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201207892
<br /> DEED OF TRUST
<br /> Loan No: 373057729 (Continued) Page 3
<br /> PROPERTY DAMAGE INSURANCE_ 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 extended
<br /> coverage endorsements on a replacement basis for the full insurable value covering alI Improvements on the Real
<br /> Property in an amount sufficient to avoid application of any coinsuTance clause, and with a standard mortgagee
<br /> clause in favor of Lender,together with such other hazard and liability insurence as Lender may reasonably require.
<br /> Policies shall be writTen in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a
<br /> company or companies reasonably acceptable to Lender. Trustor, upon request of Lender, will deliver Yo Lender
<br /> from time to time the policies or certificates of insurance in form satisfiactory to Lender, including stipulations that
<br /> coverages will not be� cancelled or diminished without at least ten (10) days prior written notice to Lendec.. Each
<br /> insurance policy also shall include an endorsement providing tnat coverage in favor of Lender will not be impaired
<br /> in any way by any act, omission or default of Trustor or any other person. Should the F[eal Property be located in
<br /> an area designated 6y the Director of tne Federal Emergency Management Agency as a special flood hazard area,
<br /> Trusior agrees to obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal balance of
<br /> the loan and any prior liens on the property securing the loan, up to the maximum policy limits sei unde� Ytie
<br /> National Flood InsuPance Program, or as otherwise requited by Lender, and to maintain such insurance for the term
<br /> of the loan.
<br /> Application of Proceeds. Trustor shall promptly noiify Lender of any loss or damage to the Property. Lender may
<br /> make proof of loss if Trustor fails to do so within fifteen (9 5) 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 insurance and apply
<br /> the proceeds to the reduction of ihe Indebtedness, payment of any lien affecting the Property, or the restoration
<br /> and repair of the Property. lf Lender elects to apply the proceeds to resioration and repair, Trustor shall repair or
<br /> replace the damaged or destroyed lmprovements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfacfory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br /> repaPr or restoration if Trustor is not in default under this Deed of Trust. Any proceeds which have not 6een
<br /> disbursed within 'I80 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, shail be applied to the principal balance ofi 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 /> LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests,
<br /> eneumbrences, and other daims, (B) to provide any required insurance on the Property, or (C) to make repairs to the
<br /> Property then Lender may do so. Ifi any action or proceeding is commenced that would materially affect Lender's
<br /> interests in the Property, then Lender on Trustor's behalf may, but is not required to, take any action that Lender
<br /> believes to be appropriate to protect Lender's interests. All expenses incurred or pa�d by Lender fior such purposes wili
<br /> then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the daie of repayment
<br /> by Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on
<br /> demand; (B) be added to the balance ofi ihe Note and be apportioned among and be payable with 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 treaied as a balloon payment which will be due and payable at the Note's maturity. Tne Deed of
<br /> Trust also will secure payment of these amounis. The rights provided fior in this paragraph shall be in addition to any
<br /> other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender
<br /> shall not be constirued as curing the defauli so as to bar Lender frorn any remedy that it otherwise would have had..
<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 warrents that: (a) Trustor holds good and. marketable title of record to the Property in fee simple,
<br /> firee and clear of alI liens and encumbrances other than those seY forth in the Real Property description or in any
<br /> title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection
<br /> with this Deed ofi Trust, and (b) Trustor has the full right, power,. and autnority 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 tne Property against the lawfiul claims ofi all persons. In tne event any action or proceeding is commenced
<br /> that questions Trustor's title or the interest ofi Ttustee or Lender under this Deed of Trust,Trustor shall defiend 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 /> Trustor will deliver, or cause to be delivered, to Lender such instruments as Le�nder may request from ti�me to time
<br /> to permit such participation.
<br /> Compliance With Laws. Trustor wa�rants ihat the Property and TrustoY's use of the Property complies with all
<br /> existing applicable laws, ordinances, and regulations of governmental authorities.
<br /> Survivat of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall
<br /> survive the execution and tlelivery of this Deed of Trust, shall be continuing in nature and sha❑ remain in full force
<br /> and effect until such time as Trustor's Indebtedness is paid in full.
<br /> C011lDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed ofi 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. Trustar
<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 instruments and documentation as may be requested by Lender from time to time to permit such
<br /> participation.
<br /> Application 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 Iieu of condemnation, Lender may at its election require 2hat all or any portion of the
<br /> net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property_ The net
<br /> proceeds of the award shall mean the award after payment of aIl reasonable cosYs, expenses, and aYtomeys' fees
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br /> to governmental taxes,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 of Trust and take whatever other action is requested by Lender to perfect and continue Lender's lien on
<br /> the Real Property. Trustor shall reimburse Lender for all taxes, as described below, together with all expenses
<br /> incurred in recording, perfeciing or continuing this Deed of Trust, induding without limitation a❑ taxes, fees,
<br /> � docurnentary stamps, and other charges for recording or registering this Deed of Trust.
<br /> Ta�ces. The following shall constitute taxes to which this section applies: ("1) a specific tax upon this type of
<br /> Deed of T�ust or upon all or any part of the Indebtedness secured by this Deed of Trust; (2) a specifiic tax on
<br /> Trustor which Trustor is authorized or required to deduct from payments on the Indebtedness secured by this type
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