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201107835
<br /> DEED OF TRUST
<br /> Loan No: 810256 (Contanued) Page 3
<br /> siaternent of the taxes and assessments against the Property.
<br /> Notice of Construction. Trustor shall notify Lender at least fifteen (15)days before any work is commenced,any
<br /> services are furnished,or any materials are supplied to the Property,if a�y mechanic's lien,materialmen's lien,or
<br /> other lien could 6e asserted on account of the work,.services,or materials. Trustor will upon request�of Lender
<br /> furnish to Lender advance assurances satisfactory to Lender that Trustor ean and will pay the cost of such
<br /> improvements.
<br /> PROPERTY DAMAGE INSUFSANCE. The following provisions relating to insuring the Property are a part of this Deed of
<br /> Trust.
<br /> Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with sta�dard extended
<br /> coverage endorsements on a replacement�asis for the full insurable value covering all Improvements on the Real
<br /> Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee
<br /> clause in favor of Lender. Trustor shail 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 /> liability insurance policies. Addiuonally,Trustor shall maintain such oTher insurance, including but no'C limited to
<br /> hazard,business interruption, and boiler insurance,as Lender may reasonably require. Policies shall be written in
<br /> form, amounts, coverages and basis reasonably acceptable Yo Lender and issued by a company or companies
<br /> reasona6ly acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the
<br /> policies or certificates of insurance in fiorm 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 wiil not be impaired in any way by any act,
<br /> , omission or default of Ti rustor or any other person. Should the Real Property be located io an area designated by
<br /> the Director of the Federal Emergency Management Agency as a special flood hazard area,Trustor agrees to obtain
<br /> and maintam Federal Flood Insurance, if available, for the full unpaid principal balance of the loan and any prior
<br /> liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance
<br /> Program,or as otherwise required by Lender,and to maintain such insurance for the term of the loan.
<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 fifteen (15) days of the casualty. Whether or �ot Lender's
<br /> security is Impaired,Lec�der may, at Lentlei'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 Lentler elects to apply the proceeds to resto�ation and repai�,Trustor shall repair or
<br /> replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfiactory proof of such expe�diture, pay or reimburse Trustor from the proceeds for the reasona6le cost of
<br /> repair or restoration if Trustor is not in dePault under this �eed of Trust. Any proceeds which have not been
<br /> disbursed within 1.80 days aRer their receipt and which Lender has not committed to the repair ot restoration of
<br /> the Property shall be used first to pay any amount owing to Lender under this Deed of Trust,then Yo pay accrued
<br /> interest,and the remaindee, if any,shall be appiied to the principal balance 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 lnsurance. 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 name of the insurer (2) the risks
<br /> insueed; (3) the amount of the policy; (4) the property insured,the then current replacement value ofi such
<br /> property,and the manner of determining that value;and (5) the expiration date of the poli:cy. Trustor sliall,upon
<br /> request of Lender,have an fndependent appraiser satisfactory 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 materially affect Lender's interest in
<br /> the Property or if Trustor fails to comply with any provision of This Deed of Trust or any Related�ocuments,induding
<br /> but not limited to Trustor's failure to discharge or pay when due any amounts Trustoris required to discharge or pay
<br /> under this Deed of Trust or any Related�ocuments, Lender on Trustor's behalf may(but shall no�t be obligated to)take
<br /> any action that Lender deems appropriate, including but not limi[ed to discharging or paying all taxes, liens, security
<br /> interests,encumbrances and other ciaims,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 for such purposes will then
<br /> bear fiterest at the rate charged under the Note from the date 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 balance of the Note and 6e apportioned among and be payahle with any instailmeM
<br /> payments to become due during either (1) the term of any applicable 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 also 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 Default.
<br /> WARRANTY;�EFENSE 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}Trusmr holds good and marketable title of record m the Property in fee simple,
<br /> free and dear of all liens and encumbrances other than those set forih in the Real Property description or in any
<br /> tiUe insurance policy,title report, or final title opinion issued in favor of, and accepted by, Lender in connection
<br /> with this Deed of Trust,and (b)Trustor has the full right,power,and authority to execute and deliver this�eed of
<br /> Trust to Lender.
<br /> Defiense of Title. Subject to the exception in the paragraph above,Trustor warrants and willforever defend the
<br /> title to the Property againsY 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 defend 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 6y 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 /> Compliance With Laws. Trustor warrants that the Property and Trustor°s use of ihe Property compiies with all
<br /> existing applicable laws,ordinances,and regulations of governmental authorities.
<br /> Survival of Representations and Warranties. All representations,warranties,and agreements made by Trustor in
<br /> this Deed of Trust shall survive the execution and delivery of this Deed of Trust,shall 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.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust
<br /> Proceedings. if any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and
<br /> Trusmr shall promp�fly take such steps as may be necessary to defend the.action and obtain the award. Trustor
<br /> may be the nominal party in such proceeding,but Lender shall be entitled to participate in the proceeding and to be
<br /> represented in the proceeding by counsel of its own choice, and Trustor will deliver or cause to be delivered to
<br /> Lender such instruments and documentation as may be tequested by Lender from time to time to permit such
<br /> partidpation.
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