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201108799
<br /> �EED OF TRUST
<br /> Laan No: 10000691 (C011$917UEd) Page 3
<br /> coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real
<br /> Ptoperty in an amount sufficient to avoid application of a�y coinsurance clause, and wiih a standard mortgagee
<br /> clause in favor of Lender,together with such other hazard and liability insurance as Lender may reasonabiy require.
<br /> Policies shall be written in form, amounts, coverages and basis reasonably accepta6le to Lender and issued by a
<br /> company or companies reasonably 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 satisfaciory to Lender,including stipulations that
<br /> - covereges will noi be cancelled ot diminished wiihout at least ten(10)days prior written notice to Lender. Each
<br /> insurance policy also shall indude an endorsement providing Yhat coverage in favor of Lender will not be impaired
<br /> � in any way by any act,ornission 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 Flood Insurance, if available,for the full unpaid principal balance of
<br /> the loan and any prior I�iens on the property securing the loan, up to the maximum policy limits set under the
<br /> National Flood Insurance Program,or as otherwise required by Lender,and to maintain such insurance for the term
<br /> 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 fails m 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 reduciion 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 ptoof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br /> repair or restoration 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 which Lender h2s not com�mitted to the repair o�restoration of
<br /> the Property shall 6e 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 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 confained in ihe instrument evidencing such Existing
<br /> Mdebtedness 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 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 only to tfiat portion of the proceeds not payable to the holder of the Existing Indetitedness.
<br /> LENDER'S EXPENDITURES. If Trustor fails �A) to keep the Property free of all taxes, liens, security interests,
<br /> encumbrances, and other daims, (61 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. If any action or proceeding is commenced that would materially affecY Lender's interests in the
<br /> Property, then Lender on Trusmr's behalf may, but is not required to, take any action that Lender believes to 6e
<br /> appropriate to protect Lender's interests, All expenses incurred or paid by Lender for such purposes will then bear
<br /> interest at the rate charged under the Nnte 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 rndebtedness and, at Lende�'s option,will (A) be payable on
<br /> demand; (B) 6e added to the 6alance 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 applica6le insurance policy;or (2) the remaining term of
<br /> the Note;or (C) be treated as a 6alloon payment which will be due and payable at the Note's maturity. The Deed of
<br /> Trust also will secure payment of these amounts. The rights provided for in this paregraph shall be in addition to any
<br /> other rights or any remedies to which Lender may 6e entitled on account of any default. Any such action by Lender
<br /> shall not be construed as curing the default so as to 6ar Lender from any remedy that it otherwise would have had.
<br /> WARRANI"Y;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 marketahle title of record to the Property in fee simple,
<br /> free and clear of all liens and encumbrances other tfian Those set forth in the Real Property description or in the
<br /> Erast�ng Indebtedness section below or irt any titJe insurance policy,titie report,or final trtle 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�eed of Trust to Lender. �
<br /> Deiense of Title. Subject to the excepYion 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 action or proceeding is commenced
<br /> that questions Trustor's title or the interest of Trustee or Lender under Yhis Deed of Trust,Trustor shall defend the
<br /> . action at Trustor's expense. Trustor may be the nominal party in such proceeding,but Lender shali be entitled to
<br /> participate in the proceeding and to be represented in the proceeding by counsel o'F Lender's own choice, and
<br /> Trustor will deliver,or cause m 6e 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 govemmental 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 conti�uing in nature and shall remain in full force
<br /> and effect until such time as Borrower's Indebtedness is paid in fulL .
<br /> EXISTWG INDEBTEDNESS. The following provisions concerning 6cisting Inde6tedness are a part of this Deed of 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 prevent any default on such indebtedness,any defauk under the instruments evidencing such indebtedness,
<br /> or any default under any security documents for such indebtedness. .
<br /> No M.odification. 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 rnodified,.
<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 following provisions relating to condemnation proceedings are a part of ttris Deed of Trust:
<br /> Proceedings. If any proceeding in condemnation is filed, Trustor sfiall promptly notify Lender in writing, and
<br /> Trustor shail 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 entiiled 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 by Lender from time to time m 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 requiee that all or any portion of fhe
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