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201211011
<br /> DEED OF TRUST
<br /> Loan No: 81002047 (�011$1llued) Pa e 3
<br /> 9
<br /> improvements.
<br /> PROPERTY DAMAGE INSURANCE_ The fiollowing provisions relating to insuring the Property are a part of this Deed of
<br /> Trust
<br /> Maintenance of Insurance. Trustor shail procure and maintain poficies af fire Ensuranae with standard extended
<br /> coverage endorsements on a fair value basis fior the full insurable value covering all improvemenYs on ihe Reai
<br /> Property in an amount sufficient to avoid application of any aoinsurance clause, and with a standard mortgagee
<br /> clause in favor oF Lender. Trustor shail also procure and maintain comprefiensive 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, Trustor shall maintain such other insutance, including but not limited to
<br /> hazard, business interrupYion, 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 /> 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 satisfiactory to Lender, including stipulations that coverages will not be
<br /> cancelled or diminished without at IeasY ten (90) days prior written notice to Lender. Each insurance policy also
<br /> shall indude an endorsement providing that coverage in favor of Lender will not be irnpaired in any way by any act,
<br /> omission or defautt of Trustor or any otner 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 nazard area, Trustor agrees to o6tai:n
<br /> and maintai�n Federal Flood Insurance, if available, for the full unpaid principal bala�nce 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 shalt promptly notify Lender of any loss or damage to the Property. Lender may
<br /> make proof ofi loss if Trustor 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, 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 resroration
<br /> and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or
<br /> replace ihe damaged. or destroyed Improvements in a manner sacisfacYory to Lender. Lender shall, upon
<br /> satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonabie cost of
<br /> repair or restoration if Trustor is not in default u�nder 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 ofi the Yndebtedness. If Lender holds
<br /> any proceeds after payment in full of the Indebtedness, sucFe 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 fiurnish
<br /> to Lender a report on each existing policy of insurance showing: ("I) the name of the insurer; (2) tne 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 that value; and (5) the expiration date of the policy. Trustor shall, upon
<br /> request of Lender, have an independent appraiser satisfactory to Lender determine the cash value 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 I.imited 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 /> interests, encumbrances and other daims, at any time ievied or placed on the Property and payi��ng a➢I costs for insuring,
<br /> maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes wi�li then
<br /> bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repaymeM by
<br /> Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on
<br /> dema.nd; (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 (7) 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 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 Property are a part of this Deed
<br /> of Trust:
<br /> Title. Trus'tor warrantS that: (a) Trustor holds good and marketable title of record Yo the Property in fee sirnple,
<br /> firee and clear of ail Eiens and encumbrances other than tF�ose set fiorth in the Reai Property description or in any
<br /> . title insurartce policy, title report, or final title opinion issued in favor ofi, and acce�pted 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 tne
<br /> titie to the Property against the lawful claims of all persons. In tne event any action or proceeding is commenced
<br /> that questions Trustor's tiile or the interest of Trustee or Lender under this Deed of Trust,Trustor shall defend tne
<br /> action 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 be represented in the proceeding by counsel of Lender's own choice, and
<br /> Trustor will deliver, or cause fo be delivered, to Lender such instrum�nts as Lender may request from tim.e 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 applicabie 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 Indebtedness shall be paid in fuli.
<br /> CONDEMNATION. The foFlowing 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 Lende.r 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 p�roceeding, but Lender shall be entitled to partici.pate in the proceeding and to be
<br /> represented in the proceeding by counsel ofi 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 a!I or any part ofi tne Property is condemne@ by eminent domain proceedings or by
<br /> any proceeding or purchase in lieu of condemnation, Lender may at its election require that ail or any por[ion of the
<br /> net p�oceeds of the award be applied to the indebtedness or the repair or restoration of the Property. The net
<br /> proceeds ofi The award�shall mean the award after payment ofi all reasonable costs,. expenses, and attorneys° fiees
<br /> incurred by Trustee or Lender in connection with the condemnation.
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