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201206458
<br /> DEED OF TRUST
<br /> Loan No:81000991 (COnfiinUed) Page 3
<br /> fumish to Lender advance assurances satisfactory to Lender that Trusto� can and will pay the cost of such
<br /> improvements.
<br /> PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this�eed of
<br /> Trust.
<br /> Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard eicteoded
<br /> coverage endorseme�ts on a replacement basis for the full insurable value covering all Improvements on Yhe Real
<br /> Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee
<br /> clause in favor of Lender. Trustor shall also procure and maintain comprehensive generel liability insurance in such
<br /> coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in such
<br /> liability insurance policies. Additionally,Trustor shall maintain such other insurance, including but not limited to
<br /> hazard,business interruption,and boiler insurance,as Lender may reasonably require. Policies shall be�.written in
<br /> form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies
<br /> reasonably acceptable to Lender. Trustor, upon request of Lender,will deliver to Lender from time to time the
<br /> policies or certificates of insurance in form saFisfactory to Lender,including stipulations that coverages will not be
<br /> cancelled or diminished without at Ieast ten (101 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 defauR of Trustor or any other person. Should the Real 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 obtain
<br /> and maintain Federal Flood Insurance,if avaifable,for the full unpaid principal balance of the(oan and any prior
<br /> liens on the property securing the Ioan, 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 notify Lender of any loss or damage to the Proper[y. Lender may
<br /> make proof of loss if Trustor fails to do so within fifteen (15) days of ihe 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 Iien affecting the Property,or the restoration
<br /> and repair of the Property. If Lender elects To apply the proceeds to restorati�on and repair,Trustor shall repair or
<br /> replace the damaged or destroyed Improvements in a manner satisfactory m Lender. Lender shall, upon
<br /> satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable eost of
<br /> repair ot restoration if Tru_stor is not in defauh under this Deed of Trust. Any proceeds which have not been
<br /> disbursed within 180 days afteP 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 Inde6tedness. 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.o�ce a year,Trustor shall furnish
<br /> to Lender a report on each existing policy of insurance showing: (1) the name of the i�surer, (2} the risks
<br /> insured; {3) the amount of the policy; (4F the property insured,the then curreM replacement value of such
<br /> property,and the manner of determining tfiat value;and (5) the expiration date of the policy. Trustor shall,upon
<br /> request of Lender,have an independent appraiser satisfaciory to Lender determine the cash 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 fails to compfy with any provision of this Deed of Trust or any Related Documents, including
<br /> but not limited to Trustor's failure to discharge or pay when due any amounts TrustoF is required to discharge or pay
<br /> under this Deed of Trust or any Related Documents,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 disch2rging or paying alt taxes, liens,security
<br /> interests,encumbrances and other claims,at any time levied or placed on�the Properiy and paying all costs for insuring,
<br /> maintaining and preserving the Properry. All such expenditures incurred or paid by Lender fior such purposes will then
<br /> bear interest at the rate chargetl under the Note from the date incurred or paid 6y Lender to the date of repayment 6y
<br /> Trustor. All such expenses will become a part of the Inde6tedness and, at Lender's option,will (A� ba payable on
<br /> demand; (B) be added to the balance of the Note and be apportioned among and be paya6le with any instailment
<br /> payments to become due during either (1) the term of any applicable insurance policy;or (2) the 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 of these amounts. Such right shall 6e in addition to all other rigfits and temedies 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 marketable title of record to the Property in�fee simple,
<br /> free and dear of all Iiens and encumbrances other than those set forth in the Real Property description o�in any
<br /> title insurance 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 of Title. Subject to the exception in the paragraph above,TrusYor warrants and will forever defend the
<br /> title to the Property against the lawful claims of all persons. ln the event any action or proceeding is commenced.
<br /> thaf questions Trusmr's title or the interest of Trustee or Lender u�der this Deed of Trust,Trustor shall defend the
<br /> action at Trustor's expense. Trustor may 6e the nominal party in such proceeding,but Lender shall be entitled to
<br /> participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and
<br /> Trusmr will deliver,or cause to tie 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 Tlustor'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 execution and delivery of this Deed of Trust,shall be continuing in nature,and�
<br /> shall remain in full force and effect until such time as Borrower's Indebtedness shall be paid in full.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br /> Proceedings. If any proceeding in condemnafion is filed, Trustor shall promptly notify Lender 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 nominal party in sucA proceeding,.but Lender shall be entitJed to participate in the proceeding and to be
<br /> represented in the proceeding 6y counsel of its own choice, and Trustor 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 /> Applicati�on of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by
<br /> any proceeding or purchase in Iieu of condemnation,Lender may at its election require ihat all 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 awarB shall mean the award after payment of all reasonable costs,expenses,and attorneys'fees
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