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20100b361
<br />DEE^ QF TRUST
<br />Continued} Page 3
<br />Maintenance of Insurance. Trustor shall procure and maintain policies of fire Insurance with standard extended coverage
<br />endorsements nn a replacement basis for the full insurable value covering all Improvements on the Real Property in an amoun#
<br />sufficient to avoid appl(catian of any coinsurance clause, and with a standard mortgagee clause in favor of Lender, together with such
<br />other hazard and liability insurance as Lender may reasonably require. Policies shall be wrttten in form, amounts, coverages and bads
<br />reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Trustor, upon request of
<br />Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including
<br />stipulations that coverages will not be cancelled or dlmin~hed without at least ten (10) days prior written notice to Lender. Each
<br />insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be Impaired in any way by any
<br />ad, omission pr defaul# of Trustor or any other person. Should the 12ea1 Property be located In an area designated by the Director of
<br />the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to obtain and mainta€n Federal 1=laad
<br />Insurance, if available, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the
<br />maximum polity limits set under the Na#ionai Fleod Insurance Program, ar as otherwise required by Lender, and to maintain such
<br />insurance for the term of the loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss ar damage to the properly. Lender may make proof of lass
<br />if Trustor fails to do so within fifteen (15) days of the casualty. Whether ar 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, cr the restoration and repair of the Property. If Lender elects to appy 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 ar reimburse Trustor from the proc.aeds for the reasonable cost of repair or restoration (f
<br />Trustor is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 160 days after their receipt
<br />and which Lender has not committed to the repair or riestoration 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, shalt 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 ba paid to Trustor as
<br />TnastoYs Interests may appear.
<br />LENDi3R'S EXPENpiTURE3. If Trustor fails (A} to keep the Prpperty free of all taxes, liens, security interests, encumbrances, and other
<br />claims, (fi] to provide any required 'insurance an the Property, or (C) to make repairs to the Property then Lander may do sn. If any
<br />action pr proceeding is commenced that would materially affect Lender's interests in the Property, than Lender an Trustor's behalf rnay,
<br />but is oat required ta, take any action that Lender believes to be appropriate to protect Lenders interests. All expenses incurred or paid by
<br />Lender for such purposes will then bear Interest at the rate charged under the Nate from the date incurred or paid py Lender to the date of
<br />repayment by Trustor, All such expenses will become a part of the Indebtedness and, at Lender's option, wilt (A) be payable an demand;
<br />(B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during
<br />either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) ba treated as a balloon payment
<br />which will be due and payable at the Note's maturity. The Reed of Trust also will secure payment of these amounts. The rights provided
<br />for in this paragraph shall be In addition to any other rights nr any remedies to which Lender may b® entitled an account of any default.
<br />Any such action by Lender shall not be construed as Curing the default so as to bar Lender from any remedy that it otherwise would have
<br />had.
<br />WARiiANTY; DEFENSE OF 71TLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds goad and marketable title of record to the Property In fine simple, free and clear of all
<br />liens and encumbrances other than those set forth in the ilea) Properly description or in any title insurance policy, title report, or frnal
<br />title opinion issued in favor of, and accepted by, Lender in connection with this peed of Trust, and (b) Trustor has the full right,
<br />power, and authority to execute a.nd deliver this L7eed of Trust to Lender.
<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 parsons. In the event any action or proceeding is commenced that questions Trustor's title ar the
<br />interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the action at 'frustar's expanse. Trustor may be the
<br />nominal party in such proceeding, but Lender shall 6e entitled to participate in the proceeding and to b® represented in the proceeding
<br />by counsel of Lender's awn choice, and Trustor will deliver, nr cause to be delivered, to Lender such instruments as Lender may
<br />request from time to time to permit such participation.
<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 />Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall survive the execution
<br />and delivery of this Deed of Trust, shall be continuing in nature and shall remain in foil force and effect until such time as Trustar's
<br />Indebtedness is paid in full,
<br />GpNDFMNATION. The folowing provisions r®lating to condemnation proceedings ar'e a part of this R®®d of Trust:
<br />Proceedings, If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and Trustor shall promptly
<br />take such steps as may be necessary to defend the action and obtain the award. Trustor may be the nominal party In such
<br />proceeding, but Lender shall be entitled to participate in the proceeding and to pe represented In the proceeding by counsel of its own
<br />choice, and Trustor will deliver ar cause to be delivered to Lender such instruments and documentation as may be requested by
<br />Lender from time to time to permit such participation.
<br />Appiicafion of Net Proceeds. if ail or any part of the Properly is corxfemned by eminent domain proceedings or by any proceeding or
<br />purchase in Ileu of condemnation, Lender may at its election require that ail ar any portion of the net proceeds of the award be applied
<br />to the Indebtedness ar the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of
<br />all reasonable costs, expenses, and attameys' fees incurred by Trustee or Lender in connection with the condemnation.
<br />iMPD517lON DF TAXES, FEES AND GHAFtQES BY GQVERNpAENTAL AUTHDitITIES. Tha following provisions relating to governmental
<br />taxes, fees and charges are a part of this !Teed of Trust:
<br />Current Taxes, Fees and Charges. Upon request by (..ender, Trustor shall execute such documents in addition to this Deed of Trust
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