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<br /> DEED �� TRUST
<br /> ���nt�nued� �a�e 3
<br /> N�#ice of�onatruction. Trustor shall notify Lendsr at ieast fifteen {9 5f days bef�re any work is comrnenced, any
<br /> ser�ices are furnished, vr any matsriais are supp�ied to the Prap�rty, if any mechani�`s lien, materielmen`s 1ien, or
<br /> ather lien could be asserted an account o�the wark. sen►ices. ar mat�rials. Trustor will u�on request of Lender
<br /> #urnish tv Lender advance e�surences setisfa�tory tn Lander that Trustor can and will pay the �ost vf su�h
<br /> impra�ements.
<br /> PROPE�TY D14MAGE INSURANCE. The fvllowing pra�ision�releting to insuring the Property are a part of this Deed af
<br /> Trust.
<br /> IlAaintenanca af �nsurance. Trust�r shat� pro�ure ar�� masntain poli�igs of fsce insu�an�e with standard exten�ed
<br /> cflWerage endorsemants on a reptacem�nt basis far the #ull insurabte �aiue cavering all �mprovem�nts vn the Real
<br /> Rrvperty in an amount suTf�c�ent to a�aid appli�ation of any cainsurance clause, and with a stand�rd rnortgagee
<br /> clause in�a�or af Lender. Trustor shall als�procure end malntai�cvmprehensE�e aeneral tiability insur�nce in such
<br /> a�r►�raq� ■mount� ■� Lrn��r m� ��q�iMt w��h tr��t�• ��n� L�n��r �i�n� nrmN� �r r��i�i�n�� �niYrr�■ �n ���h
<br /> Il�bllity Inaur�nce p�Ci�les. Ad����+�A�fly� 'Trust�r aM�ll m�iMtein auvh ather Ineu��A�e. IAeludl�+g but r►et Ilrr�l�ed t�
<br /> hazard, bus+ness interru�tion, and boi��r insurance, as Lender may reasonably require. Policies shal� ba written +n
<br /> farm, amounts, co�erages and k�asis reasonahly acceptable tv Lender �nd issued by a company or companies
<br /> reasonabiy acceptabla to Lender. Trustvr, upon request of Lender, will deli�er to Lender from time t❑ time the
<br /> policies ar certificates o�insurance �n#arm sat�sfa�tory to Lender, in�luding stipulatians that ca��rages will nat be
<br /> �ancelied or diminished without at least�hirty �3��days privr written nvtice tv Lender. Each insur�nce polEcy alsa
<br /> shall in�lude an endv�sement p�ovidin9 that ca�erage in#avar of Lender wi�l nat be Rmpaire�l in eny►+vey by any act,
<br /> vmissian or default af Trustor ar any athar psrsan. 5hvu�d the Real Prop�rty be located in an area�designated by
<br /> the Administ�ata�af tMs Fer��ra!Ernergan�y Managem�nt Ag�ncy as a specfas#laad ha�ard area.Trustar agrees to
<br /> Qbtain and maintain Federa! Fl�od Insurance, if a�ailaale, #ar the full unpaid principa! balan�e of the loan and any
<br /> prior �iens on the praperty seGuring the ioan. up �a the maximum pali�y iimits set under th� Natiana� Flvod
<br /> lnsurance Pragram,or as vthgrwise required by Lender, and�o maintain such insurance for the term of the Ioan,
<br /> Appli�ation vf Procssds. Trustor shal!prompt�y notiiy Lender of any loss or damage t❑the Property. Lender may
<br /> make p��nf �f Ioss i� Trustor �ei�s ta t#o sv within ftfteen t15� days of the casuslty. 1Nhether or not tender's
<br /> security is impaired, Lender may, at Lender's e�ectian, rec�+�e and retain the praceeds af any insurance and apply
<br /> the procaed� to the redu�tian �f the Indebtadness, p�yment vf eny tien affectin� the Property, or the rsstaration
<br /> and repair�f the Proper#y. if Lender ele�ts tv apply the praceeds to re�toretian end repair, Trustor sh�ll repair vr
<br /> repiece the damaged vr dastrvyed lmpro�gments in a rnanner satisfactory to Lander. Lander shall, upon
<br /> sa�isfactary proaf v� such expenditure. pay or reimburse Trustar from the pr�ceeds far the rsasvnable cvst vf
<br /> �epair ❑r restorativn it Trustor is not in default under this Deed vf Trust. Any praceeds wh+ch have not baen
<br /> d isbursed within �84 da�s efter their re�eipt and which Lender has not cvmmitted ta the repair❑r restaration af
<br /> the Property shail be used f�rst to pay any amaunt ow�ng ta Lender under this ❑asd vf Trust,then to pay accrued
<br /> interest, and the remsinder, if any, shal! be app{ied to the principal hatanee af the �ndebtadnsss. If Lan�er halds
<br /> any proceeds a�ter peyment in �ull vf the �ndebtedness. su�h proceeds shal! be paid to Trustvr as T�ustor's
<br /> inter�sts may appear.
<br /> Trustor's Repart an insurancv. Upvn request of Lender. howe�er nat mare than once�yeat,Trustor shall furnish
<br /> to Lender a repart vn each existing palicy af in�urance showing: ��y the name of the insurer; �Zj the risks
<br /> �nsured; (3} the amount �i the palicy; ��� the praperty insured+ the then current rep�a�ement �elue of such
<br /> praperty, and the manner of determin�ns that�elu�; and t�} the exptrattnn date a#the po�icy, Trustor shall, upan
<br /> request vf Lander,ha�e an in��pan�ignt eppraise�satiafactory to Lender determsne the cash�alue replacement cos#
<br /> of the Prvperty.
<br /> TAX AND ENSURANCE RESERVES. 5ubject t� any i�mit�tians and consistent with any requiremgnts set hy appli�ahle
<br /> law, Lender rnaY require Tru�t�r to meln#�ln with Lender re�en►es �vr paymsnt af annue! taxes, a�sassments, end
<br /> in9uran�e premiums, whi�h rs�e�ves sh�li b� created by �n initie� deposit and subsequent mvnthiy payments, or
<br /> payments at such❑ther intarval as payments unde�the Nats mey bs dus,o�a sum estimated by Lender ta be suffi�iant
<br /> to pay the total �nnua� taxes, assessrnents� and in�urance premiums Lendar r�asonably anticipates ta be paid frQm
<br /> these reserves. The resen►e�unds sha�l be he{d by Lender�s a genera�deposit trvm Trustor,which Lender may satisfy
<br /> hy payment ❑f the t�xes, aase�sments, and insuranc� premiums required tv be paid hy Trustor as they become due.
<br /> Lender shall ha�e the right xo draw u��n the reserve funds tn pay such items, and Lend�r sh�ll nat be r�quired t�
<br /> determr`ne the �alidity or accuracy af any item beiore payin� it. Nathing in �the Deed of Trust shell be canstrued as
<br /> requiring Lender tv ad�ance other manies for such purposes, and Lender shal�nnt incur any liabili�y for enything it may
<br /> do or ami# ta da with respe�t ta the reserve account. Subject#a any timitativns set by eppEicab�e law. if ths rese�ve
<br /> funds d15CI�58 a shortage or d�fi�isncy, Trustar shall pay such shortage �r defi�iency as required hy Lender, All
<br /> amounts in the reser�e accvunt ars hereby pladged#a further seGura the lndsbtat�ness, and Lender is hereby authorized
<br /> to withdraw end apply such amounts an the indebtedness upon the occurrence of an E�ent of Qefault. Lender sha�l not
<br /> be requtred to pey an�r interes# Qc eernings an the �eserve #unds unless requirad by law o� agTeed to hy Lender in
<br /> writing. Lender does nat ho�d th�reser�e funds in trust for Trustor. and L�nder is not Trust�r's agent fvr p�ymsnt�f
<br /> the taxes and assessrnents req�ir�d ta be pai�by T�uetor.
<br /> LENDER'S E�PENDITURES, !f any action or praceeding i�cvmmenced that would rnaterially aff�ct Lender's interest in
<br /> the Property vr if Trustor fails�a comply with any pro�isior�of this Deed of Trust flr any Reiated Documents, in�luding
<br /> but nvt limited to Trustor's fai�ure ta discharga o� p�y when due any amounts Trustar is required to discharge or pay
<br /> under this �]e�d�#Trust�r any Relatad Dacuments, Lender on Trustar's behalf may �hut shall nat be�bligated to�tak�
<br /> any action th�t Lende� deems a��rapriate, including hut nat limited ta discharging or paying ai� taxes, �iens, security
<br /> int��EStS.en�umhrances and ather claims,at any time I�vigd or placed on the Property and paying all cos�s fvr insuring.
<br /> maintsining and preser�ing#he Property. A��such expsndituras incurr�d nr paid hy Lender for such purposes wil!then
<br /> bear interest at the ra�e charged under the Note from the date incurred or paid by Lender to the date of repayment by
<br /> Trustor. A�� such expenses wili became a part of the Indebtedness and. at Lender's optian, will �Af be payabfe on
<br /> demand; {B� be added to tha balance vf the Nvte end be apportianed among and be payab�e with any �nstallmant
<br /> payments to be�vme due during etther �i y the terrn of any appl�cable insurance po�icy; Qr R2f the remaining term of
<br /> the Note; o� �Cf be tre�#ed as e bal��an paYment wht�h wili be dus and payable at the Nvt�'s maturity. The Deed of
<br /> Trust also will secure paym�nt o�thsse amounts. Su�h right shall be in additi�n to al! vther rights and remedies to
<br /> whiCh Lende�mey be entitled upon D��au1t.
<br /> �IVAFtRANTY;i�EFENSE��T�TLE. The fvt�awing pravisions rel�tin�to ownership af the Praperty are a part of thts Deed
<br /> of Trust:
<br /> Titte. Trustor warrants thst: (a}Trustar ho�ds gvad and market�ble title ot rgcard ta the Prvperty in fee s+mp�e,
<br /> free and �lear❑t a�l iiens and encurnbrances other than those s�t forth in the Real Property des�ript�an ar in any
<br /> ti�tle insurance pa�+cy� title report, ar fin�i t�tia apin�on iasued in fa►►or af� and �c�ept�d by. Lender in cannection
<br /> w�th this ❑eed of Trust.and �bj Trus#or has the ful�right.power.an�authority to execute and d��ive�this�sed af
<br /> Trust to Lender.
<br /> Deiense af Tit�a. 5ubject tv the ex�eptivn in the paregraph abo�e, Trustor warrants and wiil forever defend the
<br /> title to the Prvperty against the lawful�laims vf aff persans. In the e�ant any action ar praceeding is cammenced
<br /> that questions Trustar's title ar the interest at Trus#�e ar Lender under this Deed af Trus#,Trustor shall defend the
<br /> actian at Trustvr's expense. Trustar may h�the nam�nat party in such praGeeding, hut Lender shs�[be en#it[ed to
<br /> participate in the pro�eeding and ta be representsd in the proceeding by eounse! ❑f Lender's own choice, and
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