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��15�5938
<br /> DEEQ �F TRUST
<br /> �Corltinued} Page 3
<br /> reasonably acceptable to Lender. Trustar, upan request o# Lender, will deliver to Lender frvm time ta #ime the
<br /> policies or certifi�ate� vf insurance in farm satisfactary to Lender, including stipulatians that cor�erages will not be
<br /> cancelled or diminished wi�khaut at i�ast thirty {3Q} days privr writt�n notice to Lender, Each insurance policy also
<br /> sha�l include an endorsement pro�iding�hat cv�erage in favor of Lender will nat be impaEred in any way by any a��,
<br /> amissian �r default of Trus�or or any other persvn. Sh�uld the Real Property be faGated in an area designated by
<br /> the Administrator of the Federal Emergen�y llflanagement Agency as a spe�ial flood ha�ard area, Trustar agrees to
<br /> obtain and maintain Federal Flood Insurance, if a�aifable, for the full unpaid prinCipal l�alance of the loan and any
<br /> prior fiens on the pcoperty securing th� Ivan, up t❑ the maximum policy limits set unde�r tha Nativnal F[oad
<br /> Insurance Prvgram, ar as oth�rwise required by Lender, and ta maintain suCh insurance fior the term of the�oan.
<br /> Application of Proceeds. Trustor sha!! p�omptly nvtify Lender of any loss or damage to the Property. Lender rnay
<br /> make prvaf �f I�55 if Trus�or fails tv do so within fiifite�n ��5} days o� th� casuafty. V1lhether or not Lender's
<br /> secu�i�ty is impaired, Lender may, a'� Lender's�lection, receive an� retain#h� proc�eds o�any insurance and apply
<br /> the proceeds �a the r�duction of �he Indebtedness, paym�nt Qf any lien af#�cting the Praperty, ❑r the restoratian
<br /> and repa�r vf the F�roperty. If Lender elects ta apply the proceeds ta restoration and repai�, Trustar shal! repair ar
<br /> repla�e the damaged ❑r destroyed �mpravements in a rnanner satisfa�tory t� L�nder. Lender shal(, upon
<br /> satisfactory pro�f ❑# such expenditure, pay o� reimburse Trustar fram the proceeds �or the reasvnahle cvst o�
<br /> repair or �estora�ion if Trustar is not in de�ault under this ❑eed of Trust. Any praceeds which have not been
<br /> disbursed wi�hin 18� days a#ter their receipt and which Lender has not committed tv the repair ar restoration ❑#
<br /> �he Praperty shall be used first t❑ pay �ny amount owing ta Lender under�h�s Deed o�F Trust, then ta pay a�crued
<br /> int�res�, and the �emainder, i� any, shall be applied �a the princ�paf baiance o�the Indebtedness� If Lender holds
<br /> any proceeds after payment in full of the Indebtedness, suGh proceeds sha�l be paid �o Trus#or as Trustvr's
<br /> interests may appear,
<br /> T�us�ar's Repart vn Insurance. 1Jp�n requ�st a� Lender, howev�r nv� mare than once a year, Trustor sha�1 furnish
<br /> to Lender a repart an each exis�C�ng policy af insurance shvv►►ing: {1 y the name ❑f the insurer; �2y the risks
<br /> insured; t3� �he amvunt vf the poiicy; �4} the praperty insu��d, the then current repla�ement value vf such
<br /> prnperty, and the manner vf determining that value; and �5} the�xpirativn date❑�the pv�icy. Trustor shall, upon
<br /> request af Lender, ha�e an independen#appraise�satis�actory to Lender determine the cash�alue rep�acem�nt cost
<br /> of the Praperty.
<br /> TA�C AN� 1NSURAN�E RESERVES. Subject to any limitafiians and �onsisten# With any requiremen�s set by appiicatale
<br /> law, Lender may require Trusto� to maintain with Lender reser�es far payment of annual �7X�5r assessmen�s, and
<br /> insurance premiums, which r�s�r�eS shall t�e crea�ed by an initial deposit and suf�sequent monthly payments, or
<br /> payments a�such o�h�r in�er�al as paymen�s under th� Note may be due, a�a sum estimat�d by Lender to be sufficient
<br /> tv pay the tata� annual taxes, assessments, and insuranc� pr�miums Lender reasvnabiy antic�pates to be paid frorn
<br /> these �eser�es. The reser�e funds shall be held by Lender as a genera�deposi�from Trustar, which Lender may Satis�y
<br /> by payment of the taxes, assessrnents, and insurance premiums required �a he paid by Trustor as they bec�me due.
<br /> Lender shall ha�e the right ta dra►►v upon the reser�e funds ta pay such items, and Lender shall not be required to
<br /> d�termine the �alidity or accura�y o� any item before paying i�. IVothing in the Deed af Trust shall b� construed as
<br /> requiring Lender to ad�anCe oth�r manies for such purpvses, and Lender shall nat incur any liataility for anything it may
<br /> dv vr omit to do wi#h respec�to fihe reserve accaunt. Subje�t to any lim�tations set by applicable law, if the reserve
<br /> funds disc�os� a shortage ar defi�iency, Trustar shall pay such shortag� ar deficiency as required by L�nd�r. All
<br /> amaunts in�Che reser�e ac�ount are hereby pledged t❑ further secure th� lndebtedness, and Lender is hereby authorized
<br /> tv withdravir and app(y su�h arnounts an the 1nd�btedness upvn the occurrence o�an E�ent of Qe�auit. Lend�r shaff nat
<br /> be required ta pay any interest or earnings on the reserve funds unless required hy �aw or agre�d ta by Lender in
<br /> writing. Lend�r daes nat hoid the reser�e �unds in trust far Trustflr, and Lender is not Trus�vr"s agent for payment o�
<br /> the taxes and assessments r�quired to be paid�y Trus�or.
<br /> LENaER'S E�CPEIVDITURES. If any action or proceeding is eornmenced �hat would material[y affect Lender's �nterest En
<br /> the Prope�ty ❑r if Trustor fails to comply with any pra�isian o��hEs Deed ❑f Trust ar any R��ated Docurnents, including
<br /> t�ut nat limited �a Trustor's failure t❑ dis�harge �r pay when du� any amounts Trust�r is required �o d�scharge or pay
<br /> under�his D�ed of Trust o� any R�lated Documents. L�nder on Trustor's b�half may �but shail nat be obli�ated to} take
<br /> any ac�ivn �hat Lender deems appropr�ate, incEuding but nat limited to discharging vr paying al� �axes, liens, security
<br /> intere�ts, encumbran�es and other clairns, at any time ie�ied or placed on the Property and paying all casts#ar insuring,
<br /> maEn�aining and preserving the ProQerty. A�f such expendi�ures incurred or paid by Lender for such purposes will then
<br /> k�ear interest at�the rate charged unde�the Note from the date incurred ❑r pa�d �y L�nder t�the date vf repayment by
<br /> Trustor. AIf such expenses will become a par� af the Indebtedn�ss and, at L�nder's aption, will �Ay be payable on
<br /> demand; �By be added to the balance of the Note and be appartianed amang and be payable with any installmen�
<br /> payments to becvme due during either �'�y the term �� any appl�cable insurance policy; or ��� the rernaining t�rrn �f
<br /> the Note; ❑r (Cy h��treated as a balloon payment vuhich wi11 be due and payable at the IVate's maturity. Th� Deed ❑f
<br /> Trus� also will secure payment of these amounts. Such �ight shall be in addition tv all a�her rights and remedies to
<br /> which Lender may be ent�t�ed upon De�auit.
<br /> V�ARAANTY; DEFENSE�F TITLE. Thg fo�lawing pro�isions relating to�wnership vf the Property are a part of this Deed
<br /> of Trust:
<br /> Title. Trusfior warrants tha�: 4a} Trustar holds gaad and mark�table title o� r�card �o the Property in �ee simple,
<br /> free and clear of a�l li�ns and encumbrances other than thas� set forth �n the Real Prvperty des�riptian or in any
<br /> title insuran�e pnlicy, title report, ❑r fiinal title apinivn issu�d in fa�or of, and acc�pted by, L�nder �n conne�tion
<br /> with�his Deed❑�Trust, and (bf Trustor has the full right, power, and au�hority t�exe�ute and del��er th�s Deed of
<br /> Trust t�Lender.
<br /> De�ense of Title. Subject to th� excep�ion in the paragraph abo�e, Trustor warrants and will fore�er defiend the
<br /> title to the Property against the lawful �laims af all pers�ns. ln the e�ent anV acti�n or proCeeding is commen�ed
<br /> that questians Trustor's title or the interest of Trustee or Lender under this ❑eed of Trust, Trust�r shall defiend the
<br /> action at Trustar's expense. Trustor may be the norn�nal party in such proceeding, bux L�nder shall �e entitled to
<br /> par#icipate in the prt�ceeding and to be represent�d in the pra�eeding by counsel o# Lender's awn chai�e, and
<br /> Trus#vr will deli��r, o� cause t� be d�lE�ered, to Lender such instruments as Lender may �equest'�rom time t❑time
<br /> tv permi�such par�iGipati�n.
<br /> Compliance W�th Laws. Trustor warrants �hat the Pr�perty and Trustor's us� af the Proper�y camp�ies tirvith a4!
<br /> existing appficahl�lavus, ordinan�es, and regulatiQns of ga�ernmental autharities.
<br /> Survival of Aepresentat�ons and Warranties. All representations, warranties, and agreernents made by Trustor in
<br /> this Deed of Trust shafl sur�i�e the ex�cution and d�liaery af this ❑eed of Trust, shall he continuing in na#ure, and
<br /> shall remain in�u11 f�rce and�ffect until such t�me as Trustor's Indebtedness shall he paid in fu�l.
<br /> C�NDEMNATI�N. The#al�awing pra�isivns relating ta condemna�ion pro�eedings are a par�of this �eed o�Trusti:
<br /> Pro�eedings. If any pro�eeding in condemnation is filed, Trustor shall pramptly na�ify Lender in writing, and
<br /> Trustvr shalC prarnp�ly take such s�eps as may b� necessary t� defend �he acti�n and obtain the award. Trustar
<br /> may be th�nominal par#y in such proceeding, bu�Lend�r shall be entitled to part��ipate in the proceeding and t❑ be
<br /> repres�nted in the pro�eeding by caunsel af its �wn cho��e, and Trustor wi11 deli�er o� cause to he delivered to
<br /> Lender such instrumen�s and do�umentativn as may !�� requested by Lender from time to tEme to permit such
<br /> participation.
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