|
<br />Loan No: 89134
<br />
<br />~ RE-RrCORDED
<br />2 0 0 8 0 8 911 DEED O~ TRUST
<br />(Continued)
<br />
<br />el
<br />
<br />Ii .... ,.'
<br />~ 'r. .*
<br />
<br />200806682
<br />
<br />Page 3
<br />
<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 written 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 prior 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 Lender'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 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 />Trustor's interests may appear.
<br />
<br />Unexpired Insurance at Sale. Any unexpired insurance shall inure to the benefit of, and pass to, the purchaser of the Property covered
<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 />Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is in effect, compliance
<br />with the insurance provisions contained in the Instrument evidencing such Existing Indebtedness shall constitute compliance with the
<br />insurance provisions under this Deed of Trust, to the extent compliance with the terms of this Deed of Trust would constitute a
<br />duplication of insurance requirement. If any proceeds from the Insurance become payable on loss, the provisions in this Deed of Trust
<br />for division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />
<br />Trustor's Report on Insunmce. Upon request of Lender, however not more than once a 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 velue; and (5) the
<br />expiration date of the policy. Trustor shall, upon request of Lendar, have an independent appraiser satisfactory to Lender determine
<br />the cash value replacement cost of the Property.
<br />
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if
<br />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
<br />comply with any obligation to maintain Existing Indebtedness in good standing as required below, or to discharge or pay when due any
<br />amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Trustor's behalf may (but
<br />shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens,
<br />security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring,
<br />maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the
<br />rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such expenses will become
<br />a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be
<br />apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance
<br />policy; or (2) the remaining term of the Note; or (e) be treated as a balloon payment which will be due and payable at the Note's
<br />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
<br />which Lender may be entitled upon Default.
<br />
<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 record to the Property in fee simple, free and clear of all
<br />liens and encumbrances other than those set forth in the Real Property description or in the Existing Indebtedness section below or in
<br />any title insurance policy, title report. or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of
<br />Trust, and (bl Trustor has the full right, 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 foraver 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 Trustea 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.
<br />
<br />Compliance With laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable
<br />laws, ordinances, and regulations of governmental authorities.
<br />
<br />Survival of Representations and Warrllnties. 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 />EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br />
<br />Existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an existing lien. Trustor
<br />expressly covenants and agrees to pay, or see to tha payment of, the Existing Indebtedness and to prevent any default on such
<br />indebtedness, any default under the instruments evidencing such indebtedness, or any default under any security documents for such
<br />indebtedness.
<br />
<br />No Modification. Trustor shall not enter into any agreement with the holder of any mortgaga, deed of trust, or other security
<br />agreement which has priority over this Deed of Trust by which that agreement is modified, amended, extended, or renewed without
<br />the prior written consent of Lender. Trustor shall neither request nor accept any future advances under any such security agreement
<br />without the prior written consent of Lender.
<br />
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Daed of Trust:
<br />
<br />Notice of Proceedings. Trustor shall immediately notify Lender in writing should all or any part of the Property become subject to any
<br />condemnation or expropriation proceedings or other similar proceedings, including without limitation, any condemnation, confiscation,
<br />eminent domain, inverse condemnation 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 Lender's sole judgment and at
<br />Trustor'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 compromise or any condemnation or expropriation claim without Lender's
<br />prior written consent.
<br />
<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.
<br />
<br />Conduct of Proceedings. If Trustor fails to defend any such condemnation or expropriation proceedings
<br />
<br />10#"
<br />
<br />satisfaction,
<br />
|