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DEED OF TRUST � p 1� 0 5 7 5�.
<br />(Continued) Page 3
<br />omission or default of Trustor or any other person. Should the Real Property be located in an area desfgnated by
<br />the Dfrector of the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to obtain
<br />and maintain Federal Flood Insurence, if available, for the full unpaid principal balance of the loan and any prior
<br />liens on the property secu�ing the loan, up to the maximum policy limits set under the National Flood Insurance
<br />Program, or as othervvise required by Lender, and to maintain such insurance for the term of the loan.
<br />Appllcation of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lentler may
<br />make proof of loss if Trustor fails to do so within flfteen (15) days of the casualty. Whether or not Lender's
<br />secu�ity is impalred, Lender may, at Lender's election, receive and retain the proceeds of any insurence and apply
<br />the procseds to the reductfon 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 menner satisfactory to Lender. Lender shall, upon
<br />satlsfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br />repair or restoratlon 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 committed to the repafr or restoration of
<br />the Property shall be used flrst 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 p�incipal 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 Trustors
<br />interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall fumish
<br />to Lender a report on each existing policy of insurance showfng: (1) the name of the insurer; (2) the risks
<br />insured; (3) the amount of the policy; (4) the property (nsured, the then current replacement value of such
<br />property, and the manner of determining that value; and (5) the expiraUon date of the policy. Trustor ahall, upon
<br />request of Lender, have an independent appraiser satisfactory to Le�er determine the cash value replacement cost
<br />of the Properly.
<br />TAX AND INSURANCE RESERVES. Subject to any Iimitations and consistent with any requirements set by appflcable
<br />law, Lender may require Tnistor to maintain with Lender reserves for payment of annual taxes, assessments, and
<br />insurance premfums, which reserves shall be created by an initial deposit and subsequent monthly payments, or
<br />payments at such other interval as payments under the Note may be due, of a sum estimated by Lender to be sufflcient
<br />to pay the total annual taxes, assessments, and fnsurance premiums Lender reasonably anticipates to be paid from
<br />these reserves. The reserve funds shall be held by Lender as a general deposit from Trustor, which Lender may satisfy
<br />by payment of the taxes, assessments, and fnsurance premiums required to be paid by Trustor as they become due.
<br />Lender shall have the right to draw upon the reserve funds to pay such items, and Lender shall not be requfred to
<br />determine the validity or accuracy of any item before paying it. Nothing in the Deed of Trust shall be construed as
<br />requiring Lender to advance other monies for such purposes, and Lender shall not incur any liability for anything it may
<br />do or omit to do with respect to the reserve account. Subject to any limitations set by applicable law, if the reserve
<br />funds disclose a shortage or deficiency, Trustor shall pay such shortage or deflciency as requfred by Lender. All
<br />amounts in the reserve account are hereby pledged to further secure the Indebtedness, and Lender is hereby authorized
<br />to withdraw and apply such amounts on the Indebtedness upon the occurrence of an Event of Default. Lender shall not
<br />be required to pay any interest or eamings on the reserve funds unless required by law or agreed to by Lender in
<br />writing. Lender does not hold the reserve funds in trust for Trustor, and Lender is not Trustor's agent for payment of
<br />the taxes and assessments required to be paid by Trustor.
<br />LENDER'S D(PENDITURES. If any acUon or proc�eding is wrrunencsd that would materially affect L.enders inter�t in
<br />the Property or if Trustor fafls to comply with any provisfon of this Deed of Trust or any Related DocumeMs, fnduding
<br />6ut not limited to Tn.istors failure to discharge or �y when due any amounts Trustor is required to discharge or pay
<br />under this Deed of Trust or any Related Documerrts, Lender on Trustors behalf may (but shall not be obligated to) take
<br />any action that Lender deems appropriate, induding but not Ifmited to discharging or paying all taxes, Ifens, security
<br />interests, encumbranc�s and other claims, at any time levied or placed on the Properly and paying all c�sts for insuring,
<br />rnaintafning and presenring the Properly. 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 Ler�er to the date of re�ymerrt by
<br />Trustor. All such exper�.ses will beoome a part of the Indebtedness and, at Lenders option, will (A) be payable on
<br />demand; (B) be added to the balance of the Note and be epportioned 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 additlon to all other rights and remedies to
<br />which Lender may be entitled upon Default.
<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 markatable title of record to the Property in fee simple,
<br />free and clear of all liens and encumbrances other than those set forth in the Real Property descripUon 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 full right, power, and authority to executa and deliver this Deed of
<br />Trust to Lender.
<br />Defense of Title. Subject to the excepUon (n 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 acdon or proceed(ng 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 />acUon at Trustor's expense. Trustor may be the nominal party in such proceedfng, but Lender shall be entitled to
<br />partic(pate in the proceeding and to be represented In the proceeding by counsel of Lender's own chofce, end
<br />Tnistor will deUver, or cause to be delivered, to Lender such instrvments as Lender may request from time to time
<br />to permit such participation.
<br />Compllance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all
<br />existing applicable laws, ordinances, and regulaUons of govemmental authorities.
<br />Survival of Representadons and Warrantles. All representations, wamanties, and agreemerits made by Trustor in
<br />this Deed of Trust shall survive the executlon and delivery of this Deed of Trust, shall be conUnuing in nature, and
<br />shall remain in full force and effect until such time as Trustor's Indebtedness shall be pFSid in full.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proc�eding in �ndemnation is flled, Trustor shall promptly notify Lender in wriUng, and
<br />Trustor shall promptiy take such steps � may be neoessary to defend the actlon and obtain the award. Trustor
<br />may be the nom(nal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be
<br />represeMed in the proceeding by counsel of its own choice, and Trustor will deflver or cause to be delNered to
<br />lender such instrumerrts artd documeritation as rrray be requested by Lender from time to time to permit such
<br />pardcipation.
<br />Application of Net Proceeds. If all or any part of the Properly is �ndemned by eminent domain prooeedings or by
<br />any pra�eding or purchase in Ileu of condamnation, Lender rnay at (ts election require that all or any portion of the
<br />net proceeds of the award be applied to the Indebtedness or the repair or restoratfon of the Property. The net
<br />proceeds of the award shall rnean the award after paymerrt of all re�ornable c�sts, exper�ses, and attomeys' fees
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