|
` �' ° r•� �" DEED OF TRUST 2 p� 10 3 4 4 2
<br />T ,. . , , _
<br />Loan No: 101240209 (Continued) Page 3
<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 of 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 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 diminished 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 eny
<br />act, omission or default of Trustor or eny other person. Should the Real 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 maintain Federal Flood
<br />Insurance, if evailable, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the
<br />maximum policy limits set under the National Flood Insurance Program, or 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 or damage to the Praperty. Lender may make proof of loss
<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 Lender's
<br />election, receive and retain the proceeds ot any insurance and apply the proceeds to the reduction of the Indebtedness, payment of
<br />any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and
<br />repair, Trustor shal� repair or replaca 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 cast of repair or restoration if
<br />Trustor is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt
<br />and which Lender has not 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 />TAX AND INSURANCE RESERVES. Subject to any limitetions and consistent with any requirements set by applicable law, Lender may
<br />require Trustor to maintain with Lender reserves for payment of annual taxes, assessments, and insurance premiums, which reserves shall
<br />be created by an initial deposit and subsequent monthly payments, or payments at such other interval as payments under the Note may be
<br />due, ot a sum estimated by Lender to be sufficient to pay the total annual taxes, assessments, and insurance premiums Lender reasonably
<br />anticipates to be paid from these reserves. The reserve funds shall be heid by Lender as a general deposit from Trustor, which Lender may
<br />satisfy by payment of the taxes, assessments, and insurance premiums required to be paid by Trustor as they become due. Lender shall
<br />have the right to draw upon the reserve funds to pay such items, and Lender shail not be required to determine the validity or accuracy of
<br />any item before paying it. Nothing in the Deed of Trust shall be construed as requiring Lender to advance other monies for such purposes,
<br />and Lender shall not incur any liability for anything it may do or omit to do with respect to the reserve account. Subject to any limitations
<br />set by applicable law, if the reserve funds disclose a shortage or deficiency, Trustor shali pay such shortage or deficiency as required by
<br />Lender. If Lender discovers that the payments into the reserve account have produced a surplus beyond the annual amounts due to be
<br />paid from the reserve funds by more than the cushion permitted by applicable law, but a payment on the Note has not been received within
<br />30 days of the payment due date, Lender may retain the excess funds. All amounts in the reserve account ere hereby pledged to further
<br />secure the Indebtedness, and Lender is hereby authorized to withdraw and apply such amounts on the Indebtedness upon the occurrence
<br />of an Event of Default. Lender shall not be required to pay any interest or earnings on the reserve funds unless required by law or agreed
<br />to by Lender in writing. Lender does not hold the reserve funds in trust for Trustor, and Lender is not Trustor's agent for payment of the
<br />taxes and assessments required to be paid by Trustor.
<br />LENDER'S EXPENDITURES. If Trustor faiis (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other
<br />claims, (B) to provide any required insurance on the Property, or (C) to make repairs to the Property then Lender may do so. If any
<br />action or proceeding is commenced that would materially affect Lender's interests in the Property, then Lender on Trustor's behalf may,
<br />but is not required to, take any action that Lender 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 charged 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 Lender's option, 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 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) be treated as a balloon payment
<br />whicli iniill tie due af�d payable at the M11ote's maturity. The Debd of Trust also will secure payment of these amounts. The rights provided
<br />for in this paragraph shali 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 shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have
<br />had.
<br />WARRANTY; DEFENSE OF TITLE. 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 good and marketable 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 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 (b1 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, 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 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. Trustor may be the
<br />nominal party in such proceeding, but 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 Trustor will deliver, or 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 shell survive the execution
<br />and delivery of this Deed of Trust, shall be continuing in nature and shall remain in full force and effect until such time as Trustor's
<br />
|