|
DEED OF TRUST
<br />Loan No: 774321 204214119 (Continued) Page 3
<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 fallowing provisions relating to the lazes and liens on the Property are pan 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 Properly, and shall pay when due all claims for work done on or for
<br />servoes rendered or material furnished to the Property. Tractor shall maintain the Property free of all liens having priority over or equal to the
<br />interest of tender 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. Truster may withhold payment of any lax, 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 jeopardized. If a lien arises or is filed as a result of nonpayment, Truster shall within
<br />fifteen (15) days after the lien arises or, if a lien is filed within fifteen (15) tlays after Trustor has notice of the filing, 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 cosh and aftorneys' 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 satisty 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. 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 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 Property, it any mechanic's Ilen, 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 fallowing 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 />n 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 wniten in farm, 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 />Larder, 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 ten (10) 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. 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 Lender that the Property is located in a special flood 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 Ilmlts set under the National Flood Insurance Program, or as
<br />otherwise required by Lender, and to maintain such Insurance for the term of the loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if
<br />Trustor falls 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 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 first to pay any amount awing to Lender under this Deed of Trust, then to pay accrued
<br />Interval, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment
<br />In full of the Indebtedness, such proceeds shall be paid to Truster as Trustor's interests may appear.
<br />Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is in affect, compliance
<br />with the insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the
<br />insurance provisions under this Dead of Trust, to the extent compliance with the terms of this Deed of Trust would constitute a duplication of
<br />insurance requirement. If any proceeds from the insurance become payable on loss, the provisions In this Deed of Trust for division of
<br />proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />Trustors 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 asks insured (3) the amount at the policy: (4) the
<br />property Insured the than 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 independent 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 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 Trustees failure to comply with any
<br />obligation to maintain Existing Indebtedness in good standing as required below, or to discharge or pay when due any amounts Trustor is
<br />required to discharge or pay under this Dead of Trust or any Related Documents, Lender on Truster's behalf may (but shall not be obligated to)
<br />take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances
<br />and other claims, at any time levied or placed on the Property and paying all costs for Insuring, maintaining and preserving the Property. All such
<br />expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or
<br />
|