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201207692
<br /> DEED OF Tff�UST
<br /> Loan No: 87001338 (COntinUed) Page 3
<br /> clause in favoe of Lender. Trustor shaB3 aiso procure and.maintain comprehensive general lia��.bitity insurance in such
<br /> coverage amounts as Lender may request with Trustee and Lender being named as addiYional insureds in such
<br /> iiability insurance policies. Additionaliy, Trustor shall maintain such other insurance, induding but not limited to
<br /> hazard, business interrupti�on, and boiler insurance, as Lender may reasonably require. Policies shall be written in
<br /> fiorm, 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 certificaies of insurance in �Porm satisfactory to Lender, induding stipulati:ons that coverages will not be
<br /> cancelled or diminished without at least ten (10) days prior written notice to Lender. Eacf� insurance policy also
<br /> snall include an endorsement providing that coverage in favor of Lender will not be impaired.in any way by any act,
<br /> omission or default ofi 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 fiood hazard area,Trustor agrees to obtain
<br /> and maintain Federal Flood Insurance, if available, for the fuli unpaid principa! balance ofi the ioan 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 Lender, and.to maintain such insurance for the Yerm 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 of 9oss if Trustor fails to do so within fifteen (15} days of the casu�alty. Whetner 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 fndebtedness, payment of any lien affecting the Property, or the restoration
<br /> and repair of the Property. If Lender elects to apply the proceeds to resioration and repair, Trusto�r shalf repair or
<br /> replace the damaged or destroyed Improvements in a manner satisf9ciory to Lender_ Lender shall, upon
<br /> satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds fior the reasonable cost of
<br /> repair or restoration if Trustor is not in defiault under this Deed ofi 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 P�operty shali 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 appiied to the principal balance of the Indebtedness. If Lender holds
<br /> any proceeds afiter payment in fWl of the lndebtedness, such proceeds shafl be paid to Trustor as Trus�oe's
<br /> interests may appear. �
<br /> Trustor's Fteport on�Insurance. Upon req�uesi ofi Lender, however not rnore iKan once a year, Trustor shall furnish
<br /> to Lender a report on each existing policy ofi insurarrce showing: (1) the name ofi.the insurer; (2} tne risks
<br /> insured; (3) the amount of the policy; (4} the property insured; the then current replacement value of such
<br /> p.roperYy, and the manner of determining that value; and (5) the expiration date ofi the policy. Trustor shall, upon
<br /> request of Lender,have an independent appraiser satisfactory to Lender determine the cash value replacement cosi
<br /> of the Property.
<br /> LENDER`S EXPENDITURES. If any action or proceeding is commenced that would materialiy affect Lender's interest in
<br /> the Property or ifi Trustor fails to comply witn 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 Trustor is requi.red to discharge or pay
<br /> under this Deed of Trust or any Related Do�cuments, Lender on Trustor's behalf may (but shall not be obligated to) take
<br /> any action that Lender deems appropriate, including b��ut not limited to discharging or paying ail taxes, liens, security
<br /> interests, encumbrances and other ciaims, at any time levied or placed on the Ptoperty and paying all costs for insuring,
<br /> maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then
<br /> bear interest at the rate charged under the No`te from the date incurred or paid by Lender to the elate of repayment by
<br /> Trustor. All such expenses wili become a part of the indebtedness and, at Lender's option, wilA (A) be payabie orz
<br /> demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installmeni
<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 IVote's maturity. Tne Deed of
<br /> TrusY 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. Tne following provisions relating to ownership o�F the Property are a part of this Deed
<br /> of Trust:
<br /> Title. Trustor warrants that: (a) Trustor nolds good and marketabie title of record to the Property irt fee simple,
<br /> free and ciear ofi all liens and encumbrances other than those set forth in the Real Property dsscription or in any
<br /> title insurence policy, title report, or finai title opinion issued in favor of, and accepted by, Lender in connection
<br /> with this Deed ofi Trust, and (b) Trustor t�as the full right, po�wer, and authori�ry Yo execu�[e and deiiver this Deed of
<br /> Trust to Lender.
<br /> Defense of Titte. Subject to the axception in the paragraph above, Trustor war�anis and will forever deEend the
<br /> title to the Property against the lawfiul claims of all oersons_ 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 tne
<br /> action at Trustor's expense. Trustor may be the nomtnal party in such proceeding, but Lender shall be entitled to
<br /> participate in the proceeding and to� be represented in the proceeding by counsel ofi Lender's own choice, and
<br /> Ttustor wiil deliver, or cause to be delivered, to Lender such instru��ments as Lender may request from time to time
<br /> to permit such participation.
<br /> Comptiance With Laws. Trustor warrants that�the Property and Trustor's use ofi the Property complies with all
<br /> existing applicable laws, ordinances, and regulaYions of governmental authorities.
<br /> Survival of Representations and �JVarranties. AI1 re¢resentations, warranties, and agreements made� by Trustor in
<br /> this Deed of i rus2 shall survive ihe execution and deiivery of this Deed o#Trust, shall 6e continuing in nature, and
<br /> shal! remain in�uli force and effect until sucte time as Trustor's Inde6tedness shal! be paid in fu1S�..
<br /> CONDEMIVATION. The fiollowing provisions re9ating to condemnatio�n proceedings are a part of this Deed of TrusY:
<br /> Proceeding5. If any proceeding in condemnation is filed,. Trustor shall promptly notify Lender in writi�g, and�.
<br /> Trustor shall promptly take such steps as may be necessary to defiend 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 own choice, and Trustor will deliver or cause to be delivered to
<br /> Lender such instrurnents and documentation as may be requested by Lender firom. time to time to permit such
<br /> participation.
<br /> Applicat[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 lieu of condemnation, Lender may at its election require that all or any portion ofi the
<br /> net proceeds of the award be applied to the indebtedness or Yhe repair or restoiation of the Property_ The net
<br /> proceeds of the award shall mean Yh�award after payment of all reasonabie costs, expenses, and ettorneys` #ees
<br /> incurred by Trustee or Lender in connection with the cond�emnation.
<br /> IMPOSITIOI1i OF TAXES, FEES�AND CHARGES �Y GOVERN.MENTAL lAUTHORITIES. The foilowing provisions relaiing
<br /> to govemrnental Yaxes,fees and charges are a part of this Deed of Trust:
<br /> Current Taxes. Fees and Charges. Upon request by Lender, Trustor shall execute such documents in addition to
<br /> this Deed ofi Trust and take whatever other action is requested by Lender io perfect and conYinue Lender's�lien on
<br /> the Real Property. Trustor shall reimburse Lender for all taxes, as described below, together wiih all expenses
<br /> incurred in recording, perfecting or continuing tnis Deed of Trust, induding without limitation all taxes, fees,
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