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201207520
<br /> • DEED OF TRUST
<br /> Loan No:872058747 (COntlnued) Page 3
<br /> PROPERTY DAMAGE WSURANCE. The following provisions relating to insuring the Property are a part of this Deed of
<br /> Trust
<br /> Maintenance of Insurance. Trusmr shall procure and maintain policies of fire insurance with standard extended
<br /> coverage endorsemenTs on a replacement 6asis for the full insurable value covering all Improvements on the Real
<br /> Property in an amount sufficient to avoid application of any coi�surance dause, and with a standard mortgagee
<br /> clause in favor of Lender,together with such other hazard and fiability insurance as Lender may reasonably require.
<br /> Policies shall be written in form,amounts,coverages and basis reasonably acceptable to Lender and issued by a
<br /> company or companies reasonably acceptable to Lende�. Trustor,upon request of Lender, will deliver to Lender
<br /> from time to time the policies or certificates of insurance in form satisfactory to Lender,including stipulations that
<br /> coverages will not be cancelled or diminished without at least ten (10)days prior written notice to Lender. Each
<br /> insurance policy also shall include an entlorsement providing that coverage in favor of Lender will not b0 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 Emerge�cy Management Agency as a special flood hazard area,
<br /> Trustor agrees to obtain and maintain Federal Flood Insurance,if available,for the maximum amount of Borrower's
<br /> credit line and the full unpaid principal balance of any prior liens on the property securing the loan, up to the
<br /> maximum policy limits set under the National Flood Insura:nce Program,or as otherwise required by Lender,and.to
<br /> maintain such insurance for the term of the loan.
<br /> Application of Praceeds. Trustor shall promptly notify Lender of any Ioss or damage to the Property. Lender may
<br /> make proof of loss if Trustor fails to do so within fifteen (15) days of fhe 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 tQ the reduction of Yhe lndebtedness, 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 Improvements in a manner satisfactory to Lendec Lender shall, upon
<br /> satisfactory proof of such expenditure, pay or reimburse Trustor from tBe proceeds for the reasonable cost of
<br /> repair or restoration if Trustor is not in default under this Deed ofi Trust. Any proceeds which have not been
<br /> disbursed within 180 days after their receipt and which Lender has not commitCed 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 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 /> LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taces, li.ens, security interests,
<br /> encumbrances,and other claims, (B) to provide any required insurance on the Property,or {C) to make repairs to the
<br /> Property then Lender may do so. If any action or proceeding is commenced that would materially affect 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 interests. All expenses incuered 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 tie apportioned among and be
<br /> payable with any installment payments to become due during either (1) the term of any applicable insurance policy;or
<br /> (2) the remaining term of the Credit Agreement;or (C) be treated as a balloon payment which will be due and payable
<br /> at the Credit AgreemenYs maturity. The Deed of Trust also will secuYe payment of these amounts. The rights provided
<br /> for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled 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 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 clear of all liens and encumbrances other than those set forth in the Real Property description or 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 (b1 Trustor has the full righf,powet,and authority to execute and deliver this Deed of
<br /> Trust to Lender.
<br /> �efense of 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 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 /> participate in the proceeding and to be represeRted in the proceeding by counsef of Lender's own choice,and
<br /> Trustor will deliver,or cause to be delivered,to Lender such insiruments as Lender may requesi from time to time
<br /> to permit such participation.
<br /> Compliance With Laws. Trustor warrants that 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 Promises. All promises, agreements, and statements Trustor has made in this Deed of Tiust shall
<br /> sunrive the execution and delivery of this Deed of Trust,shall be continuing in natuie and shall remain in full force
<br /> and effect until such time as Borrower's Indebtedness is paid in full.
<br /> CONDEMNATION. The following provisions relating to condemrtation proceedings are a part of this Deed of Trust:
<br /> Proceedings. If 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 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 ow�choice, and Trustor will deliver or cause to be delivered to
<br /> Lende�`such instruments and documentation as may be requested by Lender from time to time to permit such
<br /> participation.
<br /> Application ofi Net Proceeds. If alI 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 Inde6fedness or the repair or restoration of the Property. The net
<br /> proceeds of the award shall mean the award after 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 AN�CHARGES SY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br /> to governmental taxes,fees and charges are a part of this�eed 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 Lender's Iien on
<br /> the Real Properry. Trustor shall reimburse Lender for all tvices, as described below,together with ah expenses
<br /> incurred in recording, perfecting or continuing this Deed of Trust, including without limitation aIl taxes, fees,
<br /> documentary stamps,and other charges for recording or registering this�eed of Trust.
<br /> Taxes. The following shall constitute ta�ces to which this section applies: (1) a specific tax upon this type of
<br /> � Deed ofi Trust or upon all or any part of the Indebtedness secured by this Deed of Trus[; (2) a specific tax on
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