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201206831
<br /> DEED OF TRl1ST
<br /> Loan No: 81007107 (COntitlued) Page 3
<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 full insurable value covering all Improvements on ihe 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 general liability insurance in such
<br /> . coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in such
<br /> Iiability 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 cornpanies
<br /> reasonably acceptable to Lender. Trusior, upon request of Lender, will deliver to Lender from time to time the
<br /> policies or certifiicates of insurance in form satisfactory to Lender, including stipulations that coverages will not be
<br /> cancelled or diminisned witnout at least ten (10) days prior written notice to Lender. Each insurance policy also
<br /> shall include an endorsement providing tnat coverage in favor of Lender will not be i�mpaired in any way by any act,
<br /> omission or default 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 available, for the full unpaid principal balance of the loan and any prior
<br /> liens on the property securing the loan, up to the maximum policy limits�� set under the National Flood Insurance
<br /> Program, or as otherwise required by Lencler, and to maintain such insutance 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 ofi loss if Trustor fails to do so within fiifteen (7 5) days of the casualty. Whether or not Lender's
<br /> security is impaired, Lender m�ay, at LendePs election, receive and retai�n 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 Le�der elects to apply Yhe proceeds to restoration and �epair, Trustor shall re�pair 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 not in default under this Deed afi Trust. Any proceeds which haye not been
<br /> disbursed within 180 days after their receipt and which Lender has not committed to the �epair or restoration ofi
<br /> the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, tf�en to pay accrued
<br /> interest, and the remainder, if any, shall be applied to the principaf balance of the Indebtedness: If Lender holds
<br /> any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor a5 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: (1) the name of the insurer; (2) the risks
<br /> insured; (3) the amouni of the policy; (4) the property insured, fhe then current replacement value of such
<br /> property, and the manner of determining that value; and (5) the expi�ation date of tne policy. Trustor shall, upon
<br /> request of Lender, have an inde�pendent appraiser satisfactory to Lender determine the cash value replacement cost
<br /> of the Property.
<br /> LENDER'S EXPENDITURES. If any action or prooeeding is commenced that would materially affect Lender°s interest in
<br /> the Property or if TrusYor fiails to comply with any provision of this Deed ofi Trust or any Related Documents, including
<br /> � but not limited to Trustor's failure to discnarge or pay when due any amounts Trustor 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, induding but not limited to discharging or paying aft taxes, liens, security
<br /> interests, encumbrences and other claims, at any time levied or placed on the Ptoperty and paying all costs fior insuring,
<br /> maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes wili tnen
<br /> bear interest at the rate charged under tfie. Note from the date incurred or paid by Lender to the date ofi repayment by
<br /> Trustor. All such expenses will become a part of the� Indebtedness 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 with any installment
<br /> payments to become due during either (7) the term ofi 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 tne Note's maturity. The Deed of
<br /> Trust also will secure payment of these amounts. Such nght 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 io 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 clear of all liens and encumbrances other than those set forth in the Real. Property description or in any
<br /> iitle 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 excepYion 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 proceeding is commenced
<br /> that questions Trustor`s title or the inierest 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 s.hall be entitled Yo
<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 detivered, io Lendet such i'nstruments as Lender may request from time to time
<br /> to permit such participation.
<br /> Compliance With Laws. Trusior warrants that the Property and Trustor's use of the Property complies with all
<br /> existing applicable laws, ordFnances, and regulations of govemmental authorities_
<br /> Survival ofi Representations and Warranties. All representations, warranties, and agreements made by Trustor in
<br /> this Deed of Trust snall sutvive the execution.and delivery ofi this Deed of Trust, shall be continuing in nature, and
<br /> shall remain in full fiorce and effect until such time as Trustor s Indebtedness shalJ be paid in full.
<br /> CONDEMNATION.. The following provisions relating to condemnation proceedings are a part ofi this Deed ofi Trust:
<br /> Proceedings. Ifi any proceeding in condemnation 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 i.n 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 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 /> participatfon.
<br /> Application 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 lieu of condemnation, Lender may at its election require that 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 award shall mean the award aiter payment of a❑ reasonable costis, expenses, and atEorneys' fees
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES. FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The fiollowing provisions relating
<br /> to governmental taxes,fiees and charges are a part of this Deed ofi Trust:�
<br /> Current Taxes, Fees and Charges_ Upon request by Lender, Trustor shalJ execute such documents in addition to
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