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�2-2s-1999 DEED OF TRUST Page 4
<br /> Loan No 765972 2�d��Q� � � (Continued)
<br /> boiler insurance,as Lender may r�sonably require. Policies shaA be writtten in form,amounts,coverages and basis reasonably acceptable to
<br /> Lender and issued by a company or companies reasonably acceptable to Lender. Trustor,uppn request of Lender,will deliver to Lender from
<br /> time to 6me the policies or certificatas of insurance in torm satisfactory to Lender,including stipulations that coverages will not be cancelled or
<br /> diminished without at least ten(10)days'p�ior written noHce to Lender. Each insurance policy also shall include an endorsement providing that
<br /> coverage in favor of Lender will not be impaired in any way by arry,act, omission or default of Trustor or any other person. Should the Real
<br /> Property at any Hme become loceted in an area designated by the Director of the Federal Emergency Management Agency as a special flood
<br /> hazard area,Trustor agrees to obtain and maintain Federal Flood Instnance for the full unpaid principal balance of the loan and any prior liens
<br /> on the property securing the loan,up to the ma�dmum policy limits set under the National Flood Insurance Program,or as otherwise required by
<br /> Lender,and to maintain such insurance for the term of the loan.
<br /> Applicatlon of Proceeds. Trustor shall promptly notity Lender of any toss or damage to the Property. Lender may make proof of loss if Trustor
<br /> fails to do so within fifteen(15)days of the casualty. Whether or not Lender's security is impaired,Lender may,at its election,receive and retain
<br /> the proceeds of any insurance and apply the proceeds to the reductlon of the Indebtedness,payment of any lien affecting the Property, or the
<br /> restoration and repafr of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the
<br /> damaged or destroyed Improvemenis in a manner satisfactory to Lender. Lender shali, upon satisfactory proof of such expenditure, pay or
<br /> reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if Trustor is not in default under this Deed of Trust. Any
<br /> proceeds which have not been disbursed 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 interest,and the remainder,if
<br /> any,shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness,such
<br /> proceeds shall be paid to Trustor as Trustor's interests may appear.
<br /> Unexpired Insurance at Sale. Any unexpired insurance shall inure to the beneflt of,and pass to,the purchaser of the Property covered by this
<br /> Deed of Trust at any trustee's sale or other sale held under the provisions of this Deed of Trust,or at any foreclosure sale of such Property.
<br /> Compliance wlth Exlsting IndebtMness. During the period in which any Existing indebtedness described below is in effect,compliance with
<br /> the insurance provfsions contained in the instrument evidencing such Existing indebtedness shall constitute compliance with the insurance
<br /> provisions under this Deed of Trust,to the extent compliance wfth the terms of this Deed of Trust would consdtute a duplication of insurance
<br /> requirement. If any proceeds irom the insurance become payable on loss,the provisions in this Deed of Trust for division of proceeds shall
<br /> apply only to that po�ion of the proceeds not payable to the hoider of the Existing Indebtedness.
<br /> Trustor's Report on Insurance. Upon request of Lender,however not more than once a year,Trustor shall furnish to Lender a report on each
<br /> existing policy of insurance showing: (a)the name of the insurer; (b)the risks insured; (c)the amount of the policy; (d)the property insured,
<br /> the then current replacement value of such property, and the manner of determining that value; and (e) the expiration date of the policy.
<br /> Trustor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the
<br /> Property.
<br /> TAX AND INSURANCE RESERVES. Subject to any limitations set by applicable law,Lender may require Trustor to maintain with Lender reserves
<br /> for payment of annual taxes,assessments,and insurance premiums,which reserves shall be created by advance payment or monthly payments of a
<br /> sum estimated by Lender to be sufficfent to produce amounts at lesst equal to the taxes, assessments,and insurance premiums to be paid. The
<br /> reserve funds shall be held by Lender as a general deposit from Trustor, which Lender may satisfy by payment of the taxes, assessments, and
<br /> insurance premiums required to be pafd by Trustor as they become due. Lender shall have the right to draw upon the reserve funds to pay such
<br /> items, and Lender shail not be required to determine the validity or accuracy of any item before paying it. Nothing in the Deed of Trust shall be
<br /> construed as requiring Lender to advance other monies for such purposes,and Lender shall not incur any liabiliy for anything it may do or omit to
<br /> do with respect to the reserve account. Subject to any Iimitations set by applicable law,if the reserve funds disclose a shortage or deficiency,Trustor
<br /> shall pay such shortage or deflciency as required by Lender. All amounis in the reserve account are hereby pledged to further secure the
<br /> Indebtedness, and Lender is hereby authori�d to withdraw and apply such amounts on the Indebtedness upon the occurrence of an Event of
<br /> Default. Lender shall not be required to pay any interest or earnings on the reserve funds unless required by Iaw or agreed to by Lender in writing.
<br /> Lender does not hold the reserve funds in trust for Trustor,and Lender is not Trustor's agent for payment of the taxes and assessments required to
<br /> be paid by Trustor.
<br /> EXPENDITURES BY LENDER. If Trustor fails to comply with any provision of this Deed of Trust, including any obligation to maintain Existing
<br /> Indebtedness in good standing as required below,or if any action or proceeding is commenced that would materially affect Lender's interests in the
<br /> Property, Lender on Trustor's behalf may, but shall not be required to, take any action that Lender deems appropriate. Any amount that Lender
<br /> expends in so doing will bear interest at the rate provided for in tho Note from the da!e incu.�red rx paid by Lendet to the date af:�ayment by
<br /> Trustor. All such expenses,at Lender's option,will (a)be payable on demand, (b)be added to the 6alance of the Note and be apportioned among
<br /> and be payable with any installment payments to become due during either (i)the term of any applicable insurance policy or (li)the remaining term
<br /> of the Note, or (c) be treated as a balloon payment which will be due and payable at the Note's maturiry. This Deed of Trust also will secure
<br /> payment of these amounts. The rights provided for in this paragraph shalt be in addition to any other rights or any remedies to which Lender may be
<br /> entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to bar Lender irom any remedy that
<br /> it otherwise would have had.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relating to ow�ership of the Property are a part of this Deed of Trust.
<br /> Title. Trustor warranis that: (a)Trustor holds good and marketable tide of record to the Property in fee simple,free and clear of all liens and
<br /> encumbrances other than those set fo�th in the Real Property desc�iption or in the Existing Indebtedness section below or in any title insurance
<br /> policy,title repo�t,or flnal title opinion issued in favor of,and accepted by,Lender in connection with this Deed of Trust,and (b)Trustor has the
<br /> full right,power,and authority to execute and deliver this Deed of Trust to Lender.
<br /> Defense of Tltle. Subject to the exception in the paragraph above,Trustor warrants and will forever defend the title to the Property against the
<br /> lawful claims of all persons. In the event any action or procesding is commenced that questions Trustor's title or the interest of Trustee or
<br /> Lender under this Deed of Trust,Trustor shall defend the action at Trustor's expense. Trustor may be the nominal party in such proceeding,but
<br /> Lender shall be enNtled to 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 instrumenls as Lender may request from time to time to permit such participation.
<br /> Compliance With Laws. Trustor warranis that the Property and Trustor's use of the Property complies with all existlng applicable Iaws,
<br /> ordinances,and regulations of governmental autho�iHes.
<br /> D(ISTING IND�TEDNESS. The following provisions concerning existlng indebtedness (the"E�dsHng Indebtedness'� are a part of this Deed of
<br /> Trust.
<br /> Exlating Llen. The Ilen of this Deed of Trust securing the Indebtedness may be secondary and infe�ior to an existing Ilen. Trustor expressly
<br /> covenanls and agrees to pay,or see to the payment of,the Exisfing Indebtedness and to prevent any default on such indebtedness,any default
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