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��1 5�6441
<br /> DEED �F TRUST
<br /> �Continued} Page 3
<br /> pal�cies or �ertificates of insurance in�F�rm satisfactary to Lender, €n�luding stipu[ations that ca�erages wil� nat be
<br /> cancelled or diminished withaut at least thirty {34f days priar written natice�o Lender. Each insurance policy als❑
<br /> shall include an endarsement providing that coverage in fa�ar of Lender wi11 nat he impaire� in any way by any act,
<br /> omission or d�fault vf Trustar❑r any Qth�r persan. Should the Rea� Property be ivcated in an area designa�ed by
<br /> �h�Administratar of the Federal Emergency Managernent Agency as a special flvod hazard area, Trustar agrees to
<br /> ahtain and maintain F�derai F�ood insurance, if a�ailabf�, far the full unpaid prin�ipal halance of the I�an and any
<br /> priar liens on the p�ap�rty se�u�ing the foan, up �a th� maximum policy limits sefi und�r th� Nationa! Ffood
<br /> Insurance Pragram, ❑r as❑ther►rvise required �y Lender, and�Co maintain such €nsurance�or the term o�th�1oan.
<br /> Applicativn of Proceeds. Trustor shall prompt�y notify Lender of any Ivss ar damage to the Property. Lender rnay
<br /> make pr�of af lass if Trustar fails ta do sv within fift�en (�5y days a# the casualty. Vllhether ar not Lender's
<br /> seGurity �s impaired, Lender may, at Lender's ele�tivn, receive and retain the proceeds of any insurance and apply
<br /> the p�vc�eds t� the reduction af the Indebtedness, paym�nt af any lien affeGting the Property, or �he restora�ian
<br /> and r�pair af the Praperty. Ifi Lender eiects tv apply th� prv�e�ds tv restoration and repair, Trustor shall repair❑r
<br /> replace the damag�d or destrayed lmpro�ements in a manner satisfactory to Lender, Lender shall, upan
<br /> satisfactary proof o# such exp�ndi�ure, pay ❑r reimburse Trustor from the �ra�eeds for th� reasonab�e cost af
<br /> repair ar restoration if Tru�tor is no� in default under this �e�d of Trust. Any praceeds whi�h have not been
<br /> - disbursed within 18D days after their receipt and which Lender has not commi�t�d to the repair or restvration of
<br /> the Proper�ty shall be used �irs�to pay any amaunt ovuing to Lender under this Deed ��T�ust, then to pay accrued
<br /> interest, and the remainder, if any, sha�[ bs applied to �he principa[ balance ❑f the Indebtedness. I� Lender holds
<br /> any proceeds after payment in fu[[ v� the �ndebtedness, such proceeds shall be paid to Trustor as Trustar's
<br /> interests may appear�
<br /> Trustor's Report an insurance. Upvn r�quest of Lender, howe�er nvt more than ance a year, Trustvr shall furnish
<br /> tfl Lende�r a r�pvrt vn �ach existing policy of insuranc� sh�wing: �'I� the nam� �f th� insurer; 4�� the risks
<br /> insured; �3} the amount ❑f the poli�y; �4] the property insured, the th�n Gurrent repla�ement va�ue af such
<br /> praperty, and the manner❑f determining that�aiue; and �5I the exp�ration date��the poiicy. Trustvr shall, upon
<br /> request of Lender, ha�e an independent appraiser sa�isfactary t❑ Lender det�rmine the cash�alue repla�ement cast
<br /> vf the P�operty.
<br /> TA� AN�] INSURANCE RESERVES. 5ubject to any limitations and consis�en� vtirith any r�quirements set hy app�icable
<br /> law, Lender rnay require Trust�r t❑ maintain wi�h Lender res�r�es far payment of annual taxes, assessmen�s, and
<br /> insurance premiums, which reserves shall �e created �y an initial depvsit an� subsequent manthly paymen�s, ❑r
<br /> payments a�such o�her inter�al as payments under the Nate may be due, o�a sum estimated by Lender ta be sufficien'�
<br /> ta pay �he total annual �axes, assessments� and insurance premiums Lender reasvnably ant�cipates tfl he paid from
<br /> these reserves. The�eser��funds shall be hefd by Lender as a general d�p�sit from Trustvr, which Lender may sa�isfy
<br /> hy payrnent vf �he taxes, assessmen�ts, and insurance pr�miurns required t❑ be pai� by Trustor as they became due.
<br /> Lender shafl ha�e the righ� �o draw upvn �he reser�e funds to pay such items, and Lender shall not be required to
<br /> determine the va�idity or accura�y of any item before paying it. Nothing in the Deed ❑f Trust shall be cons�rued as
<br /> requiring Lender to ad�ance other mani�s for such purpvses, and Lender shall not in�ur any liabifity��r anyth�ng �t rnay
<br /> do or vmit ta do w�th respect �o the reser�e account. Subject to any limitations set by applicable law, �f the reser�e
<br /> funds disclose a shartage �r de�iciency, Trustor sha[f pay such shortage vr def�ciency as required by Lender. All
<br /> amoun�s in the reser�e a�cvunt are hereby pledged ta further secure the lndebtedn�ss, and Lender is he�ehy authorized
<br /> to v►ri#hdraw and apply su�h amounts on the lndebtedness upvn the occurr�n�e❑f an E�ent o�f Default. Lender shall not
<br /> be required t� pay any �nt�rest or earnings an the reser�e �unds unless required by law or agreed to �y Lender in
<br /> writing. Lend�r does nat hald the reser�e funds in trust far Trustvr, and Lender is no�Trustor's agent for payment af
<br /> fihe taxes and assessrnents required�a be paid by Trustor.
<br /> LENDER'S EXPENI�ITURES. I�any action vr proceeding is carnmenced tha� would materially affe�t Lender's interest in
<br /> the Pr�perty or if Trustor fa�ls to cornply with any pro�isian o�this D�ed af Trust or any Re[ated Dvcuments, inc�uding
<br /> but not limi�ed to Trustor's failure to discharge or pay v►rhen due any amounts Trustvr is required to discharg� vr pay
<br /> under�his Deed af Trust or any Related Documents, Lender on Trustor's behalf may �but shalf nat be a���gated to� take
<br /> any ac�ian that Lender deems appropriate, including but nat limi��d �o dis�harg�ng or paying ai� taxes, fiens, securiCy
<br /> �nt�rests, encumbrances and ofiher�laims,a�any time fe�ied�r pla�ed on the Property and paying all costs�ar insuring,
<br /> maintaining and preser�ing �he Property. Af{ such exp�nditures in�urred or paid by Lend�r for such purposes will then
<br /> hear interest at the rate charged und�r the Nate from the da#e incurred or paid by L�nder ta the da�e of repayrnent hy
<br /> Trustar. A�I 5l,ICh expenses will b��ome a part of the Indebtedn�ss and, a� Lender's optivn, will �A� be payabfe vn
<br /> demand; {B} be addsd �o th� balance of #he Note and be appa�tioned among and be payable with any instafiment
<br /> payments to �ecom� due during �ither �'l� the term of any applicable insurance policy; or �2} th� rema�ning term o�
<br /> the Nofie; or �C� be treated as a balloon payment which wil� be due and payable at the Nat�'s maturity. The Deed ❑#
<br /> Trust alsa will securg payment of these amaunts. 5uch right shall be in addition t❑ af! Qther rights and remedies to
<br /> which Lender may be entitled upon Default.
<br /> VIIARRANTY: ❑EFENSE❑F TITLE, The fvllawing pro�isions relating to vwn�rship of the Property are a part❑f�his Deed
<br /> vf Trust:
<br /> Title. Trustar warrants that: �ay Trustor halds good and marketab�e title of re�ard ta th� Praper�y in �ee simple,
<br /> fr�e and �lear ❑�all liens and encumk�rances o�her than those set�arth in the Real Property descriptian ar in any
<br /> title insurance palicy, titfe report, �r final title opini�n issued in favar of, and accep'ted hy, Lender in conn�ction
<br /> with this Deed o�Trust, and {bf Trustar has the full right, pow��-, and autharity�o execute and deli�er this�eed o�
<br /> Trust to Lende�-.
<br /> Defense of Title. Subje�t tv the excepti�n in the parag�aph abo�e, Trustor warrants and wi�l f�reWer de�end th�
<br /> title to the Prvperty against the [awful clairns ❑f afl persons. [n�he�vent any aGtion or pro�eeding is cvmmen�ed
<br /> that questivns Trus�or's title ar the interest of Trustee vr Lender under this ❑eed vf Trust, Trustar shall de#end the
<br /> action at Trustvr's expense. Trus#or may �e the nnminal party in such pr��eeding, but Lender sha11 k�e entitled to
<br /> participate in the proceeding and t� �� represented En the proceed�ng by counsel of Lender's �wn chaice, and
<br /> Trustor will deli�er, or caus�ta be deli��red, to Lender such instrurnents as Lender may request from time�o time
<br /> ta perm�t such participati�n.
<br /> Cvmplian�e With Laws. Trustvr warrants �hafi �he Praperty and Trustar's use of �he Proper�y complies with all
<br /> existing applicable fatirvs�ardinances, and regulatians of ga�ernmental authori�ies.
<br /> Surr�ival of Representations and Vllarranties. All representations, warran�ies, and agreements made �y Trus�tar in
<br /> this Deed af Trust sha�l sur�i�e the execution and deli�ery afi this Deed ❑f Trust, shall be cvntinuing in nature, and
<br /> shall remain in full fvrce and effect until such time as Trustvr's Inde�tedness shafl be paid in fu�E.
<br /> C�N�EMNATI�N. The fvllawing pr��isions relating to��ndemnation pro�eedings are a part o�this Deed o�Trust:
<br /> Rraceedings. If any proceeding in condemnation is #iled, Trustar shall pramptly noti�y Lender in writin�, and
<br /> Trustor shall promptly take such steps as may be necessary to defend the actian and ab�a�n th� award. Trustar
<br /> may b�the nominal party in such praceeding, but �ender shall be entitled to pa�ticipate in the prac�eding and�o be
<br /> represented in the proceeding by ��uns�! o# its awn chaice, and Trusto� wi�l deli�er or cause to be deli�ered to
<br /> Lender such instrum�nts and do�umentati�n as may be r�quested by Lender from time to time tv permi� such
<br /> parYicipation.
<br /> Application of Net Prv�eeds. If a!i vr any part af�the Property is cvndemned by eminen�domain proceedings or by
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