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201400875
<br /> against the Property. Trustor shall name Lender as an additional obligee under any surety bond furnished in the contest
<br /> proceedings.
<br /> Evidence of Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or
<br /> assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement
<br /> of the taxes and assessments against the Property.
<br /> Notice of Construction. Trustor shall nbtify Lender at least fifteen (15) days before any work is commenced, any
<br /> services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other
<br /> lien of a material amount could be asserted on account of the work, services,or:materials. Trustor will upon request of
<br /> Lender furnish to Lender advance assurances satisfactory to LeAder that?rustor can and will pay the cost of such
<br /> improvements. � . .
<br /> PROPERTY DAMAGE INSURANCE. The foilowing provisions relating to insuring the Property are a part of this Deed of
<br /> Trust. � •
<br /> Maintenance of Insurance. Trustor shall shall procure and maintain policies of insurance in compliance with Trustor's
<br /> obligations under the Agreement to Provide Insurance.
<br /> Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make
<br /> proof of loss if Trustor fails to do so within fifteen(15)days of the casualty. Whether or not Lender's security is impaired,
<br /> Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the
<br /> reduction of the Indebtedness, payment of any lien affecting the Property,or the restoration and repair of the Property. If
<br /> Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the damaged or destroyed
<br /> Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or
<br /> reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if Trustor is not in default under this
<br /> Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not
<br /> committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this
<br /> Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the
<br /> Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to
<br /> Trustor as Trustor's interests may appear.
<br /> Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish to
<br /> Lender a report on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the
<br /> amount of the policy; (4) the property insured,the then current replacement value of such property, and the manner of
<br /> determining that value; and (5) the expiration date of the policy. Trustor shall, upon request of Lender, have an
<br /> independent appraiser satisfactory to Lender determine the cash value replacement cost of the Property.
<br /> LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the
<br /> Property or if Trustor fails to comply with any provision of this Deed of Trust or any Related Documents, including but not
<br /> limited to Trustor's failure to discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed
<br /> of Trust or any Related Documents, Lender on Trustor's behalf may(but shall not be obligated to)take any action that Lender
<br /> deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and
<br /> other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the
<br /> Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under
<br /> the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such expenses will become a part
<br /> of the Indebtedness and,at Lender's option,will (A) be payab�e on demand; (B) be added to the balance of the Note and be
<br /> apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable
<br /> insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and
<br /> payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. Such right shall be in addition
<br /> to all other rights and remedies to 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 of
<br /> Trust:
<br /> Title. Trustor warrants that: (a)Trustor holds good and marketable title of record to the Property in fee simple,free and
<br /> clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance
<br /> policy,title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust,
<br /> and (b)Trustor has the full right,power,and authority to execute and deliver this Deed of Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the title to
<br /> the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions
<br /> Trustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the action at Trustor's
<br /> expense. Trustor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the
<br /> proceeding and to be represented in the proceeding by counsel of Lender's own choice,and Trustor will deliver,or cause
<br /> to be delivered,to Lender such instruments as Lender may request from time to time to permit such participation.
<br /> Compliance With Laws. Trustor warrants that the Property and Trustors use of the Property complies with all existing
<br /> applicable laws,ordinances,and regulations of governmental authorities.
<br /> Page 3 of 11
<br /> Deed of Trust
<br /> 2013-260
<br /> WA 4733596.4
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