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201208343
<br /> DEE� OF TRt�ST
<br /> Loan No: 81 Q01387 (GO6ltIt7UE:C�) Page 3
<br /> Trust.
<br /> Maintenance of Insurance_ Trustor shall procure and mainLain policies of fire insurance with standard extended
<br /> coverage endorsements on a replacement basis for the full insurable value covering all Improvemenis on the Real
<br /> Property in an amount sufficienY to avoid appiication of any coinsurance clause, and with a standard mortgagee
<br /> clause in favor of Lender. Trustor shall also procure and maintain comprenensive general 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. Additionaily, Trustor shall maintain such otner 9nsurance, incluc�ing but not limited tc
<br /> hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shail be written in
<br /> form, amounts, coverages and 6asis reasonably acceptable to Lender and issued by a company or companies
<br /> reasonabfy acceptabie to Lender. Trustor, upon request ofi Lender, will deliver to Lender from iime to time the
<br /> policies or certificates ofi insurance in form setisfactory to Lender, including stipulations tnat coverages wili n�ot be
<br /> cancelled or diminished without at least ten (1 O) days prior written notice to Lender. Each insurance policy also
<br /> shall include an endorsement providing that coverage in fiavor of Lender will not be impai.red in any way by any act,
<br /> omission or defiault oP Trustor or any other person. Should the Reai Property be located in an area designated by
<br /> the Director of�the Fede�ral Emergency Managemert Agency as a special flood hazard area, Trustor agrees to obtain
<br /> and maintain Federal Flood I�nsurance, 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 National Flood Insurance
<br /> Program, or as otherwise required by Lender, and to rnaintain such insurance for the term ofi ghe loa�n. �
<br /> Application of Proceeds. Trustor shall promptly notify Lender of any ioss or damage to the Property. Lender may
<br /> make proofi of loss if Trustor fails [o do so within fifteen ("15) days of the casualty. Whether or not Lender's
<br /> security is impaired, Lender may, at Lender's eiection, receive and retai.n the proceeds ofi�ny insurance and apply
<br /> the proce�ds to the reduction of the Indebtedness, payment of any lien affecting the Pro-perty, or tfie restoration
<br /> and repair of the Properiy. If Lender elects to aPpfy the proceeds to restoration and repair, Trustor shall repair or
<br /> repiace the damaged or desiroyed 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 this Deed ofi Trust Any proceeds which have not 6een
<br /> disbursed within 180 days after their receipt and which Lender has not committed �lo the repair or restoration of
<br /> the Property shall be used first m 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 6atance 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 /> inierests may appear_
<br /> �Trustor's Report on Insurence. Upon request of Lender, however not more than once a year, Trustor shali furnish
<br /> to Lender a report on each existing policy of insurance showing: (1) the name of the insurer, {21 the risks
<br /> insured.; (3} the amount of the poticy; (4) the property insured, the then current repiacement value of such
<br /> property,. and tne manner of determining that vafue; an�� (5) the expiration date of the policy. Trustor shall, upon
<br /> request o#Lender, nave an independent appraiser satisfactory to Lender determine the cash value replacement cost
<br /> of the Property. �
<br /> LENDER'S EXPENDITl1RES. If any action or proceeding is commencecl that would�materially affect Lender's interest in
<br /> ihe 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 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 shail not be obligated to) take
<br /> any action that Lender deems appropriate, including but not limited to d�ischarging or paying al�l taxes, liens, security
<br /> interests, encumbrances and oTher claims, at any time levied�or piaced on the Property and paying all costs fior insuring,
<br /> maintaining and preserving ihe Property. All such expenditures incurred or pa�id by Lender Por such purposes will then
<br /> bear interest at the rate chaoged under the Note from the date incurred or paid by Lender to the date of repavment by
<br /> Trustor. All such expenses wiJ�l become a part ofi the Indebtedness and, at Lender's option, wi�il (A) be payable on
<br /> u+�emand; (B) be added to the 6alance of tne Note and be apportioned among and be payable with any installment
<br /> payments to become d�ue during ei�Cher (1) the term� of any applicabie insurance policy; or (2i tne remaining term of
<br /> the Note; or (C) be treated as a bal9oon payment which wili be due and payable aL the Nbte's maturity. The Deed of
<br /> Trust also wiil secure payment o# these amounLs. Suci� right shal! be in addiiion to all other righcs and remedies 20
<br /> which Lender may be entitled upon Defauit..
<br /> WARRANTY; DEFEIVSE OF TITLE The following provisions relating to ownership of the Property are a part ofi 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 clear of all liens and encumbrences 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 acce�ted by, Lender in connection
<br /> with this Deed of Trust, and (6) Trustor has the full right, power, and authority to execute and deliver this Deed of
<br /> TrusC co Lender. � �
<br /> Defiense of Title. SuSject to the exceptian in the paragraph above, Trustor warrants and will forever defiend the
<br /> xitie.to the Property against the lawful daims of all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's Titie or the intzrest of Trustee or Lender under this Deed of Trust,Trustor shall defend zhe
<br /> action at Trustor°s expense. Trustor may he �the nomina! party in such praceeding, but Lender shaii� be eniitled to
<br /> participate in the proceedi:ng and to be represented in the proceeding by counsel of Lender's own choice, and
<br /> Trustor wili deliver, or cause to be delivered, to Lender sucfi instruments as Lender may request from time to iime
<br /> to permit such participation. �
<br /> Compliance With Laws. Trusior warrants that the Property and Trustor's ns:e of the Property complies with all
<br /> existing applicabte laws, ordinances, and regulations of govemmental authorities. �
<br /> Survival. ofi Representations and Warranties_ All representations, warranties, and agreements made by Trustor in
<br /> this Deed ofi Trust shall survive the execution and delivery of this Deed of Trusi, shall be continuing in nature, and
<br /> shalt remain in fiull force and 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 of this Deed of Trust
<br /> Proceedings. If any pro�ceeding in condemnation is fiiled, TrusYor shalY promptly notify Lender in writing, and
<br /> Trustor shall prom�ptly iake sucf� steas as may.t�e necessary to defend the action and obtain the award. Trustor
<br /> may be the nominal party in such proceeding, but Lender shali be entitled to participate in the proceeding and to be
<br /> represented in the proceedino by counsef ofi its own choice, and Trustor wili deliver or cause To be delivered to
<br /> Lender such insirumenYs and documcntation as may be requested by Lender from time to time to permit such
<br /> participation. . �
<br /> Application of Net Proceeds. If all ar 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 that 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 all reasonable costs, expenses, and attoeneys' fees
<br /> incurred by Trustee or Lender in connection with the condemnation:
<br /> IMPOSITION OF TAXES, FEES AND CNARGES BY GOVERNMENTAL AUTHORITIES. The fiollowi:ng provisions relaxing
<br /> to governmental taxes,fiees and cfiarges are a par[oF this Deed ofi Trust:
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