|
.�,
<br />D�ED OF TRUST 2 p 10 4 9 4 8 5 pa e 3
<br />Loan No: 101237344 F � , � ,�, (Continued) 9
<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 6efore enforcement against the Property. Trustor shall name Lender as an additional obligee under any
<br />surety bond furnished in the contest prqceedings.
<br />Evidence af Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and
<br />shall authorize the appropriate govemmental official to deliver to Lender at any time a written statement of the taxes and assessments
<br />against the Property.
<br />Notice of Constructibn. Trustor shall notify Lender at least fifteen 1151 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 wark, services, or materials. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to
<br />Lender that Trustor can and will pay the epst of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Daed af Trust.
<br />Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage
<br />endorsements on a fair value basis for the full insurable value covering all Improvements an the Real Property in an amount sufficient
<br />to avoid application of any coinsurance clause, and with a standard mortgagee clause in favar of Lender. Trustor shall also procure
<br />and maintain comprehensive general liability insurance in such coverage amounts as I.ender may request with Trustee and Lender
<br />being named as additional insureds in such liability insurance policies. Additionally, Trustor shall maintain such other insurance,
<br />including but npt limited to hazard, business interruptipn, and boiler insurance, as Lender may reasonably require. Policies shall be
<br />written in form, amounts, coverages and basis reasonably acceptable to Lendar and issued by a company or companies reasonably
<br />acceptable to Lender. Trustor, upon request of Lender, will daliver to Lender frpm time to time the policies or certificates of insurance
<br />in form satisfactory to Lender, including stipulations that caverages will not be cancelled or diminished without at least ten (10) 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 ect, omission or default of Trustor or any other person. Should the Real Property be located in en
<br />area dasignated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Trus[or agrees to
<br />obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal 6alance 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 Pragram, pr as otherwise required
<br />by Lender, and to maintain such insurance for the tsrm of the Ioan.
<br />Aqpllcation of Proceeds. 7rustor shall pramptly notify Lender of any Ioss or damage to the Property. Lender may make qroof of Ioss
<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 Lendar's
<br />election, receive and retain the procaeds of any insurance and aqply the proceeds to the reduction of the Indebtedness, payment of
<br />any lien affecting the Prpperty, or the restoration and repair af the Property. If Lender elects to apply the proceeds to restoration and
<br />repair, Trustor shall rapair 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 reasona6le 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 18Q days aftar their receipt
<br />and which Lender has not committed to the repair ar restoration of the Property shall be used first to pay any amount owing to Lander
<br />under this Deed of Trust, then tp 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 prpceeds shall 6e paid to Trustor as
<br />Trustor's interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustar shall furnish to l.ender a repvrt
<br />on each existing policy af insurance shpwing: (1) the name of the insurer; (2) the risks insured; (31 the amount of the policy; (4)
<br />ihe property insured, the then current replacement value of such property, and the manner pf determining that value; and (5) the
<br />expiration date of the policy. Trustor shall, upan request of Lender, have an independent appraiser satisfactvey to Lender determine
<br />the cash value replacement cost of the Property.
<br />LENDER'S EXPENDII'URES. If any actipn or proceeding is commenced that wauld materially affect L.endar's interest in the Property or if
<br />Trustor fails to comply with any prqvision of this Deed of Trust ar any Related Documents, including but not limited to Trustor's failure to
<br />diacharge or pay when due any amounts Truator is required ta discharge or pay under this Deed of Trust or any Related Documents, Lender
<br />pn Trustor's behalf may (but shall not be obligated to) take any action that Lender deems appropriete, including but not limited to
<br />discharging or paying all taxes, liens, security intereats, encumbrances and other claims, at any time (evied or placed on [he Property and
<br />paying all costs 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 rats charged under the Note from the date incurred or paid by Lendar to the date of repayment by Trustor, All
<br />such expenses will become a part of the Indebtedness and, et Lender's option, will (A) be payabla on demand; (B) 6e added to the
<br />balance pf the Note and be apportioned among and be payable with any instaliment payments to became due during either (1) the term of
<br />any applicable insurance palicy; or (2) the remaining term of the Note; or (C) 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 af these amounts. Such right shall be in addition to ell other
<br />rights and remedies to which Lender may be entitlsd upon Default.
<br />WARRANTY; DEFENSE OF TITL�. The following provisions relating to ownership of the Prpperty are a part of this Deed of 7rust:
<br />7itle. Trustor warrants that: (�) 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 thosa 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 eccepted by, Lender in connection with this Deed of Trust, and (b) Trustor has the full right,
<br />power, and authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. SubJect to the exception in the paragraph above, Trustar warrants and will forever defend tha title to the Property
<br />against the lawful claims of all persons. In the event any action or proceeding is commenced that questians Trustor's title or the
<br />interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the action at Trustor's axpense. 7rustor may be the
<br />npminal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be reprasented in the proceeding
<br />by counse) nf Lender's own choice, and Trustor will deliver, or cause to be dalivered, to Lender such instruments as Lender may
<br />request from time to time to permit such participation.
<br />
|