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201210945
<br /> DEED OF TRUST
<br /> Loan No: 81001783 (COntinued) Page 3
<br /> PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Proper[y 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 fair value 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 /> dause in fiavor of Lender. Trustor shall also procure and maintain comprehensive general Iiability insurance in such
<br /> coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in such
<br /> Iiability i.nsurance policies. Additionally, Trustor shall maintain such other insurance, including but not limited to
<br /> hazard, business interruption, and boiler��nsurance, 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 ofi Lender, will deliver to Lender firom time to time tne
<br /> poli.cies or certificates of insurance in form satisfactory to Lender, induding stipulations that coverages will not be
<br /> cancelled or diminished without at feast ten ('I O) days prior written notice to Lendet. Each insurance policy also
<br /> shall indude 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 fn an area designated by
<br /> the Di�recior of the Federal Emergency Management Agency as a special flood hazard area,Trustor agrees to obtain
<br /> and maintain Federal Flood Insurance, ifi available, for the full unpaid principal balance of the loan and any prior
<br /> liens on the proper[y 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 prooi of Ioss if T�ustor fails to do so within fiifteen (15) days of the casualty. Whether or not Lender's
<br /> security is impaired, Lender may, at Lender's election, �eceive and retain the proceeds of any insurance and apply
<br /> the proceeds to the reduction of the Indebtedness, payment of any lien afiFecting the Property, or the restoration
<br /> and repair of the Property. Ifi 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 fior the reasonable cost of
<br /> repair or resYoraiion 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 I�as not committed to the repair or restoration of
<br /> the Properfy 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 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 currant replacement value of such
<br /> property, and the manner of defermi�ning that value; and (5) the expiration date of the poficy. Trusfor shall, upon
<br /> request of Lender, have an independent appraiser satisfactory to Lender determine the cash val.ue replacement cost
<br /> of the Property.
<br /> LENDER'S EXPENDITURES. If any action or proceeding is commenced that wouid materially afifect Lender's interest in
<br /> the Property or if Trustor fails to comply with any provision of this Deed ofi Trust or any Related Documents, including
<br /> but not limited to Trustor's failure Yo 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, incfuding but not limited m discharging or paying all taxes, liens, security
<br /> interests,encumbrances and other claims, at any time Ievied 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 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 ofi the Note and be apportioned� among and be payable with any installmeM
<br /> payments to become due during either (9) the term ofi 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 Yo
<br /> which Lender may be 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 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 encurnbrances other than those set forth in the Real Property descrfption or in any
<br /> tiile insurance policy, title report, or final title opinion issued in favor ofi, and accepted by, Lender in connection�
<br /> with this Deed of Trust, and (b) Trustor has the fuq right, power, and authority to execute and deliver this Deed of
<br /> Trust to Lender.
<br /> Defense of Title_ Subjeci to the exception in the paragraph above, Trustor warranfs and wi❑ forever defend the
<br /> title to the Property against the lawful daims 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 /> aciion at Trustor's expense.. Trusior may be the nominal party in such proceeding, but Lender shall be entitled to
<br /> participate in the proceeding and to 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 firom time to time
<br /> to permit such participaiion.
<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 /> shaU remain 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 notiiy 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 /> pa�rticipation_
<br /> Application of Net Proceeds. If all or any part ofi the Property is condemned by eminent domain proceedings or by
<br /> any proceeding or purchase in lieu of condemnation, Lender may at iYs election require tnat 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 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. Tne following provisions relating
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