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<br />'' DEED OF TRUST 2 0110 8 5 9 7
<br />Loan No: 11089203 � �� r (Continued) Page 3
<br />sha)I 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 Trustor or any other person. Should the Real Property be located in 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 maintain 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 Fiood Insurance
<br />Program, or as otherwise required by Lender, and to maintain such insurance for the term of the ioan.
<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 415) 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 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 restoration it 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 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 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 />Compiiance with Existing Indebtedness. During the period in which any Existing indebtedness described below is
<br />in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing
<br />Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trust, to the extent
<br />compliance with the terms of this Deed of Trust would constitute a dupiication 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 oNy to that portion of the proceeds not payable to the holder ot the Existing Indebtedness.
<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: (11 the name of the insurer, (2) the risks
<br />insured; (3) the amount of the policy; (4) the property insured, the then current replacement vaiue of such
<br />property, and the manner of determining that value; and (5t the expiration date of the palicy. Trustor shall, upon
<br />request of Lender, have an independent appraiser satisfactory to Lender determine the cash value repiacement cost
<br />ot the Property.
<br />LENDER'& EXPENQITURES. 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 Documents, including
<br />but not limited to Trustor's failure to comply with any obligation to maintain Existing Indebtedness in good standing as
<br />required below, ar to discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed of
<br />Trust or any Related Documents, Lender on Trustor's behalf may (but shall not be obligated to) take any action that
<br />Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests,
<br />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 tender for such purposes will then
<br />bear interest 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; (8i 6e added to the baiance of the Note and be apportioned among and be payable with any installment
<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 1C? be treated as a ba!loon payment which will be due and payabie at the Note's maturity. The Deed of
<br />Trust also wili 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; DEPENSE OF TITLE, The following provisions relating to ownership of the Property are a part of this Deed
<br />oP Trust;
<br />Titie. 7rustor warrants that: (a) Trustor holds good and marketable title of record to the Property in fee simple,
<br />free and ciear of alt fiens and encumbrances other than those set forth in the Real Property description or in the
<br />Existing tndebtedness section below or in any title insurance policy, title report, or finaf title opinion issued in favor
<br />of, and accepted by, Lender in cannection with this Deed of Trust, and (b) Trustw 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 paragraph above, Trustor warrants and will forever defend the
<br />title to 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 shail 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
<br />to permit such participation.
<br />Gompliance 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 Representations and Warranties. All representations, warranties, and agreements made by Trustor in
<br />this DBed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and
<br />shali remain in full force and effect until such time as Borrower's Indebtedness shall be paid in full.
<br />EXISTING INDEBTEDNESS. The foilowing provisions concerning Existing Indebtedness are a part af this Deed ofi Trust:
<br />Existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an
<br />existing lien. Trustor expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness
<br />and to prevenY any default on such indebtedness, any default under the instruments evidencing such indebtedness,
<br />or any default under any security documents for such indebtedness.
<br />No Modification. Trustor shall not enter into any agreement with the holder of any mortgage, deed of trust, or
<br />other security, agreement which has priority over this Deed of Trust by which that agreement is modified,
<br />amended, extended, or renewed without the prior written eonsent of Lender. 7rustor shall neither request nor
<br />accept any future advances under any such security agreement without the prior written consent of Lender.
<br />CONDEMNATION. The fo�lowing provisions relating to condemnatian proceedings are a part of this Deed of 7rust:
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shall prompt�y 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 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 requested by Lender from time to time to permit such
<br />pa�ticipation.
<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 that all or any portion of the
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