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201210698
<br /> DEED OF TRUST
<br /> Loan No: 81000934 (Contlnued) Page 3
<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 form satisfactory to Lender,induding stipulations that coverages will not be
<br /> cancelled or diminished without aY least ten(10) days prior written notice to Lender. Each insurance policy also
<br /> shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way 6y 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 the Federal Emergency Management Agency as a special flood hazard area,Trustor agrees to obtain
<br /> and maintain Federal Flood Insurance, if available, for the full unpaid principal 6alance of the loan and any prior
<br /> Iiens on the proper[y securing the loan, up to the maximum policy limits set unde�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 loss or damage to the Property. 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 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 repair,Trustor shall repair or
<br /> replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfactory proof of such expenditure, pay or rei�mtiurse Trustor from the proceeds for the reasonable cost of
<br /> repair or restoration if Trusto�r is not in defaulT under this Deed of Trust. Any proceeds which have not been
<br /> disbursed 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 to pay accrued
<br /> interest,and the remainder, if any,shall be applied m the principal balance of the Indebtedness. If Lender holds
<br /> any proceeds after payment in full of the Indebtedness, such proceeds shall 6e paid to Trustor as Trustor's
<br /> interests may appear.
<br /> Trustor's Report on Insurance. Upon eequest of Lendet,however not more than once a year,Trustor shall furnish
<br /> to Lender a report on each existing policy of insurance showing:. (71 the name of the insurer, (2) the risks
<br /> insured; (31 the amount of the policy; (4) the property insured,the then 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 dete�mine the cash value replacement cost
<br /> of the Property.
<br /> LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materialty 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,including
<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 Documenis,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 claims,at any time levied or placed on the Property and paying all costs for insuring,
<br /> maintaining and preseroing the Property. All such expenditures incurred or paid by Lender for such purposes will then
<br /> bearinterest at the rate charged underthe 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 Indebtedness and, at Lender's option,will (A) be payable on
<br /> demand; (B1 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 (1) the term of any applicable 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 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 e�fitled upon Default.
<br /> WARRANTY;DEFENSE OP 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)Trustor holds good and marketable UUe of record to the Property m 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 policy,title report, or final title opinion issued in favor of, and accepted by, Lender in connection
<br /> with this Deed of Trust,and Ib)Trustor has the full right,power,and authority to execute and deliver this Deed of
<br /> Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph above,Trustor warrants and will forever defend the
<br /> iitle io 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 ihe interest of Trustee or Lender under this Deed of Trust,Trustor shall defend the
<br /> actio�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 to 6e represented in.the proceeding 6y 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 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 /> this Deed of Trust shall survive the execution and delivery of this Deed of Trust,shall be continuing in nature,and
<br /> shall remain in full force and effect until such time as Trustor's IndebYedness shall be paid in full.
<br /> CONDEMNATION. The following provisions relating to cond2mnati�on proceedings are a part of this Deed of Trust:
<br /> Proceedings. ff 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 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 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 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 proceedings or by
<br /> any proceeding or purchase in lieu of condemnation,Le�der may at its election require that all or any portion of the
<br /> net proceeds of the award be applied to the Indebiedness or the repair or resioration of the Properiy. The net
<br /> proceeds of the award shall mean the award after payment of all reasonable costs,expenses,and attorneys'fees
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES,.FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The fiollowing provisions relating
<br /> to governmentaltaxes,fees and charges are a part of Yhis Deed of Trust:
<br /> Currenf Taxes,Fees and Charges. Upon request 6y Lender,Trustor shall execute such documents in addition to
<br /> this Deed of Trust and take whatever other action is requested by Lender to perfect and continue Lender's lien on
<br /> the Real Property. Trustor shall reimburse Lender for all taxes, as described below,togeiher with all expenses
<br /> incurred in recording, perfecFing or continuing this Deed of Trust, including without limitation all taxes, fees,
<br /> documentary stamps,arid other charges for recording or registering this Deed of Trust.
<br /> Tazes. The following shall constitute ta�ces to which this section applies: (1) a specific tax upon this type of
<br /> Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on
<br /> Trustor which Trustor is authorized or required to deduct from payments on the Indebtedness secured by this rype
<br /> of Deed of TrusT, (3) a tax on this type of Deed of Trust chargeable against the Lender or the holder of the Note;
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