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201207740
<br /> DEED OF TRUST
<br /> Loan No: 81007148 (Co11t111ued) Page 3
<br /> or assessments and shall authorize the appropriate governmental official tio deliver to Lender at any time a written
<br /> statement ofi the taxes and assessments against the P�operty.
<br /> Notice ofi Construction. Trustor shall notify Lender at least fifteen (15) days before any work is commenced, any
<br /> services are fumished, or any materials are supplied to the Property, ifi any mechanic's lien, maYerialmen's Iien, or
<br /> other lien could be asserted on account ofi the work, services, or materials. Trustor will upon request of Lender
<br /> furnish to Lender advance assurances satisfactory to Lender that Trustor can and will pay the cost of such
<br /> improvements..
<br /> PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of
<br /> Trust
<br /> Maintenance of Insurence. Trustor shall procure and maintain policies of fire insurence with standard extended
<br /> coverage endorsementg on a fiair value basis for tne 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 favor of Lendet. Trustor shall also procure and maintain comprehensive general Iiability insurance in such
<br /> coverage amounis 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 fimited to
<br /> hazard, business interruption, and boiler insurance, as Lender may reasonably requSre. Policies shall be written in
<br /> fo:rm, 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 certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be
<br /> cancelled or d�iminished without at least ten ('10) days prior written notice to Lender. Each insurance policy also
<br /> shatl include an endorsemeM providing Yhat coverage in favor of Le�der 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 ofi 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 sei under�the National Flood Insurance
<br /> Program, or as otherwise required by Lender,and to maintain such insurance for the term of the Ioan.
<br /> Application of Proceeds_ Trustor shall prompily notifiy Lender of any loss or damage to the Property. Lender may
<br /> make proof of loss if Trustor fails to do so within fifteen (15) days of the cas�alty. Whether or noi Lender's
<br /> security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any i:nsurance and apply
<br /> the proceeds to the reduction ofi the Indebtedness, payment of any lien affecting the Property, or the restoration
<br /> and repair ofi 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 Lender. Lender shall, upon
<br /> satisfactory proofi of such expenditure, pay or reim�.burse Trustor firom the proceeds for the reasonable cosT of
<br /> repair or restoration ifi Trustor is not in default under this Deed of Trust. Any proceeds which have not been
<br /> disbursed within 7 80 days after their re�ceipt and which Lender has not committed to the repair or restoration of
<br /> ihe 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 /> Trustor's Report.on Insurance. Upon request ofi Lender, however not more than once a year, Trustor shall furnish
<br /> to Lender a report on each existing policy of insurance showing: (9) the name of the insurer; (2) the risks
<br /> insured; (3) the amount of tne policy; (4) tne property insured, the then current replacement value of such
<br /> property, and the manner of determining that value; and (5) the expiration date of the policy.. Trustor shall, upon
<br /> request ofi Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost
<br /> of the Property.
<br /> LENDER"S EXPENDITURES. If any action or proceeding is commenced Yhat would materially affect Lender's interest in
<br /> the Property or if Trustor fails to compiy with any provision of this Deed of Trust or any Related Documents, induding
<br /> but not limited to Trustor's failure to discharge or pay when due any amounts Trustor is required to discharge or pay
<br /> under this Deed of T�ust or any Related Documents, Lender�on Trustor's behalf may (but shall not be obligated to) take
<br /> any action that Lender deems appropriate, incLuding but not li�miied to discharging or paying ali taxes, liens, security
<br /> interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs fior insuring,
<br /> maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such pu�poses will then
<br /> bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by
<br /> Trustor. All 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 of the Note and be apportioned among and be payable witn any installment
<br /> payments to become due during either ("I) 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 Note's maturity. The Deed ot
<br /> Trust also will secure payment of these amounts. Such right shall be Pn� addition to all other rights and remedies to
<br /> which Lender may be entitled upon Default.
<br /> WARRANTY;DEFENSE OF TITLE. The foltowing 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 dear of all liens and encumbrances otner tnan those set forth in the Real Property description or in any
<br /> title insurance policy, title report, or final title opi.nion issued in favor of, and accepted by, Lender in connection.
<br /> with this Deed of Trust, and (b)Trustor has the full Yight, 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 /> tifile to tMe Property against tfie lawfiul claims of aIl 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,Trusto�shall defend the
<br /> action at Trustor's expense. Trustor may be tne nominal party in sucn proceeding, but Lender shall be entitled�to
<br /> participate in the proceeding and to be represented i�n the proceeding by counsel of Lender's own cnoice, and
<br /> T�ustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time
<br /> to permit such participaiion.
<br /> Compliance With Laws_ Trustor warrants that the Property and Trustor's use of the Property complies witn all
<br /> existing applicable laws, ordinances, 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, shali be continuing in natu�e, and
<br /> shall remain in fuil force and efiFect until such time as Trustor's Inde�bYedness shall be paid in full.
<br /> COIVDEMNATION. 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 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 own cnoice, and Trustor will deliver or cause to be delivered to
<br /> Lender such instruments and documentation as may be requested by Lender firom time to time to permit such
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