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201208230
<br /> DEED O� TRUST
<br /> Loan No: 870228 (COn$if7ued) Page 3
<br /> statement ofi the taxes and assessments against the Property.
<br /> Notice of Construction. Trustor shall notify Lender at ieast fifteen (15) days before any work is commenced, any
<br /> services are fumished, or any materials are supplied to the Prope�ty, if any mechanic's lien, materialmen's lien, or
<br /> other lie�n could be asserted on account of the work, services, or materials. Trustor wili upon request ofi 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 Insurance_ Trustor shall procure and maintain policies of fiire insurance with standard extended
<br /> coverage endorsements on a replacement basis for the full insureble value covering all Improvements on the Real.
<br /> Property in an amount sufificient to avoid application of any coinsurance clause, and with a standard mortgagee
<br /> dause in fiavor of Lender. Trustor shall also procure and maintain comprehensive generaf liability 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 shali maintain such other i�nsurance, including buY not limited to
<br /> hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shall be written i.n
<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 certifiicates of insurance in form saiisfactory to Lender, including stipulations that coverages will not be
<br /> cancelled or diminished without at leasi Yen (10) days prior written notice to Lender: Each insurance policy also
<br /> shall include an endorsement providing that coverege 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 fn an area designated by
<br /> the Director of 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 ihe loan, up to tne maximum policy limits set under the National Flood Insurance
<br /> Program, or as otherwise required by Lender, and to maintain such insurance for the term of 2he lo�an..
<br /> AppGcation of�?roceeds. Trustor shall promptly notify Le�nder ofi any loss or damage to the Property. Le�nde�r may
<br /> make proof of loss if Trustor faifs to do so witnin fiifteen ('[5) days ofi 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 ofi 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 shall, upon
<br /> satisfactnry proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost ofi
<br /> repair or restoration if T�ustor is not in defiault 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 restoratiort. 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, shall be applied to the principal balance of the lndebtedness. If Lender holds
<br /> any proceeds 8fter payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> TrusYor's Report on Insurance. Upon. request of Lender, nowever not more than�once a year, Trustor shall fumish
<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 ofi the policy; (4) the property �nsured, the then cu:rrent replacement value of such
<br /> property, and ihe manner ofi determining that value; and (5) tne expiration d'ate of the policy. Trustor shall, upon
<br /> request o#Lender, have an independent appraiser satisfiacYory�to Lender determine the cash value replacement cost
<br /> ofi the Property. ,
<br /> LENDER'S EXPENDITURES. If any action or proceeding is commenced that wovld materially affiect Lender's interest in
<br /> � the Property or if Trustor fails to comply with any provision of this Deed ofi Trust or any Related Documents, including
<br /> but not limited to Trustor's failure to discFi.arge or pay when due any amounts Trustor is required to discharge or pay
<br /> under this Deed ofi Trust or any Related Documents, Lender on Trustor's behalf may (but shall noi be obligated to) take
<br /> any action that Lender deems appropriate, including but not limited to discharging or paying al! taxes, liens, security
<br /> interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring,
<br /> maintaining and preserving the Property. A❑ such expendiiures incurred or paid by Lender for such purposes will tnen
<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. AII such expenses wilf become a part o'F the Indebtedness and, at Lender's opti.on, will (A) be payable on
<br /> demand; (B) be added to the balance of the Note and be apportioned among and be payable with any instali:ment
<br /> payments to become due during either (1) 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. Tne Deed ofi
<br /> Trust also wip secure payment of these amounts. Such right shall be in addition to a:❑. other rights and remedies to
<br /> which Lender may be entitled upon Default.
<br /> WARRANTV; DEFENSE OF TITLE_ The following 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 other than those set forth in the Real Property description or in any
<br /> title insurance policy, title report, or final title opinion issued in favor of, and accepced by, Lender in connection
<br /> with this Deed of Trust, and (b) Trustor has the full right,. power, and authority to execute and deliver tnis Deed of
<br /> Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and wiq forever defend the
<br /> titie to the Property against the lawful cfaims of all persons. in the event any action or proceeding is commenced
<br /> that qaestions Trustor`s title or th.e 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 snall be entitled to
<br /> participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and
<br /> Trusior will deliver, or cause io be delivered,.to Lender such i:nstruments as Lender rnay request from tirne to time
<br /> to permit such participation.
<br /> Com�sliance With Laws_ Trustor warrants that the Property and Trustor's use of the Property complies with all
<br /> existing applicable laws, ordinances, and regulations of governmental authorities.
<br /> Survival of RepresentaYions and Warranties. All representations, warranties, and agreements made by Trustor in
<br /> this Deed of Trust shaii survive th.e execution and delivery of ihis Deed of Trust, shall be continuing in. nature, and
<br /> shall rernai�.n in fiull force and effect until such time as Borrower's Indebiedness shall be paid in full.
<br /> CONDEMNATION_ Ti�e foilowing provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br /> Proceedings. If any proceeding in condemnation is fiiled, Trustor shall promptly notify Lender in wriiing:, 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 ofi 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. �
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