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201209697
<br /> DEED OF TRUST
<br /> Loan No: 10404668 (COntillued) Page 3
<br /> coverages will not be cancelled or diminished without at least ten (10) days prior written notice m Lender. Each
<br /> insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired
<br /> in any way by any act,tlmission or default of Trustor or any other person. Should 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,if available,for the full unpaid principal 6alance of
<br /> the loan and any prior liens on the property securing the loan, up to the maximum policy limits sei under the
<br /> Natio�al Flood Insurance Program,or as otherwise required by Lender,and to maintain such insurance for the term
<br /> of the�oan. �
<br /> Application of Proceeds. Trustor shalf promptly notify Lender of any loss or damage to the Properry. Lender may
<br /> make proof of loss if Trustor fails to do so within fifteen (15) 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 I�ndebtedness,payment of any lien affecting the 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 /> repiace the damaged or desvoyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfactory�proof of such expenditure, pay or reimburse Trustor from the proceeds for ihe 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 /> tlisbursed 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 Yo pay accrued
<br /> interest,and the remainder, if any,shall be applied to the principal balance of the Indebfedness. If Lender holds
<br /> any proceeds after payment in full of the Indebtedness, such proceeds shall be paid ta Trustor as Trustor's
<br /> interests may appear.
<br /> Compliance with Existing indebtedness.. During the period in which any Existing Indebtedness described below is
<br /> in effect, compliance with the insurance provisions contained in. the instrument evidencirg such E�cisting
<br /> Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trust, to the extent
<br /> compliance with the terms of this Deed of Trust would constitute a duplication of insurance requireme�t. If ariy
<br /> proceeds from the insurance become payable on loss,the provisions in this Deed of Trust for division of proceeds
<br /> shall apply only to that portion of the proceeds not payable m the liolder of the Existing Indebtedness.
<br /> LENDER'S EXPENDITURES. If Trustor fails (A) to I<eep the Property free of all taxes, liens, security interests,
<br /> encumbrances,and other claims, (B) to provide any required insurance on the Property, (C) to make repairs to the
<br /> Property or to comply wjth any obligation to maintain Fxisting Indebtedness in good standing as required below,then
<br /> Lender may do so. If any action or proceeding is commenced that would materially affect Lender's interests in the
<br /> Property, then Lender on Trustor's behalf may, but is not required to, take any action that Lender believes to be
<br /> appropriate to protect Lender's interests. AIl expenses incurred or paid by Lender for such purposes wili then bear
<br /> interest at the 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 of the Indeb2edness and, ai Lender's option, wili (A) be payable on
<br /> demand; (B) be added to the balance of the Note and be apportioned among and be payabie with any ins�allment
<br /> payments to become due during either (7� the term o#any applicable insurance poficy;or (2) the remaining term of
<br /> the Note;or (C) be treated as a balioon payment which will be due and payable at the Note`s macurity. The Deed of
<br /> Trust also will secure payment of these amounts. The righTs provided for in this paragraph shali be in addition to any
<br /> other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender
<br /> shall�not be construed as curing the default so as to bar Lender from any remedy that it otherwise 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 Trust:
<br /> Title. Trustor warrants that: (a)TrusYor holds good and marketable title of record to the Property in fee simple,
<br /> free and elear of ali liens and encumbrances other than those set forth in the Real Property description or in the
<br /> Existing Indebtedness section below or in any title insurance policy,title report,or final title opinion issued in favor
<br /> of,and accepted by,Lender in connection with this Deed of Trust,and {b)Trustor has the fuil cight,power,and
<br /> authority to execute and deliver this Deed of Trust to Lender.
<br /> Defense of Title. Subject to the exception in Yhe paragraph above,Trustor warrants ano will forever defend the
<br /> title to the Property against the lawful claims of all persons. In the event any action or oroceeding 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 the nominal party in.such proceeding,but Lender shall be ertitled 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 instrumenis 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 of the Property complies with all
<br /> existing applicable laws,ordinances,and regulations of governmental autliorities.
<br /> Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall
<br /> survive the execution and delivery of this Deed of Trust,shall be continuing in nature and shall remain in full force
<br /> and effect until such time as Borrower's Indebtedness is paid in fulL �
<br /> EXISTING IIVDEBTEDNESS. The following provisions concerning Existing I�debtedness are a paR of this Deed of Trust:
<br /> Existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary anci Inferior to an
<br /> exisiing lien. Trustor expressly covenants and agrees to pay,or see to the payment of,the Existing Indebtedness
<br /> and to prevent any default on such indebtedness,any default under The instruments evidencing such indebtedness,
<br /> or any default under any security documents for such inde6tedness.
<br /> No Modification. Trustor shall not enter into any agreement with the holder of any mor[gage, deed of trust,or
<br /> other security agreement which has priority over this Deed of Ttust by which that agreement is modified,
<br /> amended, extended, or renewed without the prior written consent of Lender. Trustor shall neither request nor
<br /> accept any future advances under any such security agreement without the prior written consent of Lender.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br /> Proceedings. !f any proceeding in condemnation is filed, ?rustor shall promptly notify Lender in writing, and
<br /> Trustor shall promptly take such steps as may be necessary to defend the action and obtain the award. Trusior
<br /> may be the nominal pariy in such proceeding,6ut Lender shall be entitied to participate in the proceeding and.to 6e
<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 6y Lender �rom time to time to permit such.
<br /> participation.
<br /> Appiication 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 Yhe Indebtedness or the repair or restoration of the Property. The net
<br /> proceeds of the award shall mean the award after payment of all reasonabie costs,expenses,and attorneys'fees
<br /> incurred hy TrusTee or Lender in connection with Yhe condemnation.
<br /> IMPOSITION OF TAXES,FEES AN�CHARGES 6Y GOVERNM:ENTAL AUTHORITfES. The following provisions relating
<br /> to governmenial,axes,fiees and charges are a part of this Deed of Trust;
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