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201503234
<br /> DEED O� T�UST
<br /> (C01��111U��) Page 3
<br /> coverage endorsements on a fair value basis for the full insurable value covering all Improvements on the Real
<br /> Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee
<br /> ciause in favor of Lender, together with such other hazard and liability insurance as Lender may reasonably require.
<br /> Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender�nd issued by a
<br /> company or companies reasonably acceptable to Lendec Trustor, upon request of Lender, wiil deliver to Lender
<br /> from time to time the policies or certificates of insurance in form satisfactory to Lender, inciuding stipulations that
<br /> coverages will not be cancelled or diminished without at least thirty (30)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 acY, omission or default of Trustor or any other person. Should the Real Property be located in
<br /> an area designatecl 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 maximum amount of
<br /> Trustor's credit line and the full unpaid principal balance of any prior liens on the property securing the loan, up to
<br /> the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and
<br /> to maintain such insurance for the term of ihe loan.
<br /> Application of Proceeds. Trustor shall promptiy notify Lender of any loss 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 Lender's
<br /> security is impaired, Lender may, at Lender's slection, receive and retain fhe 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 restoration if Trustor is not in default under this Deed of Trust. Any proceeds which have noY been
<br /> disbursed within 180 days after their receipt and which Lender has not committed to the re�air 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 lndebtedness. ff Lender holds
<br /> any proceeds after payment in full ofi the Indebtedness, such proceeds shaii be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness 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 dupiication of insurance requirement, ff any
<br /> proceeds#rom 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 Existing Indebtedness.
<br /> LENDER'S EXPENDITURES. If Trustor faiis (A) to keep the Property free of ali 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. All expenses incurred or paid by Lender for such purposes will then bear
<br /> interest at the rate charged under the Credit Agreement from the date incurred or paid by Lender to the date of
<br /> repayment by Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be
<br /> payable on demand; (B) be added to the balance of the Credit Agreement and be apportioned among and be payable
<br /> with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the
<br /> remaining term of the Credit Agreement;or (C) be treated as a balloon payment which will be due and payable at the
<br /> Credit Agreement's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided for in
<br /> this paragraph shall be in addition to any other rights or any remedies to which Lender may be enfitleci on account of
<br /> any default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any
<br /> 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. T�ustor 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 the
<br /> Existing Indebtedness section below or in any titie 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 action or proceeding is commenced
<br /> that questions Trustor's title or the interest af 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 will deliver, or cause to be delivered, to 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 compfies with all
<br /> existing applicabie laws, ordinances, and regulations of govemmental authorities.
<br /> Survival of Promises. All promises, agreernents, 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 shall remain in full force
<br /> and effect untii such time as Trustor's Indebtedness is paid in full.
<br /> EXISTING INDEBTEDNESS. The following provisions eoncerning Existing Indebtedness are a part of this Deed of Trust:
<br /> Existing Lien. 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 fndebtedness
<br /> and to prevent any default on such indebtedness, any default under the instruments evidencing such indebtedness,
<br /> or any default under any security documents for such indebtedness.
<br /> No Modification. Trustor shail 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 /> accept any future advances under any such security agreemenf 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 /> Rroceedings. 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 7rustor 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 af Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by
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