|
200207015 DEED OF TRUST
<br />Loan NO: 1545508 (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 aulhonti� applicable to the use Of occupancy of the Properly. Truslor may contest In good faith any such few,
<br />ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Truslor has notified
<br />Lender In writing prior to doing so and so long as In Lender's sole opinion, Lender s interests In the Property are not jeopardize. Lender
<br />may require Truster to ever adequate security Or a surety bond, reasonably salkfacimy to Lendeo to project Lender's interest.
<br />Duly to Protect. Trustor agrees neither to abandon or (cave unattended the Predicts. Truro r shall do all other acts, in addition to those
<br />acts sat forth above in this section, which from the character and use or the Properly are reasonably necessary to protect and preserve the
<br />Property.
<br />TAXES AND LIENS. The fallowing provisions relating to the taxes and liens On the Properly are part of this Dead Of Trust:
<br />Payment. Tractor shall pay when clue (and In 311 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 clue all claims fur work done on or for
<br />rendered or materiel furnished to the Property. Truster shall maintain the Property hear of all liens having priority over Or equal to the
<br />hmle eel of Lender under this Dead of Trust, except for the lien of lazes and assessment not due and except as otherwise provided in this
<br />Deed of Trust.
<br />algal to Contest. Truslor may withhold payment of any lax, assessment, or claim in connection win a good latth dispute over the obligation
<br />to pay, so long as Lender's Interest In the Property is not levpardDed If a Ilex arses or Is filed as a result of nonpayment, Tractor shall within
<br />fifteen (15) days slier the Ilan arises or, X a Gen Is filed, whom fifteen (15) days after Truslor has notice at the filing, secure the discharge of the
<br />or If requested by Lender, deposit with Lender cash or a sufficient corporate surely 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, Truslor shall defend Or and Lender and shell saltsfy any adverse judgment before enforcement against
<br />the Property. Truslor shall name Lender as an additional Obligee under any surety band furnished In the contest proceedings.
<br />Evidence of Payment. Truslor shall upon demand furnish to Lender s illefaGOry evidence of payment of the laces or assessments and shall
<br />aulhorim the appropriate governmental official to deliver to Lender at any time a written statement of the loxes 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 materiels are supplied to the Property, X any mechanic's lien, arderialmen's lien, or Omer hen could be asserted On amount of work
<br />materials. Tmsjor will upon request m Lender furnish to Lender advance assurances satisfactory m Lender that Trusser can and
<br />will pay the cost of such Improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property any a part of this Deed of Trust
<br />Maintenance of Insurance Trustor shall procure and malntatn polities of fire Insurance with standard extended coverage andvrseemenls on
<br />a fair value basis for the full Insurable value covering all Improvements On the Real Property In an amount Sufficient to avoid applbarton of
<br />any coinsurance clause, and with a standard mortgagee clause In favor of Lender, together with Such other hazard and liability Insurance as
<br />Lender may reasonably require. Polletes shall be written in form amounts, coverages and basis reasonably acceptable to Lender and issued
<br />by a company or companies reasonably acceptable to Lender. Truslor upon request of Lender, will deliver to Lender from time to time the
<br />p011des Or cerllllcates Of Insurance In form Sells factory to Lender, including sllpulSILLOM that Coverages will not be cancelled Or diminished
<br />without at least Lilly (30) days prior written notice to Lentler. Each Insurance policy also shall include an arrangement providing that
<br />erage In favor of Lender will not be impaired In any way by any act, omission or default of Trustor or any other person Should the Rod
<br />Property be located In an area designated by the Director of the Federal Emergency Management Agency as a Special flood hazard area
<br />Truslor agrees to obtain and maintain Federal Flood Insurance, If available, within 45 clays after notice is given by Lender that the Properly Is
<br />located In a special Ibotl Lazard area, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan,
<br />up to the maximum policy limits set under the National Flood Insurance Program, or as Otherwise required by Lender, and to maintain such
<br />insurance for the term of the loan.
<br />Application of Proceeds. Tmslar shall promptly notify Lender Of any load Or damage to the Property. Lender may make proof of loss if
<br />Trustor fails to do so within flair (15) days of the casualty whether or not Lender's security Is impaired, Lender may, at Landers election,
<br />receive and neither 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 unification and repair of the Property. If Lender elects to apply the proceeds In reslomlion and repair, Trustor Shall
<br />repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to Pay eminent
<br />Interest, and the remainder, it any, shall be applied to the principal balance of the Indebtedness. II Lender holds any proceeds after payment
<br />In full or the Indebtedness, such proceeds shall be paid to Truslor as Tostor'a interests may appear.
<br />LENDER'S EXPENDITURES. If Trustor Ills (A) to keep the Property free of all taxes, liens, security interest, encumbrances, and other claims,
<br />(0) to provide any required Insurance on the PmpeM, or (C) to make repetrs to the Properly then Lender may do so. If any action or
<br />proceeding 1s commenced that would materially affect Lenders Interests In the Property, men Lender on Trustors behalf may but is not required
<br />to, lake any action that Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for I
<br />purposes will then bear interest at the rate charged under the Note from the dale Incurred or paid by Lender to the data of repayment by Truslor.
<br />All such expenses will become a pad of the Indebtedness an. at Lender's option, will (N) be payable on demand ) IS) be added to the balance
<br />of the Note and be apportioned among and be payable with any installment payments to became clue during either (1) the term of any
<br />applicable insurance policy, or (2) the remaining farm of the Nate; or (C) be treated as a balloon payment which will be clue and payable at the
<br />Note's maturity. The Deed of Trust also will secure payment of these amount. The rights prodded for In this para0raph shall be In addlon to
<br />any other rights or any remedies to which Lander may be entitled on amount of any default. Any such action by Lender shall not be construed as
<br />coding the desiall so as to bar Lender from any remedy that II otherwise would have had
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Dead of Trust.
<br />Tllle. Truslor warrants that: (a) Truster holds good and marketable Ole of record to the Property In fee simple, had and clear of all (lens and
<br />encumbrances other than those set forth in the Real Property descrlpllon or In any age Insurance policy. file report, or final IIM1P opinion
<br />sued In favor of, and accepted by Lender In connection with this Deed of Trust, and (b) Trustor has the full right, power, and authority 10
<br />acute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception In the paragraph above, Trusf n 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 Trustor 'a title or the Interest of Trustee or
<br />Lender under this Deed of Trust, Trustor shall deend the action at Truslor'S expense- Truslor may be the nominal party In such proceeding,
<br />but Lender shall be enlllled to participate In the proceeding and to be fepreswnled In the proceeding by counsel of Lender's own choice, end
<br />Trustor will deliver, or cause to be delivered, to Lender such Instruments as Lender may request from lime to time to permit such
<br />Participation.
<br />Compliance With Laws. Truslor warrants that the Properly and Trustor's use of the Property complies with all existing applicable laws,
<br />natural and regulations of governmental authorities.
<br />Survival of Promises. All promises, agreements, and statements Trustor has made In this Deed Of Trust shall survive the extra lOn and
<br />delivery of this Dead of Trust, shall be continuing In nature and shall remain In full force and effect unll such time as Tractor's Indebtedness
<br />is paid in full.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation Is hied. Truslor shall promptly notify Lender In writing, and Truslor shall promptly take such
<br />steps as may be necessary to defend the action and cream the award. Truslor may be the nominal party In such W oceaderg, but Lender
<br />shall be entitled to participate In the proceeding and to be represented In the proceeding by counsel of es own choice, and Toren will
<br />deliver or cause to be delivered to Lender such Instruments and documentation as may be requested by Lender from lime to lime to permit
<br />rush participation.
<br />Application of Nei Proceeds. If all or any pad of the Property is condemned by eminent domain proceedings or by any proceeding or
<br />
|