|
07-29-1999 DEED OF TRUST 9 9 1��6 9� Page 3
<br /> t Loan No 991109 (Continued)
<br /> Evidence of Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall
<br /> authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the
<br /> Property.
<br /> Nolice of Construction. Trustor shall notify Lender at least fiHeen(15)days before any work is commenced,any services are furnished,or any
<br /> materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work,
<br /> services,or materials. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Trustor can and will
<br /> pay the cost of such improvements.
<br /> PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust.
<br /> Mainienance of Insurence. Trustor shall procure and maintafn policies of fire insurance with standard extended coverage endorsements on a
<br /> replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any
<br /> coinsurance clause,and with a standard mortgagee clause in favor of Lender,together with such other hazard and liability insurance as Lender
<br /> may reasonably require. 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 from time to time the policies
<br /> or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at
<br /> least ten (10)days'prior written notice to Lender. Each insurance policy also shall include en endorsemerit providing that coverage in favor of
<br /> Lender will not be impaired in any way by any act, omission or default of Trustor or any other person. Should the Real Property at any Ume
<br /> become located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area,Trustor
<br /> agrees to obtain and maintain Federal Flood Insurance for the full unpaid principal balance of the loan and any prior liens on the property
<br /> securing the loan, up to the maximum policy limits set under the National Flood Insurance Program,or as otherwise required by Lender,and to
<br /> maintain such insurance for the term of the loan.
<br /> Appl(cation of Proceeds. Trustor shall promptly notiy Lender of any loss or damage to the Properfy. Lender may make proof of loss if Trustor
<br /> fails to do so within fifteen(15)days of the casualty. Whether or not Lender's security is impaired,Lender may,at its election,receive and retain
<br /> the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness,payment of any lien affecting the Property, or the
<br /> restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shali repair or replace the
<br /> damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or
<br /> reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if Trustor is not in default under this Deed of Trust. Any
<br /> proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of
<br /> the Property sha�i be used first to pay any amount owing to Lender under this Deed of Trust,then to pay accrued interest,and the remainder,if
<br /> any,shall be applied to the principal balance of the Indebtedness. if Lender holds any proceeds affer payment in fuil of the Indebtedness,such
<br /> proceeds shall be paid to Trustor as Trustor's interests may appear.
<br /> Unexplred Insurance at Sale. Any unexpired insurance shall inure to the benefit of,and pass to,the purchaser of the Property covered by this
<br /> Deed of Trust at any trustee's sale or other sale held under the provisions of this Deed of Trust,or at any foreclosure sale of such Property.
<br /> TAX AND INSURANCE RESERVES. Subject to any limitations set by applicable law,Lender may require Trustor to maintain with Lender reserves
<br /> for payment of annual taxes,assessments,and insurance premiums,which reserves shall be created by advance payment or monthly payments of a
<br /> sum estimated by Lender to be sufficient to produce amounts at least equal to the taxes, assessments, and insurance premiums to be paid. The
<br /> reserve funds shall be held by Lender as a general deposit from Trustor, which Lender may satisy by payment of the taxes, assessments, and
<br /> insurance premiums required to be paid by Trustor as they become due. Lender shall have the right to draw upon the reserve funds to pay such
<br /> items, and Lender shall not be required to determine the validity or accuracy of any item before paying it. Nothing in the Deed of Trust shall be
<br /> construed as requiring Lender to advance other monies for such purposes,and Lender shall not incur any liability for anything it may do or omit to
<br /> do with respect to the reserve account. Subject to any limitations set by applicable law,if the reserve funds disclose a shortage or deflciency,Trustor
<br /> shall pay such shortage or deficiency as required by Lender. All amounts in the reserve account are hereby pledged to furiher secure the
<br /> Indebtedness, and Lender is hereby suthorized to withdraw and apply such amounts on the Indebtedness upon the occurrence of an Event of
<br /> Default. Lender shall not be required to pay any interest or earnings on the resenre funds unless required by Iaw or agreed to by Lender in writing.
<br /> Lender does not hold the reserve funds in trust for Trustor,and Lender is not Trustor's agent for payment of the taxes and assessments required to
<br /> be paid by Trustor.
<br /> EXPENDITURES BY LENDER. If Trustor fails to comply with any provision of this Deed of Trust, or if any action or proceeding is commenced that
<br /> would materially affect Lender's interests in the Property, Lender on Trustor's behaif may, but shall not be required to,take any action that Lender
<br /> deems appropriate. Any amount that Lender expends in so doing will bear interest at the rate provided for in the Note from the date incurred or paid
<br /> by Lender to the date of repayment by Trustor. All such expenses,at Lender's option,wili (a)be payable on demand, (b)be added to the balance
<br /> of the Note and be apportioned among and be payable with any instaliment payments to become due during either (i)the term of any applicable
<br /> insurance policy or (ii)the remaining term of the Note,or (c)be treated as a bailoon payment which wili be due and payable at the Note's maturity.
<br /> This Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any
<br /> remedies to which Lender may be entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to
<br /> 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 of Trust.
<br /> Title. Trustor warrants that: (a)Trustor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and
<br /> encumbrances other than those set forth in the Real Property description or in any title insurance policy,title report,or finai title opinion issued in
<br /> favor of,and accepted by,Lender in connection with this Deed of Trust,and (b)Trustor has the full right,power,and authoriry to execute and
<br /> 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 title to the Property against the
<br /> lawful claims of all persons. In the event any action or proceeding is commenced that questions Trustor's title or the interest of Trustee or
<br /> �ender under this Deed of Trust,Trustor shall defend the action at Trustor's expense. Trustor may be the nominal party in such proceeding,but
<br /> Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and
<br /> Trustor wiil deliver,or cause to be delivered,to Lender such instruments as Lender may request from time to time to permit such participation.
<br /> Compliance With Laws. Trustor warcants that the Property and Trustor's use of the Property complies with all existing applicable laws,
<br /> ordinances,and regulations of governmental authoriHes.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust.
<br /> Applicalfon of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or
<br /> purchase in lieu of condemnation,Lender may at its election require that all or any portion of the net proceeds of the award be applied to the
<br /> Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all reasonable
<br /> costs,expenses,and attorneys'fees incurred by Trustee or Lender in connection with the condemnation.
<br /> Proceedings. If any proceeding in condemnation is filed,Trustor shall promptly notify Lender in writing,and Trustor shall promptly take such
<br /> steps as may be necessary to defend the action and obtain the award. Trustor may be the nominal party in such proceeding,but Lender shall
<br /> be entitled !o participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Trustor will deliver or
<br /> cause to be delivered to Lender such instruments as may be requested by it from time to time to permit such participation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BV GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes,
<br /> fees and charges are a part of this Deed of Trust:
<br /> Current Taxes,Fees and Charges. Upon request by Lender,Trustor shall execute such documents in addition to this Deed of Trust and take
<br /> whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Trustor shall reimburse Lender for all
<br /> taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Deed of Trust, including without
<br /> limitation all taxes,fees,documentary stamps,and other charges for recording or registering this Deed of Trust.
<br /> Taxes. The following shall constitute taxes to which this section applies: (a)a specific tax upon this type of Deed of Trust or upon all or any
<br /> part of the Indebtedness secured by this Deed of Trust; (b)a specific tax on Trustor which Trustor is suthorized or required to deduct from
<br /> payments on the Indebtedness secured by this type of Deed of Trust; (c)a tax on this type of Deed of Trust chargeable egainst the Lender or
<br /> the holder of the Note; and (d) a specific ta�c on all or any portion of the Indebtedness or on payments of principal and interest made by
<br /> Trustor.
<br /> Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Deed of Trust,this event shail have the
<br /> same effect as an Event of Default(as deBned below),and Lender may exercise any or all of its available remedies for an Event of Default as
<br /> provided below unless Trustor efther (a)pays the tax before it becomes delinquent,or (b)contests the tax as provided above in the Taxes and
<br /> Liens section and deposits with Lender cash or a su�cient corporate surety bond or other security satisfactory to Lender.
<br /> . ;? ..�� ,,.t.r
<br />
|