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201207641
<br /> DEED OF TRUST
<br /> Loan No: 89001263 (COnt�nued) Page 3
<br /> improvements.
<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. Trustor shall procure and maintain policies of fire insurance with standard e�ended
<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 clause, and with a standard mortgagee
<br /> clause in fiavor 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 /> 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 tequest of Lender, will deliver to Lender from time to time the
<br /> policies or certificates of insurance in form satisfactory to Lender, including stipulaiions that covereges will �ot be
<br /> cancelled or diminished without at IeaSt ten ('i O) days prior written notice to Lender. Each insurance policy also
<br /> shall include an endorsement providing that coverage in fiavor of Lender will noi 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 designated by
<br /> the Director of the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to obtain
<br /> and maintain Federel Flood Insurance, if available, for the full unpaid principal balance of the loan 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 oiherwise required by Lender, and to 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 Ioss if Trustor fails to do so witnin fifteen (15) days of tne casualty. Whether or not Lender's
<br /> security is impaired, Lender may, at Lender's election, receive and retain the�.proceeds ofi any insueance and apply
<br /> the proceeds to the reduction ofi the Indebtedness, payment of any lien affecting the Property, or the restoration
<br /> and repair of the Property. If Lender elects to apply the proceeds to resYoration and repair, Trustor shall repair or
<br /> replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfiactory 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 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 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 Yo the principal balance of the Indebtedness. If Lender holds
<br /> any proceeds after payment in full of the Indebtedness, such proceeds shall 6e paid to Trustor as Trustor's
<br /> interests may appear.
<br /> Trustor's Report.on Insurance. Upon request of Lendet, 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 amount of the policy; (4) the property insured, the then current replacement value ofi such
<br /> property, 9nd the manner of determining that value; and (5) the expiration 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 /> LENDER'S EXPENDITURES. Ifi any action or proceeding is commenced that would materially affect Lender's interest in
<br /> the Property or if Trustor fails to comply with any provision of this Deed of Trust or any Related Documents, including
<br /> but not limited to Trustor's failure to d�ischarge 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, indud�ing but noY limited to discharging or paying all taxes, Ijens, security
<br /> interests, encumbrances and other daims, at any time levied or placed on the Property and paying all costs for insuring,
<br /> maintaining and preserving the Property. All such expenditures incurred or paid by Lender for sucn purposes will tnen
<br /> bear interest at the rate charged under the Note firom the date incurred or paid by Lender to the date of repayment by
<br /> Trustor. AII such expenses will become a part ofi the Indebtedness and, at Lender's option, will (A) be payable on
<br /> demand; (B) be added to the balance ofi the Note and be apportioned amo�ng and 6e payable witn any installment
<br /> payments to become due during either ('I) the term of any applicable insurence policy; or (2) tha 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 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 to ownership of the Property are a part of this Deed
<br /> of Trust:
<br /> Title_ Trustor warrants Yhat: (a) Trustor holds good and marketable title of record to the Property i�n fee simple,
<br /> free and dear 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 ofi, 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, Trustor warrants and will forever defend the
<br /> title to the Property against the lawfiul daims 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 Trustot'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 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 /> Compliance With Laws. Trustor warraMs that the Property and Trustor's use of the Property complies with all
<br /> -existing applicable laws, ordinan�ces, 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 BorYower's Indebtedness shall be paid in fiull.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br /> Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notiiy 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 entiYled to participate in the proceeding and to be
<br /> represented. in the proceeding by counsel of its own choice, and T�ustor will deliver oP cause to be delivered to
<br /> Lender such instruments and tlocumentation as may be requested by Lender from time to time to permit such
<br /> participation_ �
<br /> Application of EVet Proceeds. If all or any part of the Property is condemned by em�inent domain proceedings or by
<br /> any p�oceeding 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 tne 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 condemnati�on.
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