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20120753�
<br />DEED OF TRUST
<br />(Continued) Page 3
<br />Maintenance of Insurence. 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 the Real
<br />Property in an amount sufficient to avoid applicatlon of any coinsurance clause, and with a standard mortgagee
<br />clause in favor of Lender. Trustor shall also procure and maintain comprehensive general liabiflty insurance in such
<br />coverage amounts as Lender may request with Trustee and Lender being named as additlonal insureds in such
<br />Ifabiflty insurance policies. Additionally, Trustor shall maintain such other insurance, including but not Iimited to
<br />hazard, business interrupUon, 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 />poflcles or certiflcates of insurance in form satisfactory to Lender, including stipulations that coverages will not be
<br />cancelled or diminished wfthout at least ten (10) days p�lor 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 default of Trustor or any other person. Should the Real Property be located in an area des(gnated 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 />Ifens on the properly securing the loan, up to the maximum polfcy 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 Properly. Le�er may
<br />make proof of loss if Trustor fails to do so within fifteen (15) days of the casualty. Whether or not LendePs
<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 reductlon of the Indebtedness, payment of any lien affecting the Properly, or the restoration
<br />and repair of the Property. If Lertder elects to apply the proceeds to restoration and repair, Trustor shall repafr or
<br />replace the damaged or destroyed Improvements in a manner saUsfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the praceeds for the reasonable cost of
<br />repair or restoratlon if Trustor is not in default under this Deed of Trust. Any proceeds which have not been
<br />d(sbursed within 180 days after thelr 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 Indebtedness. If Lender holds
<br />any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as TrustoPs
<br />interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall fumish
<br />to Lender a report on each exfsting policy of insurance showing: (1) the name of the insurer; (2) the risks
<br />(nsured; (3) the amount of the poUcy; (4) the properly insured, the then current replacement value of such
<br />property, and the manner of determin(ng that value; and (5) the expira�on date of the policy. Trustor shall, upon
<br />request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost
<br />of the Property.
<br />TAX AND INSURANCE RESERVES. Subject to any limitatlons and consistent with any requirements set by applicable
<br />law, Lender may require Trustor to maintain with Lender reserves for payment of annual taxes, assessments, and
<br />insurance premiums, which reserves shall be created by an fnitial deposit and subsequent monthly payments, or
<br />payments at such other interval as payments under the Note may be due, of a sum estlmated by Lender to be sufflcient
<br />to pay the total annual ta�ces, assessments, and fnsurance premiums Lender reasonably anUcipates to be paid from
<br />these reserves. The reserve funds shall be held by Lender as a general deposit from Trustor, which Lender may satisiy
<br />by payment of the taxes, assessments, and insurance premiums required to be paid by Trustor as they become due.
<br />Lender shall have the right to draw upon the reserve funds to pay such items, and Lender shall not be required to
<br />determine the validity or accuracy of any item before payfng it. Nothing in the Deed of Trust shall be construed as
<br />requiring lender to advance other monies for such purposes, and Lender shall not incur any liability for anything it may
<br />do or omit to do with respect to the reserve account. SubJect to any Iimitations set by applicable law, if the reserve
<br />funds disclose a shortage or deficfency, Trustor shall pay such shortage or deficiency as required by Lender. All
<br />amounts in the reserve account are hereby pledged to further secure the Indebtedness, and Lender is hereby authorized
<br />ta withdraw and apply such amounts on the Indebtedness upon the occurrence of an Event of Default. Lender shall not
<br />be required to pay any interest or eamfngs on the reserve funds unless required by law or agreed to by Lender in
<br />writing. Lender does not hold the reserve funds in trust for Trustor, and Lender is not Trustor's agent for payment of
<br />the taxes and assessments required to be paid by Trustor.
<br />LENDER'S EXPENDITURES. If any action or procxeding is comrr�nc�d that would materially affect Lenders interest in
<br />the Properly or if Trustor fails to comply wfth any provision of this Deed of Trust or any Related Documents, induding
<br />but not Iimited to Trustor's failure to d(scharge or pay when due any amounts Trustor is required to discharge or pay
<br />under this Deed of Trust or any Related Docx�ments, Lender on Tnistor's behaff may (but shall not be obligated to) take
<br />any actlon that Ler�er deerr�s appropriate, inGudfng but not Ifmited to discharging or paying all taxes, Ilens, security
<br />interests, enc�mbrenc�s and other claims, at any time levied or placed on the Properly and paying all costs for insuring,
<br />mairrtaining and preserving the Properly. All such expenditures incuned or �id by Ler�er for such purposes will then
<br />bear interest at the rate charged under the Note from the date incuRed or paid by L.er�er to the date of repayment by
<br />Trustor. All such e�e� will beoome 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 (1) the term of any appflcable insurance policy; or (2) the remaining term of
<br />the Note; or (C) be treated as a balloon payment which wfll 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 �ights 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 />Tttle. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Properly in fee simple,
<br />free and clear of all Ifens and encumbrances other than those set forth fn the Real Property descripUon or in any
<br />tftle insurance polfcy, 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 />Trustto Lender.
<br />Def�ns� of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the
<br />tftle 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 />acUon at Tnistor's expense. Trustor may be the nomfnal party in such proceeding, but Lender shall be enUtled 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 instruments as Lender may request from time to time
<br />to permit such participation.
<br />Compllance With Laws. Trustor waRants that the Property and Trustor's use of the Properly complies with all
<br />existing applicable laws, ordinances, and regulations of govemmental authorities.
<br />Survival of Representatlons and Warranties. All representations, warranties, and agreerrrents made by Trustor in
<br />this Deed of Trust shall survive the executlon and delNery of this Deed of Trust, shall be continufng in nature, and
<br />shell remain in full force and effect until such time � Trustor's Indebtedness shall be paid in full.
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