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201207755
<br /> DEED OF TRIJSI"
<br /> Loan No: 8'1009195 (Coeitiilued) Page 3
<br /> other lien could be. asserted on account of the work, services, or materials. Trustor wiii upon request of Lender
<br /> furnish to Lender advance assuran�ces satisfactory io Lender that Trustor can and will pay ihe cost of such
<br /> improvements.
<br /> PROPERTY DAMAGE INSURANGE. The following provisions relating to insuring the Property are a part of this Deed of
<br /> Trust.
<br /> Maintenance of Insurance. Trustor shall procuYe 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 sufificient to avoid application ofi any coinsurance clause, and wiih a standard mortgagee
<br /> clause in fiavor of Lender. Trustor shall also pro�cure and maintain comprehensive general liabili'ty 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 shaii mainta.in such other insurance, induding but not limited to
<br /> hazard, business interrupfion, 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, wili deliver to Lende�r from time to time the
<br /> policies or certificates of insurance in form satisfactory to Lender, induding stipulations that coverages will not be
<br /> cancelled or diminished without at least ten (1 O) days prior written notice to Lender. Each insurance policy also
<br /> shall indude an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act,
<br /> omission or defiault ofi Trustor or any other person. Should the Real Property be located in an area designated by
<br /> the Director of ihe Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to ob'tain
<br /> and maintain Federal Flood Insurance, if available, for the full unpaid principel balance of the loan and any prior
<br /> liens on the property securing the loan, up to� the maximum policy limits set under the I�9ational Rood Insurance
<br /> Program,or as otherwise required by Lender, and to maintain such insurance for the term of tne loan.
<br /> Application of Proceeds, TrusYor shall promptfy notify Lender of any loss or damage to the Properiy. Lender may
<br /> make proof of loss if Trusior fails to d�o so within fi�fteen i15) days of the casuaity. Whether or not Lender's
<br /> security is ompaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and appfy
<br /> the proceeds to the reduction of the indebtedness, payment of ariy 9ien afifecting the Property, oe the restovation
<br /> and repair of the Property. If Lender elects to ap�ply the proceeds to restoration and repair, Trustor sf�alf repair�or
<br /> replace the damaged or d�estroyed Improvements in a manner satisfiactory to Lender. Lender shall, upon
<br /> satisfactory proof of such expendiiure, pay or reimburse Trustor firom the proceeds for the reasonabfe cost of
<br /> repair or restoration if Trustor is not in default under this Deed of Trust. Any procee�ds which have not been
<br /> dis6ursed within 1 SO days after tneir receipt and whi.ch 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, shali 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 of Lender, however not rnore than once a year, Trustor shall furnish
<br /> to Lender a report on each existing policy of insurance showing: ('I) the name of the insurer; {2} the risics
<br /> insured; (3) the amount of thc policy; (4) the property insured, ihe then current reptlacement value of such
<br /> property, and the manner of determining that value; and (5) Yhe expiration date of tfie policy. Trustor snall, upon
<br /> request of Lender, have an independent appraiser satisfactory to Lender determiree the cash value repiacement cost
<br /> of the Property.
<br /> LENDER`S EXPENDITURES. If 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 discharge or pay when due any amouMs 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, including but not limited to discharging or paying all taxes, liens, security
<br /> interests, encumbrances and othe�daims, at any time levied or piaced on the Property 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 Note from the date incurred' or paid by Lender to Yhe date of repayment by
<br /> Trustor. All sucfi expenses wili become a part ofi the Indebtedness and, at Lender's option, wi❑ (A) be payable on
<br /> demand; (B) be added to the balance of the Note and be apportioned among and be payabie with any inStallmeM �
<br /> payments to become due during either (T) the term of any applicable insurance policy; or i2D the remaining term of
<br /> the Note; or (C) be treated as a balloon payment which wili be due and payabie at the N..ote's maturity. The Deed of
<br /> Trust also will secure payment of these amounts. Such right shall be in addiiion to all other rights and remedies to
<br /> which Lender may be entitied upon Default.
<br /> WARRANTY:DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed
<br /> ofi Trust:
<br /> Title. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Property in fee simpie,
<br /> free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any
<br /> titie insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection
<br /> with this Deed of TrusY, and (b} Trustor has the full right, power, and�authority to execute and deliver this Deed of
<br /> Trust to Lender.
<br /> Defense of Titte. Subject to the exception in the paragraph above, Trustor warrants and wi.l! forever defiend the
<br /> titie to the Property against the iawfiul claims of al! persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's title or the interest o#Tr�stee or Lender under tihis Deed af Trust,Trustor shall defend the
<br /> action at Trustor's expense. Trustor may be the nominal pany in such proceeding, but Lender shall be entitied to
<br /> participate in the proceeding and to be represented in the proceeding by counsel of Lender's own cho�ice, and
<br /> T�usto[wilf 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 warrants that the Property and Trustor's use oF the Property complies with all
<br /> existing appiieable laws, ordinances, and regulations ofi governmental authorities.
<br /> Survival of Representations and Warranties_ AII 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 efiFect until such time as Borrower's Indebtedness shall be paid in full.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed ofi Trust:
<br /> Proceedings. !f any proceeding in condemnation is filed, Trustor sfiall promptly notify Lender in writing,. and
<br /> Trustor shall promptly takc such steps as may be necessary to defend the action and obtain the award. i rustor
<br /> may be the nominal party in such proceeding, but Lender shall be entitled to participate in tf�e proceeding and to be
<br /> represented in ttie proceeding by counsel of its own choice, and Trustor will deliver or cause Yo be delivereci to
<br /> Lender such instruments and documentation as may be requested by Lender from time to time to permiY such
<br /> participation.
<br /> Application ofi 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 tnat all.or any portion of the
<br /> net proceeds of the award 6e appiied to the Indelitedness or the repair or restoration of tne Property. Tne. net
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