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� � �' �` �1' ' ` ' � ` � ` DEED OF TRUST 2 0110 8 4 7 0
<br />(Continued) Page 3
<br />Evidence of Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment ot the taxes
<br />or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written
<br />statement ofi the taxes and assessments against the Property.
<br />Notice of Construction. Trustor shall notify Lender at teast fifteen (15) days before any work is commenced, any
<br />services are fumished, or any materials are suppiied to the Property, if any mechanic's lien, materialm�n's lie�, or
<br />other lien couid be 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 can and wiM pay the cost ot such
<br />improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part af this Deed of
<br />Trust.
<br />Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended
<br />coverage endorsements on a replacement basis for the futi insurable value covering all lmprovements 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 shall also procure and maintain comprehensive general liability insuranee in such
<br />coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in such
<br />liability insurance policies. Additionally, Trustor shall maintain such other insurance, including hut not iimited to
<br />hazard, business interruption, and boiler insurance, as Lender may reasonably require. Poticies shali be written in
<br />form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or comp�nies
<br />reasonably acceptable to Lende�. 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 witl not be
<br />cancelled or diminished without at least thirty (30) days prior written notice to Lender. Each insurance policy also
<br />shall include an endorsement providing that coverage in favor of �ender will not be impaired in any way by any aet,
<br />omission or default of Trustor or any other person. Should the Real Property be located in 8n area 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 available, within 45 days after notice is given by Lender that the Property
<br />is located in a special ffood hazard area, for the fult unpaid principal balance of the Ioan and any prior liens on the
<br />property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as
<br />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 faits to do so within fifteen (15) days of the casualty. 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 repair, Trustor shaU 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 reasanable cost of
<br />repair or restoration it Trustor is not in detault 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 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, shal! be applied to the principal balance of the lndebtedness. 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 shaU 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 replacement value of such
<br />property, and the manner of determining that value; and (5) the expiration date ot 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 commenced that would materially affect Lender's interest in
<br />the Property ar if Trustor faits to comply with any provisiort ot this Deed of Trust or any Related Documents, including
<br />but not limited to Trustor's failure to discharge or pay when due any amounts 7rustor is required to discharge 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 appr�opriate, includirtg 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 for such purposes witl then
<br />bear interest at the rate charged under the Note from the date incurred or paid by �ender to the date of repayment by
<br />Trustor. All such expenses will become a part of the Indebtedness and, at Lender`s option, will (A1 be payable on
<br />demand; (B) be added to the balance of the Note and be apportioned among and be payabls with any insta!lment
<br />payments to become due during either (7) 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 aN 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 Dead
<br />of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Property in tee simple,
<br />free and clear of aN tiens and encumbrances other than those set torth in the Real Property 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 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 warrants and will fprevec defend the
<br />title tq 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 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 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 trom time to t+me
<br />to permit such participation.
<br />Compliance 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 Representatioos and Warranties. All representations, warranties, and agreements made by Trustor in
<br />this Deed of Trust shall survive the execution and detivery of this peed of Trust, shall be continuing in nature,,and
<br />shall remain in full force and effect until such time as Trustor's Indebtedness shall be paid in fulL
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trusi:
<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
<br />may be the nominal party in such proceeding, but Lender shall be entitled to participate in the pracesding and to be
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