|
201209229
<br /> DEED OF TRUST
<br /> Loan No: 87001651 (COntlllued) Page 3
<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 Lenden Trustor, upon request of Lender, will deliver to Lender firom time to time the
<br /> policies or certificates of insurance in fiorm satisfactory to Lender, including stipulations that coverages will noY be
<br /> cancelled or diminished without at least ten (10) days prior writien notice to Lender. Each insurance policy also
<br /> shall include an endorsement providing that coverage in favor of Lender will noY 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 Director of zhe 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 Ioan, up to the maximum policy limits set under the IVational Flood Insurance
<br /> Program, or as otherwise required by Lender, and to maiMain such insurance for the term of the loan.
<br /> Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to tne Property. Lender may
<br /> make proof of Ioss if Trustor fails to do so within fifteen (15) days of the casuaY[y. 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 IndebYedness, paymeM ofi any lien affecting the Property, or the restoration
<br /> and repair of ttie 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 saYisfactory to Lender. Lender shall, upon
<br /> . satisfactory proofi of sucF� expend�iture, 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 of Trust. Any proceeds which have not been
<br /> disbursed within 1 SO 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 /> intetest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds
<br /> any proceeds after payment in fiull 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 each exi.sting policy of insurance showing: ("I) the name of the insurer, (2) the risks
<br /> insured; (3) the amount of the policy; (4) the p�operty insured, the the:n current replacement value of such
<br /> property, and the manner of 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 value replacement cost
<br /> of the Property.
<br /> LENDER'S EXPENDITURES_ If any action or proceeding is commenced that would materially affect Lender's inierest in
<br /> the Property or if Trustor fails to comply with any provision of this Deed ofi Trust or any Related Documents, induding
<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 Trustor's behalf may(but shall not be obligated to) take
<br /> any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security
<br /> interests, encumbrances and other daims, at any time Ievied 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 Note firom the date incurred or paid by Lender to the date of repayment by
<br /> Trustor. All such expenses will become a part of the Indebtedness a,nd, at Lender's option, 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 installment
<br /> payments to become due during either t�) the term of any applicable insurance policy> or (2) the remaining term of
<br /> [he Note; or (C) be treated as a balloon payment which will be efue and payable at the Note's maturity. The Deed of
<br /> Trust also will secure payment of these amounts. Such right shall be in addition to aIl other rights and remedies to
<br /> which Lender may be entitled.upo�n Default.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relating to ownership ofi 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 liens and encumbrances other than tnose set fiorth in the Real Property description ot in any
<br /> title insurance policy, iitle report, or final title opinion issued in favor of, and accepted by, Lender in connection
<br /> with this Deed ofi Trust,and (b) Trustor has the full right, power, and authority to execute and deliver this Deed ofi
<br /> . Trust to Lender.
<br /> Defense of Title. Subject to Lhe excepiion in the paragraph 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 proceeding is commenced
<br /> that questions Trustor's title or the interest of Trustee or Lender under this Deed of Trust,Trustor shall defend the
<br /> action at Trustor's expense. Trustor may be Yhe 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 of Lender's own choice, and
<br /> Trustor will deliver, or cause to be delivered,to Lender such instruments as Lender may request from time to time
<br /> to permit such participation.
<br /> Compliance With Laws. Trustor warrants that the Property and Trustor's use ofi the Property complies with all
<br /> existing applicable laws,ordinances,and regulations of governmental authorities.
<br /> Survival of Representations and Warranties. All representations, warranties, and agreements made by Trustor in
<br /> this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and
<br /> snall remain in full force and effect until such time as TrusYOP's Indebtedness shall be paid in full.
<br /> CONDEMNATION. The fiollowing 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 notify Lender in writing, and.
<br /> Trustor shall promptly take such steps as may be necessary to defend Yhe action and obtain the award.. T�usior
<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 of 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 firom time to time to permii such
<br /> participation_.
<br /> Application of Net Proceeds. If all or 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 ihe award shall mean the award after payment of all reasonable cosYs, expenses, and attorneys' fees
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMEIVTAL AUTHORtT1ES_ The fiollowing provisions relating
<br /> to governmental 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 Trust and take whatever oYher acYion is requested by Lender to perfect and continue Lender's lien on
<br /> tne 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 of Trust, including without limitation all taxes, fees,
<br /> documentary stamps, and other charges for recording or registering this Deed of Trust.
<br /> Ta�ces_ The following shall constitute taxes to which tnis section applies: (l) a specific tax upon this type of
<br /> Deed ofi Trust or upon alI or any part of the Indebiedness secured by this Deed ofi Trust; (2) a specific tax on
<br />
|