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201704329
<br />DEED OF TRUST Page 3
<br />Loan No: 7672121012 (Continued)
<br />clause 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 and issued by a
<br />company or companies reasonably acceptable 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. If the dwelling and insurable
<br />Improvements located on the Real Property is or becomes located in an area designated by the Federal Emergency
<br />Management Agency as a special flood hazard area, Trustor agrees to obtain and maintain Flood Insurance in an
<br />amount equal to the lesser of: (1) the total line of credit under the Credit Agreement with Lender, plus the
<br />outstanding principal balance of senior loans or lines of credit secured by the Real Property; (2) the maximum
<br />amount of Flood Insurance coverage available through the National Flood Insurance Program; and (3) the full
<br />insurable value (100% of replacement cost value) of the dwelling and insurable Improvements; or as otherwise
<br />required by law or Lender. If the dwelling is a condominium unit, the condominium association must have a master
<br />Flood Insurance policy on the entire building which provides coverage on Trustor's unit in at least this amount. If
<br />Trustor or the condominium association chooses to purchase Flood Insurance that covers less than 100% of the
<br />replacement cost value of the dwelling and insurable Improvements because Lender does not require that much
<br />coverage, Trustor acknowledges that he or she may not have enough insurance to repair the dwelling in the event
<br />of a flood. The policies and /or endorsements must name Lender, its successors, and assigns, as mortgagee and /or
<br />as an additional loss payee. Trustor agrees to maintain such insurance for the term of the loan. The insurance
<br />requirements may change during the term of this Deed of Trust.
<br />If Trustor fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at
<br />Lender's option and Trustor's expense. This insurance Lender purchases will take effect as of the date that
<br />Trustor's insurance was cancelled, expired or no longer in effect for any reason. Except for Flood Insurance, Lender
<br />is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover
<br />Lender, but might or might not protect Trustor, Trustor's equity in the Property, or the contents of the Property,
<br />against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect.
<br />Trustor acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of
<br />insurance that Trustor could have obtained. Any amounts disbursed by Lender under this section are covered by
<br />the "Lender's Expenditures" section of this Deed of Trust (see below) and shall be additional debt of Trustor
<br />secured by this Deed of Trust.
<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 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. Lender is not required to pay interest on any insurance proceeds that it retains. If
<br />Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the damaged or
<br />destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such
<br />expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if Trustor
<br />is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after
<br />their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to
<br />pay any amount owing to Lender under this Deed of Trust, then to pay accrued interest, and the remainder, if any,
<br />shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of
<br />the Indebtedness, such proceeds shall be paid to Trustor as Trustor's interests may appear. If any proceeds are
<br />used to reduce the amount of principal which is owed to Lender under the Credit Agreement, that use will not
<br />delay the due date or change the amount of any of the monthly payments under the Credit Agreement. However, I
<br />and Lender may agree in writing to those delays or changes.
<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 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 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, or (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 wit be due and payable at the
<br />Credit Agreement's maturity. The Property also will secure payment of these amounts. The rights provided for in this
<br />paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account of any
<br />default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remedy
<br />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 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 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 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 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 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 complies with all
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