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201108094
<br /> DEED OF TRUST
<br /> Loan No: 08720583�5 (Continued} Page 3
<br /> improvements. �
<br /> PROPERTY DAMAGE INSURANCE. The following provisions relating io insuring the Property are a part oi this Deed of
<br /> Trust.
<br /> IUlaiotenance of InsuPance.� Trustor shafl procure and maintain policies of�fire insurance witFr standard extended
<br /> coverage endorsements on a replacement basis for the full insura6le value covering all Improvements on the Real
<br /> Property i�n an amount sufficient to avoid applicaiion of any coinsurance clause,and with a standard mortgagee
<br /> clause in favor of Lender,togeiher with such other hazard and liability insurance as Lender may reasonably require.
<br /> Policies shall be written in form,amounts, covereges and basis reasona6ly acceptable to Lender and issued by a
<br /> company or companies reasonably acceptable to Lender. Truscor,upon.request of Lender,will deliver to Lender
<br /> from time to time the policies or.certificates of insurance in form satisiactory to Lender,inclading stipulations thaT
<br /> 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
<br /> in any way by any act,omission or default of Trustor or any other person. Should the Real Property be located in
<br /> an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area,
<br /> Trustor agrees to obtain and maintain Federal Fiood Insurance,if available,for the maximum amount of Borrower's
<br /> credit line and the full unpaid principal balance of any prior liens on the property securing the loan, up.m the
<br /> maximum policy limits seY under the National Flood Insurance Program,or as otherwise required by Lender,and to
<br /> maintain such.insurance for the term of the loan. �
<br /> ApplicaYion of Proceeds. Trustor shall promptly notify Lender of any Ioss 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 not Lender's
<br /> secufity.is impaired,Lender.may,at Lender's election,receive and retain the proceeds of any insurance and apply
<br /> the proceeds to the retluction of the Indebtedness, payment of any lien affecting the Rroperty,.or the resto�ation
<br /> and repair of the Property. If�Lender elecis io 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, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br /> repair or resioration 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 wtiich Lender has not committed to the repair or restoration of
<br /> . the Property shall be used first to pay any amount owing to Lender under this Deed of Trust,then to pay accrued
<br /> interest,and the rernainder,if any,shall be appifed to the principal balance of the Indebtedness. If Lender holds
<br /> any proceeds after payment in futl of the Indebted�ess, such proceeds shall be paid to Trusmr as Trustor's
<br /> interests may appear. �
<br /> Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is
<br /> in effect, compliance with the insurance provisions coMained in the instrument evidencing such Existing
<br /> Indebtedness shall constitute compliance with�the insurance provisions under this Deed of Trust, to 2he extent
<br /> compliance with the terms of this Deed of Trust would constitute a duplication of insurance requirement. If any
<br /> proceeds from the insurance become payable on loss,the provisions in this DEed of Trust for division of proceeds �
<br /> shall apply o�ly to that portion of the proceeds not payatrle Yo the holder of the Existing Inde6tedness.
<br /> LENDER'S EXPENDITURES. If Trustor faiis (A) to keep the Property free of all taxes, liens, security interests,
<br /> encumbrances,and other claims, (B) to provide any required insurance on the Property, (C) to make repairs to the
<br /> Property or to comply with any obligation to maintain Existing Indebtedness in good standing as required below,then
<br /> Lender may do so. Ifi any action or proceeding is commenced that would materialty affect Lender's interests in ihe
<br /> Property, then Lender on Trustor's behalf may, but is not required to, take any action that Lender believes to be
<br /> appropriate to protect Lender's interests. All expenses incurred or paid 6y Lender for such purposes will then bear
<br /> � interest at the rate charged untler the Credit Agreement from the date incurred or paid by Lender to the date of
<br /> repayment by Trustor. All such expenses will become a parc of the Indebtedness and,at Lender's option,will (A1 be
<br /> payabie on demand; (B) be added to the balance of the Credit Agreement and pe apportioned�among and be payable
<br /> with any installmeni payments to become due during either (1) the term of any applicable insurance policy;or (2) the
<br /> remaining term of the Credit Agreement;or lC) be treated as a balloon payment which will 6e due and payable at the
<br /> Credit AgreemenYs maturity. The Deed of Trust also will secure payment of these amounts. The rigNts provided for in
<br /> this paragraph sF�ail be in addition to any other rights or any remedies to which Lender may be entitled on account of
<br /> any default. Any such action tiy Lender shall not be construed as curing the default so as to bar Lender from any
<br /> remedy that it otherwise would have had.
<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: fa)Trustor holds good and marketable trtle of record to the Property in fee�simple,.
<br /> free and clear of all liens and encumbrances other than those set forth in the Real Property description or in the
<br /> 6cisting Indebtedness section qelow or in any title insurence policy,title report,or final title opinion issued in favor
<br /> of�,and accepted by,Lender in connection with this Deed of Trust,and (b)Trustor has the full right, power,and
<br /> authority to execute and deliver this Deed of Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragreph above,Trustor warrants and will forever defend the
<br /> title to the Property against the lawful claims of all persons. In the event any aciion or proceeding is commenced
<br /> that questions Trustor's title or tlie inierest of Trustee or Lende�under this Deed of Trust,Trusmr shall defend tlie
<br /> action at Trustor's expense. Trustor may be the nominal party in such proceed'mg,but Lender shall tie entiUed to
<br /> participate in the proceeding and to be represented in the proceeding by-counsel of Lender's own choice, and
<br /> Trustor wilt deliver,or cause to be delivered,to Lender such instrumeMS as Lender may request from time to time
<br /> to permit such participation.
<br /> Compliance Wkh Laws. Trustor warrants that the Property and Trustor's use ofi the Property complies with all
<br /> existing applicable laws,ordinances,and regulations of governmental authorities_
<br /> Survival of Promises. �All promises, agreements, and statements Trustor has made in this Deed of Trust shall�.
<br /> survive the execution and delivery of this Deed of Trust,shall be continuing in nature and shall remain in full force
<br /> and effect until such time as Borrower's fndebtedness is paid in full.
<br /> EXISTING INDEBTEDNESS. The following provisions conceming F�cisting Inde6tedness are a part of this Deed of Trust:
<br /> � Existing Lien. The lien of this Deed of Trust securing the Indeqtedness may be secondary and inferior to an
<br /> existing lien. Trustor expressly covenants and agrees to pay,or see to the paymeni of,the Existing Inde6tedness
<br /> and to prevent any default on such indebtedness,any default under the instruments evidencing such indebtedness,
<br /> or any default under any security documents for such inde6tedness.
<br /> No Modification. Trustor shall not enter into any agreement with the holder of any mortgage, deed of trust, or
<br /> � otfier security agreePnent which has priority over this Deed of Trust by which that agreement is modified,
<br /> amended., extended, or renewed without the prior written consent of Lender. Trustor shall neither request nor �
<br /> accept any future advances under any such security agreement without the prior written consent of Lender.
<br /> CONDEMNATION. The foilowing provisions relating to condemnation proceedings ate 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 /> Trustor shall promptly take such steps as may be necessary to defend the action and obtain the award. Trustor
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