|
201405344
<br /> DEED OF TRUSI'
<br /> Loan No: 101278618 (COntinued) Page 4
<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 restora#ion 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 /> 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 insutance 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 cash value replacement cost
<br /> of the Property.
<br /> TAX AND INSURANCE RESERVES. Subject to any limitations and consistent with any requirements set by applicable
<br /> law, Lender may require Trustor to maintain with Lender reserves for payment of annual taxes, assessments, and
<br /> insurance premiums, which reserves shall be created by an initial deposit and subsequent monthly payments, or
<br /> payments at such other interval as payments under the Note may be due, of a sum estimated by Lender to be sufficient
<br /> to pay the total annual taxes, assessments, and insurance premiums Lender reasonably anticipates to be paid from
<br /> these reserves. The reserve funds shall be held by Lender as a general deposit from Trustor, which Lender may satisfy
<br /> by payment of the taxes, assessments, and insurance premiums required to be paid by Trustor as they become due.
<br /> Lender shall have the right to draw upon the reserve funds to pay such items, and Lender shall not be required to
<br /> determine the validity or accuracy of any item before paying it. Nothing in the Deed of Trust shall be construed as
<br /> requiring Lender to advance other monies for such purposes, and Lender shall not incur any liability for anything it may
<br /> do or omit to do with respect to the reserve account. Subject to any limitations set by applicable law, if the reserve
<br /> funds disclose a shortage or deficiency; Trustor shall pay such shortage or deficiency as required by Lender. All
<br /> amounts in the reserve account are hereby pledged to further secure the Indebtedness, and Lender is hereby authorized
<br /> to withdraw and apply such amounts on the Indebtedness upon the occurrence of an Event of Default. Lender shall not
<br /> be required to pay any interest or earnings on the reserve funds unless required by law or agreed to by Lender in
<br /> writing. Lender does not hold the reserve funds in trust for Trustor, and Lender is not Trustor's agent for payment of
<br /> the taxes and assessments required to be paid by Trustor. •
<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 discharge or pay when due any amounts Trustor is required to discharge or pay
<br /> under this Deed of Trust or any Related Documents, Lender on Trustor's behalf may (but shall not be obligated to) take
<br /> any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security
<br /> interests, 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. All 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 instaliment
<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 paymen#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 any
<br /> title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection
<br /> with this Deed of Trust, and (b) Trustor has the full right, power, and authority to execute and deliver this Deed of
<br /> 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 Property against the lawful claims of all persons. In the event any action or proceeding is commenced
<br /> that questions Ttustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the
<br /> action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shall be entitled to
<br /> participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and
<br /> Trustor wiil deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time
<br /> to permit such participation.
<br />
|