|
DEED OF TRUST 2 Q 10 0'7 7"12
<br />Loan N�: 122289 (Continued) Page 2
<br />attend to Lender's interests and to inspect the Real Property for purppses of Trustor's compliance with the terms and conditions of
<br />this Deed of Trust,
<br />Compliance with Governmental Requirements. Trustor shall promptly cvmply with all laws, ordinances, and'regulstions; now or
<br />hereafter in effect, of all governmental suthnrities applicable to the use pr occupancy of the Prpperty. Trustor may contest in' good
<br />faith any such law, ordinance, or regulatipn and withhold compliance during any proceeding, including appropriate appeals, sq Inng as
<br />7rustvr has notified Lender in writing prior to doing so and so Iong as, in Lender's sole opinion, Lender's interests in the Property are
<br />not jeopardiaed. Lender may require Trustor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect
<br />Lender's interest.
<br />Duty to Protect. Trustor agrees neither to abendon or leave unattended the Property. Trustor shall do all other acts, in addition to
<br />those acts set forth ebove in this section, whioh from the character and use of the Property are reasonably necessary to pratect and
<br />presarve the Property.
<br />7AXES AND LIENS. The following provisions relating to the texes and liens on the Property are part of this besd of Trust:
<br />P�yment. Trustor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (including
<br />water and sewer►, fines and impositions levied against or on account of the Property, and shall pay when due all claims for wvrk 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 equsl to the interest of Lender under this Deed of Trust, except fpr xhe lien of taxes and assessments not dua,_.excapt f4[_the
<br />Existing Indebtedness refsrred to below, and except as otherwise provided in this Deed ot Trust.
<br />Right to Contest. Trustor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over tha
<br />obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or ia 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) deys after Trustor has notica of the
<br />filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety 6ond or
<br />other sacurity 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 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. 7rustor 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 to Lender satisfactory evidence of payment of the taxes or assessments and
<br />shall authorize the aqpropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments
<br />against the f'roperty.
<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 mechanic's lien; materialmen's lien, or other lien could be asserted on
<br />account of the work, services, or materials and the cost exceeds 51,000.00. Trustor will upon request of Lender furnish to Lender
<br />advance assurances satisfactory to Lender that Trustar cen and will pay the cost of such improvements.
<br />PRpPERTY DAMAG� INSURANCE. The following provisions relating to insuring tha 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 coverage
<br />endorsements on an actual cash value basis for the full insurable value covering ell Improvements on the Real Property in an amount
<br />sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor vf Lender, together with such
<br />other hazard and liability insurance as Lender may reasonably require. Policies shall pe written in form, amounts, coverages and basis
<br />reasonably acceptable to Lender and issued by a compsny or companies reason�bly 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 diminished without at least ten (10) days priqr written notice to Lender. Each
<br />insurance policy also shall include an endorsement providing that cnverage in favor of Lender will not be impaired in any way by any
<br />act, omissian or defauit of Trustor or any other person. Shpuld the Reai Property be located irt an area dasignated by the Director of
<br />the Federal Emergency Menagement Agency as e special flood hazard area, Trustor agrees to obtain and maintain Federal Flnnd
<br />Insurance, if aveilable, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the
<br />full unpaid principal balance of the loen and any prior liens an the property securing the loan, up to the maximum policy limits set
<br />under the National �lood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the
<br />loan.
<br />Application of Proceads. Trustor shall promptly notify Lender of any loss vr damage to the f'roperty if the estimated cost of repair or
<br />replacement exceeds 51,000.00. Lender may make proof of loss if Trustor fails to do so within fifteen (15) days of the casualty.
<br />Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain #he proceeds of any insurance and
<br />apply the proceeds to tha reduction of the Indebtedness, payment of any lien affecting the Property, ar the restoration and repair qf
<br />the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the damaged ar destroyed
<br />Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proot of such expenditure, pay or reimburse Trustor
<br />from the prviceeds for the reasonable cost of repair or restoration if Trustor is not in default under this Deed of Trust. Any proceeds
<br />which have not been disbursed within 180 days after their receipt and which l.ender has not committed to the repair or restoration of
<br />the Prnperty shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay eccrued interest, and the
<br />remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of
<br />the Indebtedness, such proceeds shall be paid to Trustor as Trustor's interests may appear.
<br />Compliance with Existing Inde6tedness. During the parind in which any Existing Indebtedness described belnw is in effect, compliance
<br />with the insurance provisions cnntained in the instrument evidencing such Existing Indebtedness shall canstitute compliance with the
<br />insurance provisions under this Deed of 7rust, ta the extent compliance with the terms of this Deed of Trust would constitute a
<br />duplication of insurance requirement. If �ny proceeds from the insurance become payable on loss, the provisions in this Deed of Trust
<br />for division of proceeds shall apply only to thet portion of the proceeds not payable to tha holder of the �xisting Indebtedness.
<br />LENDER'S �XPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests, encumbrancas, and other
<br />claims, (B) to provide any required insurance on the Property, (C) to make repairs to tha Praperty or to comply with any obligation to
<br />maintain Existing Indebtedness in gvod standing as required 6elow, then Lender may do so. If any action or proceeding is commenced that
<br />would materially affect lender's interests in the Property, then Lender on Trustor's behalf may, but is not required to, take any action that
<br />Lender-bslieves to be appropriatato {xotest Lender's-intsrests. All expenses �ncurred or paid by Lender for such purposes will then bear
<br />interest at the rate charged under the Note from the date incurred or paid by Lender to the date nf repayment by 7rustor. All such
<br />expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable an demand; (B) be added to the belance of
<br />the Note and be apportioned among and be paya6le with any ins#aliment payments to become due during either (1) the term of any
<br />applicable insurance policy; or (2) the ramaining term of the Note; or (C) be treated as a balloon payment which will be due and payable
<br />at the Note's maturity. The Deed of Trust also will secure peyment of these amounts. The righis provided fvr in this paragraph shall be in
<br />addition to any vther rights or any remedies to which Lender may be entitled on eccount of any default. Any such action by Lender shall
<br />not be construed as curing the defaul# so as to bar Lender from any remedy that it otherwise would have had.
<br />WARRANI'Y; DEFENSE OF TITLE. The follawing provisions relating to ownership of the Property are a part of this Deed of Trust:
<br />Title. Trustor werrants that: (a) Trustor holds good and merketable 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 finel title opinion issued in favnr of, and accepted by, Lender in connectivn with this Deed of
<br />YV1 Trust, and (b) Trustor has the full right, power, and authvrity to execute and deliver this Deed of Trust to Lender.
<br />�'1
<br />� Defense of Title. Subject to the exception in the paragreph ebove, Trustor warrants and will forever defend the title to the Property
<br />against the lawful claims of ell persons. In the event any action or proceeding is commenced that questions Trustor's titls or the
<br />interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the action at Trustor's expense. Trustnr may be the
<br />nominal party in such proceeding, 6ut 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 7rustor will deliver, or cause to be delivered, ta Lender such instruments as Lender may
<br />request from time to time to permit such participation.
<br />Camplience With Laws. Trustor warrants that the Property and Trustor's use nf the Property complies with all existing applicsble
<br />
|