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-� DEED OF TRUST
<br />Loan No: 101243548 (COntinued) � o�� o s S 5 cg Page 4
<br />Maintenance of Insurance. Trustor shell procure and maintain policies of fire insurance with standard extended
<br />coverage endorsements on a fair value basis for the full insurable value covering all Improvements on the Real
<br />Property in an amount sufficient to evoid epplication of any coinsurance clause, and with a standard mortgegee
<br />clause in favor of Lender. Trustor shall also procure and maintain comprehensive general liability insurance in such
<br />coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in such
<br />liebility insurance policies. Additionally, Trustor shall meintain such other insurance, including but not limited to
<br />hezard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shall be written in
<br />form, amounts, coverages and basis reasonably acceptable to Lender and issued by a compeny or companies
<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 thet coverage in favor of Lender will not be impaired in any way by eny act,
<br />omission or default of Trustor or any other person. Should the Real Property be loceted in an erea designated by
<br />the Director of the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to obtain
<br />and maintain Federal Flood Insurance, if evailable, within 45 days after notice is given by Lender thet the Property
<br />is located in a special flood hazard area, for the full 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 National Flood Insurence Program, or as
<br />otherwise required by Lender, and to maintain such insurance for the term of the loan.
<br />Applicetion 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 fifteen (75) days of the cesualty. Whether or not Lender's
<br />security is impaired, Lender 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 any lien affecting the Property, or the restoration
<br />and repair of the Property. If Lender elects to apply the proceeds to restoration and repeir, Trustor shall repair or
<br />replace the damaged or destroyed Improvements in a manner satisfectory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay 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 days after their receipt and which Lender has not committed to the repair or restoration of
<br />the Proparty shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br />interest, and the remainder, if any, shall be epplied to the principal balence of the Indebtedness. If Lender holds
<br />any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's
<br />interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish
<br />to Lender a report on each existing policy of insurance showing: (1) the neme of the insurer; (2) the risks
<br />insured; (3) the emount of the policy; (4) the property insured, the then current replacement value of such
<br />property, and the manner of determining that value; and (5) the expiration dete of the policy. Trustor shell, upon
<br />request of Lender, have an independent appraiser satisfectory to Lender determine the cash value replacement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would meterially affect Lender's interest in
<br />the Property or if Trustor fails to comply with any provision ot this Deed of Trust or eny Related Documents, including
<br />but not limited to Trustor's failure to discharga or pay when due any amounts Trustor is required to discharge or pay
<br />under this Deed of Trust or any Related Documents, Lendar on Trustor's behelf may (but shall not be obflgeted 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 Proparty. All such expenditures incurred or paid by Lender for such purposes will then
<br />bear interest at the rate charged under the Note from the dete incurred or paid by Lender to the date of repayment by
<br />Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on
<br />demand; (B) be added to the balence of the Note and be apportioned among and be peyable with any installment
<br />payments to become due during aithar (1) the term of eny applicable insurance policy; or (2► the remaining term af
<br />the Note; or IC) be treated as a balloon payment which will be due end payable at the Note's maturity. The Deed of
<br />Trust also will secure payment of these amounts. Such right shall be in addition to ell other rights and remedies to
<br />which Lender may be entitled upon Default.
<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 warrents that: (a) Trustor holds good and marketable title of record to the Property in fee simple,
<br />free end clear of all liens and encumbrances other than those set forth in the Real Property description or in eny
<br />title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lendar in connection
<br />with this Deed of Trust, and (b) Trustor has the full 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 warrents and will forever defend the
<br />title to the Property against the lewful 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 defend the
<br />action at Trustor's expense. Trustor may be the nominal perty 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
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