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; ° � ; ; ;� , DEED OF TRUST "'G O �.1 O G �. � t J
<br />Loan No: 101244205 � � (Continued) Page 4
<br />reasonably acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the
<br />policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be
<br />cancelled or diminished without at least ten (10) days prior written notice to Lender. Each insurance policy also
<br />shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act,
<br />omission or defau(t of Trustor or eny other person. Should the Real Property be loceted in an area designated by
<br />the Director of tha Federel Emergency Management Agency as a special flood hazard area, Trustor agrees to obtain
<br />and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that the Property
<br />is focated in a special flood hazerd area, for the tul! unpaid principal balance of the loan and any prior liens on the
<br />property securing the loan, up to the maximum policy limits set under the IVational Flood Insurance Program, or as
<br />otherwise required by Lender, and to maintain such insurance for the term of the ioan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may
<br />make proof of loss if Trustor fails to do so within flfteen (15) days of the casualty. Whether or not Lender's
<br />security is impaired, Lendar may, at Lender's election, receive and retain the proceeds of any insurance and apply
<br />the proceeds to the reduction of the Indebtedness, payment of eny (ien affacting the Property, or the restoration
<br />and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or
<br />replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pey or reimburse Trustor from the proceeds for the reasonable cost of
<br />repair or restoration if Trustor Is not in default under this Deed of Trust. Any proceeds which have not been
<br />disbursed within 180 deys after their receipt and which Lender has not committed to the repair or restaration of
<br />the Praperty shalf be used first to pay any amount owing to Lender under this Qeed ot Trust, then to pay accrued
<br />interesi, and the remeinder, if any, shall be applied to the principal belance o# the Indebtedness. If Lender holds
<br />any proceads after payment in full of the Indebtedness, such proceeds shall be peid to Trustor as Trustor's
<br />interests may appear.
<br />Trustor's Report on Insurance. tlpon request of Lender, however noi more than once a year, Trustor shall furnish
<br />to Lender a report on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks
<br />insured; (3) the amount of the policy; (4) the property insured, the then current repfacement value of such
<br />property, and the manner ot determining that value; and (5) the expiration date ot the policy. Trustor shall, upon
<br />request of Lender, have an indepandant appraiser satisfactory to tender determine the cash value replacement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that woufd materiaffy affect Lender's interest in
<br />the Property or if Trustor fails to comply with any provision of this Deed of Trust or eny Releted Documents, including
<br />but not limited to Trustor's failure to discharga or pay when due any amounts Trustor is required to discherge or pay
<br />under this Deed of Trust or any Related Documents, Lender on Trustor's behalf may (but shatl not be obligated to) take
<br />any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security
<br />interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring,
<br />maintaining and preserving the Property. All such expenditures incurred or paid by Lender tor such purposes will then
<br />bear interest at the rate charged under the Note from tha date incurred or paid by Lender to the date of repayment by
<br />7rustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on
<br />demend; (B) be added to the balance of the Note and be apportioned among and be payable with any installment
<br />payments to become due during either (1) the term of any applicabla insurance policy; or (2) the remaining term of
<br />the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Deed of
<br />Trust afso will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to
<br />which Lender may be entitled upon Defeult.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed
<br />of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketab(e title of record to the Property in fee simpie,
<br />free and clear of all liens and encumbrances other than those sat forth in the Real Propeny description or in any
<br />title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection
<br />with this Deed of 7rust, and (b) Trustor has the ful( right, power, and authority to execute and deliver this Deed of
<br />Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the
<br />title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced
<br />that questions Trustor`s title or the interest of Trustee or Lender under this Deed of Trust, Trustor shall detend the
<br />action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shall be entitled to
<br />participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and
<br />Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time
<br />to permit such participation.
<br />Complisnce With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all
<br />existing applicable laws, ordinances, and regulations of governmental authorities.
<br />Survival of Representations and Warranties. All representations, werranties, and agreements made by Trustor in
<br />this Deed of Trust shall survive the execution and delivery of Yhis Deed of Trust, shell be continuing in nature, and
<br />shall remain in full force and effect until such time as Borrower`s Indebtedness shall be paid in full.
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