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201108380
<br /> DEED OF TRUST
<br /> Loan No: 810255 (COIltil7ued) Page 3
<br /> reasonably acceptable to Lender. Trustor, upon request of Lender, wiil 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 default of T�ustor or any other person. Should.the Real Property be located�in an area designated by
<br /> tFie Director of the Federal Emergency Management Agency as a special flood haza�d area,Trustor agrees to obtain
<br /> and maintain Federal Flood Insurance, i#available, for the fult 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 Rood Insurance
<br /> Program,ot as otherwise required by Lender,and to maintain such insurence 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 faiis to do so within fifteen (15) days of the casualiy. Whether or not �ender'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,paymeM of any lien affecting the Property, or the restoration
<br /> and repair ofi 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, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br /> repair or restoeation if Trustor is not in default under this Deed of Trust. Any proceeds which have not been
<br /> dishursed within 180 days after their receipt and which Lentler 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 remainder, if any,shall be applied 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 Trusmr'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 name of the insurer, (2] the risks
<br /> insuted; (3) the amount 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 date of the policy. Trustor shall,upon
<br /> � request of Lender,have an independent appraiser satisfactory to Lender determine the cash value replacement cost
<br /> . of the Property.
<br /> LENDER'S EXPENDITURES. If any action or proceeding is cammenced that would materially affect Lender's interest in
<br /> the Ptoperty or if Trustor fiaifs to comply with any provision of this Deed of Trust or any Related Documents,including
<br /> but not limitad to Trustor`s failure io discharge or pay when due any amounts Trustor is required to discharge or pay
<br /> under this Deed of TruSt or any Related Documents,Lender on Trustor'&behalf may lbut shall not he obligated to1 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 Ievied 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 /> bearinteresY at the rate charged under the Note from the date incurred or paid hy 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 (Aj be payable on
<br /> demand; (B) be added to The balance of the Note and be apportioned among and be payable�with any instaliment
<br /> payments to become due during either (1) the term of any applicable insurance poGcy;or (2) the remaining term of
<br /> the Note;or iC) 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;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 marketable title of rewrd to the Property in fee simple,
<br /> free and clear ofi all liens and encumbrances other ihan those set forth in the Real Peoperty description or in any
<br /> title insurance policy,title report, ar 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 Deed of
<br /> Trust to Lender.
<br /> Defense of TiUe. Subject to Yhe exception in the paragraph above,Trustor wartants and willforever defend the ,
<br /> title to the Property against the IawfW claims of all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's title ot the interest of Trustee or Lender under this�eed of Trust,Trustor shall defend the
<br /> action at Trustors expense. Trustor may be the nominal party in such proceeding,but Lender shall be entitled m �
<br /> parcicipate in the proceeding and to 6e represented in the proceeding by counsel of LendePs 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.. .Trustar warrants that the Property and T�ustoPS 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,warranties,a�d agreements made by Trustor in
<br /> this Deed of Ttust 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 Trusmr's Indebtedness shali be paid in full. .
<br /> CON�EMNATION. 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 p�omptly 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
<br /> may be the nominat party in such proceeding,but Lendsr shail 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 6e requested 6y Lender from time to��time�to permit such
<br /> participation. �
<br /> Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by
<br /> any proceeding or purchase in lieu of condemnation,Lender may at its election require ihat alf or any portion of the
<br /> net proceeds of the award he applied to the Inde6tedness or the repair or eestoration of Yhe Property. The nei
<br /> proceeds of the award shail mean the award after payment of alI reasonable costs, expenses,and attorneys'fees
<br /> incurred by Trustee or Lentler in connection with the condem�ation.
<br /> IMPOSITION OF TAXES,.FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relaTing
<br /> to govemmental taxes,.fees and charges are a part of this Deed of Trust:
<br /> Currerrt Taxes,Fees and Charges. Upon request by Lender,Trustor�shall execute such documents�in addition to
<br /> . this Deed of Trust and take whatever other action is requested by Lender to perfect and conYinue Lender's I�ien on
<br /> the Real Property. Trustor shall reimburse Lender for all taxes,as described below, together with all expenses
<br /> incurred in rewrding, perfecting or continuing this Deed of Trust, including without limitation all t�es, fees, .
<br /> documentary stamps,and other charges for recording or registering this Deed of Trust.
<br /> Taxes. The following shafl constitute taxes to which this section applies (1.) a specific�tax upon this type of
<br /> Deed of Trust or upon all or any part of the Indebredness secured by this Deed of Trust; (2) a specific tax on
<br /> Trustor which Trustor is authorized or required to deduct from payments on the Indebtedness secured by this type
<br /> of Deed of Trust (3) a tax o�this type of Deed of Trust chargeable against the Lender or the holder of the Note;
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