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201210553
<br /> DEED OF TI�UST
<br /> �oan No: '10004825 (CoY1t91lUed) Page 3
<br /> coverages will not be cancelled or diminished without at least ten (1 O) days prior written notice to Lende.r. Each
<br /> insurance policy also shall include an endorsement providing that coverage in fiavor of Lender will not be impaired
<br /> in any way by any act, omission 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 Emergeney Managemen[Agen�cy as a special flood hazard area,
<br /> Trustor agrees to obtain and maintain Fecieral Flood Insurance, if available, for the full unpaid principal balance of
<br /> the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the
<br /> National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term
<br /> ofi the loan.
<br /> Application of Proceeds. Trustor shalt promptly notify Lender of any loss or damage to the Property. Lender may
<br /> ma.f<e proofi ofi loss if Trustor fails to do so within fifteen {15) days of the casuaity. Whether or not Lender's
<br /> seCurity is impaired, Lender may, at Lender's electiom, receive and retain the proceeds of any i.nsurance and apply
<br /> the proceeds to *he reduction of the Indebtedness, paymeM of any lien a#fecting Yhe 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 /> replaee the damaged or destroyed Improvements in a� manner satisfactory to Lender. Lender shall,. upon
<br /> satisfactory proof ofi such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br /> repair or restoration ifi Trustor is not in default under this Deed ofi Trust. Any proceeds which have not been
<br /> disbursed within '180 days afiCer their receipt and which �en�der has not committed to the repair or restoration ofi
<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, ifi any, shall be applied to the principal balance of the Indebtedness. If Lender holds
<br /> any proceeds after payment in full of the Indebtedness, such proceeds shali be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> CompGance with Existing Indebtedness. During the period in wnich any Existing Indebtedne§s described below is
<br /> in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing
<br /> Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trust, to the extent
<br /> compliance with tfie terms of this Deed of TrusT would eonstitute a duplication of insurance requPremen[. If any
<br /> proceeds from the insurance become payable on loss, the provisions in tnis Deed of Trust for divisi�on of proceeds
<br /> shall apply only to that portion of the proceeds not payable to the holder of the F�cisting Indebtedness.
<br /> LENDER'S EXPEN�DITURES_ If Trustor fails (A) to keep the Property free of all taxes, liens, security interests,
<br /> encumbrances, and other ciaims, (B) to provide any required insurance on the Property, (C) to make re�pairs to the
<br /> Property or to comply with any obligation to maintain Existing 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 in'[erests. All 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 tne date of repayment by
<br /> Trustor. All such expenses will become a part of the Indebtedness and, at Lender°s option, wi11 (q) be payab�le on
<br /> demanci; (B) be added to the 6alance 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�applicable insurance policy; or (2) the remaPning term of
<br /> the Note; or (C) be treated as a balloon payment which wili be due and payable at the IVote's maturity. The Deeei ofi
<br /> Trust also wiil secure payment of these amounts. The rights provided for in this paragraph shail be in addiiion to any
<br /> other rights or any remedies to which Lender may be entitled on accouni 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 Deeci
<br /> of Trust;
<br /> - Title. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Property in fee simple,
<br /> free and elear of all liens and encumbrances other than those set forth in the Real Property description or in the�
<br /> Fxisting 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, antl (b) Trustor has the fiull right, power, and
<br /> authority to execute and deliver this Deed of Trust to Lender.
<br /> Defense of Title, Subject Yo the exception in the paragraph a6ove, Trustor warrants and will forever detend the
<br /> title to ihe Property against the lawful ciaims of ali persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's titfe or the inYerest of Trustee or Lender under this Deed of Trust, Trustor shall defend the
<br /> action at Trustor's expense. Trustor may be ttie nomina! party in such proceeding., 6ut Lender shall be entitled to
<br /> participate in the pro�ceeding 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 Lende��r may request from time to time
<br /> to permit such participaYion.
<br /> Compliance With Laws_ Trustor warrants tf�at the Property and Trustor's use ofi the Property complies with all
<br /> existing applica6le laws, ordinances., and regulations of govemmentai authoriiies.
<br /> Survival of Promises. Ail promises, agreements, and statemen2s Trustor has made in this Deed of Trust shall
<br /> survive�ihe 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 /> EXISTWG I7VDEBTEDlVESS. The following provisions conceming Existing Indebtedness are a part of Yhis Deed of Trust[
<br /> ExisYing Lien. The lien of this Deeci of Trust securing the Fndebtedness may be secondary and inferior to an
<br /> existing lien. Trustor expressly covenants and agrees to pay, or see to the payment of, the F�cisting Indebtedness
<br /> and to prevent any default on such indebtedness, any default u�der the instruments evidencing such indebtedness,
<br /> or any default under any security documents for such indebtedness.
<br /> No Modification. Trustor shall not enter into any agreement wiTh ttie holder of any mortgage, deed of trust, or
<br /> other security agreement which has priority over this Deed of Trust by which that agreement is modifiied,
<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 tnis Deed of Trust
<br /> Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and
<br /> Trustor sha❑ promptly take such steps as may be necessary to dcfend the acYion and obtain the award. TrusYor
<br /> e'nay be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be
<br /> represe.nted in ti�e proceeding by counsel of its ow� choice, and Trustor will deliver or eause to be delivereci Yo
<br /> Lender such instrumenfs anc� documentation as may be requested by Lender from Yime zo time Lo permit 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 fieu of condemnation, Lender rnay 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 the award shall mean the award after paymeM of all reasonahie costs, expenses, and attorneys' fees
<br /> incurced by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERI�IMER(TAL AUTHORITIES. The following provisions relating
<br /> to governmental taxes, fees and charges are a part of this Deed of Trust:
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