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201209012
<br /> DEED OF TRIJST
<br /> Loan No: 81001486 (Continuecl) Page 3
<br /> coverage amounts as Lender may request with Trustee and Lertder being named as additionalinsureds in such
<br /> li.ability insurance policies. Additionally, Trustor snall maintaon such other insurance, including bui noY lim�ited to
<br /> hazard, business interruption, and boiler insurance, 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 cornpanies
<br /> reasonably acceptable to Lender. Trustor, upon request of �ender, wiil deliver to Lender from time to time the
<br /> policies or certifiicates of insurance in form satisfactory to Lender, including stipulations that coverages will not be
<br /> cancelled or diminished without at least ten (1 O) days prior written notice tio Lender. Eacn insurance 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 Reaf Property be located in 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 ofi the loan and any prior
<br /> liens on the property securing the Ioan, 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 of tne 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 wiYhin fifteen ('15) days o# the casualty. Whether or not Lender's
<br /> security is impaired, Lender may, at Lender's election, receive and retain the proceeds of a�y insurance and apply
<br /> the proceeds to the reduction of the Indebtedness, payment of any tien affecting tAe 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 fmprovements in a manner satisfactory to Lender. Lender shall, upon
<br /> saiisfactory proof of such expenditure, pay or reimburse Tr�ustor from the proceeds for the reasonable cost of
<br /> repair or resYoration if Trustor is not in defiault under this Deed of Trust. Any proceeds which have not been
<br /> disbursed within 180 days afiter rtheir receipt and which Lender nas 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 o'f Trust, then to pay accrued
<br /> interest, and the remainder, ifi any, shall be applied to the proncipal balance 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 /> interests may appear.
<br /> Trustor`s Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish
<br /> to Lender a report on eacn existing policy ofi insurance showing: ("I) the name of the insurer, (2) the risks
<br /> insured; (3) the amount of the policy; (4) the property insured, the then current teplacement value of such
<br /> property, and the manner ofi determining that value; and (5) the expiration date of the policy. Trustor shall, upon
<br /> request of Lender, have an independent appraiser satisfactory to Lender determine the cash vafue replacement 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 ifi Trustor fiails to comply with any provision ofi this Deed of Trust or any Related Documents, including
<br /> but not Iimited Yo TrusYor'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 Trustor's behalf may (but shall not be obligated to) take
<br /> any action thaf Lender deems appropriate, including but not fimit�ed to discharging or payi�ng aLl 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. All sucn expenditures incurred or paid by Lender for such purposes will then
<br /> bearinterest at tne 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 ofi the Indebtedness and, at Lender's option, will (A) be payable on
<br /> demand; B) be added to the balance ofi the Note and be appartioned among and be payable with any install�ment
<br /> payments to becorne due during either (1) the term ofi any applicable insurance poli.cy; or (2) the remaining term ofi
<br /> the Note; o� (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 i� addition to all other rights and remedies to
<br /> which Lender may be entitled upon Defiault.
<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 warrants that: (a) Trustor holds good and marketable title of record to the Property in fee simple,
<br /> � firee and clear of all liens and encumbrances other than those set fortn in tne Real Property description or in any
<br /> title insurance poficy, title report, or fiinal title opinion issued in favor of, and accep'ted by, Lender in connection
<br /> with this Deed of Trust,and (b) Trustor has.the full right, power, and authority tio execute and delfver this Deed.of
<br /> Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragrapn above, Trustor warrants and will forever defend the
<br /> title to the Property against the lawful claims of all persons. In the event any action�or proceed'ing is commenced
<br /> that questions Trustor's title or the interest of T�ustee 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 /> Trustor will deliver, or cause to be delivered, to Lender sueh instruments as Lender may request from ti�me to time
<br /> to perm.it such participation.
<br /> Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property cornplies with all
<br /> existing applicable laws,ordinances; and regulations of govemmental authorities.
<br /> Survival of Representations and Warranties. A❑ representations, warranties, and�. agreements made by Trustor in.
<br /> this Deed ofi Trust shall survive the execution and delivery of this Deed of Trust, sha41 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 ofi Trust:
<br /> Proceedings. If any proceeding in condemnation is fi�led, Trustor shall promptly notify Lender in writing, and
<br /> Trustor shall promptly take such steps as may be necessary to defend the action and obiain the award. Trustor
<br /> may be the nominal party in such proceeding, but Lender shall be eniitled 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 reqvested by Lender from time to time to permit such
<br /> participation. �
<br /> Application of Net Proceeds�_ If aIl or any part ofi the Property is condemned by eminent domain proceedings or by
<br /> any proceeding or purchase in lieu of candemnation, Lender may at its election require that alI or any portion of the
<br /> net proceeds of the award be applied to the Indebtedness or the repair or resto�ation of the Property. The net
<br /> proeeedS ofi the�award sha❑ mean the award after payment ofi all reasonable costs, expenses, and attorneys' fiees
<br /> incurred by Trustee or Lender in connection witn the condernnation.
<br /> IMPOSITION OF TAXES. FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br /> to govemmental taxes,fees and charges are a part ofi 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 Trusi and�take whatever other action is requested by Le�nder to perfect and contin�ue Lender's Iien on
<br /> � the Real Property. Trustor shall reimburse Lender for all taxes, as described below, together with all expenses
<br /> incurred in recording, perfecting or continuing�this Deed o1` Trust, including without limitation all taxes, fees,
<br /> documentary stamps, and other charges fior recording or registeeing thFs Deed of Trust.
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