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201704548 DEED OF TRUST Loan No: 81010925 (Continued) Page 3 improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust. Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full -insurable value covering all Improvements an the Real Property In an arnourit suffi6ent to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Trustor shall also procure and maintain comprehensive general lliaVilfty insurance in such coverage arnounls as Lender may request with Trustee and Lender being named as additional insureds in such liability insurance policies. Additionally, Trustor shall maintain such other -insurance, including but not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a cornpany or companies reasonably acceptable to Lender. Trustor, upc)n request of Lender, will dellver To Lender frorn t1me to time the policies or certificates of insuTance in form satisfactory to Lender, including stipulations that coverages will not be canc�elllled or diminished without at least ten (10) days prior written notice to LendeT. Each insurance policy also shall include ari endorsement prcwiding that coverage in favor of LendeT will not be impaired in any way by any act, omission or def-ault of Trustor or any other person. Should the Real Property be lacated in an area designated by the Administrator of the Federal Emergency Management Agency as a speolall flood hazard area, Trustor agrees to obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintairi such insurance for the term of the loan. Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Propeirty. Lender may make proof of loss if TruStOT fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or, the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Trustor from the prOGeeds for the reasonable cost of repair or restoration it Trustar is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after their reGeipt and which Lender has not committed to the repair or restoration of the PTOperty shall be used first to pay any annount owing to Lender under this Deed of Trust, thion to pay accrued interest, and the remainder, if any, shall be applied to the principal balanGe of the Indebtedness. If Lender holds T any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustar as Trustor S interests may appear. Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish to Lender a report on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks Ensured; (3) the amount of the policy; (4) the property insured, the then currerit replacement value of such property, and the manner of determining that value; and (5) the expiration date of the policy. Trustor shall, upori request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the Property. LENDER'S EXPENDITURES. If any act1ion or proceeding is cornmenced that would materially affect Lender's interest in ihe Property or if Trustor falls to comply with any provision of thrs Deed of Trust or any Related Documents, including but not limited to Trustors failure to discharge or pay when due any amounts Trustor is requIred to discharge or pay undeT -Lhis Deed of Trust or any Related Docurnents, Lender on Trustor's behalf may ftt shall not be obligated to) take any action that Lender deems appropriate, including but not limrted to discharginp or paying all taxes, liens, security interests, encumbrances and other clairns, at any time levied or placed on the Property and paying 811 GOStS f0T insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable wIth any installment payments to become due during either (1) the term of ;anV applicable insurance policy; or (2) the rernaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Nate:rs maturity. The Deed of Trust also will secure payment of these amoiints. Such right shall be in addItIon to all other rights and remedies to which Lender may be enfitled upon Default. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of th-is Deed of Trust: Title. Trustor warrants 1hat: (a) Trustor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final frtle opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and N Trustor has the full right, power, and authc).rity to execute and deliver this Deed of Trust to Lender. Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever deferid the fitle to the Property against the lawful claims of all persons. In the event any action or prGoeeding is commenced that questions Trustor's title or the inteTeSt of Trustee or Lender under this Deed of Trust, Trustor shall defend the action at TrUStOT's expense. Trustor may be the nominal party in such proceeding, but Lender shall he entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choic�e, and Trustor w-111 deliver, or GaUSe to be delivered, to Lorider such instruments as Lender may request frc)m time to time to permit such participation. Compliance With Laws. Trustor warrants that the Property and TrUStOT'S USe Of the Property complies w -11h all existing applicab[e laws, ordinances, and regulations of governmental authorities. Survival of Representations and Warranties. All representations, warranties, and agreements made by Trustor in I this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and shall remain in full force and effect until such time as Borrowers [ndebtedness shall be paid in full. CONDEMNATION. The fc)[lowing provisions re[ating to condemnallon proceedings are a part of this Deed of Trust: Proceedings. [f any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and Trustor shall promptly take such steps as may be necessary to defend the action and obtain the award. TrustoT may be the nominal party in sijch proceeding, but Lender shall be entitled to parUclpate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Trustor will deliver c)r cause to be deliveTed to Lender such instruments and documentation as may be requested by Lender from time to tirne to permit such Participation. Application of Net Proceeds, If all or any part of the Property is coridemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender may at its election requ-Ire that all or any portic)n of the net proceeds of the avvard be. applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award -shall mean the award after payment of all reasonable costs, expenses, and attorneys" fees incurred by Trustee or Lender in Gonnection vvith the condemnation.