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<br />Loan No: 87355
<br />
<br />DEED OF TRUST
<br />(Continued)
<br />
<br />200609333
<br />
<br />Page 3
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<br />and maintain comprehensive general liability insurance In such coverage amounts as Lender may request with Trustee and Lender
<br />being named as addiUonal insureds in such liability insurance policies. Additionally, Trustor shall maintain such other insurance,
<br />including but not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shall be
<br />written in form, amounts, coverages and basis reasonably acceptable to Lender and Issued by a company or companies reasonably
<br />acceptable to Lender. All policies shall provide that the policies shall not be invalidated by any waiver of the right of subrogation by
<br />any insured and shall provide that the carrier shall have no right to be subrogated to Lender. TrUstor, upon request of Lender, will
<br />deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, Including stipulations that
<br />coverages will not be cancelled or diminished without at least thirty (30) days prior wrlllen notice to Lender. Each insurance policy
<br />also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or
<br />default of Trustor or any other person. Should the Real Property be located in an area designated by the Director of the Federal
<br />Emergency Management Agency as a special flood hazard area, Trustor agrees to obtain and maintain Federal Flood Insurance, if
<br />available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the full unpaid
<br />principal balance of the loan and any plior 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 />
<br />Application of Proceeds, Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss
<br />if Trustor fails to do so within fifteen (15) days of the casualty. Whether or not Lende~s security is impaired, Lender may, at Lender's
<br />election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of
<br />any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and
<br />repair, Trustor shall repair or replace the damaged Or destroyed Improvements in a manner satisfactory to Lender. Lender shall. upon
<br />satisfactory proof of such expenditure, payor reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if
<br />Trustor is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt
<br />and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender
<br />under this Deed of Trust, then to pay accrued interesl. and the remainder, if any, shall be applied to the principal balance of the
<br />Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as
<br />Trusto~s Interests may appear.
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<br />Unexpired Insurance at Sale. Any unexpired insurance shall inure to the benefit of, and pass to, the purchaser of the Property oovered
<br />by this Deed of Trust at any trustee's sale or other sale held under the provisions of this Deed of Trust, or at any foreclosure sale of
<br />such Property.
<br />
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than onCe e year, Trustor shall furnish to Lender a report
<br />on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured: (3) the amount of the policy; (4)
<br />the property insured, the then current replacement value of such property, and the manner of determining that value; and (5) the
<br />expiration date of the policy. Trustor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine
<br />the cash value replacement cost of the Property.
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<br />lENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect lende~s interest in the Property or if
<br />Trustor fails to comply with any provision of this Deed of Trust or any Related Documerrts, including but not limited to Trustor's failure to
<br />discharge or pey when due any amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender
<br />on Trustor's behalf may (but shall not be obligated to) take any action that Lender deems appropliate, Including but not limited to
<br />discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and
<br />paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred or peid by Lender for such purposes
<br />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 Trustor. All
<br />such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the
<br />balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of
<br />any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and
<br />payable at the Note's maturity. The Dead of Trust also will secure payment of these amounts. Such right shall be in addition to all other
<br />rights and remedies to which Lender may be entitled upon Default.
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<br />WARRANTY; DEFENSE OF TITLE, The following provisions relating to ownership of the Property are a part of this Deed of Trust:
<br />
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable title of reoord to the Property in fee simple, free and clear of all
<br />liens and encumbrances other than those set forth in the Real Property descliptlon or In any title insurance policy, title report, or final
<br />title opinion issued in favor of, and accepted by, Lender In connection with this Deed of Trust, and (b) Trustor has the full right.
<br />power, and authority to execute and deliver this Deed of Trust to Lender.
<br />
<br />Defense of Title, Subject to the exception in the paragraph above, Trustor warrants and will forever defend the title to the Property
<br />against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Trustor's title or the
<br />interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the action at Trustor's expense. Trustor may be the
<br />nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding
<br />by counsel of Lender's own choice, and Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may
<br />request from time to time to permit such participation.
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<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property oomplles with all existing applicable
<br />laws, ordinances, and regulations of governmental authorities,
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<br />Survival of Representations and Warranties. All representations, warranties, and agreements made by Trustor In this Deed of Trust
<br />shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and shall remain in full force and effect
<br />until such time as Borrower's Indebtedness shall be paid in full.
<br />
<br />CONDEMNATION, The fOllowing provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />
<br />Notice of Proceedings. Trustor shail immediately notify Lender in writing should all or any part of the Property beoome subject to any
<br />oondemnatlon or expropriation proceedings Or other similar proceedings, including without limitation, any condemnation, confiscation,
<br />eminent domain, Inverse oondemnatlon or temporary requisition Or taking of the mortgaged Property, or any part Or parts of the
<br />Property. Trustor further agrees to promptly take such steps as may be necessary and proper within Lende~s sole judgment and at
<br />Trusto~s expense, to defend any such condemnation or expropriation proceedings and obtain the proceeds derived from such
<br />proceedings. Trustor shall not agree to any settlement or oompromise or any oondemnation Or expropriation claim without Lender's
<br />prior written consent.
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<br />Lender's Participation. Lender may, at Lender's sole option, elect to participate in any such condemnation or expropriation
<br />proceedings and be represented by counsel of Lender's choice. Trustor agrees to provide Lender with such documentation as Lender
<br />may request to permit Lender to sO participate and to reimburse Lender for Lender's costs associated with Lender's participation,
<br />including lender's reasonable attorneys' fees.
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<br />Conduct of Proceedings. If Trustor fails to defend any such condemnation or expropriation proceedings to Lende~s satisfaction,
<br />Lender may undertake the defense of such a proceeding for and on behalf of Trustor. To this end, Trustor irrevocably eppoints Lender
<br />as Trustor's agent and attorney-in-fact, such agency being ooupled with an Interest. to bring, defend, adjudicate, settle, or otherwise
<br />oompromise such oondemnation or expropriation claims; it being understood, however, that, unless one or more Events of Default
<br />(other than the condemnation or expropriation of the Property) then exists under this Deed of Trust, Lender will not agree to any final
<br />settlement or compromise of any such condemnation or expropriation claim without Trusto~s prior approval, which approval shall not
<br />be unreasonably withheld.
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<br />Application of Net Proceeds. Lender shall have the right to receive all proceeds derived or to be derived from the condemnation,
<br />expropriation, confiscation, eminent domain, inverse condemnation, or any permanent or temporary requisition or taking of the
<br />Property, or any part or parts of the Property ("condemnation proceeds"). In the event that Trustor should receive any such
<br />condemnation proceeds, Trustor agrees to immediately turn over and to pay such proceeds to Lender. All condemnation proceeds,
<br />which are received by, or which are payable to either Trustor or Lender, shail be applied, at Lender's sole option and discretion, and in
<br />such manner as Lender may determine (after payment of all reasonable costs, expenses and allorneys' fees necessarily paid or
<br />incurred by Trustor andlor Lender), for the purpose of: (a) replacing or restoling the condemned, expropriated, confiscated, or taken
<br />Property; or (b) reducing the then outstanding balance of the Indebtedness, together with interest thereon, with such payments being
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