|
. �.' ` DEED OF TRUST � � 1 � � U 3 J� ;�
<br />Loan No: 101237452 (Continued) Page 3
<br />endarsements 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 of any coinsurence clause, and with e stendard mprtgagee clause in favor of Lender. Trustar shall also procure
<br />and maintain comprehensive general liability insurance in such coverage amounts as Lender 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 not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shall be
<br />written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably
<br />accapCabla ta Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance
<br />in fprm satisfactory to Lender, inc�uding stipulations that coverages will not be cancelled or diminished without at least ten (10) days
<br />prior written notice to Lender. Each insurance pqlicy also shall include an endorsement providing that coverage in favor of l.ender will
<br />not be impaired in eny way by any act, omission or default of 7rustor or any other psrson. Should the Real Property be Ipcated in an
<br />area designated by the Director of the Federal Emargency Management Agency as a special fload hazard area, Trustor agrees to
<br />obtain and maintain Federal Flood Insurance, if available, far the full unpaid principal balance of the loan and any prior liens on the
<br />property securing the loan, up to the maximum poiicy limits set under the National Fload Insurance Program, or as otherwise required
<br />by l.ender, and to maintain such insurance for the term of the loan.
<br />Application of Proceeds. Trustnr shall prpmptly notify Lender of any Ioss or damage ta the Property. Lender may make proaf of Ipsa
<br />it T'rustor fails to do sn within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at L,ender's
<br />election, receive and retain the proceeds of any insurance and apply tha prpceeds to the reduction of the Indebtedness, payment of
<br />any lien affecting the Property, or the restoration and repair of the Prpperty. If Lender elects to apply the proceeds to restoration and
<br />repair, Trustpr 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 cost of repair or restoratipn if
<br />Trustor is not in default under this Deed of Trust. Any proceeds which have not baen disbursed within 180 days after their receipt
<br />and which Lender has npt 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 />Compliance with Existing Indebtadness. During the period in which any Existing Inde6tedness described below is in effect, compliance
<br />with the insurance provisions cantained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the
<br />insurance provisions under this Deed of Trust, to the extent compliance with the terms of this Deed of Trust would constitute a
<br />duplicatipn pf insurance requirement. If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust
<br />for division qf proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />Trustor's Report on Insurance. Upon request of Lender, hpwever not more than once a ysar, Trustor shall furnish to Lender a report
<br />on each existing policy pf insurance showing: (1) 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 (5) 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 rsplacement cost of the Property.
<br />LENDER'S EXPENDITURES. If any actipn or proceeding is commencsd that would materially affect Lender's interest in the Property or if
<br />Trustor fails ta comply with any provision of this peed of Trust or any Related Documents, including but not limited to Trustor's failure to
<br />comply with any obligation to maintain Existing Indebtedness in good standing as required below, or to discharge or pey when due any
<br />amaunts Trustor is required to discharge ar pay under this Deed of Trust or any Relatad Documents, Lender on Trustor's behalf may (but
<br />shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens,
<br />security interests, encumbrances and other claims, at any time levied ar placed on the Property and paying all costs for insuring,
<br />maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the
<br />rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such expenses will become
<br />a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (6) be added to the balance of the Note and 6e
<br />apportioned ampng and be psyable with any installment payments to become due during either (1) the term of any applicable insurance
<br />policy; or (2) . th� remaining term ot the Note; or (C) be treated es a balloon payment which will be due and payable at the Note's
<br />maturity. The Deed of Trust also will sacure payment of ihese amounts. Such right sh�ll be in addition to all other rights end remedies to
<br />which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The fpllpwing provisions relating to ownership pf the Property are a part of this Deed of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable titie of record to the Property in fee simple, free and clear of all
<br />liens and encumbrances ather than those set forth in the Real Property descriptipn or in the Existing Indebtedness section below or in
<br />any title insurance policy, title report, or final title opinipn issued in favor of, and accepted by, l.ender in cpnnectipn with this Deed of
<br />Trust, and (b) Trustor has the full right, power, and authority to execute and deliver this peed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph abova, 7rustor warrants and will forever defend the title to the Property
<br />against the lawful claims of all persons. In the event any action or proceeding 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. 7rustor may be the
<br />nominal party in such proceeding, but Lender shall be entitled tq participate in the proceeding and to be represented in the proceeding
<br />by counsel of Lender's own choice, and Trustar will deliver, or cause to be deliuered, ta Lender such instruments as Lender may
<br />request from time ta tims to permit such participation.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complias with all sxisting applicable
<br />laws, ordinances, and regulations of governmental authorities.
<br />Survival pf Representationa and Warranties. All rapresentations, warranties, and agreements made by Trustor in this Deed of 7rust
<br />shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and shall remain in full force and effect
<br />until such time as Trustor's (ndebtedness shall be paid in full.
<br />EXISTING INpEBTEDNESS. The following provisions conoerning Existing Indebtedness are a part of this Deed of Trust:
<br />
|