|
���-10-1999 DEED OF TRUST Page 3
<br /> Loan No 1041052 (Continued) 9 9 1 � i�0 8
<br /> Ri�ht To Contest. Trustor may withhold payment of any tax,assessment,or claim in connection with a good faith dispute over the obligaHon
<br /> to pay,so long as Lender's interest in the Property is not jeopardi�ed. If a lien arises or is filed as a result of nonpayment,Trustor shall within
<br /> fifteen (15)days after the lien arises or, if a lien is filed,within fifteen(15)days after Trustor has notice of the filing,secure the discharge of the
<br /> lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other securiiy satisfactory to Lender in an
<br /> amount suificient to discharge the lien plus any costs and attwneys'fees or other charges that could accrue as a result of a foreclosure or sale
<br /> under the lien. In any contest,Trustor shalt defend itself and Lender and shall satisfy any adverse judgment before enforcement against the
<br /> Property. Trustor shalt name Lender as an additional obligee under any surety bond furnished in the contest proc�edings.
<br /> Evidence ot Payment. Trustor shall upon demand furnish to Lender saHsfactory evidence of payment of the taxes or assessments and shall
<br /> authorize the appropriate governmental o(Ncial to deliver to Lender at any time a written statement of the taxes and assessments against the
<br /> Prope�ty.
<br /> Notice of Construction. Trustor shall nody Lender at least fifteen(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 /> Maintenance oi Insurance. Trustor shall procure and maintain 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 sufflcient to avad application of any
<br /> coinsurance clause,and with a standard mortgagee clause in favor of Lender,together with such other hezerd and liability insurance as Lender
<br /> may reasonably require. Policies shall be written in form, amounis, coverages and basis reasonably acxeptable to Lender and issued by a
<br /> company or companies reasonably acceptable to Lender. Trustor,upon request of Lender,will deliver to Lender irom tlme 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 an endorsement 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 time
<br /> become located in an area designeted 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 me�dmum pdicy limits set under the Naiional Flood Insurance Program,or as otherwise required by Lender,and to
<br /> maintain such insurance for the term of the loan.
<br /> AppUcation of Proceeds. Trustor shall promptly notiy Lender of any loss or damage to the Property. 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 proc:eeds to the reduction of the Indebtedness,payment of any lien affecHng the Property,or the
<br /> restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the
<br /> damaged w destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satlsfactory proof of such expenditure, pay or
<br /> reimburse Trustor from the proceeds for the reasonable cost of repak or restoration ff 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 r�toration of
<br /> the Property shall 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 proc�eds after payment in full of the Indebtedness,such
<br /> proceeds shall be paid to Trustor as Trustor's interests may appear.
<br /> Unexpired Insurance at Sale. Any unexpired insurance shall inure to the bene8t 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 foredosure sale of such Property.
<br /> Compliance with Ekistin�Indebtedness. During the period in which any Existing Indebtedness described below is in effect,compliance with
<br /> the insurance provisions contained in the instrument evidencing such E�dsling Indebtedness shall constitute compliance with the insurance
<br /> provisions under this Deed of Trust,to the extent compliance with the terms of this Deed of Trust would constitute a duplication of insurance
<br /> requirement. If any proceeds from the insurance become payable on loss,the provisions in this Deed of Trust for division of proceeds shall
<br /> apply only to that portion of the proceeds not payable to the hdder of the ExisHng Indebtedness.
<br /> DCPENDITURES BY LENDER. If Trustor fails to comply with any provision of this Deed of Trust, including any obligation to maintain Existing
<br /> Indebtedness in good standing as required below,or if any acfion or proc�eding is commenced that would materially affect Lender's interesis in the
<br /> Property, Lender on Trustor's behalf may, but shall not be required to, take any action that Lender deems appropriate. Any amount that Lender
<br /> expends in so doing will bear interest at the rate provided for in the Note from the date incurred or paid by Lender to the date of repayment by
<br /> Trustor. All such expenses,at Lender's option,will (a)be payable on demand, (b)be added to the balance of the Note and be apportioned among
<br /> and be payable with any installment payments to become due during either (i)the term of any applicabie insurance policy or (ii)the remaining term
<br /> of the Note, or (c) be treated as a balloon payment which will be due and payable at the Note's maturity. This Deed of Trust also will secure
<br /> payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be
<br /> entitled on account of the default. Any such action by Lender shall not be construed as curing the defauR so as to bar Lender from any remedy that
<br /> it otherwise would have had.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relating to ownership of the Properiy are a part of this Deed of Trust.
<br /> Title. Trustw waRants that: (a)Trustor holds good and marketable Htle of record to the Property in fee sfmple,free and ciear of all liens and
<br /> encumbrances other than those set forth in the Real Property descripdon or in the ExisHng Indebtedness sectlon below or in any tltle insurance
<br /> policy,title report,or final fiile opinion issued in favor of,and acxepted by,Lender in connectlon with this Dsed of Trust,end (b)Trustor has the
<br /> full right,power,and suthority to execute and deliver this Deed of Trust to Lender.
<br /> Defenae of Titk. Subject to the exception in the paragraph above,Trustor weRanis and will forever defend the dtle to the Property against the
<br /> lawful claims of all persons. In the event any acfion or proceeding is commenced that questions Trustor's tide or the interest of Trustee w
<br /> Lender under this Deed of Trust,Trustor shall defend the action at Trustor's expense. Trustor may be the nominai party in such proceeding,but
<br /> Lender shall be enHHed to 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 to permit such participation.
<br /> Compliance With Laws. Trustor warranis that the Property and Trustor's use of the Property complies with ell existing applicable laws,
<br /> ordinances,and regulations of governmental suthorities.
<br /> IXISTING INDEBTEDNESS. The following provisions concerning e�dsting indebtedness (the "F�dsting Indebtedness'� are a part of this Deed of
<br /> Trust.
<br /> bdstin�Llen. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an ex(sting lien. Trustor e�ressly
<br /> covenants and agrees to pay,or see to the payment of,the E�dsting Indebtedness and to prevent any defauit on such indebtedness,any default
<br /> under the instrumenis evidencing such indebtedness,or any default under any security documenis for such indebtedness.
<br /> DeMult. If the payment of any installment of principal or any interest on the E�dsting Indebtedness is not made within the time required by the
<br /> note evidencing such indebtedness, or should a default occur under the instrument securing such indebtedness and not be cured during any
<br /> applicable grece period therein, then,at the opdon of Lender,the Indebtedness secured by this Desd of Trust shall become immediately due
<br /> and payable,and this Deed of Trust shall be in default.
<br /> No Modiflcation. Trustor shall not enter into any agreement with the holder of any mortgage,deed of trust,or other security agreement which
<br /> has priority over this Deed of Trust by which that agreement is modified,amended,extended,or renewed without the prior written consent of �-
<br /> Lender. Trustor shall neither request nor accept any future advances under any such security agreement without the prior written consent of _
<br /> Lender. °
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust. �^-
<br /> Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proc�eding or "'
<br /> purchase in lieu of condemnation,Lend�may at its election require that all or any pwtion of the net proceeds oi the award be applfed 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 connec4on with the condemnafion.
<br /> Proceedlnya. If any proceedinp in condemnatlon is flled,Trustor shall promptly notify Lender in writlnp,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 to participate in the proc�eding 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 instrumenis as may be requested by R from time to tlme to permit such parHctpaHon.
<br /> IMPOSITION OF TAXES,FEE�AND CHARGE3 BY GOVERNMENTAL AUTHORITIES. The following provisions relaHng to governmental taxes,
<br /> fees and charges are a part of this Deed of Trust:
<br /> ;a_
<br />
|