair or restoration of
<br />the Properry shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay eccrued
<br />interest, and the remainder, if any, shell 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 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 Existing
<br />Indebtedness shall constitute complience with the insurance provisions under this Deed of Trust, to the extent
<br />compliance with the terms of this Deed of Trust would constitute e duplicetion of insurance requirement. If any
<br />proceeds from the insurence become payeble 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 />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: (1) the name of the insurer; (2) the risks
<br />insured; 13) the amount of the polfcy; (4) the property insured, the then current replacement value of such
<br />property, end the manner of determin(ng thet velue; and (5) the expiration date of the policy. Trustor ahell, upon
<br />request of Lender, have an independent appreiser satisfactory to Lender determine the cesh value replacement cost
<br />of the 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 feils to comply with eny provision of this Deed of Trust or any Releted Documents, including
<br />but not limited to Trustor's failure to comply with any obligation to meintain Existing Indebtedness in good standing as
<br />required below, or to discharge or pay when due any amounta Trustor is required to discharge or pay under this Deed of
<br />Trust or any Related Documents, Lender on Trustor's behelf iney (but shall not be obUgated to) take any action that
<br />Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests,
<br />encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring,
<br />maintaining end preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then
<br />bear interest et the rate charged under the Note from the dete incurred or peid by Lender to the date of repayment by
<br />Trustor. All such expenses will become a part of the Indebtedness and, at Lender`s option, wiU (A) be peyable on
<br />demand; (B) be added to the balance of the Note and be apportioned among and be peyeble with any installment
<br />payments to become due during either (1) the term of eny epplicable insurence policy; or (2) the remeining term of
<br />the Note; or (C) be treated as a balloon peyment which will be due and payable at the Note's maturity. The Deed of
<br />Trust also will secure payment of 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 ownership of the Property are a part of this Deed
<br />of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketeble title of record to the Property in fee aimple,
<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 accepted 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 werranta and will forever defend the
<br />title to the Property agelnst the lawful claims of all persons. In the event eny 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 />
|