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Loan No: 132827-00100 DEED OF TRUST (Continued) 200803334 Page 3 I PROPERTY DAMAGE INSURAN,E, The following provisions relating to insuring the Property are a part of this Deed of Trust. Maintenance of Insurance. (Trustor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a fair value basis for the fUlll'nsurable value covering alllmprovemants on the Real Property in an amount sUfficient to avoid application of any coinsurance claUSe, and with a standard mortgagee clause in favor of Lender. Trustor shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Trustee and Lender being named as additional insureds In such liability Insurance policies. Additionally, Trustor shall maintain such other insurance, including but not limited to hazard, business Interruption, and boiler insu~ance, as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and Issued by a company or companies reasonably acceptable to Lender. Trustor, upon request of Lender, will deliver to Lendet from time to lime the policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be c~ncelled or diminished without at least ten (10) days prior written notice to Lender. Each insurance policy also shali Includl;l an endorsemeni providing that coverage In favor of Lender will not be impaired in any way by any ael, omission or default of Trustor or any other perso~. Should the Real Property be located In an area designated by the Director of the Federal Emergency Management Agency as a sReclal flood hazard area, Trustor agrees to obtain and maintain Federal Flood Insurance, If available, for the full unpaid principal balance of \he loan and any prior liens on the property securing the loan, up to the maximum polley limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such Insurance for the term of the loan. Application of Proceeds. 1rustor shall prompliy notify Lender of any loss or damage to the Property. Lender may make proof of loss if 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, receive and retain the proce~ds of any insuranC!l and apply the proceeds to the reductlon of the Indebtedness, payment of any lien affecting the Property, or the restoratlbn and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the damag~d or destroyed Improvements in a manner satlsfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, payor reimbursb Trustor from the proceeds for the reasonable cost of repair or restoration if Trustor is not In default under this Deed of Trust. Any proceed~ which have not been disbursed within 180 days after their receipt and which Lender has not coml'\litted to the repair or restoratlon of the p'roperty shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued interest, and the remainder, il any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, sUch proceeds shall be paid to Trustor as Trustor's interests may appear. Trustor's Report on Insur8~ce. Upon request of Lender, however not more than once a year, Trustor shall furnish to Lender a report on each existing policy of insur~nce showing: (1) the name of the Insurer; (2) the risks insured; (3) the amount of the policy; (4) the property insured, the then corrent replacement value of such property, and the manner of determining that value; and (5) the expiration date of the policy. Trustor ~hall, upon raquest of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the Propkrty. LENDER'S EXPENDITURES. If Jny action or proceeding is commenced that would materially affect Lender's interest In the Property or If Trustor fails to comply with any provision :of this Deed of Trust or any Related Documents, including but not limited to Trustor's failure to discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Trustor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, Including but not limited to discharging or paying all taxes, liens, security interests, encumbrarces 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 expenditures incurred or paid by Lender for such purposes wlll then bear interest at the rate charged under the Note from the date incurred o~ paid by Lender to the date of repayment by Trustor. All such expenses will become a part at the Indebtedness and, at Lender's optlon, wlll (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any Installment payments to Ibecome due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (e) be treated as a ballpon payment Which will be due and payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. Such right Shall be in addition to all other rights and remedies to which Lender may be entitled upon Default. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust: Title. Trustor warrants that: I (a) Trustor holds good and marketable IIlle of record to the Property in fee simple, free and clear of all liens and encumbrances other than 1I10se set forth in the Real Property description or in any Iitle insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Trustor has the full right, power, and authority to execute and deliver this Deed of Trust to Lender. Defense of Tille. Subject t~ the exception in the paragraph above, Trustor warrants and will forever defend the IIIle to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Trustor's tltle or the interest of Trustee or Lender under this Deed of T~ust, Trustor shall defend the action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shall be entitled fo parliclpate in the proceeding and to be reprasented in the proceeding by counsel of Lender's own choice, and Trustor will deliver, or cauSe to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. I Compliance With Laws. ~rustor warrants that the Property and Trustor's use of the Property complies with all existing applicable laws, ordinances, and regulations 10f governmental authorities. Survtval of Representations and Warranties. All representations, warranties, and agreements made by Trustor in this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and shall remain in full force and effect until such time as Trustor's Indebtedness s1all be paid in full. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust: Proceedings. If any prOCeebing in condemnallon is filed, Trustor shall promptly notify Lender In writing, and Trustor shall promptly take such steps as may be necessary Ito defend the action and obtain the award. Trustor may be the nominal party In such proceeding, but Lender shall be entitled to particip~te in the proceeding and to be represented In the proceeding by counsel of Its own choice, and Trustor willdeliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation. I Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceadings or by any proceeding or __p",o"""", '"'" 01 CO"J"""'" "m'~ ~y ., ,ts ,"a'" mq'" 'hol <II ~ aoy "","0' 01 'h, ""I p=," of!h, .woe' b, ""p"" 10 Ih,