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201211012
<br /> DEED OF TFil1ST
<br /> Loan No: 81002047 (Gontinued) Page 3
<br /> charges (including water and sewer), fines and impositions fevied against or on account of Yhe Property, and shall
<br /> pay when due all claims for work done on or for services rendered or materiai furnished to the Property. Trustor
<br /> shall maintain the Property free ofi al! liens having priority over or equal to the interest of Lender under this Deed of
<br /> Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this Deed of
<br /> Trust.
<br /> Right to Contest. Trustor may withhoid payment ofi any tax, assessment, or claim in connection with a good fajth
<br /> dispute over the obligation to pay, so long as Lender's interest in the ProperYy is not jeopardized. PP a lien arises or
<br /> is fiiled as a result of nonpayment, Trustor shall within fifteen (15) days after the lien arises or, if a lien is filed,
<br /> within fifteen (15) days after Trustor has notice of the fiitng, secure th.e discharge of the lien, or if requested by
<br /> Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an
<br /> amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges that could accrue as a
<br /> result of a foreciosure or sale under the lien. In any contest, Trustor shall defend itseif and Lender and shall satisfy
<br /> any adverse judgmenY 6efore enforcement against the Property. Trustor shall name Lender as an additional obligee
<br /> under any surety bond furnished in the contest proceedings.
<br /> Evidence of Payment. Trustor shall upon demand furnlsh.to Lender satisfactory evidence of payment of the taxes
<br /> or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written
<br /> statement of the tvices and assessments against the Property.
<br /> Notice of Construction. Trustor shall notify Lender at least fifteen (15) days before any worlc is commenced, any
<br /> services are fumished, or any materials are supplied to the Property, if any mechanic's li�en, materialmen's lien, or
<br /> other lien could be asserted on account of tne work, services, or materials. Trustor will upon request of Lender
<br /> fumish to Lender advance assurances satisfactory to Lender that Trustor can and wili pay tne cost of such
<br /> improvements.
<br /> PROPERTY DAMAGE WSURANCE_ The following provisions relating to insuring the Property are a part ofi this Deed of
<br /> Trust.
<br /> Maintenance of Insurance_ Trustor shall. procure and maintain policies of fiire insurance with standard extended
<br /> coverage endoYsements on a replacement basis for the full insurable value covering alI Improvements on the Real
<br /> Property in an amount sufiFicieM to avoid appli�cation of any coinsurance clause, and with a standard mortgagee
<br /> clause in favor of Lender. Trustor shall also procure and maintain comprehensive general liability insurance in sucfi
<br /> coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in such
<br /> liability insurance pol.icies. 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 /> 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 Yo Lender, induding stipulations that coverages will not be
<br /> cancelled or diminished without at 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 i�mpaired 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 fnsurance, if available, for the full unpaid principal balance of tne loan and any prior
<br /> liens on the property securing the ioan, up to the maximum policy limits set under the fVational 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 m the Property. Lender may
<br /> make proof ofi 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 ihe proceeds of any insurance and apply
<br /> the proceeds to the reduction of the Indebtedness, payment ofi any lien affecting the Property, or the restoration
<br /> and repair of the Property. if Lender elects to apply the proceeds to restoretion and repair, Trustor shall repair or
<br /> replace the damaged or destroyed Improvements in a manner satisfiactory 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 defaul[ 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 tne remainder, ifi any, shalf be appiied to the principal balance of the indebtedness. If Lender holds
<br /> any proceeds after paymenY in full ofi the Indebtedness, such proceeds shall be paid to Trustor as Trustor's
<br /> inte�rests may appea�.
<br /> Trustor's Report on Insurance�_ Upon request ofi Lender, nowever not more than once a year, Trustor shall furnish
<br /> to Lender a report on each existing policy of insurance showing- ('I) the name of the insurer; (2) the risks
<br /> insured; (3) the amount of Yhe 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 Yhe cash value replacement cost
<br /> of the Properfy. �
<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 benaff may (but shall not be obligated to) take
<br /> any action that Lender deems appropriate, including but noY Fimited to discharging or paying ali taxes, liens, security
<br /> interests, encumbrances and other daims, at any time levied o�placed on the Property and paying all costs fior insuring,
<br /> maintaining and preserving the Property. All sucn 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 of the Note and be apporiioned 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 baHoon 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 snall 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 /> Tetle_ T�ustor warrants that: (aD Trustor hoids good and marketable title of record to the Property in fee simple,
<br /> free and cfear of all Yiens and encumbrances otner tha� 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 by, Lendc-r in connection
<br /> with this Deed of Trusi, and (b) Trustor has the full righi, power, and authority to execute and deliver this Deed ofi
<br /> Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend tne
<br /> tiile to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's titie or the inteCest of Trustee or Lertder under this Deed of Trust,Trustor shall defend the
<br /> action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shali be entitled to
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