|
201400196
<br /> DEED OF TRUST
<br /> Loan No: 810Q4480 (CDntinued) Page 3
<br /> or assessments and shall authorize the apprapriate governmentaf official to deliver to Lender at any time a wr�tten
<br /> statement of the taxes and assessments against the Property.
<br /> 11[otice of Construction. Trustor sha[I notify Lender at least fifteen {75) days before any work is commenced, any
<br /> services are furnished, or any materia[s are supp[ied to the Property, if any mechanie's lien, materialmen's lien, or
<br /> nther ]ien could be asserted on account of the wark, services, or materials. Trustor wilf upan request of Lender
<br /> furnish to Lender ad�ance assurances satisfactory to Lender that Trustor can and wil] pay the cost of such
<br /> improvements.
<br /> PRQPERTY DAMAGE 1NSEIRANCE. The following provisions relating to i�suri�g the Property are a part of this Deed of
<br /> 7rust.
<br /> Maintenance of [nsaranoe. Trustor shall procure and maintain policies of fire ins�rance wiYh standard extended
<br /> coverage endorsements on a reptacement basis for the ful[ insurable value covering all Improvements on the Real
<br /> Properry in an amounT sufficient to avoid application of any coinsurance clause, and with a standard moRgagee
<br /> clause in favor of�ender. Trustor shaEl also procure and maintain comprehensive general liability insurance in such
<br /> co�erage amoe�nts as Lender may request with Trustee and Lender being named as additional insureds in such
<br /> �iability insurance policies. Additionafly, Trustor shafl maintain s�ch other insurance, including but not limited to
<br /> hazard, 6usiness interruption, and boiler insurance, as Lender may reasanably requ;re. Policies shall be writCen in
<br /> form, arreounts, caverages and basis reasonably acceptable to Lender and issued by a company or companies
<br /> reasonably acceptable to Lender. Trustor, upon request of Lender, will deii�sr 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 afso
<br /> shail include an endorsement providing that coverage in favor of Lender wifl not be impaired in any way by any act,
<br /> omission or defauft of�rustor or any other person. 5hould the Real Property be located in an area designated by
<br /> the Director of fhe Federal Emergency Management Agency as a special f[ood hazard area,Trustar agrees ta o6taiR
<br /> and maintain Federal Flood [nsurance, if a�ailable, for the full unpaid principal balance of #he loan and any prior
<br /> liens on the property securing the loan, up to the maximum policy limits set under Ehe National Flood Insurance
<br /> Program, or as otheswise required by lender, and to maintain such insurance far the tsrm of the loan.
<br /> Application of Proceeds. Trustor shal] promptEy noti�Fy Lender of any loss or damage to the Property. Lender may
<br /> make proof of [oss if 7rustor fails to do so within fifteen (35) 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 1nc3ebtedness, payment of any lien affecting the Property, or the restoration
<br /> and repair af the Property. If Lender elects to apply the proceeds to restaration and repair, 7rustar shall repeir or
<br /> replace the damaged or destroyad Improvements in a manner satisfactory to Lender. Lender sha[I, upon
<br /> satisfactory proof af such expenditure, pay or reimburse TrusYor frorr� the proceeds for the reasonable cost of
<br /> repair or restoration if Trustor is noY in default under this Deed of Trust. Any proceeds which have nat been
<br /> disbursed within 180 days after their receipt and which �ender has not comrr�itted to the repair or restoration of
<br /> the Property sf�all 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, shafl be appliecf to the pr'sncipal balance of the Indehtedness. If Lender holds
<br /> any proceeds efter payment in ful[ of the [ndebtedness, such proceeds shall be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> CompliaRce with Existing lndebtedness. During the period in which any Exisiing Indebtedness described below is
<br /> in effect, compliance with the insurance provisions contained in the ins�trument evidencing such Existing
<br /> Inde�tedness shall constitute complianca with Yhe insurance provisions under this Deed of Trust, to the extent
<br /> compliance wiTh the terms of this Deed of Trust would constitu€e a duplication of insurance req�irement. I# any
<br /> proceeds from the insurance become payable on loss, the provisions in this Deed o�Trust for division of proceeds
<br /> shal[apply only to that portion of the proceeds not payable to the holder of the F�cisting Indebtedness.
<br /> Trustor's Report on Insurance. Upon reqve5#of Lender, however not more than ance a year, Trustor shaA furnish
<br /> to Lender a report on each existing palicy of insurance showing: (�1 the name of the insurer; {2) #he rislcs
<br /> insured; (3) the amount of ihe poliey; i41 the property insured, the then current replacement value of such
<br /> property, and the manner of determ9ning that�alue; and (�� the expiration date of the po[icy. Trustor sha[I, upon
<br /> request of Lender, have an independsnt appraiser satisfactory ta Lender determine tha cash value replacement cost
<br /> of the Property.
<br /> LENDER'S EXPENDITURES. If any action or proCeeding is commenced that would materially ai-FecE Lender's interest in
<br /> the Property or if Trustor fails to comply with any provisian of this Deed of Trust or any RelaTed Documsnts, including
<br /> but not limited to Trustor's failure to comply with any obligation to maintain Exis#ing Indebiedness in good standing as
<br /> required below, or to discharge ar pay when due any amounts Trustor is required to discharge or pay under this Deed of
<br /> Trust or any Related l7ocuments, Lender on Trustor's behalf may (but shaEl not be obligatec[ #o) Yake any action that
<br /> Lender deems apprapriate, inc[uding but not limited to discharging or paying all taxes, liens, security interests,
<br /> encumbrances and ot[�er claims, at any time levied or placed on the Property anci paying al[ casts for insuring,
<br /> maintaining and praserving the Property. All such expenditures inevrred or paid by Lender for such purposes wifl then
<br /> bear interesE at the rate charged under the Note from the date incurred or paid by Lender to the date af repayment by
<br /> Trustor. AIf such expenses wi[I bacome a part af the [ndebtedness and, at Lender's optian, will [A] be payable on
<br /> demand; [B) be adcled to the balance of ihe Nate and be apporCioned among and be payable with any installme�t
<br /> payments to become due during either {1} tHe xerm of any applicable insurance policy, or [2f the remaining term o€
<br /> the Note; or iC} be treated as a balloon payment which will be due and payab[e at the Note's maturity. The Deed of
<br /> Trust a[so wil] secure payment of these amounts. Such right shall be in addition #o all other righis and remedies to
<br /> which Lender may be entitled upon Defau[t_
<br /> WARRANTY; DEFENSE QF TETLE. The fo[lowing provisions re[ating to ownership of Ehe Property are a part of this �eed
<br /> of Trust:
<br /> Tit[e. Trustor warrants that: [a} Trustor holds good and marlceYable title of record ta the Properky in fee simpfe,
<br /> free and clear of all liens and encumbrances other than those set forth in the Rea] Property description or in the
<br /> F�isting Indebtedness section below or in any title insurance policy,title report, or final title opinion iss�ed in fiavor
<br /> of, and accepted by, Lender in connection with this Deed of Trust, and Ib} Trustor has the fvll right, power, and
<br /> authority#o execute and deliver this Qeed af Trust to Lender.
<br /> Defense of Title_ Subject to the exception in the paragraph above, Trustor warrants and will forever defend the
<br /> title to the ProperYy against the lawful claims of a�l persons. In the event any action or proceeding is cornmenced
<br /> that questions Trustar's title or the interes#of Trustee or Lender under this Deed af Trust,Trustor sha11 defend the
<br /> action at Trustor's expense. Trustor may be the norrzinal party in such praceeding, but Lender shafl be entitled to
<br /> participate in the proceed9ng and to be represented in the proceeding by cour�sel of Lender's own c[�oice, and
<br /> Trustor will deliver, or cause to be delivered, to Ler�der such instruments as Lender may request from iime to time
<br /> to permit such participation.
<br /> Compliance With Laws. Trusior warrants that tlte Property and Trustor's use of the Property complies with a11
<br /> existing applicable laws, ordinances, and regulations of governmental authorities.
<br /> 5�rvi�al of Representations and Warrenties. AI� representations, warranties, and agreements made by Tr�stor in
<br /> ihis Deed of 7r�st sftall survive the execution and deli�ery of this Deed of TrusE, shall 6e continuing in natvre, and
<br /> shall remain irs full force and effect unti�such time as Borrower's Inde6tadness shal] be paid in full.
<br />
|