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201209204
<br /> DEED OF TFiUST
<br /> Loan No: 81001354 (Continuecl} Page 3
<br /> coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in such
<br /> liability insurance policies. Additionally, Trustor shall maintain such other insurance, including but not limited 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 companies
<br /> reasonably acceptable to Le.nder. Trustor, upon request of Lender, will deliver to Lender from time to time the
<br /> polici.es ar certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be
<br /> carcelled or diminished without at least ten (l O) days prior written notice to Lender. Each insurance policy also
<br /> shall indude an endorsement providing that coyerage in favor of Lender will not be impaired in any way by any act,
<br /> omission or defauft of Trustor or any other pe�son. Should Lhe 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 obta�in
<br /> and maintain Federal Flood insurance, if available, for the fuli unpaid principal balance ofi the loan and any prior
<br /> liens on the property securing the loan, up to the m:aximum poli�cy limits seY under the National Flood Insurance
<br /> Program, or as otnerwise required by Lender, and to maintain such insurance for the term of the loan.
<br /> Application of Proceeds. Trustor shall promptly notify Lender ofi any loss or damage to the Property. Lender may
<br /> make proof of loss if Trustor fails to do so within fiifteen (15) days of the casualty. Whether or not Lender's
<br /> security is impaired, Lender rnay, at Lender's election, receive and retain the proceeds of any insurance and apply
<br /> the proceeds to the reduction ofi the Indebtedrtess, payment of any lien affecting the Property, or the restoration
<br /> and repair of the Ptoperty. If Lender elects to apply Yhe proceeds to restoration� and repair; Trustor shall repair or
<br /> replace the damaged or destroyed improvements in a manner satlsfactory to Lender. Lender shail, upon
<br /> satisfactory proof of such expenditure, pay or reimburse Trustor firom the proceeds for the reasonable cost of
<br /> repair or restorafion if Trustor is not in. defaWt under this Deed of Trust. Any proceeds which have not been
<br /> disburse6 within 180 days after their receipt and which Lender has not comrnitted to ihe 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 principa:l balance of the Indebtedness. Ifi Lender holds
<br /> any proceeds after payment in fuil of the Inde:6tedness, such proceeds sha:ll. be paid to T�ustor 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 snall furnish
<br /> to Lender a report on eacn existing policy of insurance showing: (1) the name of the insurer; (2) the risks
<br /> insured; (3) the amount of the policy; (4) the property insured, the the:n current replacement value of such
<br /> property, and the manner of determining that value; and (5) tne expiration date of the policy. Trustor shall, upon
<br /> request of Lender, have an independenY appraiser satisfactory to Lender determine the cash value repiacemen2 cost
<br /> of the Property. � � �
<br /> LENDER'S EXPEN'DITURES. If any action or pro�ceeding is commenced that would materiatly afiFect Lender'�s interesi in
<br /> the Property or if Teustor fails to comply with any provision of this Deed of Trust or any RePateci Jocuments, includ'ang
<br /> bui 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 Trustor's behalf may (but shali not be obliga�ted 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 piaced o�n the Prope�rty 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 Note from the date incu�red or paid by Lender to the date of repayment by
<br /> Trustor. All such expenses will beco��me a part of tne Indebtedness and, at Lender's option, wiil tA) be payable on
<br /> demand; (B) be added to the balance of the Note and be apportioned among and be payabie witih any installm.ent
<br /> payments to become�due during either (1) the term of any appGcable 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. The Deed o'F
<br /> Trust also will secure payment of these amounts. Such right shall be in addition to all otner rights and remedies to
<br /> which LendeY may be entitled upon Defiault.
<br /> WARRANTY� DEFENSE OF TITLE. The fol[owing provisions relating to ownership of the Property are a part of this �eed
<br /> of Trust:
<br /> Title. Trustor warrants that: (a) Trustor holds good and marketable titl2 of record to the Property in fee simpie,
<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 titie opinion issued in favor of, and accepted by; Lender in con�nection
<br /> with this Deed of Trust, and (b) Trustor has the full right, power, and authority to execute a�nd deliver this Deed ofi
<br /> Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will foYever defend the
<br /> title to tne Property against the lawfui claims 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 o#Trust, Trustor snall defend the
<br /> action at Trustor'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 ihe proceeding by counsel of Lender's own choice, and
<br /> Trustor wilf deliver, or cause to be delivered,to Lender sucn instruments as Lender may�equest from time to time
<br /> to Permit such parti.cipation.. -
<br /> Compliance With Laws. Trustor warrants that the Property and Ttustor's use of the Property complies with all
<br /> existing applicable laws,ordinances, and regulations of govemmental authorities.
<br /> Survival of Representations and Warranties. All representations, warcanties, and agreements made 6y Trustor in
<br /> this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing 7n nature, and
<br /> shall remain in full fiorce and effect until such time as Trustor's Indebtedness shall be paid in full.
<br /> CONDEMNATION. The following provisions relating to�condernnation proceedings are a part of this Deed ofi Trust:
<br /> Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and
<br /> Trustor shaif promptly take such steps as may be necessary to defend the action and obtain the award. Trustor
<br /> may be the nominal party in sucn proceeding, but Lender shall be entitled to participate in the proceeding and Co be
<br /> represented in the proceeding by counsel of its own choice, and Trustor wifi deliver or cause to be delivered to
<br /> Lender such instrurnents and documentaYion as may be requested by Lender from tirne to time to permit such
<br /> participaYion. �
<br /> Applicatdon of Net Proceeds. ff all or any part of the Prope3-ty is condemned by eminent domain proceedings or by
<br /> any proceeding or purchase in lieu of conciemnation, Lender may at its election require that all or any portion of the
<br /> net proceeds of the award be applied to tne Indebtedness or the repait or restoration ofi the Property. The net
<br /> proceeds of the award shall mean the award after payment of aii reasonable costs, expenses, and attorneys' fees
<br /> incurred by Trustee or Lender in connection wiYh the condemnation.
<br /> IMPOSITION QF TAXES, FEES AND CFiARGES 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 shali execute such documents in addition to
<br /> this Deed of Trust and take wnatever otfie�:r acti.on is requested by Lender to perfect and continue Lender's lien on
<br /> ihe Real Property. Trustor shall reimbu:rse Lender for all taxes, as described below, together with all axpenses
<br /> incurred in recording, perfect9ng. or continuing this Deed af Trust, induding without limitation all taxes, fiees,
<br /> documentary srtamps, ancl other charges for recording or registering this Deed of Trust.
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