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201210369
<br /> DEED OF TRUST
<br /> Loan No: 8'1001726 (GOntinued) Page 3
<br /> fiumish to Lender advance assurances satisfactory to Lender that Trustor can antl will pay the cost ofi such
<br /> improvements.
<br /> PROPERTY DAMAGE INSURANCE. 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 endorsements 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 coinsurance clause, and with a standard mortgagee
<br /> clause in favor of Lender. Trustor shall also procure and maintain comprehensive general liability insurance in such
<br /> coverage amounts as Lender may request with Trustee and Lender being named as additionalinsureds in such
<br /> tiability 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 Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the
<br /> policies or certificates of insurance in fiorm satisfiactory to Lender, including stipulations that coverages will not be
<br /> cancelled or diminished without at least ten (10) days prior written notice to Lender. Each insurence 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 Real Property be located in an area deSignaYed by ,
<br /> the Director of the Federal Emergency Management Agency as a special flood hazard area,Trustor agrees to obtain
<br /> and ma.intain Federal Flood Insurance, if available, for the full unpaid principal balance of the Ioan and any prior
<br /> liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance
<br /> Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan.
<br /> Application of Proceeds, Trustor shall promptly notify Lender of any Ioss or damage to the Property. Lender may
<br /> make proof of loss if Trustor fails to do so within fifteen (7 5) 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 Indebtedness, 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 repa.ir, Trustor shall repair or
<br /> replace the damaged or destroyed Imp�ovements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfactory proof ofi such expenditure, pay or reimburse Trustor firom the proceeds fior 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 180 days after theit receipt and which Lender has not committed to the repair or restoration of
<br /> tne 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, shall be applied to tne principal balance of tne Indebtedness. If Lender nolds
<br /> any proceeds after payment in full ofi the Indebtedness, sucn proceeds shall be paid to Ttustor as Trustor's
<br /> interests may appear.
<br /> Trustor`s Report on Insurence. Upon request of Lender, Fiowever not more than once a year, Trustor shall fiurnish
<br /> to Lender a report on each 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 then current replacement value ofi sucn
<br /> property, and the manner ofi determining that value; and (5) the expiration date of the policy. Trustor shali, 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_ Ifi any action or proceeding is commenced that would materially affect Lender's interest in
<br /> the Property or if Trustor fails to comply with any provision of this Deed of Trust or any Related Documents, includi�ng
<br /> but not limited to Trusior'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, includi.ng but not limited to discharging or paying all taxes, Iiens, security
<br /> interests, encumbrences 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 such expendiiures incurred or paid by Lender for such purposes will then
<br /> bear interest ai the rate charged under the Note from the date incurred or paid by Lender to tne date of repayment by
<br /> Trustor. All such expenses will become a part of the Indebtedness and, 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 instaliment
<br /> payments to become due during either (1) the term of any appticable 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 ofi
<br /> Trust also will secure payment of these amounts. Such rignt snall be in add'ition to aII other rights and remedies to
<br /> which Lender may 6e entitled upon Default.
<br /> WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of thiS Deed
<br /> of Trusts
<br /> Title. Trustor warrants that: (a) Trustor holds good and marketable title of recotd to the Property in fee simple,
<br /> free and clear of aIl liens and encumbrances other than those set forth in the Real Property description or in any
<br /> title insurance policy, title report, or final title opinion issued in favor of, and aceepted by, Lender in conneciion
<br /> � with this Deed of Trust, and (b) Trustor has the full right, power, and authority to execute and deliver this Deed of
<br /> Trusi to Lender.
<br /> Defense of Title. Subject to Yhe exception in the paragraph above, Trustor warrants and will forever defend the
<br /> title to ihe� Property against the Iawful claims of all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's iitle or the interest of Trustee or Lender under this Deed of Trust,Trustor shall defend the
<br /> aciion at Trustor's expense. Trustor may be the nominal party in sucn 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 wa�rants that the Property and Trustor's use of 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 /> tnis 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 fiorce and effect until such time as Borrower's Indebtedness shall be paid in full.
<br /> CONDEMNATION. The following provisions relaYing to condemnation proceedings are a part of this Deed ofi Trust:
<br /> Proceedings. If any proceeding in condemnatiort is filed, Trustor 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. Trustor
<br /> may be the nominal party in such proceeding, but Lender snall 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 de4ivered to
<br /> Lender sucn instruments and documentation as may be requested by Lender firom time to time to permit such
<br /> participation.
<br /> Application of Net Proceeds_ If all or any part of Yhe Property is condemned by eminent domain proceedings or by
<br /> any proceeding or purchase in Iieu of condemnation, Lender may at its election require that alI or any portion of tne
<br /> net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net
<br /> proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees
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