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201208896
<br /> DEED OF TRI.EST
<br /> Loan No: 87009445 (Continued) Page 3
<br /> or assessments and shall authorize the approptiate governmental official to deliver to Lender at any time a written
<br /> statemeM of the taxes and assessments against the Property.
<br /> Notice of Construction_ Trustor shall notify Lender at least fifteen ("15) days before any work is commenced, any
<br /> services are furnished, or any materials are supplied to the Proper[y, if any mechanic's lien, materialmen's lien, or
<br /> other lien could be asserYed on account of the work, services, or materials. Trustor will upon request of 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 INSURANGE. The following provisions relating to insuring the Property are a part of this Deed ofi
<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 ir�surable value covering all Improvements on the Real
<br /> Property in an amount sufficieni to avoid application of any coinsurance clause, and wiih a standard mortgagee
<br /> clause in favor of Lender. Trustor shall also procure and maintain comprehensive genaral Iiability insurance in such
<br /> coverage amounts as Lender may requesi with Trustee and Lender being named as additional insureds in such
<br /> liability insurance policies. Additionally, Trustor shall maintain such other insurance, i�ncluding but not limited to
<br /> hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shall be written in
<br /> form, amounis, coverages and basis reasonably acceptable io Lender and issued by a company or companies
<br /> reasonably acceptable to Lender. Trustor, upon request of Lender, wi❑ deliver to Lender from time to Yime tne
<br /> policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be
<br /> cancelled or diminPshed without at least ten (10) 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 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 designated by
<br /> the DirecYor 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 fudl unpaid principal balance of the loan and any prior
<br /> liens on the property securing the loan, up to the maxirnum policy limits set under the National Flood Insurance
<br /> Program, o�as otherwise required 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 ofi loss if Trustor fails to do so within fifteen (i5) 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 atfecting the Property, or the restoration
<br /> and repair of the Property. If Lender elects to apply ihe 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 /> satisfactory proofi of sucfi expenditure, pay or reimburse Trustor from Yhe proceeds fior the reasonable cost ofi
<br /> repair or restoration if Trustor is not in default under this Deed of Trusi. 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 pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br /> interest, and the remainder, if any, shali be applied to the principal balance of the Indebtedness. Ifi Lender holds
<br /> any proceeds after payment in ful�l of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> Trustors Report on Insurance_ Upon request of Lender, how�ever not more than once a year,Trustor shall furnish
<br /> to Lender a report on each existing poficy of insurance showing: ('i) the name of the insurer, (2) tne risks
<br /> insured; (3) the amount of the policy; (4) the property i,nsured, the then current replacemenrt value of such
<br /> property, and the manner of determining that value; and C5) the expiration date of the policy. Trustor shall, upon
<br /> request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost
<br /> ofi the Property.
<br /> LENDER'S EXPENDITURES. Ifi any aciion 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 failure 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 Trustior's behalf may (but shall not be obligated to) take
<br /> any action that Lender deems appropriate, incfuding but not limited to discharging or paying alI taxes, liens, security
<br /> interesis, encumbrances and other daims, at any time levied or placed on the Property and paying 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 Noie from the date incurred or paid by Lender to the date of repayment by
<br /> Trustor_ AII sueh expenses will become a part ofi the Indebtedness and, at Lender's option, will (A) be payable on
<br /> demand; (B} be added to the balance of the Note and be apportioned am�ong and be payable with any installment
<br /> payments to become due during either (1) the term ofi any applicable insurance policy; or (2) the remaining term of
<br /> the Note; or (C) be treated as a balloon paymeni which will be clue and payable at the Note's maturity. The Deed of
<br /> Trust also will secure payment of these amounts. Such right shall be in add:ition to all other rights and remedies to
<br /> which Lender may be entitled upon Default..
<br /> WARRA.NTY: DEFENSE OF TITLE_ The following peovisions 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 ofi record to the Property in fee simple,
<br /> free and clear of all fiens and encumbrances other than those set forth in the Real Property description or in any
<br /> tiile insurance policy, title report, or final title opinion issueo1 in favor of, and accepted by, Lender in connection
<br /> with this Deed of Trust, and (b) Trustor has the full right, power, and authority to execute and deliver this Deed of
<br /> Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragrapti above, T�ustor warrants and will forever defend the
<br /> title to the Ptoperty against the Iawful daims of all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's title or tne interest of Trustee or Lender under this Deed of Trust,Trustor shall defiend the
<br /> action at Teustor'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 ofi Lender's own choice, and
<br /> Trustor will deliver, or cause to be delivered, to Lender such instrume�nts as Lender m�ay request from time to time
<br /> to permit such participation.
<br /> Compliance With Laws. Trustor warrants tnat the Property and Trustor�'s use of the Property complies with aII
<br /> existing applicable laws, ordinances, and regulations of govemmental autnorities..
<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 Trust, shall be continuing in nature, and
<br /> shall remain in full force and effect until such time as Borrower'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 proceeding in condemnation is filed,. Trustor shall promptly notifiy Lender in writing, and
<br /> Trustor shall p.romptly take such steps as may be necessary to defend the action and obtain tne award.. Trustor
<br /> may be the nominal party in such proceeding, but Lender sha�ll be entitled to participate in the proceeding and to be
<br /> represented in the proceeding by counse�l of its own choice, and Trustor will deliver or cause to be delivered to
<br /> Lender such instruments and documentation as may be re�uested by Lender from time io time to permit such
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