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DEED OF TRUST �0 � 3 p 4 0 9� Page No: 101264935 (Continued) ge 4'
<br /> Property in an amount sufficient to avoid application 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;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 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 to Lender, including 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 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, within 45 days after notice is given by Lender that the Property
<br /> is located in a special flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the
<br /> property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as
<br /> 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 insurance and apply
<br /> the proceeds to the reduction-of the Indebtedness, payment of any lien affecting the Property, 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 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. 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 /> Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is
<br /> in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing
<br /> Indebtedness shall constitute compliance with the insurance provisions under this,Deed.of Trust, to the extent
<br /> compliance with the terms of this Deed of Trust would constitute a duplication of insurance requirement. If any
<br /> proceeds from the insurance become payable-on loss,the provisions in this Deed,of Trust for division of proceeds
<br /> shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.,-- ,
<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 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 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 limited to Trustor's failure to comply with any obligation to maintain Existing Indebtedness in good standing as
<br /> required below, or to discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed of
<br /> Trust or any Related Documents, Lender on Trustor's behalf may (but shall not be obligated to) take any action that
<br /> Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests,
<br /> 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. Alt 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 of the Note and be apportioned 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 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. Trustor-warrants that: (a) Trustor:holds good and marketable title of record to the Property in fee simple,
<br /> free and clear of all liens and encumbrances other than those set forth in the Real Property description or:in the
<br /> Existing Indebtedness,section below or in any title insurance policy, title report,or final title opinion issued in favor
<br /> of and accepted•by; Lender in connection with this Deed of Trust, and (b) Trustor has the full right,.power, and
<br /> authority to execute and deliver this Deed of Trust to Lender.
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