DEED OF TRUST ti�I �. 2�� o O�
<br />(Continued) Page 3
<br />coverage endorsements on a fair value basis for the 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 fevor of Lender. Trustor shall also procure and maintain comprehensive general liability insurance in such
<br />coverage amounts as Lender may request with Trustee and Lender being named es additional insureds in such
<br />liability insurance policies. Additionally, Trustor shall mafntain such other insurance, including but not limited to
<br />hazard, business interruption, and boiler insuranca, as Lender may reasonably require. Policies shall 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 insurance in form satisfactory to Lender, including stipulations that coverages will not be
<br />cancelled or diminished without at least thirty (30) days prfor written notice to Lender. Each insurence policy also
<br />shall include an endorsement providing that coverage in favor of Lender will not be impaired 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 designeted by
<br />the Director of the Federel 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 set under the Natlonal Flood Insurance
<br />Program, or as otherwise requirad by Lender, and to maintain such insurance for the term 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 loss if Trustor fails 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 lien affecting the Property, or the restoration
<br />and repair of 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 shell, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br />repair or restoretion if Trustor is not in default under this 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 shall be used first to pey any emount 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 peyment in full of the Indebtedness, such proceeds shall be pafd to Trustor as Trustor's
<br />interests mey appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor sheil furnish
<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 poUcy; (4) the 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 of Lender, heve an independent eppreiser satlsfactory to Lender determine the cash value replecement 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 feilure to discherge or pay when due eny amounts Trustor fs required to discherge 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 other claims, at eny time levied or placed on the Property and payfng 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 the date of repayment by
<br />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 balanca of the Note and be apportioned emong and be peyable with any installment
<br />paymants to become due during either (7) the term of any applicable insuranca 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 of
<br />Trust 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. The following provisions relating to ownership of the Properry are a part of this Deed
<br />of Trust:
<br />Titie. Trustor warrants that: la) Trustor holds good and marketable title of record to the Property in fee simple,
<br />free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any
<br />title insurance policy, title report, or final title opinlon issued in favor of, and accepted by, Lender (n connection
<br />with this Deed of Trust, and (b) Trustor has the full right, power, and authority to execute and deliver th(s 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 the Property against the lawful cleims of all 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, Trustor shall defend the
<br />action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shall be entiUed to
<br />participate in the proceeding and to be represented in the proceeding by counsel of Lender's own cholce, and
<br />Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from tlme to time
<br />to permit such participation.
<br />Compliance With Laws. Trustor warrants that the Property end Trustor's use of the Property compl(es with all
<br />existing applicable laws, ordfnances, and regulations of governmental authorities.
<br />Survival of Representations and Warrantles. All representations, warranties, and agreements made by Trustor in
<br />this Deed of Trust shell survive the execution and delivery of this Deed of Trust, shall be continuing in neture, and
<br />shall remain in full force end effect until such time as Trustor's Indebtedness shall be paid in full.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part af this Deed of Trust:
<br />Proceedings. If eny proceeding in condemnation is ffled, Trustor shall promptly notify Lender in writing, and
<br />Trustor shall promptly teke such steps es 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 choice, and Trustor will deliver or cause to be delivered to
<br />Lender such instruments and documentation es may be requested by Lender from time to time to permit such
<br />participation.
<br />Applicatlon of Net Proceads. If all or any part of tha Property is condemned by eminent domain proceedings or by
<br />any proceeding,or purchase in lieu of condemnetion, Lender may at its election require that ell 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 all reasonable costs, expenses, and ettornays' fees
<br />incurred by Trustee or Lender in connection with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARQES 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 additfon to
<br />this Deed of Trust and take whatever other action is requested by Lender to perfect and continue Lender's lien on
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