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201108714
<br /> DEED OF TRUST
<br /> Loan No: 872058407 (Continued} Page 3
<br /> PROPERTY DAMAGE INSU�iP.NCE. The following provisions relati�g to insuring the Property are a part of this Deed of
<br /> Trust.
<br /> Maintenance of fnsurance. Trustor shall procure and maintain policies of fire insurance with standa�d exteoded
<br /> coverage endorsements on a replacement basis for the full insura6le value covering all Improvements on the Real
<br /> Properry in an amount sufficient to avoid application of any ooinsurance clause, and with a standard mortgagee
<br /> dause in favor of Lender,together with such other hazard and liability insurance as Lender may reasonably require.
<br /> Policies shall be written i.n form, amounts, coverages and 6asis reasonably acceptabie to Lender and issued by a
<br /> company or companies reasonabry acceptable to Lender. Trustor, upon request of Lender,will deliver to Lender
<br /> from time to time the policies or certificates.of insurance in form satisfactory to Lender,including stipulations that
<br /> coverages will not be cancelled or diminished without at least ten(10)days prior written notice Yo Lender. Each
<br /> insurance policy also shall include an endorsemenY 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 Ag.ency as a special flood hazard area,
<br /> Trustor agrees to obtain and maintain Federal Rood Insurance,if available,for the maximum amount of BorrowePs
<br /> credit line and the full unpaid principal balance of any prior liens on the property securing the loan, up to the
<br /> maximum policy limits set 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 /> Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may
<br /> make proof of loss if Trusmr fails to do so within fifteen f15) 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 Indebted:ness,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 /> sausfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br /> repair or resioration if Trus2or is not irt.default under this Deed of Trust. Any proceeds which have not been
<br /> dis6ursed 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,shall be applied to the principal balance of the Indebtedness. If Lender holds�. �
<br /> any proeeeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> LENDER'S EXPENDITURES. If TrustoY fails (A) to keep the Property free of all taxes, liens, security interests;
<br /> encumbrances,and other claims, (B) to provide any requited i�nsurance on the Property,or (C) to make repairs to the
<br /> Property then Lender may do so. If any action or proceeding is commenced that woald materially affect Lender's
<br /> interests in the Property, then Lender on Trustor's behalf may, hut is not required to, take any action that Lender
<br /> believeS to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will
<br /> then bear interest at the rate charged under the Credit Agreement from the date incurred or paid by Lender to the date
<br /> of repayment by Trustor. All such expenses will become a part of the Intlebtedness and,at Lender's option,will (A)
<br /> be payable on demand; (B) be added to the balance of the Credit Agreement�and be apportioned among and be
<br /> payable with any installment paymenfs to become due during either (1) the term of any applicable insurance policy;or
<br /> (2) the remaining term of the�Yedit Agreement;or ICI be treated as a balloon payment which will be due and payable
<br /> at the Gredit AgreemenYs maturity. The Deed of Trust also will secure payment of these amounts. Tfie rights provided
<br /> . for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account
<br /> of any default. Any such action by 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: ta)Trustor holds good and marketable title of record to the Property in fee simple,
<br /> free and clear of all liens and encum6rances other than tfiose set forth in the Real Property descrption or in any
<br /> title insurance policy,title report, or final titie opinion issued in favor of, and accepted.by, Lender in connection
<br /> with this Deed of Trusg,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 a6ove,Trustor waYrants and will forever defend the
<br /> title to the Property against the lawful claims oi all persons. In the event any action or proceeding is commenced
<br /> that questions TruStor's titie 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 from time to time .
<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 appiicable 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 deliyery of this Deed of TrusY,shalf be continuing in nature and shall remain in full force
<br /> and effect until such time as Borrower's Indebtedness is paid in full.
<br /> CONDEMNATIQN. 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 /> Trustor shall promptly take such steps as may be necessary to defend the action and obtain the award. Trustot
<br /> may be the nominal party in such proceeding,6ut 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 instrumeMS and documeotation as may be requested by 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 that all or any portion of the
<br /> net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net
<br /> proceeds of the award shall mean the award after payment of all reasonable costs,expenses,and attorneys'fees
<br /> incurred by Trustee or Lender in connecfion with the condemnation.
<br /> IMPOSITION OF TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br /> to governmental taxes,fees and charges are a part of this Deed of Trust:
<br /> Current Taxes,Fees au�d Gharges. Upon request by Lender,Trustor shall execute such documents in addition to
<br /> � � ihis Deed of Trust and 2ake whatever other action is requested by Lender to perfect and continue Lender's lien on
<br /> the Real Properry. Trustor shall reimburse Lender for all taxes, as described�below, together with all expenses
<br /> incurred in recording, perfecting or continuing this Deed of Trust, including without limitation all taxes, fees,
<br /> documentary stamps,and other charges for recording or registering this Deed of Trust.
<br /> Taxes. The following shall 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 Indebtedness secured by this Deed of Trust; (21 a spec"rfic tax on
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