|
201500417
<br /> DEED OF TRUST
<br /> Loan No: 10012357 (Colltirlued) Page 3
<br /> company or companies reasonably acceptabfe to Lender. Trustor, upon request of Lender, will deliver to Lender
<br /> from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations that
<br /> coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each
<br /> insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired
<br /> in any way by any act, omission or default of Trustor or any other person. Should the Real Property be located in
<br /> an area designated by the Administrator of the Federal Emergency Management Agency as a special flood hazard
<br /> area, Trustor agrees to obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal
<br /> balance of the loan and any prior liens on the property securing the loan, up to the maximum poticy limits set under
<br /> the National Fiood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the
<br /> term of the loan.
<br /> Application of Proceeds. Trustor shalf promptly notify Lender of any loss or tlamage to the Property. Lender may
<br /> make proof of loss if Trustor fails to do so within fifteen (151 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 shaii, upon
<br /> satisfactory proof of such expenditure, pay or reirnburse Trustor from the proceeds for the reasonable cost of
<br /> repair or restoration 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 commirtted 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 rnay appear.
<br /> Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness deseribed below is
<br /> in effect, compliance with the insutance provisions contained in the instrument evidencing such Existing
<br /> Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trust, to the extent
<br /> compliance with the terms of this Deed of Trust would constitute a duplication of insurance requirement. If any
<br /> proceeds from the insurance 6ecome payable on loss, the provisions in this Deed of T�ust for division of proceeds
<br /> shall apply only to that portion of the proceeds not payabfe to the holder of the Existing Indebtedness.
<br /> LENDER'S EXPENDITURES. If Trustor fails (A? to keep the Property free of all taxes, liens, security interests,
<br /> encumbrances, and other claims, (B) to provide any required insurance on the Property, (C) to make repairs to the
<br /> Property or to comply with any obligation to maintain Existing Indebtedness in good standing as required below, then
<br /> Lender may do so. If any action or proceeding is commenced that would materially affect Lender's interests in the
<br /> Property, then Lender on Trustor's behalf may, but is not requited to, take any action that Lender believes to be
<br /> appropriate to protect Lender's interests. AII expenses incurred or paid by Lender for such purposes will then bear
<br /> 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 installment
<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 payment which will be due and payable at the Note's maturity. The Deed of
<br /> Trust also will secure payment of these amounts. The rights provided for in this paragraph shalf be in addition to any
<br /> other rights or any remedies to which Lender may be entitled on account of any defauft. Any such action by Lender
<br /> shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had.
<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 cleae of a(I liens and encumbrances other than those set forth in tihe Real Property tlescription or in the
<br /> Existing Indebtedness section below or in any title insurance policy,title report, or final title opinion issued in favor
<br /> of, and accepted by, Lender in connection with this Deed of Trust, and (b) Trustor has the full right, power, and
<br /> authority to execute and deliver this Deed of Trust to Lender.
<br /> Defense of Title. Subject io 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 p�oceeding is commenced
<br /> that questions Trustor'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 counsei of Lencier's own choice, and
<br /> Trustor will deliver, or cause to 6e delivered, ±o Lender such instruments as Lender may request from time to time
<br /> to permit such participation.
<br /> Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all
<br /> existing applicable laws,ordinances, and regulations of governmental authorities.
<br /> Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall
<br /> survive the execution and delivery of this Deed of Trust,shall be continuing in nature and shalf remain in futl force
<br /> and effect until such time as Borrower's Indebtedness is paid in fulL
<br /> EXISTING IIVDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br /> F�cisting Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an
<br /> existing Iien. Trustor expressly covenants and agrees to pay, or see to the payment of, the Existing fndebtedness
<br /> and to prevent any default on such inde6tedness, any default under the instruments evidencing such indebtedness,
<br /> or any default under any security documents for such indebtedness.
<br /> No Modification. Trustor shall not enter into any agreement with the holder of any mortgage, deed of trust, or
<br /> other security agreement which has priority over this Deed of Trust by which that agreement is modified,
<br /> amended, extended, or renewed without the prior written consent of Lender. Trustor shall neither request nor
<br /> acce.pt any future advances under any such security agreement without the prior written consent of Lender.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br /> Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and
<br /> Trustor shall promptly take such steps as may be necessary to defend the action and obtain the award. Trustor
<br /> may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be
<br /> represented in the proceeding by counsel of its own choice, and Trustor will deliver or cause to be delivered to
<br /> Lender such instruments and documentation as may be requested by Lender frorn time to time to permit such
<br /> participat:on.
<br /> AppGcation of Net Proceeds. lf all or any part of the Property is condemned by eminent domain proceedings or by
<br /> any proceeding or purchase in lieu of condemnation, Lender may at its election require that aIl or any portion of the
<br /> net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net
<br /> proceeds of the award sha(I mean the award afiter payment of all reasonable costs, expenses, and attorneys° fees
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br />
|