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Z�15��957
<br /> DEE� DF TRUST
<br /> ��ontinued� Page 3
<br /> imprvvem�nts,
<br /> PR�PERTY DAMAGE INSURANCE. The fo�lawing pro�isions relating to insuring the Prvperty ar� a part❑f this Deed of
<br /> Trust.
<br /> Maintenance of Insuran�e. Trustor shall procure and maintain poli�ies af fire insurance with standard extended
<br /> cv�erage endorsements on a repia�ement basis for the full insurable �a�ue covering all;lmpra�em�nts on �he Rsal
<br /> Prope�ty in an amount su�ticient ta a�aid applicati�n of any cainsuran�e cfaus�, and v►►ith a s�andard m�rtgagee
<br /> clause in fa�or❑#Lender. Trustar shail a�so procure and maintain comprehens���general liabi�ity�nsurance in such
<br /> co�erage amounts as Lender may request with Trustee and Lender being named as �ddi�ivnal insureds in such
<br /> liability insurance pvli�i�s. Additivnaily, Trustar shall maintain 5t1Gh ather insurance, including bu� not limited tv
<br /> hazard, business interruption, and bailer insurance, as Lender rnay reas�nably requ�re. Pvlici�s shall be writtan in
<br /> form, amounts, co�era��s and basis reasonably a��eptable ta Lender and issued by a c�mpany or �vmpanies
<br /> reasflnably acceptable ta Lender. Trustar, upon request of Lender, v►rill deli�er to Lender from �irne to tim� the
<br /> pakicies vr cer�i�icates o#insurance in form satisfac�ory tv Lender, including stipufatians;that co�erages wiil not be
<br /> cancelled�r diminished without at�eas�thirty �3�y days privr wri�ten notice to Lender. Each insurance pv�icy ais❑
<br /> shall include an endorsemen�pro�iding that�a�erage in fa�ar of Lender will n�t be impatred in any way by any act,
<br /> �rnission or default of Trustor❑r any ❑ther person. Should th� R�al Praperty be IQcated in an area designated by
<br /> th�Administrator of the Fed�ral Em�rgency Managernent A�ency as a special fio�d hazard area, Trustor agrees ta
<br /> obta�n and maintain F�deral Fload Insurance, �f a�ai�able, for the full unpaid principal balance af the loan and any
<br /> prior li�ns on the property securing the loan, up �❑ the maximum policy limits set under the National F�ovd
<br /> Insuran�e Pr�gram, or as otherwise required hy Lend�r, and to maintain su�h insuranc�for th�term of the 1van.
<br /> Application nf Pra��eds. Trustor shall pr�mptly n�tify Lender v#any �ass ❑r damage tQ the Property. Lender may
<br /> make pr�v� of loss if Trust�r �ails #a dv so within fifteen {15� days of the �asualty., Vllhether or nat Lender's
<br /> security is impaired. Lender may, at Lender's elecfiian, recei�e and retain th� proceeds of any insurance and apply
<br /> the praceeds ta the redu�tian o�the lnd�btedness, payment of any lien affec�ing th� Property, or the restoration
<br /> and repair❑f�he Property. !fi Lend�r eleGts t� appiy�the proceeds �o r�storativn and repair, Trust�r shall repair ar
<br /> rep�ace the damaged o� destroyed Imp�vvements in a manner satisfactary tfl Lender. Lender shall, upon
<br /> sa�isfa�tary prao� vf such expenditure, pay or reimburse Trus�or fram the proceeds ;fvr the r�asanable cost af
<br /> repair or restaration if Trustar is nax in de�Fault under this Deed ❑f Trust. Any proc�eds which ha�e nat been
<br /> disbursed within 180 days a�ter their receipt and which Lender has nvt committed to �he repair or res�aration of
<br /> the Prvperty shall be used first ta pay any amaunt vwing to Lender under this Deed of Trust, #hen to pay accrued
<br /> interes�, and the remainder, if any, sha11 he appiied to the prin�ipal ba�ance af the indebtedness. lf Lender holds
<br /> any proceeds a�ter payment in fu!! a� the lndebtedness, suGh praceeds shall be pa�id t� Trustvr as Trustar's
<br /> in�erests may app�ar.
<br /> Trustor's Repvrt an Insuran�s. L1pon request vf Lender, howe�er not more�han vnce a year, Trus�nr shall furnish
<br /> to Lender a repart vn ea�h existing policy af insurance showing: ��j the name of the insurer; �2y the risks
<br /> insured; t3} �he amount of the po�icy; ��� the property insured, �he then current replacement �alue of such
<br /> prvperty, and the manner o�determining that�alue; and �5y the �xpirati�n date of the policy. Trustor shall, upon
<br /> r�quest❑f Lender, ha�e an indep�ndent appraiser satisfactory t� Lender determine the cash�alue replacement cost
<br /> af the Praper�y.
<br /> TA]C AN❑ INSURANCE RESERVES. Subject t❑ any limitatians and consistent with any requirements set by appli�ah��
<br /> �aw, Lender may require Trus�ar ta rnaintain with Lender reserves far paymenfi afi annual taxes, assessments, and
<br /> insu�anc� premiurns, whi�h reser�es shall be created by an initiai depvsit and subsequent mvnthly payments, vr
<br /> payments at such other�nter�al as payments under the Nvte may be due, of a sum estimated by Lender to be suf#ici�nt
<br /> to pay the tatal annual taxes, assessments, and insurance premiums L�nder reasonably anticipat�s tfl be paid #rom
<br /> �hes� reser�es. The reser�e�unds shall be held by L�nder as a general d�posit from Trustor. which Lender may sat�sfy
<br /> by payrnent of the taxes, assessmen�s, and insurance prerniums required to be paid by Trustvr as they become due.
<br /> Lender shaf� have the right �o drav►� upon the reser�e funds ta pay such items, and Lend;er shall not be required �a
<br /> determine the r►a�idity vr ���uracy af any item be�ore paying it. N�thing in the D��d af Trus# shall be �onstrued as
<br /> requiring Lender t❑ ad�ance oth�r mvnies far su�h purposes, and Lender shal� not incur any liabi���y for anything it may
<br /> dv ❑r omit ta do with r�spect tv the reser�e account, 5ubject tv any limitations set �y appli�able law, if the reserve
<br /> funds disclose a shvrtage or deficiency, Trustvr shall pay such shortage �r de�iciency as required by Lend�r. A1�
<br /> amvunts in the reser�e accaunt are hereby pledg�d t�further secure�he Indehtednessr and Lender is hereby authoriz�d
<br /> #o withdraw and appiy such amounts❑n the Indebfiedn�ss upon the occurren�e vf an E�ent of Defaul#. Lender shail nv�
<br /> be required ta pay any interest or earnings ❑n the reser�e funds unless requir�d by law or agreed to by Lender �n
<br /> wri�ing. Lender d�es not hald the reserve funds in trust fvr T�ustor, and Lender is not Trustor's agent far paymen�o�
<br /> the fiaxes and assessments requir�d t�be paid by Trustor.
<br /> LENDEI�'S E7�PEN�31TlJRES. If any action ar proceeding is comm�nced that would ma�eria!!y af��ct L�nder's �nterest in
<br /> the Prop�rty ❑r ��Trus�ar fails�o c�mply with any pra�isifln❑f this ❑eed ofi Trust or any Related Documents, including
<br /> but no� limited ta Trustvr's failure t❑ discharge or pay when due any amaunts Trustvr is r�quired ta discharge ar pay
<br /> under�his Deed af Trus�ar any Related Dacuments, Lender vn Trustor's behalf may �but sh�ll no�t be obligated to}tak�
<br /> any action that Lender deems appropria�e, �ncluding but no� limited �fio discharging vr payir�g all tax�sr IiEr1S� security
<br /> interests,encurnbrances and a�her claims, at any,fiime levied or placed on the Property and paying a1!costs�ar insuring,
<br /> maintaEn�ng and pres�r�in� the Property. A�1 such expenditures incurred or paid by Lender far such purposes wii! then
<br /> bear interest at the rate charged under the Nvte from the date inGurred or paid by Lender ta the date �f repayment by
<br /> Trustvr. Alf such expenses will b�come a par�t �f the I nde�tedn�ss and. at Lender's op�tian, will tA� be payable on
<br /> demand; [Bf be added ta the balan�e of the Nate and be apportianed arnang and be payahle with any installmenrt
<br /> paym�nts to �e�ome due during e��h�r t1 y the term of any app�i�abie insuran�e pvlicy; ❑r; ��� the remaining term v�
<br /> the Nate; vr �Cy be treated as a balloon payment which wi!! be due and payable at the Note's maturi�y. Th� Deed of
<br /> Trust also wi[l secur� payment of these amvunts. Such right shall h� in additivn t❑ ali ath�r rights and remedies ta
<br /> whi�h Lender may be entitled upvn Default,
<br /> VIfARRANTY:DEFENSE DF TITLE. The follov►ring pr�visians r�fating tv ownership vf the Property are a part of this Deed
<br /> of Trust:
<br /> Title. Trus�or warrants �hat: �ay Trustar holds gaod and marketahle title of re�ord t❑ �he Property �n fee simpie.
<br /> free and cf�ar vf all liens and encumhrances other than thvse set forth in the R�al Prap�rty description ar in any
<br /> ti�tle insuran�e policy, title repvr�, vr f`rnal title opinion issued in fia�v�- a�, and a�cept�d by, Lender in conne�tivn
<br /> with this Deed af Trust,and {b}Trustar has the full right, p�wer, and authvrity tv exe�ute and deliver�his Deed a#
<br /> Trust t❑ Lender.
<br /> Defense nf Title. Suk�ject to the exception in �he paragraph abo��, Trusto� warrants and will for��er defiend the
<br /> title ��th� Property agains�the lawfui c�aims vf all persons, In the e�en�any actian ❑r praceeding is carnmenced
<br /> that questions Trustor's�it�e ar the�nterest of Truste�ar Lender under this Deed ot Trust,Trustor shal] defend the
<br /> action at Trustor's expense. Trust4r may be the n�minal party in su�h proceeding, but Lender shall be entitled t❑
<br /> participate in the prv�eeding and �a be represented in �he proceeding by cvunsel ofi;Lender's vwn chvi�e, and
<br /> Trustor will deiiver, ar cause ta be deli�ered, to Lender such instruments as Lender may request frvm time t�time
<br /> to permit such participation.
<br /> Gamplian�e 1Nith Laws. Trustar warrants that the Property and Trustor's use of the Property compl�es with al1
<br /> . existing appli�able laws, ordinanc�s, and regula�ians af governmental authorities. �
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