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201109426
<br /> DEED OF TRIDST
<br /> Loan No: 810291 (Continued) Page 3
<br /> Program,or as otherwise required by Lender,and to maintain such insurence for the�term of the loan.
<br /> Appiication 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 (75) days of fhe casualty. Whether or not LendePs
<br /> Security is impaired,Lender may,a't Lender's election,receive and retain the proceeds of any insurance and apply
<br /> the proceeds to the reduction of the Inde6tedness,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 reasona6le cost of
<br /> repair or restoraiion 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 has not committetl to ihe 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 proceeds after payment in full of the Indebtedness, such proceeds shall 6e paid to Trusior 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 shall furnish
<br /> to Lender a report on each existing policy of insurance showing: (1) thA name of the insurer; (2) the risks
<br /> insured; (3] the amount of the policy; (4) the property i�sured, the then current replacement value of such
<br /> property,and the manner of determining that value;and (5) the expiration date of the policy. Trustor shall,.upon
<br /> request of Lender,have an i�dependent 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 or if Trustor fails to comply with any provisinn of this Deed of Trust or any Related Documents,including
<br /> bu2 not limited to Trustor's failure to discharge or pay when due any amounts Trustor is required to discharge or pay
<br /> under this Deed of Trust or any Related�ocuments,Lender on Trustor's behalf may(but shafl not be obligated to)take
<br /> any action that Lender deems appropriate, including but not Iimited to discharging or paying all taxes, liens,security
<br /> interests,encumbrances and other claims,at any time levied or placed on the Rroperty and paying all costs for insuring,
<br /> maintaining and pteserving the Property. All such expenditures incurred or paid by Lender 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; (B) be added to the balance of ihe 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 (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 all other rights and remedies to
<br /> which Lender may be entitled upon�efault.
<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: (a)Trustor holds good and marketable title of record to the Property in fee simple,
<br /> free and clear of al1 liens and encumbrances other than those set forth 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 iull 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 paragreph above,TrusYOr warranYS and will forever defend the
<br /> . titie to the Property against the lawful claims of alt persons. In the event arry action or proceeding is commenced
<br /> that questions Trustor's title or the interest of Tr�stee or Lender under this Deed of Trust,Trustor shall defend the
<br /> action at TrustoPs expense. Trustor may be the nominal party in such proceeding,but Lender shall be envtled to �
<br /> participate in the proceeding and to be represented in the proceeding by counsel of Lender's own ehoice, and
<br /> Trustor will deliver,or cause to be delivered,to Lender such instruments as Lender may requesi 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 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 Deed of Trust shall survive the execution and delivery of this Deed of Trust,shall 6e 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 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. 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�io 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�estoration 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 connection 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�eed of Trust:
<br /> Current Taxes,Fees and Charges. Upon request 6y Lender,Trustor shall execute such documents in addition to
<br /> this Deed of Trust and take whatever other action is requested by Lender to perfect and continue Lender's lien on
<br /> the Real Property. Trustor shall reimburse Lender for alI taxes,as described below, together with all expenses
<br /> incurred in recording, petfecting or continuing this Deed of Trust, including without limitation all taxes, fees,
<br /> documentary stamps,and other charges for recording or registering this Deed ot Trust.
<br /> Taxes. The following shall constitute taxes to which this section applies lU a specific tax upon this rype of
<br /> Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trust; f2) a specific tax on
<br /> Trustor which Trustor is authorized or required to deduct from payments on the Indebtedness secured by this type
<br /> . of Deed of Trust; (3) a tmc on this type of Deed of Trust chargeable against the Lender orthe holder of the Note;
<br /> . and (4} a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by
<br /> Trustor.
<br /> Subsequerrt Taxes. If any tax to which this section applies is enacted su6sequent to the tlate of this Deed of
<br /> Trust, this event shall have the same effect as an Event of Default, and Lender may exercise any or all of its
<br /> availa6le Yemedies for an Event of Default as provided below unless Trustor either (1} pays the tax before it
<br /> becomes delinque�t,or (2) contests the tax as provided above in the Taxes and Liens section and deposits with
<br /> Lender cash or�a sufficient corporate surety bond or other security satisfacmry to Lender. �
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