|
200206685
<br />DEED OF TRUST
<br />Loan No: 1548056 (Continued) Page 2
<br />Compliance with Governmental Requirements. Trustor shall promptly comply with all laws, ordinances, and regulations, now or hereafter
<br />in effect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, the Americans With
<br />Disabilities Act. Trustor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding,
<br />including appropriate appeals, so long as Trustor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion,
<br />Lender's interests in the Property are not jeopardized. Lender may require Trustor to post adequate security or a surety bond, reasonably
<br />satisfactory to Lender, to protect Lender's Interest.
<br />Duty to Protect. Trustor agrees neither to abandon or leave unattended the Property. Trustor shall do all other acts, in addition to those
<br />acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the
<br />Property.
<br />TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Deed of Trust:
<br />Payment. Trustor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (including water
<br />and sewer), fines and impositions levied against or on account of the Property, and shall pay when due all claims for work done on or for
<br />services rendered or material furnished to the Property. Trustor shall maintain the Property free of all liens having priority over or equal to the
<br />interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this
<br />Deed of Trust.
<br />Right to Contest. Trustor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation
<br />to pay, so long as Lender's interest in the Property is not jeopardized. 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 fling, secure the discharge of the
<br />lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an
<br />amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges that could accrue as a result of a foreclosure or
<br />sale under the lien. In any contest, Trustor shall defend Itself and Lender and shall satisfy any adverse judgment before enforcement against
<br />the Property. Trustor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings.
<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 />Notice of Construction. Trustor shall notify Lender at least fifteen (15) days before any work Is commenced, any services are furnished, or
<br />any materials are supplied to the Properly, If any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work,
<br />services, or materials. Truslor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Trustor can and
<br />will 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 of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on
<br />a fair value 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 mortgagee 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 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. Truslor, 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 />that coverages will not be cancelled or diminished without at least thirty (30) days prior written notice to Lender. Each insurance policy also
<br />shall Include an endorsement providing that 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. The Real Property Is or will 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, for the full
<br />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
<br />National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan.
<br />Application of Proceeds. Truslor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if
<br />Trustor 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,
<br />receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting
<br />the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall
<br />repair or replace the damagedl or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such
<br />expenditure, pay or reimburse Truslor from the proceeds for the reasonable cost of repair or restoration if Trustor is not in default under this
<br />Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the
<br />repair or restoration of the Property shall be used first to pay any amc 1 owing to Lender under this Deed of Trust, then to pay accrued
<br />interest, and the remainder, if any, shall be applied to the principal balanc of the Indebtedness. If Lender holds any proceeds after payment
<br />in full of the Indebtedness, such proceeds shall be paid to Trustor as Trur torts 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 insurr:: (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 determining that value; and (5) the expiration
<br />date of the policy. Trustor shall, upon request of Lender, have an Ind =pendent appraiser satisfactory to Lender determine the cash value
<br />replacement cost of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced it it would materially affect Lender's interest in the Properly or If Trustor
<br />fails to comply with any provision of this Deed of Trust or any Related Doci rnents, including but not limited to Trustor's failure to discharge or pay
<br />when due any amounts Trustor is required to dt - charge or pay under thle Deed of Trust or any Related Documents, Lender on Trustor's behalf
<br />may (but shall not be obligated to) take any action that Lender deems a propriate, including but not limited to discharging or paying all taxes,
<br />liens, security interests, encumbrances and other claims, at any time levie or placed on the Property and paying all costs for Insuring, maintaining
<br />and preserving the Property. All such expenditures incurred or paid by L -der for such purposes will then bear interest at the rate charged under
<br />the Note from the date incurred or paid by Lendei '^ the date of repaym „t by Trustor. All such expenses will become a part of the Indebtedness
<br />and, at Lender's option, will (A) be payable on de ;nand; (B) be add, ,1 to the balance of the Note and be apportioned among and be payable
<br />with any Installment payments to become due daring either (1) the' arm of any applicable insurance policy; or (2) the remaining term of the
<br />Note; or (C) be treated as a balloon payment H `,i, h will be due and ,ayable at the Note's maturity. The Deed of Trust also will secure payment
<br />of these amounts. Such right shall be in addiiin i I, all other rights an. remedies to which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The followir provisions relatin , Vownetship of the Property are a part of this Deed of Trust:
<br />Title. Trustor warrants that: (a) Truslor hol, food and mark .able title of record to the Property in fee simple, free and clear of all liens and
<br />encumbrances other than those set forth in a Real Propc . description or in any title insurance policy, title report, or final title opinion
<br />issued in favor of, and accepted by, Lender it ;onnectlon v :'his Deed of Trust, and (b) Trustor has the full right, power, and authority to
<br />execute and deliver this Deed of Trust to Lend, .
<br />Defense of Title. Subject to the exception in
<br />a parag ph above, Trustor warrants and will forever defend the title to the Property against
<br />the lawful claims of all persons. In the event a
<br />:r proceeding is commenced that questions Trustor's title or the interest of Trustee or
<br />Lender under this Deed of Trust, Trustor shall d
<br />=rid a action at Trustor's expense. Trustor may be the nominal party in such proceeding,
<br />but Lender shall be entitled to participate in the
<br />ic, ding and to be represented in the proceeding by counsel of Lender's own choice, and
<br />Trustor will deliver, or cause to be deliverer.
<br />- rider such instruments as Lender may request from time to time to permit such
<br />participation.
<br />Compliance With Laws. Trustor warrants th,*
<br />i Property and Trustor's use of the Property complies with all existing applicable laws,
<br />ordinances, and regulations of governmental au,
<br />n lies.
<br />Survival of Representations and Warranties
<br />I representations, warranties, and agreements made by Trustor in this Deed of Trust shall
<br />survive the execution and delivery of this Deed :
<br />rust, shall be continuing in nature, and shall remain in full force and effect until such time
<br />as Trustor's Indebtedness shall be paid in full.
<br />
|