|
` 9 _ S
<br />Loan No: 10122$974 D~ Co ~ hued ST 2 O l O O 1 S S 7 Page 3
<br />TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Deed .bf Trust;
<br />Payment. Trustor shall pay when due land in all events prior to delinquency) all taxes, special taxes;: assessments, charges (including
<br />' water and sewer), fins'and impositions levied against or on account of'the Property, and shall pay when due all claims for work done
<br />on or for services rendered or material furnished to the Property. Trustor shall maintain the Property free of all liens having priority
<br />over or equal to the interest of Lender under this Deed of Trust, except far the lien of taxes and assessments not due and except as
<br />otherwise prdvided in this Deed of Trust.
<br />Right to Contest. Trustor may withhold payment of any tax, assessment; or claim in conneotion: with a, good faith dispute over the ~ ,
<br />obligatipn to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment,
<br />Trustor shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Trustor has notice of the
<br />filing, secure the discharge of the lien, or if requested by Lander, deposit with Lender cash or a sufficient corporate surety bond or
<br />other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees, ar other charges
<br />that could accrue as a result of a foreclosure or sale under the lien. In any contest, Trustor. shall defend itself and Lender and shall
<br />satisfy any adverse judgment before enforcement against the Property. Trustor shall name Lender as an additional obligee under any
<br />surety bond furnished in the contest proceedings.
<br />Evidence of Payment. Trustor shall upon demand furnish te'Lender satisfactory evidence of payment of the taxes or assessments and
<br />shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments
<br />against the Property.
<br />Notice of Construction. Trustor shall notify Lender at least fifteen (15) days before any work is commenced, any services are
<br />furnished, or any materials are supplied to the Property, if any mechanio's-lien, materialrnen's lien, or other lien could be asserted an
<br />account of the work, services, ar materials. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to
<br />Lender that Trustor can and will pay the cast of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust.
<br />Maintenance of, , Insurance.. Trustor shall procure and maintain . policies of fire insurance with standard extended cdverage
<br />endbfsements on a,fair value basis for the"full insurable value covering all Improvements an the Real Property iii an"amount sufficient " '
<br />to avoid application" df'any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Tristor'shall also pra`cure
<br />and maintain com.prehBnsive general liability insurance in such coverage amounts as Lender may request with. Trustee and Lender...
<br />being named: `as additionai insureds : in such liability insurance policies, Additionally, Trustor shall maintain such ether insurance; :`
<br />including but not„ Limited„tp hazard, .busihess .interruption, arid boiler insurance, as Lender may reasonably requihe. 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 I ender. Trustor, upon requeSt;of Lender, will .deliver to Lender from time to time the policies or. certificates of insurance
<br />in form satisfactory to Lender, including stipulations that coverages will eat be cancelled or diminished without at least ten (101 days
<br />prior written notice to Lender. Each insurance. policy also shall include an endorsement providing that coverage in favor of Lender will.
<br />not be impaired in any way by any -act; omission or default of Trustor or any other person. Should the Raal Property be located in an
<br />area designated by the Rireator of the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to
<br />obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal balance of the loan and any prior liens on the
<br />property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required
<br />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
<br />if Trustor fails to do so within fifteen (151 days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's
<br />election, receive and retain the proceeds at 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, pay or reimburse Trustor from the proceeds for the reasonable cast of repair or restoration if
<br />Trustor is not in default under this Peed of Trust. Any proceeds which have not bean disbursed within 180 days after their receipt
<br />and which Lender has eat 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 />Trustor's Report an Insurance. Upon request of Lender, however not mere than once a year, Trustor shall furnish to Lender a report
<br />on each existing policy of insurance showing: 111 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 151 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.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that weuld materially affect Lender's interest in the Property or if
<br />Trustor fails to comply with any provision of this Peed of Trust or any Related Documents, including but not limited to 7rustor's failure to
<br />discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Decumants, Lander
<br />on Trustor'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 casts for insuring, maintaining and preserving the Property. All such expenditures incurred or paid 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 IAI 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 111 the term of
<br />any applicable insurance policy; or 12) the remaining term of the Note; or (Cl be treated as a balloon payment which will be due and
<br />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
<br />rights and remedies to which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE pF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust:
<br />
|