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201501304
<br /> DE�D OF TRUS�
<br /> Loan No: 10012745 �COtltirtuetl) Page 3
<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. Shoufd the Reaf 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 fuli unpaid principal
<br /> balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under
<br /> the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance fo�the
<br /> term of the loan.
<br /> Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may
<br /> make proof.of loss if Trustor fails to do so within fifiteen (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 appiy the proceeds to restoration and repair, Trustor shaii 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 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 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, shali be applied to the principal balance of the Indebtedness. if Lender holds
<br /> any proceeds afiter payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's
<br /> interests may appear,
<br /> Compliance with Existing Indebtedness. During the period in which any Existing fndebtedness described below is
<br /> in effect, compliance with the insurance 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 become payable on loss, the provisions in this Deed of Trust for division of proceeds
<br /> shall apply only to that portion of the proceeds not payable to the holder of the E�asting Indebtedness.
<br /> LENDER'S EXPENDITURES. lf Trustor fails (A) to keep the Property ftee 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 required 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) tf�e 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 paragtaph shall be in addition to any
<br /> other rights or any remedies to which Lender may be entitled on account of any defiault. Any such action by Lender
<br /> shail 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 holu's 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 the
<br /> Existing Indebtedness section below or in any tiUe 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 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 actiort or proceeding 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 ptoceeding by counsel of Lender's own choice, and
<br /> Trustor will deliver, or cause to be delivered, Lo 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 deliveey of this Deed of Trust,shall be continuing in nature and shall remain in full force
<br /> and effect until such time as Borrower`s Indebtedness is paid in fulL
<br /> EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br /> Existing Liera. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an
<br /> existing lien. Trustor expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness
<br /> and to prevent any defauit on such indebtedr�ess, any default under the instruments evidencing such inciebtedness,
<br /> or any default under any security documents for such indebtedness.
<br /> No Modificafiion. Trustor shall not enter into any agreement with the holder of any mortgage, deed of ttust, or
<br /> other securify agreement which has priority over th�s 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 /> accept 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 /> tepresented 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 from time to time to permit such
<br /> participation.
<br /> Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proaeedings or by
<br /> any proceeding or purchase in lieu of condemnation, Lender may at its election require that ali or any portion of the
<br /> net proceeds of the award be applied to the Indebtedness or tf�e repair or restoration of the Property. The net
<br /> proceeds of the award shall mean the award after payment of alI reasonable costs, expenses, and attorneys' fees
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITfES. The following provisions relating
<br /> to governmental taxes,fees and charges are a part of this Deed of Trust:
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