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201401415
<br /> D��� OF TRUST
<br /> Loan No: 'i 23 (Continued) Page 3
<br /> statement of the taxes and assessments against the Property.
<br /> [�otice of Construction. Trustor sha[I notify Lendar at leasi fifteert [951 days before any work is comrrtenced, any
<br /> services are furnished, or any materiaEs are supp[ied to the Praperty, if any mechanic's fie�, materialmen's lien, or
<br /> otf�er lien could be asserted on aeeount of the wor[c, services, or materials. Trus#or wi][ upon request of Lender
<br /> furnish to Lender ad�ance assurances satisfactory to Lender #hat Trustor can and will pay the cost of such
<br /> improvements.
<br /> PROPERTY DAMAGE INSURANCE. �he following provisions relating to insuring the Property are a part of this Deed of
<br /> Trust.
<br /> MainYenance of Insurance. Trustor shafl procure and maintain po[icies of fire insurence with standard extended
<br /> coverage endorsements on a replacement 6asis for the ful] insurab[e value covering al] Improvements on the Real
<br /> Property in an amount sufficient to avoid application of any coinsurance clause, and with a stanc[ard mortgagee
<br /> clause in favor of Lender. 7rustor sf��lE also proe�re and maintain comprehensive general liability insurance in such
<br /> coverage amounts as Lender may request wi#h TrusYee and Lender being named as additional insureds in such
<br /> liabi[ity insurance policies. Additianal[y, Trustor shal[ maintain such o#her insurance, ir�cluding but not limited to
<br /> hazard, business interruptian, and 6oi[er insurance, as Lender may reasonabfy require. Policies sha[I be writken in
<br /> form, amaunts, coverages and basis reasonably acceptable to Lender and issued by a company or companies
<br /> reasonably acceptable to Lender. Trustor, upon request of Lender, wil] deliver to Lender from time to time the
<br /> policies ar certificates of insurance in form satisfaetory to Lender, induding stipulations that co�erages will not be
<br /> cance[led or diminished without at ]east ten {10} days prior written notice to Lender. Each insurance po�icy also
<br /> shall inc[ude an endorsement providing that coverage in favor of Lender wil� not be impaired in any way by any act,
<br /> omission or default of Trusior or any other person. Should the Real Property be located in an area designeted by
<br /> the Directar of the Federal EmergenCy Management Agency as a specia[flood hazard area,Trustor agrees to obtain
<br /> and maintain Federal Flood Insurance, if availab[e, for the fu31 unpaid principal balance of the loan and any prior
<br /> liens on the property securing the loan, up to the maximum palicy ]imits set under the fVational Fiood Insurance
<br /> Prograrr�, or as otherwise required by Lender, and to maintain such insurance for the term of the loan.
<br /> Application of Proceeds. 7rustor shaEl promptly notify Lender of any loss or damage to the Property. Lender may
<br /> m8ke praof of loss if Trustor fails to do so within fifteen {15] days of tlte casualty. Whether or not Lender's
<br /> security is irnpaired, Lender may, at Lender's election, receive and retain #he proceeds of any 9nsurance and appfy
<br /> the procesds to the reduction of the Indebtedness, payment of any ]ien affecting the Property, or the res#oration
<br /> and repair of the Property. !f Lender elects to apply the proceeds to restoration and repair, Trustor sha[I repair or
<br /> replace the damaged or destroyed Improvements in a manner satisfactory #o Lender. Lender shall, upon
<br /> satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonabEe cost af
<br /> sepair or restoration if Trustor is not in de#au[i under this Deed of Trus#. Any proceeds which have not been
<br /> disbursed within Z 80 days after their receipt and whiCh Lender has no3 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 Tre�st, then to pay accrued
<br /> interest, and the remainder, if any, shall be applied to the principa[ balance of the Indebtedness. If Lender f�olds
<br /> any proceeds after payment in futl of #he Indebtedness, such proceeds sha][ be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> Compliance with Facisting ]nde6tadness. During the period in which any Existing Indebtedness described be[ow is
<br /> in affect, compliance with the insurance provisions contained in the 9nstrument evidencing such Ezisting
<br /> lndebtedness s[�alE constitute compliance with the insurance provisions under this Deed of Trust, to the extent
<br /> compliance with the terms af this Deed of Trust would constitute a dup[icatian of insurance requirerr�ent. If any
<br /> proceeds from t[�e insurance become payable on loss, the provisions in this Deed of TrusT for dEvision of proceeds
<br /> shall apply only to that portion af the proceeds not payable To the hv[der of the Existing ]ndebtedness.
<br /> Trustor's Report an Insuranee. Upon request of Lender, however not more tE�an once a year, Trustor sha][ furnish
<br /> to Lender a report on each existing palicy of inse�rance showing: {1} the name af the insurer, i2) the risks
<br /> insured; {3) the amount of the po[iey; (4) the property insured, the then current replacement value of such
<br /> property, and the manner af 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 EXPEIVDITURES. 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 ot Trust or any Related Documents, including
<br /> but noY €imited io Trustor's failure to comply with any obligation to maintain Existing Indebtedness in good standing as
<br /> required befow, or to discharge or pay when dUe any emounts Tr�stor is required to discharge or pay under this Deed of
<br /> Trust or any Related Documents. Lender on Trustor's behalf may (but shafl not be obligated to) take any action tE�at
<br /> Lender deems appropriate, including but not limited to discharging or pay9ng all taxes, liens, security interests,
<br /> encumbrences and other claims, at any time le�ied or placed on the Praperty and paying a][ costs for insuring,
<br /> maintaining anc[ preserving the Properry. All such expenciitures incurred or paid by Lender for sueh purposes wi[I then
<br /> bear interest at the rate charged under the Note fram the date incurred or paid by Lender to the date of repayment E�y
<br /> Trustor. All such expenses will becorr�e a part of the fndetitedness and, at Lender's option, wifl (A) be payabEe on
<br /> dernand; [B} be adc[ed Yo the 6alance of the Note and be apporCioned among and be payable with a�y installment
<br /> payments to become due during either {1} Yhe term of any appGca6le ins�rance policy; or {2} the remaining term ot
<br /> the Note; or iC} be treaYed as a 6a91aon payment which will be due and payab[e at the No#e"s maturity. The Deed of
<br /> Trust a[so will secure payment of Ehese amounts. Such right sha11 be in addiYian to all other r9ghts and remedies to
<br /> which Lender may 6e entitled upon DefauEt.
<br /> WARRANTY: DEFENSE OF TITlE. The foElowing provisiorts refating to awnership of the ProperEy are a part of this Deed
<br /> of Trust:
<br /> Title. Trustor warrants that= ia) Trustor holds goad and marketable title of record to #he Praperty in fee simp[e,
<br /> free and clear of all fiens and encumbrances other than those set forth in the Real Property c[escription or in the
<br /> �cisting Indebtedness section below or in any title insvrance policy, title report, or final tit[e opinian iss�ed in favor
<br /> of, and acce�ted by, Lender in connection with this Deed of Trust, and {f�} Trustor has the full right, power, and
<br /> authority to execute and deliver Yhis Deed of Trust to Lender.
<br /> Defense of 7itle. Subject to the exceptian in the paragraph abo�e, Trustor warrants and wil[ forever defend the
<br /> title to the Property against t[�e lawful claims of al[ persons. In the evenY any actian or proceeding is comrnenced
<br /> that questions Trustor's title or the interest of Trustes or �ender under this Deed of Trust, TrusYor sha][ defend the
<br /> action at Trustor's expense. Trustor may be the nominat party in such proceeding, but Lender shall be entiiled to
<br /> participate in the proceedi�g and to be reprasented in the proceeding by counsel o� Lender's own choice, and
<br /> Tr�stor wil! deliver, or cause to be de[ivered, to Lender s�ch instruments as Lender rrtay reques't from time to tima
<br /> to permit such partiCipation.
<br /> Compliance Wiih Laws. Trustor warrants Yhat the Proparty and Trustor's use of the Property comp[ies with al{
<br /> existing applicable laws, ordinances, and regulations of governmental authorities.
<br /> 5urvivaE of Representations and Warranties. All represeniations, warranties, and agreemenis made hy Trustor in
<br /> this Deed of Trust shall se�r�ive the executian and delivery of ihis Deed of Trust, shafl be continuing in nature, and
<br /> sha€I remain in full force and effect until such time as Borrawer's Indebtedness shall be paid in fulf.
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