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201206456
<br /> DEED OF TRUST
<br /> Loan No:872058683 (COntlnued) Page 3
<br /> PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of
<br /> Trust.
<br /> Maintenance of Insurance. Trustor shali procure and maintain policies of fire insurance with standard eMended
<br /> coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real
<br /> Property in an amount sufficient to avoid application of any coinsurance ctause, and with a standartl 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 basis reasonably acceptable to LOnder and issued 6y a
<br /> company or companies reasonably acceptable to Lender. Trustor, upoo request of Lender, will deliver to Lender
<br /> from time to time the policies oY certificates of insurance in form satisfactory to Lender,including stipulations that
<br /> coverages will not be cancelled or diminished without ai least ten (70)days pFior written notice to Lender. Each
<br /> insurance policy also sfiall include an endorsement providing that coverage in favor of Lender will not be 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 Federal Emergency Management Agency as a special flood hazard area,
<br /> Trustor agrees to obtain and maintain Federel Flood Insurance,if available,for the maximum amount of Borrower's
<br /> credit line and tihe full unpaid principal balance of any prior liens on the property securing the loan, up to the
<br /> maYimum policy limits set under the National Flood Insurance Program,or as otherwise required by Lender,and to
<br /> 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 if Trustor fails to do so within fifteen i15) days of the casualty. Whether or not Lender's
<br /> security is impaired, Lender may,at Lender's election,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 Lendet elects to apply the proceeds to restoration and repair,.Trustor shall repair or
<br /> replace the damaged or dest�oyed 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 defauit 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 restoretion 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 principai balance of the Indebtedriess. 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 /> LENDER'S EXPENDITURES. 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 Properiy,or (C) to make repairs to the
<br /> Property then Lender may do so. lf any action or proceeding is commenced that would materially affec.t Lender's
<br /> interests in the Property, then Lender on Trustor's behalf may, but is not required to,take any action that Lender
<br /> believes to be appropriate to protect Lender's i�terests. All expenses incurred or paid by Lender for such purposes will
<br /> then bear interest at the rate charged under the Credit Agreement from the date incurred or paid by Lender to the date
<br /> of repayment by Trustor. All such expenses will become a part of the Indebtedness and,at Lender's option,will (A)
<br /> be payable on demand; (B) be added to the balance of the Credit Agreement and be apportioned among and 6e
<br /> payable with any installment payments to become due during either (1) the term of any applicable insurance policy;or
<br /> 12) the remaining term of the Credit Agreement;or (C) be treated as a balloon paymeni which wiil be due and payable
<br /> at the Credit AgreemenYs maturity. The Deed of Trust also will secure payment of these amounts. The rlghts provided
<br /> . for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be enfitled on account
<br /> of 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 foilowiog provisions relating to ownership of the Property are a part of this Deed
<br /> of Trust:
<br /> Title. Trustor warrants that: (a)Ttustor holds good and marketable title of record to the Property in fee simple,
<br /> free and clear of a0 liens and encumbrances other than those set forth in the Real Property description or in any
<br /> title insutance policy,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 authority to execute and deliver this Deed of
<br /> Trust to Lender.
<br /> Defense oi Title.. Subject to the exception in the paragraph above,Trustor warrants and will forever defend the
<br /> title to the Property against the lawful claims of all persons. In the event any action or proceed�ing 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. Trus2or may be the nominal party in such proceeding,but Lender shall be enfitled 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 instrume�ts as Lender may request from time to time
<br /> to permit such participation. .
<br /> Compliance�th Laws. Trustor warrants that the Property and Trustor's use of the Properry complies with.all
<br /> existing applicable laws,ordinances,and regulations of governmental authorities.
<br /> Survival ofi Promises. All prom�ises, agreements, and statements Trustor has made in this Deed of Trust shall
<br /> survive the execution and delivery of this Deed of Trust;shall be continuing in nature and shall remain in full force
<br /> and effect u�til such iime as Borrower's Indebtedness is paid in full.
<br /> CONDEMNATION. The following provisions relating to wndemnation proceedings are a part of this Deed of Trusi:
<br /> Proceedings. If any proceeding in condemnation is filed, Ttustor shall promptly notify Lender in writing, and
<br /> Trustor shall promptty take such steps as may be necessary to defend the action and obtain the award. Trustor
<br /> may be the 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 Trusto�will deliver or cause to be delivered to
<br /> Lender such instruments and documentation as may be requested by Lender from time to time to permit such
<br /> participation. -
<br /> Application of Net Proceeds. If all ot any part of the Property is condemned by eminent domain proceedings or by
<br /> any proceeding or purchase in lieu of condemnation,Lender may at its election require that all or any portion of the
<br /> net pro�ceeds of the award be appiied to the Indebtedness or the repair or restoration af the Property. The net
<br /> proceeds of the award shall mean the award after payment of all reasonable costs,experises,and attorneys'fees
<br /> incurred by Trustee or Lender in connection with the condem�ation.
<br /> IMPOSITION OF TAXES,PEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br /> to governmental taxes,fees and charges are a part of this Deed of Trust:
<br /> Current Taxes,Fees and Charges. Upon request by Lender,Trustor shall execute such documents in addition to
<br /> this Deed of Trust and take whatever other action is requested by Lender to perfect and continue LendePs lien on
<br /> the Real Property. Trustor shall reimburse Lender for all taxes, as described below,together with all expenses
<br /> incurred in recording, perfecting or continuing this Deed of Trust, induding without limitation all taxes, fees,
<br /> documentary stamps,and other charges for recording or registering this�eed of Trust..
<br /> Taxes. The foilowing shaii constitute taxes to which this section applies: (1) a specific tax upon this type of
<br /> Deed of Trust or upon all or any pari of the Indebtedness secured by this Deed of Trust; (2) a specific tax on
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