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201207758
<br /> DEED OF TRl9ST
<br /> Loan No= 8100'i065 (Continued) Page 3
<br /> result ofi a foreclosure or sale under the lien. In any contest,Trustor shall defend itseif and Lender and shall satisfy
<br /> any adverse judgment before enforcement against the Property. Trustor shall name Lender as an additional obligee
<br /> under any surety bond furnished in the contest proceedings.
<br /> Evidence of Payment. Trusror shall upon demand furnish to Lender satisfacfory evidence of payment ofi the taxes
<br /> or assessments and shall authorize the appropriate governmental oNiciai to deliver to Lender at any time a written
<br /> statement of the taxes and assessments against tne Proper�ty.
<br /> Notice of Construction. Trustor sha.11 notify Le:nd:er at least fifteen (15) days before any work is commenced, any
<br /> services are furnished, or a.ny materials are supplied to tne Property, if any mechanic's lien, materialmen's lien, or
<br /> oiher lien could be asserted on account of the work, services, or materials. Trustor will upon requesc of Lender
<br /> furnish to Lender advance assurances satisfactory to Lender ihat Trustor can and will pay the cost ofi such
<br /> i m p rovem e nts.
<br /> PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part ofi this Deed of
<br /> Trus t.
<br /> Maintenance of Insurance_ Trustor shall procure and maintain policies of fire insurance with standard e>ctended
<br /> coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the i�eal
<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 sucli
<br /> coverage amo�unts as Lender may request with Trustee and Lender being named as ad�ditional insureds in such
<br /> liability insurance policies. Additionally, Trustor shall maintain such other insurance, including but not limited to
<br /> hazard, business interruptio�n, and boiler insurance, as Lender may reasonably require. Policies shali 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 /> policies or certificates of insurence in form satisfactory to Lender, including sti.pulations thai coverages will not be
<br /> cancelled or dPminished without at least ten (10) days prior written notice to Lender. Each insurance policy also
<br /> shall include an endorsemen2 providing that coverage in favor of Lender will not be i�mpaired 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, Trusror agrees to obtain
<br /> and maintain Federal Flood Insuran�ce, ifi avai:lable, for the full unpaid principal balance of the loan and any prior
<br /> liens on the property securing the I�oan, up to the maximum policy I�imits 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 snall promptly notify Lender of any loss or damage to the Property. Lender may
<br /> make proof ofi loss if Trustor fai�ls to do so within fifteen (15) days of the casualty. Whether 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 Indebtedness, payment of any li.en afifecting the Property, or tne restoration
<br /> and repair of the Property. If Lender elects to apply the proceeds to restoration and repair,Trustor shali repair or
<br /> replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfactory 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 Yhis 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 shaii be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br /> interest, and the rema�inder, if any, shall be applied to the principal balance ofi the Indebiedness. If Lender hoids
<br /> any proceeds after payment in fuli 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 furnis'�
<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 poficy, (4) the property insured, the then current repiacement vafue of such
<br /> property, and the manner of determining tnat value; and (5) the expiration date of the policy. Trustor shali, upon
<br /> request of Lender, have an independent appraiser satisfactory io Lencier determine the casn value replacement cost
<br /> of the Property.
<br /> LENDER'S EXPENDITURES. If any action or proceeding is commenced thaE would materially affect Lender's interest in
<br /> the Property or ifi Trustor fails to comply with any provision of this Deed of Trust or any Related DocumenTs, inciuding
<br /> but not limited to Trustor's fiailure to discharge 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 behalfi may (but shali not be obligated to) take
<br /> any action that Lender deems appropriate, i�cluding but not limited to discharging or paying ap taxes, liens, se�curity
<br /> interests, encumbrances and other claims, at any time levied or placed on the Proper'ty and paying all costs for insuring,
<br /> maintaining and preserving the Property. All such expenditures incurred or paid by Lender fior such purposes 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 of the Indebtedness and, at Lender's option, wili (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 ("I) '[he term o#any appli.cable insurance policy; or (2) the remaining term of
<br /> tne Note; or (C) be ireatetl as a balioon payment which will be due and payable at Yhe Note's maturity. The Deed of
<br /> Trust also will secure payment ofi these amounts. Such right snall be in addition to all other rights and remedies to
<br /> whicn Lender may be entiiled upon Default.
<br /> WARRANTYp DEFENSE OF TITLE. The following provisions relating to ownership ofi the Property are�a part of this Deed
<br /> of Trusb
<br /> Title_ Trustor warrants that: (a) TrusTor hofds good and marketable�title of record to the Property in fee simple,
<br /> free and dear ofi all liens and encumbrances other than those set forth in the Real Property description or in any
<br /> title insurance policy, title report; or fiinal title opinion issued in favor of, and accepted by, Lender in connection
<br /> with this Deed of Trust, and (b) Trustor�has the fuli right, power, and authority to execute and deliver this Deed of
<br /> Trust to Lender.
<br /> Defense of Title. Subject to the excepti�on in ihe paragraph above, Trustor warrants and will forever defend the
<br /> title to thE Property against the IawfW claims ofi alf persons. In tne event any action or proceeding is commenced
<br /> tnat questions Trustor's title or the interest of Trustee or Lender under tnis Deed ofi Trust, Trustor shall defend the
<br /> action at Trustor`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 /> Trus'tor will deliver, or cause to be delivered, to Lender such instrumeMs 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 witn ali
<br /> existing applicable laws, ord'inances, and regulations of govemmental authorities.
<br /> Survival of Represen#ations and Warraniies. All representations; warranties, and agreements made by Trustor in
<br /> tnis Deed of Trust shall.survive Yhe execution and delivery of this Deed o�P Trust, shall be continueng in nature; and
<br /> shall remain in full force and efifect until such ti.cne as 8orrower's Indebtedness snall be paid i�fuit, -
<br /> CONDEMNATtOi�i_ The fiollowing provisions relating to condemna2ion proceedings are a part of this Deed of Trust:
<br /> Proceedings. Ifi any proceeding in condemnation is filed, Trustor shall promptly notify Lender in �r✓riting, and
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