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201210846
<br /> DEED OF TRUST
<br /> Loan No:81003866 (ContlnUed) Page 3
<br /> clause in favor of Lender. Trustor shali also procure and maintain comprehenslve general liability insurance in such
<br /> coverage amounts as Lender may request with Trustee and Lender being named as additionalinsureds in such
<br /> liability 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 /> reasonahly 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 siipulations that coverages will not be
<br /> cancelled or diminished without at least ten f10)days prior written notice to Lender. Each insurance policy also
<br /> shall include an endorsement providing ihat coverage in favor of Lender will not 6e 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 6y
<br /> the Director of the Federal Emergency Management Agency as a special flood hazard area,Trustor agrees to o6tain
<br /> and maintain Federal Fiood Insurance, if availahle, for the fuil unpaid principal balance of the loan.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 loss or damage to the Property. Lender may
<br /> make proofi of loss if Trustor faiis 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 insurence and apply
<br /> the proceeds to the reduction of the IndeStedness,payment of any lien affectfng the Property, or the resioration
<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 reim6urse Trustor from the proceeds for the reasonab!e 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 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 to the principal balance of the Indebtedness. I#Lender holds
<br /> any proceeds after payment in full of the Indebtedness, 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 of such
<br /> property,and the manner of determining tliat 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 vafue replacement cost
<br /> of the Property.
<br /> LENDER'S EXPENDITURES. 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 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 Documents,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 /> intetests,encumbrances 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 expenditures incurred or paid by Lender for such purposes will then
<br /> bear interest at the rate charged under the Note from the date incurred or pafd 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 paya6le on
<br /> demand; (BI be added to the balance of the Note and 6e apportionetl among and 6e paya6le with any installment
<br /> payments to become due during either (1) the term of any applicable insurance oolicy;or (2a the remaining term of
<br /> the Note;or (C) be treated as a balloon payment which will be due and payable at xhe Note's maturity. The Deed of
<br /> Trust also will secure payment of these amounts. Such right shall be in addition to all other righLs and remedies to
<br /> which Lender may be entitled upon DefaWt.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relating to ownership o'F Yhe Property are a part of this Deed
<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 clear of alI 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 (b)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 /> ti:le to the Property against the lawful claims of all persans. In the event any action or proceeding is commenced
<br /> that questions Trustor's title or the interest of?rustee or�ender under this Deed of Trust.Trustor shail defend the
<br /> action at Trustor's expense. Trustor may be the nomina!party in such proceeding,but Lender shail be entitled to
<br /> participate in the proceeding and to 6e represented in the proceeding hy counsei of Lender's own choice, and
<br /> Trustor wili 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 warrents that the Property and Trustor's use of ihe Property complies with all
<br /> existing applicable laws,ordinances,and regulations of governmental authorities.
<br /> Survi�ral of Representations and Warranties. All represeotations,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 rematn in full force and effect until 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 /> Trustor shall promptly take such steps as may be necessary to defend the action and obtain the award, Truscor
<br /> may be the nominal party in such proceeding,but Lender shail be entitled to participate in the proceeding and to be
<br /> represented in the oroceeding by counsel of its own choice, and Trustor wilf deiiver 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,Lender may at its election require that ali or any portion of the
<br /> net proceeds of the award be appGed to the indebtedness or the repair or restoration of the Property. The net
<br /> proceeds of the award shali 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 /> lMPOSITION OF TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br /> to governmental taxes,fees and charges are a part of this Deed of Trust:
<br /> Current Taxes, Fees and Charges. Upon request by 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 ?roperty. Trustor sfiall reim6urse Lender for all taxes, as described below, together with all expenses
<br /> ineurred in recording, perfecting or continuing this Deed of Trust, including without limita2ion all taxes, fees,
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