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201404182
<br /> DEED O� TRUST
<br /> Loan No: 1 7 1 1 292-3 [Cor�tinued) Page 3
<br /> rrust.
<br /> Maintenance of Insurance. Trustnr shall procure ancf maintain policies af fire insurance with standard extended
<br /> eo�erage endorsements on a replacement basis for the fult insura6le value co�ering all Imprv�ements on the Real
<br /> Property in an amount sufficient to avoid apglication af any coinsurance clause, and with a standard mortgagee
<br /> clause in favor af Lender. Trustar shall also procure and maintain comprehensive general liability insurance in such
<br /> coverage amounts as Lender may request with Trusiee ancf Lender being named as additional insureds in such
<br /> iiability insurar�ce palicies.. /additionally, Trustor shall maintain such other insurance, incfuding bu# not limited ta
<br /> hazard, 6usiness interruption, and boiler insurance, as Lersder may reasonably require. Policies shall be written in
<br /> form, amounts, coverages and basis reasonably acc�piable to Lender and issued by a company or companies
<br /> reasona6iy acceptable to Lender. 7rustor, upon request af Lender, will deliver to Lender from time ta time the
<br /> policies or certificates of insurance in form satisfactory to Lender, ir�cluding stipuEations Yhat coverages will not be
<br /> cancelled ar diminished without at least #en {1ff► days prior written notice to Lender. Each insurance policy also
<br /> shall include an endorsement providing that coverage in fa�or of Lender will not be impaired in any way by any act,
<br /> omissio� ar default af 7rustor or any other person. 5hould the Real Property be located in an area designated by
<br /> the Administrator of the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to
<br /> obtain and maintain Federal �400d Insurance, if available, for the full unpaid principal balance of the foan and any
<br /> prior liens on the property securing the loan, up to the maximum policy limits set under the National Flovd
<br /> Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term pf the Ivan.
<br /> Apptication of Proceeds. Trustor shall promptly notify Lender of any Eoss 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 �ender's
<br /> security is impaired, Lender may, at Lender's election, recei�e and retain the proceeds of any insurance and apply
<br /> t€�e proceeds ta tF�e reduction of the Indebtadness, payment of any lien affecting the Property, or the res#oration
<br /> and repair of the Prop�rty. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or
<br /> replace the damaged ar destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfacYary proo# of such expenditure, pay or reimburse Trustor from the proceeds far the reasonable cvs# af
<br /> repair or restvration if Trustor is not in default under this Deed of Trust. Any proceeds which have noY been
<br /> dis6ursed within �80 days after their receipt and which Lender has npt committed to the repair or restoration af
<br /> tE�e Property shall be used first to pay any amount owing to �ender under this Deed of Trust, then to pay accrued
<br /> interest, and the remainder, if any, shall be appfied to the principal balance af the Inde6tedness. If Lender holds
<br /> any praceeds after payment in #ull of the ]ndebtedness, such praceeds shall be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> Compliance with Existing Indebtedness. �uring the periocf in which any Existing Indebtedness described befow is
<br /> in effect, compliance with the insurance pravisions conYained in the instrument e�idencing such Existing
<br /> Indebtedness shall canstitute compliance wi#h the insurance provisions under this 17eed of �rust, ta the extent
<br /> compliance with the terms af this C7eed of Trust would constitute a duplication of insurance requirement. If any
<br /> ptoceeds from the insurance become payable on loss, the provisions in this Deed of Trust for divisian of proceeds
<br /> shall apply only to that portion of the proceeds not payable to the holder af the Existing Indeb#edness.
<br /> Trustor's Repart on insurance. Upon request of Lender, however nat 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; {31 the amount af the policy; I4] the property insured, the then current replacement value of such
<br /> property, and the manner of determining that value; a�d {51 the expiration date of Yhe policy. 7rustor shall, upon
<br /> request of Lender, have an independent appraiser satisfactory to Lender determine the cash�alue replacement cost
<br /> of#he Property.
<br /> LENpER'S EXPENDITURES. If any action or proceeding is commenced that would rrsaterially affect Lender's interest in
<br /> the Property or if Trustor fails ta camply with any provision of#his Deed of Trust or any Related Documents, including
<br /> but not limited to Trustar's #ailure to comply with any nbEiyation to maintain Existing Indebtedness in good standing as
<br /> required below, or to discF�arge or pay when due any amaunts Trustor is required to discharge or pay under this Deed of
<br /> Trust or any Related Dacuments, Lender an Trustar's behalf may {but shall not be obligated to] take any action that
<br /> Ler�der deems appropriate, inclutEing but not limited to discharging or paying all taxes, liens, security interesfis,
<br /> encumbrances and other claims, at any time le�ied ar placed an the Property and paying all costs for insuring,
<br /> maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then
<br /> hear 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 Indeb#edness and, at Lender`s option, wi11 �A� be payable on
<br /> demand; (B] be added to the balance of the Note and be appartioned among and be payable with any instal9ment
<br /> payments to 6ecome due during either (1} the term of any appEicable insurance policy; ar (2) the remaining term of
<br /> the Note; or fCa be treated as a balloon payment which will be due and payabfe at the Note's maturity. The Deed of
<br /> Trust also wfll secure payment of these amounts. Such right shall be in acfdition ta all other rights and remedies to
<br /> which Lender may be entitled upon Default.
<br /> WARRANTY; QEFENSE OF TITLE. 7he following provisions relating to ownership of the Property ere a gart of this Qeed
<br /> of Trust;
<br /> Title. Trustor warrants that; fa) Trustar holds good and marketable title of record to fihe Property in fee simple,
<br /> free and clear of all fiens and encumbrances other than those set forth in the Real Property description or in the
<br /> Existing Indebtedness section below or in any titie insurance policy, title report, ar final title opinion issued in favor
<br /> of, and accepted by, Lender in connection with this Deed of Trust, and Ib] Trustor has the full right, power, and
<br /> authority to execute and deliver this Deed of Trust to Lender.
<br /> befense of Title. Subject to the exception in the paragraph above, Trustor warrants ancf will fore�er defend the
<br /> ti#le Yo the Property against the lawfu] claims o# all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's title or the interest of Trustee ar Lender under this Deed of Trust, Trustor shaEl defend the
<br /> action at Trustor's expense. Trustor may be t�e nominal party in such proceeding, but Lender shall be entitled to
<br /> participate in the proceeding end to 6e represented in the proceeding by counsel of Lender's own choice, and
<br /> Trustor wifl deliver, or cause to be delivered, Ya Lender suCh Enst�uments as Lender may fequest ffom Eime to Yime
<br /> to permit such participatian.
<br /> ComplEance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all
<br /> existing applicable laws, ordinances, and regula#ions af governmental authorities.
<br /> Survfval af Representations and Warranties. Ail representations, warranties, and agreements made by Trustor in
<br /> this Deed of Trust shall sur�ive the execution and deli�ery of this Deed of Trust, shall be continuing in nature, and
<br /> shall remain in full farce and effect unti]such time as Borrower's Indebtecfness shall be paid in full.
<br /> EX35TfNG INDEBTEDNESS. The following provisions concerning �xisting lndebtedness are a part of this Deed of Trust:
<br /> �xisting Lien. The lien af this Deed of Trust securing the Indebtedness may be secondary and ir�ferior to an
<br /> existing Eien, Trustor expressly covenants and agrees to pay, or see to the paymen#of, the Existing Indebtedness
<br /> and to prevent any default on such indebted�ess, any default under the instruments evidencing such indebtedness,
<br /> or any default under any securifiy documents for such indebYed�ess.
<br /> No fNodificatipn. Trustor sha11 not enter into any agreement with Yha holder of any mortgage, deed of trust, or
<br /> othee security agreement which has priority over this Deed of Tr�st by which that agreement is modified,
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