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201210844
<br /> DEED OF TRUST
<br /> Loan No: 121 (Cot�tillued) Page 3
<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 fi�ll insura6le value covering all Improvements on the Rea!
<br /> Property in an amount sufficient to avoid application of any coinsurance dause, 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 additional insureds in such
<br /> liability insurance policies. Additionally,Trusior shall maintain such other insurance, including but not limited to
<br /> hazard,business interruption, and boiler insurance,as Lender may reasonably require. Policies shail 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 form satisfactory to Lender,including stipulations that coverages will not be
<br /> cancelled or diminished wifhout at least ten (10)days prior written notice to Lender. Each insurance policy also
<br /> shali 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 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 fWl unpaid principal balance of the lozn and any prior
<br /> liens on the property securing the loan, up to the maximum policy limits set under the National Fiood 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 insuraoce and apply
<br /> the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Properry,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 reimburse Trustor from the proceeds for 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 their receipt and which Lender has not committed tc the repair or restoratiort 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 to the principal 6alance of the Indebtedness. If Lender holds
<br /> any proceeds after payment in full of the IndebYedness, such�proceeds shall be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> Trustor's Report on Insurance. Upon request of Lender,however not more than once a year,Trustor shall furnish
<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 such
<br /> property,and the manner ot determining that value;.and (5] the expiration date of the policy.. Trustor shall,upon
<br /> request of Lender,have an independent appraiser satisfactory m Lender determine the cash value replacement cost
<br /> of the Property.
<br /> LENDER'S EXPENDI7URES. If 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 o�this Deed of Trust or any Related Documents,including
<br /> but not limited to Trustor's failure to discharge or pay when due a�y 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 o6ligated to)take
<br /> any action that Lender deems appropriate, including but not limited to discharging or payinq all taxes,liens,security
<br /> interests,encumbrances and other claims,at any time levied or placed on the Property and paying ali costs Por insuring;
<br /> maintaining antl preserving the Property. All such expenditures mcurred or paid by Lender for sucn purposes will then
<br /> bear interest at the rate charged under the Note feom the date incurred o�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; (B) 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) 2he 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 all other rights and remedies to
<br /> which Lender may be entitled upon Default.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relating to ownership of the Properry are a part of this Deed
<br /> of Trust:
<br /> TiUe. Trustor warrants that: (a)Trustor holds good and marketable title of record io the Property in fee simple,
<br /> free and clear of all liens and encum6rances other than those set forth in the Real Property description or in any
<br /> titie insurance policy,title report, or final title opinion issued in favor of, and accepted 6y, Lender in connection
<br /> with this Deed of Trust,and (b)Trustor has the full right,power,and authoriry 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 /> 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 of Trust,Trustor shall defend the
<br /> action at Trustor's expense. Trustor may be the nominal party in sucFi proceeding,but Lender shall be entitled to
<br /> participate in the proceeding and to be represented i�the proceeding by counsel of Lendee's own choice, and
<br /> Trustor will deliver,or cause to be delivered,to Lender such insttuments 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 Proper[y complies with all
<br /> existing applicable laws,ordinances,and regulations of governmenYal authorities.
<br /> Survival of Representations and Warranties. All representations,warranties, and agreements made by Trustor in
<br /> this Deed oi 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 untii such time as Trustor's Indebtedness shall be paid in full.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br /> Proceedings.. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and
<br /> Trusmr shail promptly take such steps as may be necessary to defend Yhe�action and obtain the award. Trustor
<br /> may be the nominal party in such proceeding,but Lender shall be entitied 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 Properry 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 ihe Indebtedness or tne repair or restoration of the Properry. 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 following provisions relating
<br /> to govemmentaltaxes,fees and charges are a part of this Deed of Trust:
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