|
DEED OF TRUST 200302368 Loan No: 41036 (Continued) Page 3
<br />authorize the appropriate govern mmisa official to deliver to Lender at any time a written statement of the taxes and assessments against the
<br />Property.
<br />Notice of Construction. Trustor shall nobly Lender at least fifteen (15) days before any work is commenced, any services are furnished, or
<br />any materials are supplied to the Property, it any mechanic's lien, materlalmen's lien, or otter lien could be asserted on account of the work,
<br />services, or materials and the cost exceeds $W.00. Trustor will upon request of Lender furnish to Lander advance assurances satisfactory to
<br />Lender that Trustor can and will pay the cost of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a pan of this Deed of Trust.
<br />Maintenance of Insurance. Trustor shall procure and maintain policies of fire Insurance with standard extended coverage endorsements on
<br />a replacement basis for the full insurable value covering all Improvements on the Real Property In an amount sufficient to avoid application of
<br />any coinsurance clause, and with a standard mortgages clause In favor of Lander. Trustor shall also procure and maintain comprehensive
<br />general liability Insurance in such coverage amounts as Lender may request with Trustee and Lender being named as additional Insureds In
<br />such liability insurance policies. Additionally, Trustor shall maintain such other Insurance, including but not limited to hazard, business
<br />interruption, and boiler insurance, as Lender may reasonably require. Policies shall be written In form, amounts, coverages and basis
<br />reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Trustor, upon request of
<br />Lender, will deliver to Lander from time to time the policies or cenlfloates of Insurance in form satisfactory to Lender, including stipulations
<br />that coverages will not be cancelled or diminished without at West ten (10) days prior written notice to Lander. Each insurance policy also
<br />shall include an endorsement providing that coverage in favor of under will not be impaired In any way by any act, omission cr default of
<br />Trustor or any other person. Should the Real Property be located In an area designated by the Director of the Federal Emergency
<br />Management Agency as a special flood hazard area, Trustor agrees to obtain and maintain Federal Flood Insurance, If available, within 45
<br />days after notice Is given by Lander that the Properly is located In a special food hazard area, for the full unpaid principal balance of the loan
<br />and any prior liens on the properly securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as
<br />otherwise required by Lender, and to maintain such insurance ter the term of the loan.
<br />Application of Proceeds. Trustor shall prompby natty Lender of any loss or damage to the Property if the estimated cost of repair or
<br />replacement exceeds $50.00. Lender may make proof of loss if Trustor falls to do so within fiheen (15) days of the casualty. Whether or not
<br />Lenders security is impaired, Lender may, at Lentler s election, receive and retain the proceeds of any insurance and apply the proceeds to
<br />the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lander elects to
<br />apply the proceeds to restoration and repair, Trustor shall repair or replace the damaged or destroyed Improvements in a manner
<br />satisfactory to Lender. Lander shall, upon satisfactory proof of such expenditure, Pay or reimburse Trustor from the proceeds for the
<br />reasonable cost of repair or restoration if Trustor is not in defauh under this Deed of Trust. Any proceeds which have not been disbursed
<br />within 180 days after their receipt and which Lander has not committed to the repair or restoration of the Property shall be used first to pay
<br />any amount owing to Lender under this Dead of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the
<br />principal balance of the Indebtedness. It Lender holds any proceeds after payment in lull of the Indebtedness, such proceeds shall be paid
<br />to Trmtor as Trustor's Interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish to Lender a report on
<br />each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4) the
<br />property insured, the then current replacement value of such property, and the manner of debrminirp that value; and (5) the expiration
<br />dale of the policy. Trustor shall, upon request of Lander, have an independent appraiser satisfactory to Lander determine the cash value
<br />replacement cost of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if Trustor
<br />fails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Trustor's failure to discharge or pay
<br />when due any amounts Trustor is required to discharge or pay under the Dead of Trust or any Related Documents, Lender on Trustors behalf
<br />may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes,
<br />liens, security interests, encumbrances and other claims, at any time levied or pieced on the Property and paying all costs for insuring, maintaining
<br />and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will than bear interest at the rate charged under
<br />the Note from the date incurred or paid by Lender to the data of repayment by Trustor. All such expenses will become a part of the Indebtedness
<br />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
<br />with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the
<br />Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Deed of Trust also will secure payment
<br />of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be enttled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a pan of this Deed of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable tlbe of word to the Property in fee simple, free and clear of ell liens and
<br />encumbrances other than those set forth in the Real Property description or in any title Insurance policy, tibe report, or final title opinion
<br />issued in favor of, and accepted by. Lender in connection with this Dead of Trust, and (b) Trustor has the full right, power, and authority to
<br />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 title to the Property against
<br />the lawful claims of all persons. In the event any action or proceeding is commenced that questions Trustors title or the Interest of Trustee or
<br />Lander under this Deed of Trust, Trustor shall defend the action at Trustor's mpenas. Trustor may be the nominal party in such proceeding,
<br />but Lander 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 will deliver, or cause to be delivered, to Lentler such instruments as Lender may request from time to time to permit such
<br />participation.
<br />Compliance With Laws. Truslor warrants that the Property and Trustor's use of the Property complies with all existing applicable laws,
<br />ordinances, and regulations of governmental authorities.
<br />SUMvai of Representations and Wanranllea. All representations, warranties, and agreements made by Trustor in this Dead of Trust shall
<br />survive the execution and delivery of this Dead of Trust, shall be continuing in nature, and shall remain in full force and ebwkM1unfll such time
<br />as Trustor's Indebtedness shall be paid in full
<br />
|