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201209367
<br /> DEED .OF TFBUST
<br /> Loan No: 872058835 (ContlllueC9) Page 3
<br /> PROPERTY DAMAGE WSURANCE. The following provisions relating to insuring the Property are a part of this Deed of
<br /> Trust.
<br /> Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended
<br /> coverage endorsemenis on a replacement basis for the full insurable value covering all Improvements on the Real
<br /> Property in an amount sufficient to avoid application of any coinsuran�ce clause, and with a. standard mortgagee
<br /> clause in favor of Lender, together with such other hazard and liability insurance as Lender may reasonably require.
<br /> Policies shalf be written in form, amounts,. coverages and basis reasonably acceptable to Lender and issued by a
<br /> company or companies reasonably accepYable to Lender. Trustor, upon request of Lender, will deliver to Lender
<br /> from time to time the policies or certificates of insurance in form 5atisfactory to Lender, including stipulaYions that
<br /> coverages will not be cancelled or diminished without at least ten (90) days prior written notice to Lender. Each
<br /> insurance policy also shall indude an endorsement providing tnat coverage in favor ofi Lender will not be impaired
<br /> in any way by any act, omission or default of Trustor or any other person. Snould the Real Property be located in
<br /> an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area,
<br /> Trustor agrees to obtain and maintain Federal Flood' Insurance, ifi available, for the maximum amount of Borrower's
<br /> credit line and the full unpaid principal balance of any prior liens on the property securing the loan, up to the
<br /> maximum policy Ilmits set under the Naiional Flood Insurance Program, or as otherwise required by Lender, and to
<br /> mai.ntain such insurance for the term of the Ioan.
<br /> Application of Proceeds_ Trustor shall promptly notiiy Lender of any loss or damage to the Property. Lender may
<br /> make proof of Ioss if Trustor fails to do so within fifteen. {'15) days of the casualty. Whether or not Lender's
<br /> secutity is impaired, Lender may, at Lender's elec€ion, receive and retain the proceeds of any insurance and apply
<br /> the proceeds to the reduction of the Indebtedness, payment of any lian affecting the Property, or the restoration
<br /> and repair ofi the Property. Ifi Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or
<br /> replace the darriaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfactory proof of such expenditure, pay or reirnburse Trustor from tne proceeds for the reasonable cost of
<br /> repair or restoretion if Trustor is not in default under this Deed of Trust.: Any proceeds which nave not been
<br /> disbursed wiYhin 180 days after their receipt and which Lender has not committed to tne repair or restoration of
<br /> the Property shall be used first to pay any amount owing to Lender under tnis Deed of Ttust, then to pay accrued
<br /> interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. Ifi Lender holds
<br /> any proceeds after payment in full of the Indebtedness, sucn proceeds shall be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests,
<br /> encumbrances, and other claims, (B) to provide any required insurance on the Property, or (C) to make repairs to the
<br /> Property then Lender may do so. If any action or proceeding is commenced that would materially affect Lender's
<br /> interests in the Properry, then Lender on Trusior's behalf may, but is not required to, ta�ke any action that Lender
<br /> believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will
<br /> then bear inierest at the rate charged under the Credit Agreement from the date incurred or paid by Lender to the date
<br /> ofi repayment by Trustor. All such expenses will become a part of the Indebtedness and, art Lender's option, will (A)
<br /> be payable on demand; (B) be added to the balanee of the Credit Agreement and be apportioned among and be
<br /> payable with any installment payments to become due during either (T) the term of any a.pplicable insurance policy;. or
<br /> (2) the remaining term of the Credit Agreemeni;or (C) be treated as a balloon payment which will be due and payable
<br /> at the Credit Agreement's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided
<br /> fior in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account
<br /> of any default. Any such action by Lender shall not be construed as curing tne default so as to bar Lender from any
<br /> remedy that it otnerw�ise would have had.
<br /> WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed
<br /> of T�ust:
<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 encumbrances other than those set forth in the Real Property description or in any
<br /> title insurance� pol5cy, title report, or finat title opinion issued in favor of, and accepted by, Lender in connection
<br /> wiih this Deed of Trust, and (b) Trustor has the full right,. power, and authority to execuie and deliver this Deed of
<br /> Trust to Lender.
<br /> Defense of Title. Subject to ihe exception in the paragraph above, Trustor warrants and wi�l:l 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 o#Trust,TrusYor shall defiend 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 io 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 thaY the Property and Trustor's use of the Proper[y complies with all
<br /> existing applicable laws, ordinances, and regulations of governmental authorities.
<br /> Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust sha❑
<br /> survive the execution and delivery of this Deed of Trust, shall be coniinuing in nature and shall remain in full force�
<br /> and effect until such time as Botrower`s Indebtedness is paic� in full.
<br /> CONDEMNATION. The following provisions relating to condemnation p�oceedi.ngs are a part of this Deed of Trust:.
<br /> Proceedings_ If any proceeding in condemnation is fiiled, Trustor snall promptly notify Lender in writing, and
<br /> Trustor shall promptly take sucf� steps as may be necessary to defiend the action and obtain the award. Trustor
<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 ifs own choice, and Trustor will deliver or cause to be delivered to��
<br /> Lender such instruments and documentation as may be requested by Lender from time to time to permit such ,
<br /> participation.
<br /> Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedi�ngs or by
<br /> any proceeding or purchase in Iieu of condemnation, Lender rnay at its etection require that aIl or any portion of the
<br /> net proceeds of the award be applied to tne Indebtedness or the repair or restoration of the Property. The net
<br /> proceeds of the award shall mean tne award after payment of all reasonable costs, expenses, and attorneys' fees
<br /> incurred by Trustee or Lender in connection with the condertnnation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMEIYITAL AUTHORITIES_ The fiollowing provisions refating
<br /> to governmental taxes,fees and cnarges are a part of 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 other action is requested by Lender to perfiect and continue Lender's lien on
<br /> the Real Property. Trustor shall reimburse Lender fo� alI taxes, as described below, together with all expenses
<br /> incurred in recording, perfecting or continuing this Deed of Trus't, including witnout limitation all taxes, fees,
<br /> documentary stamps, and other charges for recording or registering this Deed of Trust.
<br /> Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of
<br /> Deed of Trust or upon alI or any part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on
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