|
DEED OF TRUST
<br />Loan No: 1564376 (Continued) 200208157 Page 2
<br />in effect, of all governmental authorites applicable to the use or occupancy of the Property. Truster may contest in goad faith any such law,
<br />ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Trustor 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 jeopardized. Lender
<br />may require Truster to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest.
<br />Duty to Protect. Truster agrees neither to abandon or leave unattended the Property. Trustor shall do all other acts, in addition to those
<br />acts set faith 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 Properly are pad Of this Dead 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 Properly ties of all liens having priority over or equal to the
<br />interest of Lender under this Dead of Trust, except far the lien of taxes and assessments not due and except as otherwise provided in this
<br />Dead 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 Properly is not jeoperdlzed. If a lien arises or is filed as a result of nonpayment, Trustor shall within
<br />fifteen (15) days after the Ilan arises or, if a lien is filed, within fifteen (15) flays after Trustor has notice of the filing, secure the discharge of the
<br />lien, or if requested by Lender, deposit with Lander 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 afforneys' fees, or other charges that could accrue as a result of a foreclosure or
<br />sale under the lien. In any contest, Truster shall defend itself and Lentler and shall satisfy any adverse judgment before enforcement against
<br />the Property. Trustor, shall name Lender as an additi0nal obligee under any surety bond furnished in the contest proceedings.
<br />Evidence of Payment. Truster 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 Lander at any time a written statement of the taxes and assessments against the
<br />Properly.
<br />Notice of Construction. Trustor shall notify Lander at least fifteen (15) days before any work is commenced, any services are furnished, or
<br />any 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
<br />will pay the cost of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a pad of this Dead 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 far the full insurable value covering all Improvements on the Reel Property in an amount sufficient to avoid application 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. POlioies shall be written in form, amounts, coverages and basis reasonably acceptable to Lander and issued
<br />by a company or companies reasonably acceptable to Lender. Truster, upon request of Lander, will deliver to Lender from time to time the
<br />policies or certificates of insurance in form satisfactory to Lander, including stipulations that coverages will not be cancelled or diminished
<br />without at least thirty (3s,) flays prior written notice to Lender, Each Insurance policy also shall include an endorsement providing that
<br />coverage 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 Real
<br />Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area.
<br />Trustor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice I5 given by Lender that the Property is
<br />located in a special flood hazard 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 Lander, and to maintain such
<br />insufance for the term of the loan.
<br />Application of Proceeds. Truster 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) flays 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 Iran affecting
<br />the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Truster shall
<br />repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such
<br />expenditure, pay or reimburse Trustor 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 lust to pay any amount owing to Lender under this Deed of Trust, then t0 pay accrued
<br />interest, and the remainder, If any, shall be applied to the principal balance Of the Indebtedness. It Lender holds any proceeds after payment
<br />in full of the Indebtedness, such proceeds shall be paid to Trustor as Truster's interests may appear.
<br />LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property tree of all taxes, liens, security interests, encumbrances, and other claims,
<br />(B) to provide any required insurance on the Property, or (C) to make repairs to the Property then Lender may do so. If any action or
<br />proceeding is commenced that would materially affect Lender's interests in the Property, then Lender on Truster's behalf may, but is not required
<br />lo, take any action that Lender believes to be appropriate to protect Lender's interests. Ali expenses incurred or paid by Lender for such
<br />purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Truslor.
<br />All such expenses will become a pad of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance
<br />of the Note and be apportioned among and be payable with any installment payments to became due during either (1) the term of any
<br />applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the
<br />Note's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to
<br />any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall not be construed as
<br />stands, the default so as to bar Lender From any remedy that it otherwise would have had.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a pad of this Dead of Trust:
<br />Tllla. Truster warrants that: (a) Trustor holds good and marketable title of record to the Property in fee simple, free and clear of ell liens and
<br />encumbrances other than those set forth in the Real Properly description or in any title insurance policy, title raped, or Final title opinion
<br />issued in favor of, and accepted by, Lender in connection with this Deetl 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 tawiul clalms of all persons. In the event any action or proceeding is commenced that questions Truslor's title or the interest of Trustee or
<br />Lender untler this Deed of Trust, Trustor shall defend the action at Truslor's expense. Trustor may be the nominal party in such proceeding,
<br />but Lender 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, 10 Lender such instruments as Lender may request from lime to time to permit such
<br />Participation.
<br />Compliance With Laws. Trustor warrants that the Property and Truster's use of the Property complies with all existing applicable laws.
<br />ordinances, and regulations of governmental authorities.
<br />Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shell survive the execution and
<br />delivery of this Deed of Trust, shall be continuing in nature and shall remain In full force and effect until such time as Truster's Indebtedness
<br />is paid In full.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a pad of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in waling, and Truslor 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
<br />shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Trustor will
<br />deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender From lime to time to permit
<br />such participation.
<br />Application of Net Proceeds. If all or any pad of the Property is condemned by eminent domain proceedings or by any proceeding or
<br />purchase in lieu of condemnation, Lender may at its election require that all Or any portion of the not proceeds:cf the award be applied to the
<br />
|