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200005275
<br />Insurance, if available, within 45 days after notice is given by Lender that the Property
<br />is located in a special flood hazard area, for the full unpaid principal balance of the loan
<br />and any prior liens on the property securing the loan, up to the maximum policy limits
<br />set under the National Flood Insurance Program, or as otherwise required by Lender,
<br />and to maintain such insurance for the term of the loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage
<br />to the Property. Lender may make proof of loss if Trustor fails to do so within fifteen
<br />(15) days of the casually. Whether or not Lender's security is impaired, Lender may,
<br />at Lender's election, receive and retain the proceeds of any insurance and apply the
<br />proceeds to the reduction of the indebtedness, payment of any lien affecting the
<br />Property, or the restoration and repair of the Property. If Lender elects to apply the
<br />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
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for
<br />the reasonable cost of repair or restoration if Trustor is not in default under this Deed
<br />of Trust. Any proceeds which have not been disbursed within 180 days after their
<br />receipt and which Lender has not committed to the repair or restoration of the Property
<br />shall be used first to pay any amount owing to Lender under this Deed of Trust, then
<br />to pay accrued interest, and the remainder, if any, shall be applied to the principal
<br />balance of the indebtedness. If Lender holds any proceeds after payment in full of the
<br />indebtedness, such proceeds shall be paid to Trustor as Trustor's interests may appear.
<br />Unexpired Insurance at Sale. Any unexpired insurance shall inure to the benefit of, and
<br />pass to, the purchaser of the Property covered by this Deed of Trust at any trustee's
<br />sale or other sale held under the provisions of this Deed of Trust, or at any foreclosure
<br />sale of such Property.
<br />Trustor's Report on Insurance. Upon request of Lender, however, not more than once
<br />a year, Trustor shall furnish to Lender a report on each existing policy of insurance
<br />showing: (1) the name of the insurer; (2) the risks insured; (3) the amount of the
<br />policy; (4) the property insured, the then current replacement value of such property,
<br />and the manner of determining that value; and (5) the expiration date of the policy.
<br />Trustor shall, upon request of Lender, have an independent appraiser satisfactory to
<br />Lender determine the cash value replacement cost of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect
<br />Lender's interest in the Property or if Trustor fails to comply with any provision of this Deed of Trust
<br />or any Related Documents, including but not limited Trustor's failure to discharge or pay when due any
<br />amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents,
<br />Lender on Trustor's behalf may (but shall not be obligated to) take any action that Lender deems
<br />appropriate, including but not limited to, discharging or paying all taxes, liens, security interests,
<br />encumbrances and other claims, at any time levied or placed on the Property and paying all costs for
<br />insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for
<br />such purposes will then bear interest at the rate charged under the Note from the date incurred or paid
<br />by Lender to the date of repayment by Trustor. All such expenses will become a part of the
<br />indebtedness and, at Lender's option, will (A) be payable on demand (B) be added to the balance of
<br />the Note and be apportioned among and be payable with any installment payments to become due
<br />during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or
<br />(C) be treated as a balloon payment which will be due and payable to the Note's maturity. The
<br />Property also will secure payment of these amounts. Such right shall be in addition to all other rights
<br />and remedies to which lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are
<br />a part of this Deed of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds goods and marketable title of record to
<br />the Property in fee simple, free and clear of all liens and encumbrances other than
<br />those set forth in the Real Property description or in any title insurance policy, title
<br />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
<br />execute and deliver this Deed of Trust to Lender.
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