|
<br />DEED OF TRUST
<br />(Continued)
<br />
<br />200804805
<br />
<br />Page 2
<br />
<br />to Lender to replace such Impfovements with Improvements of at least equal value.
<br />
<br />Lender's Right to Enter. Lender and Lendef's agents and representatives may entef upon the Real Property at all reasonable times to
<br />attend to Lender's interests and to inspect the Real Property for purposes of Trustor's compliance with the tefms and conditions of
<br />this Deed of Trust.
<br />
<br />Compliance with Governmental Requirements. Trustor shall promptly comply with all laws, ordinances, and regulations, now Of
<br />hereafter in effect, of all governmental authofities applicable to the use or occupancy of the Property, including without limitation, the
<br />Americans With Disabilities Act. TfUStOf may contest in good faith any such law, ordinance, or regulation and withhold compliance
<br />dUfing any proceeding, including appropriate appeals, so long as Trustor has notified Lendef in wfiting prior to doing so and so long as,
<br />in Lendef's sole opinion, Lender's interests in the Property are not jeopardized. Lendef may fequire Trustor to post adequate security
<br />or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest.
<br />
<br />Duty to Protect. Trustor agrees neithef to abandon or leave unattended the Pfoperty. Trustor shall do all othef acts, in addition to
<br />those acts set forth above in this section, which from the character and use of the Property are feasonably necessary to protect and
<br />pfesefve the Propefty. .
<br />
<br />TAXES AND LIENS. The following ~roUs~nl rJtlltf~g't'o't~~ taxes and liens on the Propefty are part of this Deed of Trust:
<br />
<br />Payment. Tfustor shall pay when due (and in all events pfiof to delinquency) all taxes, special taxes, assessments, charges (including
<br />water and sewer), fines and impositions levied against or on account of the Pfoperty, and shall pay when due all claims for work done
<br />on or for sefvices rendered or material furnished to the Property. Trustof shall maintain the Propefty free of all liens having pfiofity
<br />over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as
<br />othefwise provided in this Deed of Trust.
<br />
<br />Right to Contest. Trustor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the
<br />obligation to pay, so long as Lender's intefest in the Property is not jeopardized. If a lien arises or is filed as a fesult of nonpayment,
<br />Trustor shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days aftef Trustor has notice of the
<br />filing, secure the discharge of the lien, or if requested by Lendef, deposit with Lender cash or a sufficient corporate sUfety bond or
<br />other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges
<br />that could accrue as a result of a foreclosufe Of sale under the lien. In any contest, Trustor shall defend itself and Lender and shall
<br />satisfy any adverse judgment befofe enfOfcement against the Property. TfUStOf shall name Lender as an additional obligee under any
<br />surety bond furnished in the contest pfoceedings.
<br />
<br />Evidence of Payment. Trustor shall upon demand furnish to Lender satisfactofY evidence of payment of the taxes or assessments and
<br />shall authorize the appropriate governmental official to delivef to Lendef at any time a written statement of the taxes and assessments
<br />against the Property.
<br />
<br />Notice of Construction. Trustor shall notify Lender at least fifteen (15) days before any wOfk is commenced, any sefvices afe
<br />furnished, or any materials are supplied to the Propefty, if any mechanic's lien, matefialmen's lien, or other lien could be asserted on
<br />account of the work, services, or matefials. TfUStOf will upon request of Lendef fUfnish to Lender advance assurances satisfactofY to
<br />Lender that Trustor can and will pay the cost of such improvements.
<br />
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insufing the Property are a part of this Deed of Trust.
<br />
<br />Maintenance of Insurance. TfUStOf shall procure and maintain policies of fife insurance with standard extended coverage
<br />endorsements on a feplacement basis fOf the full insurable value covering all Improvements on the Real Pfoperty in an amount
<br />sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause In favof of Lender. Trustor shall also
<br />pfocure and maintain comprehensive general liability insufance in such coverage amounts as Lender may request with Trustee and
<br />Lender being named as additional insureds in such liability insurance policies. Additionally, Trustor shall maintain such other
<br />insufance, including butrrotiillliLt>J Lv hazard; bllS!ness imerruption, and boilef insurance, as Lender may reasonably require. Policies
<br />shall be written in form, amounts, covefages and basis reasonably acceptable to Lender and issued by a company or companies
<br />reasonably acceptable to Lender. TfUStOf, upon request of Lendef, will delivef to Lender from time to time the policies or certificates
<br />of insufance in form satisfactory to Lender, including stipulations that coverages will not be cancelled Of diminished without at least
<br />ten (10) days prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor
<br />of Lender will not be impaifed in any way by any act, omission Of default of Trustor or any other pefson. Should the Real Property be
<br />located in an afea designated by the Director of the Federal Emergency Management Agency as a special flood hazafd afea, TfUStOr
<br />agrees to obtain and maintain Federal Flood Insufance, if available, for the full unpaid pfincipal balance of the loan and any prior liens
<br />on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Pfogfam, Of as otherwise
<br />required by Lendef, and to maintain such insurance for the term of the loan.
<br />
<br />Application of Proceeds. TfUStOf 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. Whethef Of not Lender's security is impaired, Lender may, at Lender's
<br />election, feceive and retain the proceeds of any insurance and apply the pfoceeds to the reduction of the Indebtedness, payment of
<br />any lien affecting the Property, or the restoration and repaif of the Propefty. If Lender elects to apply the proceeds to restoration and
<br />fepaif, Tfustor shall repair or replace the damaged or destfoyed Improvements in a mannef satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditufe, pay Of feimburse Trustor from the proceeds for the reasonable cost of fepalr Of restoration If
<br />TfUStOr is not in default undef this Deed of Trust. Any proceeds which have not been disbursed within 180 days aftef their receipt
<br />and which Lendef has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lendef
<br />under this Deed of Trust, then to pay accrued Interest, 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 />TfUStOf'S interests may appear.
<br />
<br />Trustor's Report on Insurance. Upon request of Lendef, however not more than once a yeaf, TfUStOf shall furnish to Lendef a fepoft
<br />on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insufed; (3) the amount of the policy; (4)
<br />the property insufed, the then CUffent replacement value of such property, and the mannef of determining that value; and (5) the
<br />expiration date of the policy. TfUStOf shall, upon request of Lender, have an independent appraiser satisfactofY to Lender detefmine
<br />the cash value feplacement cost of the Property.
<br />
<br />LENDER'S EXPENDITURES. If any action or procaeding is commenced that would materially affect Lender's intefest in the Pfoperty or if
<br />TfUStOf fails to comply with any provision of this Deed of TfUSt Of any Related Documents, including but not limited to TrUStOf'S failure to
<br />discharge or pay when due any amounts Tfustor is required to discharge or pay under this Deed of TfUSt Of any Related Documents, Lendef
<br />on Tfustor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, 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 fOf insufing, maintaining and preserving the Propefty. All such expenditures incurred or paid by Lendef fOf such pUfposes
<br />will then bear interest at the rate charged undef the Note ffom the date incurred or paid by Lender to the date of fepayment 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 eithef (1) the term of
<br />any applicable insurance policy; or (2) the remaining term of the Note; or (e) be treated as a balloon payment which will be due and
<br />payable at the Note's maturity. The Deed of TfUSt also will seCUfe payment of these amounts. Such fight shall be in addition to all other
<br />fights and remedies to which Lendef may be entitled upon Default.
<br />
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownefship of the Property are a part of this Deed of TfUSt:
<br />
<br />Title. TfUStOr waffants that: (a) Trustor holds good and marketable title of record to the Pfopefty in fee simple, free and clear of all
<br />liens and encumbrances other than those set forth in the Real Pfoperty descfiption Of In any title insurance policy, title feport, or final
<br />title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) TfUStOf has the full right.
<br />powef, and authority to execute and deliver this Deed of Trust to Lender.
<br />
<br />Defense of Title. Subject to the exception in the pafagraph above, Trustor warrants and will fOfever defend the title to the Pfopefty
<br />against the lawful claims of all pefsons. In the event any action or pfoceeding is commenced that questions TfUStOr'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 Lendef shall be entitled to participate in the proceeding and to be represented in the proceeding
<br />
|