|
��: ;;' r� ' �. DEED OF TRUST 2 U 1 O O 8� 2 O
<br />Loan No: 1 0 9 236204 (Cantinued) paga 3
<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 band furnished in the contast praceedings.
<br />Evidence of Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and
<br />shall authorize tha appropriate governmental official to deliver tv Lender at any time a written statement of th� taxes and assessmerrts -- -
<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 mechanic's lien, materialmen's lien, or other lien could be asserted on
<br />account ot the work, services, or materials. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to
<br />Lender that 7rustor can and will pay the cost of such improvements.
<br />PROPERTY �AMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust.
<br />Maintenance af Insurance. Trustor shall procure and maintain pplicies of fire insurance with standard extended caverage
<br />endorsements on a fair value basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient
<br />to avoid application ot any coinsurance clause, and with a standard mortgagee clause in favor of Lender, together with such other
<br />hazard and liability insurance as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis
<br />reasonably acceptable to Lender and issusd 6y a company or companies reasonably acceptable to l.ender. 7rustor, upon request of
<br />Lender, will deliver to Lender from time to time the policies pr cartificates of insurance in fprm satisfactory to Lender, including
<br />stipulations that coverages will not be cancelled or diminished without at least ten (10) days prior written nvtice 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 />act, omission or default of Trustor or any other person. Should the Real Property be located in an area designated 6y the ❑irector of
<br />the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to obtain and maintain Federal Flood
<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 pplicy limits set under tha National Flood Insurance Program, or as otherwise required by Lender, and to maintain such
<br />insurance fpr the term pf the loen.
<br />Application of Proceeds. Trustor shall promptly notity Lender of any loss or damage to the Property. Lender may make pronf of loss
<br />if 7rustor 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 />elaction, receiva and retain the pracaeds 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 rapair of the Property. If Lender elects to apply the proceeds to restoration and
<br />repair, Trustor shall repair pr 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 proceads 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 6aen disbursed within 180 days after their receipt
<br />and which Lender has not committed to the repair or restoration of the Prpperty shall be used first ta 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 />LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests, ancumbrances, and other
<br />claims, (B) to provide any required insurance on the Property, or (C) to make repairs to the Property then Lender may da so. If any
<br />action or procaeding is cammencad that would materially affect Lender's interests in the Property, then Lender on Trustor's behalf may,
<br />6ut is not required to, take any action tha# Lendar believes to be appropriate to protect Lender's interests. All expenses incurred or paid by
<br />Lender for such purposes will then bear interest at the rate cherged under the Note from the date incurred or paid by Lender to the date of
<br />repayment by Trustor. All such expenses will become a part of the Indebtedness and, at Lander's optian, will (A) be payable on demand;
<br />(B) be added to the balance of the Note and be apportioned among and be payable with any instaliment payments to become due during
<br />either �1) the tarm of any applicable insurance policy; or (2) the remaining term of the Note; or (C) 6e treated as a ballpon peyment
<br />which will be due and payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. The rights prnvided
<br />for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account of any default.
<br />Any such action by Lender shell not be construed as curing the default sa as to bar Lender from any remedy that it otherwise would have
<br />had.
<br />WARRANTY; DEFENSE QF TIYLE. Ths follawing provisions relating to ownership of the Property are a part of this Deed of Trust:
<br />Titla. 7rustor warrants that: (a) 7rustor holds good and marketable title of record to the Property in fee simple, free and claar of all
<br />liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final
<br />title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) 7rustor has the full right,
<br />pawer, and authority to execute and deliver this Deed 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 persons. In the event any action or praceeding is commenced that questions Trustor'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 Lender shall be entitled to participate in the proceeding and to be representad in the procaeding
<br />by counsal of Lender's own choica, and Trustor will deliver, or cause to be delivered, to Lender such instruments as Lander may
<br />request from time to time to permit such participation.
<br />Compliance With Laws. Trustor werrants that the Property and Trustor's use ot the Property complies with all existing applicable
<br />laws, ordinances, and regulations of governmental authorities.
<br />Survival of Promises. All promises, egreemants, and statements Trustor has made in this Deed of Trust shall survive the execution
<br />and delivery of this �eed of Trust, shall be continuing in nature and shall remain in full force and effect until such time as Trustor's
<br />Indebtedness is paid in full.
<br />CdNDEMNATION. The following provisions relating to condamnation proceedings are a part of this Deed of Trust:
<br />
|