|
DEED OF TRUST 200304338
<br />(Continued) Page 3
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to Insuring the Property are a part 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 Lender. 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 riot limited to hazard, business
<br />Interruption, and boiler insurance, as Lender may reasonably require. Policies shall ba written in form, amounts, coverages and basis
<br />reasonably acceptable to Lender end issued by a company or companies reasonably acceptable to Lender. Trustor, upon request of
<br />Lender, will deliver to Lender from time to time the policies or certificates of Insurance in form Satisfactory to Lender, including stipulations
<br />Mat coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each insurance policy also
<br />shall Include an endorsement provding Mat coverage in favor of Lender will not be impaired In any way by any act, omission or default of
<br />Trustor or any other person. Should the Real Property be located in an was 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, wflhln 4
<br />days after notice is given by Lender that the Property Is located in a special flood bezaro area, for the full unpaid principal balance of Me loan
<br />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
<br />otherwise required by Lentler, and w maintain such insurance for the term of the loan.
<br />Application of Proceeds. Trustor shall promptly nobly Lender of any loss or damage W the Property 0 the estimated cost of repair or
<br />replacement exceeds $1,000.00. Lender may make proof of loss If Trustor falls W do so within iHteen (15) days of the casualty. Whether or
<br />not Lender's security is impaired, Lander may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds
<br />to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects
<br />to apply the proceeds to restoration and repair, Trustor shall repair or replace the damaged or destroyed Improvements in a manner
<br />satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Truslor from the proceeds for the
<br />reasonable cost of repair or restoration 0 Trustor is not in default under this Deed of Trust. Any proceeds which have not been disbursed
<br />within 180 days after their receipt and which Lender 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 Deed of Trust, then to pay accrued interest, and the remainder, I any, shall be applied to the
<br />principal balance of the Indebtedness. If Lander holds any proceeds after payment In full of the Indebtedness, such proceeds shall be paid
<br />to Truslor as Trustw'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 Insurer; (3) the amount of the policy; (4) the
<br />property insured, the then current replacement value of such property, and Me manner of determining that value; and (5) the expiration
<br />date of the policy. Trustor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value
<br />replacement coat of Me Property.
<br />TAX AND INSURANCE RESERVES. Subject to any limitations set by applicable law, Lauder may require Truslor M maintain with Lender
<br />reserves for payment of annual texas, assessments, and insurance premiums, which reserves shall be created by advance payment or monthly
<br />payments of a sum estimated by Lender to be sufficient to produce, amounts at least equal to the taxes, assessments, and insurance premiums to
<br />be paid. The reserve funds shall be held by Lender as a general deposit from Trustor, which Lender may satisfy by payment of the taxes,
<br />assessments, and insurance premiums required to be paid by Trustor as May became due. Lender shall have Me right to draw upon Me reserve
<br />funds W pay such items, and Lentler shall not be required to determine the vaticity or accuracy of any item before paying it. Nothing in the Deed
<br />of Trust shall be construed as requiring Lender to advance other monies for such purposes, and Lender shall not incur any liability for anything it
<br />may do or omft to do with respect M the reserve account. Subject many limitations set by applicable few, If the reserve funds disclose a shortage
<br />or def llency, Trustor shall pay such shortage or deficiency as required by Lender. All amounts in Me reserve account are hereby pledged to
<br />further secure Me Indebtedness, and Lender is hereby authorized to withdraw and apply such amounts on the Indebtedness upon the occurrence
<br />of an Event of Default. Lender shall not be required to pay any Interest or earnings on the reserve funds unless required by law or agreed to by
<br />Lender in wrung. Lander does not hold the reserve funs in trust for Trustor, and Lender is not Trustor's agent for payment of Me taxes and
<br />assessments required to be paid by Trustor.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced Mal mud materially affect Lenders interest in Me Property or if Trustor
<br />fails to comply with any provision of Me Deed of Trust or any Related Documents, Including but not limited to Trustols failure to discharge or pay
<br />when due any amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Trustor's behalf
<br />may (but shall not be obligated to) take any action Mat 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 placed 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 Me data incurred or paid by Lender to the date of repayment by Trustor. All such expenses will become a pad 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) Me ten of any applicable insurance policy; or (2) the remaining tens 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 Mesa amounts. Such right shall be In addition to all other rights and remedies to which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TIRE. The following provisions relating to ownership of Me Property are a part of Mis Deed of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds goad and marketable title of record to the Property In fee simple, free and clear of all liens and
<br />encumbrances other Men those set loth In Me Real Property description or in any title insurance policy, title report, or final title opinion
<br />issued in favor of, and accepted by, Lender In connection with this Deed of Trust. and (b) Trustor has Me 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 Me title to Me Property, against
<br />the lawful claims of all persons. In Me event any action or proceeding Is commenced Mat questions Trustor's title or Me interest of Trustee or
<br />Lender under Ms Deed of Trust, Trustor shall defend the action at Tructors expense. Trustor may be the nominal parry 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 Lender such instruments as Lender may request from time to time to perrntl such
<br />Participation.
<br />Compliance With Laws. Trustor warrants that the Property and Twwors use of the Property complies with all existing applicable laws,
<br />ordinances, and regulations of governmental authorities.
<br />Survival of Represantetlons and Warranties. All representations, warranties, and agreements made by Trustor In this Dead of Trust shall
<br />survive the execution and delivery of thts Deed of Trust, shall be continuing in nature, and shall remain in full force and effect until such time
<br />as Trustor'. Indebtedness shall be paid In full.
<br />CONDEMNATION. The following provisions relating w condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in voting, and Trustor shall promptly take such
<br />Steps as may be necessary to defend Me action and obtain the award. Trustor may be the nominal party in such proceeding, but Lender
<br />shall be entitletl to participate in the proceeding and to be represented In the proceeding by counsel of its own choke, an Trustor. will
<br />deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lentler from time to time to permit
<br />such participation.
<br />Application of Net Proceeds. If all or any part of Me Property is condemned by eminent domain proceedings or by any proceeding or
<br />purchase in lieu of condemnation, Lander may at its election require that all or any portion of Me net proceeds of Me award be applied to Me
<br />Indebtedness or Me repair or restoration M the Property. The net proceeds of Me award shall mean Me award after payment of all
<br />reasonable costs, expenses, and attorneys' fees incurred by Trustee or Lender in connection with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes,
<br />fees and charges are a part of this Deed of Trust:
<br />Current Taxes, Face arW Charges. Upon request by Lander, Trustor shall execute such documents In addMon to Mrs Deed of Trust and
<br />lake whatever other action Is requested by Lender to perfect and continue Lenders lien on the Real Property. Trustor shall reimburse Lander
<br />for ail taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Deed of Trust. including
<br />
|