|
�� DEED OF TRUST 2 0110 9 3 7 4
<br />Loan No: 1d1246572 (Continued) Page 3
<br />charges Oncluding water and sewer►, fines and impositions levied against or on eccount of the Property, and shell
<br />psy when due all claims for work done on or for services rendered or material furnished to the Property. Trustor
<br />ahell maintefn the Property free of all Ifens heving prlority over or equal to the interest of Lender under thia Deed of
<br />Trust, except for the lien of taxes and assessments not due, except for the Existing Indebtedness referred to
<br />below, and except as otherwise provided in this Deed of Trust.
<br />Rlght to Corrtest. Trustor may withhold payment of any tax, assessment, or claim in connection with a good faith
<br />dispute over the obligetion to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or
<br />is filed as a result of nonpeyment, Trustor shall within fifteen (15) days efter the lien erises or, if a lien is flled,
<br />within fifteen (95) days after Trustor has notice of the filing, secure the discharge of the lien, or 1f requested by
<br />Lender, deposit with Lender cash or a sufficient corporate surety bond or other security setisfactory to Lender in an
<br />amount sufficient to discherge the lien plus any costs and attorneys' fees, or other charges that could accrue as a
<br />result of a foreclosure or sale under the lien. In any contest, Trustor shell defend itself and Lender and shell satisfy
<br />any adverse judgment before enforcement against the Property. Trustor shall name Lender es an additional obligee
<br />under any surety bond furnished in the contest proceedings.
<br />Evidence of Peyment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the texes
<br />or essessments and shall authorize the appropriate governmental officiel to deliver to Lender at any time a written
<br />statement of the taxes and assessments against the Property.
<br />Notice of Construction. Trustor shall notify Lender at least fifteen (15) days before any work is commenced, eny
<br />services ere furnished, or any materials are supplied to the Property, if any mechenic's lien, meterialmen's Ilen, or
<br />other lien could 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 thet Trustor can and witl pay the cost of such
<br />improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of thls Deed of
<br />Trust.
<br />Mairrtenance of Insurance. Trustor shall procure and maintain policies of fire insurance with stendard extended
<br />coverage endorsements on e fair velue basis for the full insureble value covering ell Improvements on the Real
<br />Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee
<br />clause in fevor of Lender, together with such other hazard and liebility insurance as Lender may reasonebly require.
<br />Policies shall be written in torm, amounts, coverages and basis reasonably ecceptable to Lender end Issued by a
<br />company or companfes reasonabty 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 satisfectory to Lender, including stipulations thet
<br />covereges wfll not be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each
<br />insurance policy elso shall include an endorsement 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 loceted in
<br />an area designated by the Director of the Federal Emergency Management Agency as a special flood hazerd area,
<br />Trustor agrees to obtain and maintain Federel Flood Insurence, if available, for the full unpeid principal balance of
<br />the loan and any prior liens on the property securing the loen, up to the maximum policy limits set under the
<br />Nationel Flood Insurence 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 />meke proof of loss if Trustor fails to do so within fifteen (15) days of the cesualty. Whether or not Lender's
<br />security ia impaired, Lender may, at Lender's election, receive and retain the proceeds of eny insurence end apply
<br />the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoretion
<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 shell, upon
<br />satisfectory proof 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 heve not been
<br />disbursed within 180 deys after their receipt and which Lender has not committed to the repair or restoration of
<br />the Property shall be used first to pey any amount owing to Lender under this Deed of Trust, then to pey eccrued
<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 shell be paid to Trustor as Trustor's
<br />interests may appear.
<br />Compllance with F�cisting 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 duplication of insurence 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 epply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests,
<br />encumbrences, end other claims, (B) to provide any required insurance on the Property, (C) to make repeirs 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 eny ection or proceeding is commenced that would materially affect Lender's interests in the
<br />Property, then Lender on Trustor's behalf may, but is not required to, take any action that Lender believes to be
<br />
|