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2� 15�73��
<br /> DEED �F TRUST
<br /> ��ontinued� Pege 3
<br /> impro�ements.
<br /> PR�PERTY DAMAGE INSURANGE. The following pro�isions relating to insuring the Praperty are a part of this Deed vf
<br /> Trust.
<br /> Ma�ntenance vf lnsurance. Trustar shall procure and maintain poficies af fire insurance with standard extended
<br /> co�erage endorsements on a replacement hasis for the full insurahle value co�ering ai! Imprv�ements an the Real
<br /> Praperty in an amount sufficien� to a�oid appli�ativn vf any co�nsurance clause. and with a standard mortgagee
<br /> clause in fa�vr vf L�nder. Trustvr shall also pr�cure and maintain camprehensi�e generai liah+lity insurance in su�h
<br /> ca�erage amaunts as Lender may request with Trustee and Lender being named as additional insureds in such
<br /> liability insurance po�icies. Additionally, Trustar shall maintain such ather insurance, in�luding but not limited to
<br /> hazard. business interruption, and boiler insurance, as �ender may reasonably require. Policies shall be writtsn in
<br /> form, amounts, cv�erages and basis reasonably acceptable to Lender and issued by a company or �ampanies
<br /> reasonably a�ceptable to Lender. Trustor� upan request af Lender, will d�li�er tv Lender frvm time to time the
<br /> policies or certifiicates of insuran�e in form satisfactacy to Lender, including stipulations that co�erages will not be
<br /> cancelled or diminished without at least thirty �3�f days privr written notice ta Lender. Each insurance poli�y alsv
<br /> shall include an endorsement prv�iding that ca�erage in fa�vr of Lende�will not be impaired in any way hy any act,
<br /> vmission or defau�t af Trustor or any vther person. 5hou�d the Real Property be lacated in an area designated by
<br /> the Administrat�r af the Federal Emergency Management Agsncy as a special flood hazard area, TrustQr agrees to
<br /> obtain and maintain Federal Flood Insurance, if a�ailable, #vr th� full unpaid principal balance of�he loan and any
<br /> prior liens an the prop�rty s�curing the foan, up t❑ the max�mum p�li�y limits set under the Nationa! Flvvd
<br /> lnsurance Program, or as otherwis�required by Lender, and ta maintain such insurance for the term of the loan.
<br /> Applicetion of Pro�eeds. Trustor shall pramptly nvtify Lender of any Ioss or damage to the Property. Lender may
<br /> make pro�f vf loss if Trustor fails to do so within fi#teen ��5y days ❑f the �asualty. Whether or nvt Lsnder's
<br /> s�curity is impaired. Lender may, at Lsnder's e�ectian, recei�e and r�tain the proceeds af any insurance and apply
<br /> the proceeds to the reduction of the Indebtedness, payment of any lien affe�ting the Praper�y, or the restaration
<br /> and repair of the Praperty. If L�nder el�c#s to apply the prviceeds to restorati�n and repair, Trustor shall repair or
<br /> r�place the damaged ar destrvy�d Impro�ements in a manner satisfactary to Lender. Lender shall, upon
<br /> satisfactory provf a� such expenditure, pay ❑r reimburse Trustar from the proceeds fof the r�asonahle cost vf
<br /> repair or restorativn if Trustor is not in default under this ❑eed of Trust. Any prviceeds which ha�e nvt been
<br /> disburs�d within �8� days after their receipt and which Lender has no# committed to the rspair vr restorativn of
<br /> the Property shall be used first to pay any amQunt owing t� Lendsr under this Deed of Trust, thsn t❑ pay ac�rued
<br /> interest, and the remainder, if any, shall be applied to the principal balance of the Endebtedness. If Lender holds
<br /> any pr�ceeds after payment in #ulf ❑f the indebtedness, such praceeds shall be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> Trustar`s Repv�t on Insurence. Upvn reques�of Lender. hawe�er not more than vn�e a year, Trustor shall furnish
<br /> t❑ Lend�r a rep�rt on each �xisting palicy of insurance showing: �1� the name �f the insurer; ��f the risks
<br /> insured; t3� the amaunt of the policy; �4y th� property insured, the then current replacement �a�ue of such
<br /> property, and th� manner of determining that�alue; and �5� the expiration date of the policy. Trustor shall, upon
<br /> request of Lender. ha�e an independ�nt appraiser sa�isfactory to Lender determine the cash�alue replacement c�st
<br /> of the Prop�rty.
<br /> TAX AND INSURAAICE RESERVES. Subject t� any limitatians and consist�nt with any requirements set by applicable
<br /> law. Lender may require Trustor to maintain with Lender reser�es for paymsnt of annuai #axes. ass�ssments, and
<br /> insurance premiums, which reser�es shall be crea#ed �y an initial deposit and subsequent monthfy payments, �r
<br /> payments at such oth�r inter�al as payments under the Note may b�duQ, ❑f a sum estimated by Lender to be sufficient
<br /> to pay the total annual taxes, assessments, and insurance premiums Lender reasonably anticipates t� be paid �r�m
<br /> these reser�es. The res�r�e funds shal! be held by Lender as a general deposit#rom Trustor. which Lender may sa#isfy
<br /> by payment of the taxes, assessments. and insurance premiums required to be paid by Trustor as they b�corne due.
<br /> Lend�r shall ha�e the right #❑ draw upvn the reser�e funds ta pay such items, and Lender shall not be required to
<br /> deterrnine the �alidtty vr accuracy of any item before paying it. Nothing in the Deed �f Trust sha�l he canstrued as
<br /> requiring Lender to ad�ance other mvnies fvr such purpases, and Lender shai� not incur any iiab�lity for anything it m�y
<br /> da or amit ta do with respe�t to the reser�e accoun#. Subject ta any �imitatians set by appl�cable law, if the reser�e
<br /> funds disclose a shartage or deficiency, Trustvr shall pay such shortage or deficien�y as required by L�nde�. All
<br /> amounts in the reser�e ac�ount are herek�y pledged to further secure the Indebtedness, and Lender is herehy authorized
<br /> to withdraw and apply such amounts on ths Indebtedn�ss upvn the occurrence of an E�ent❑f Default. Lender shall not
<br /> be required ta pay any interest or earnings on the reser�e funds unless required by law or agreed tv by Lender �n
<br /> writing. Lender d�es not hold the reser�e funds in trust #or Trustar, and Lende� is not Trustar's agent for payment of
<br /> the taxes and assessments required to be paid by Trustor.
<br /> LENDER'S EXPEN�ITURES. If any action vr pro�eeding is commen�ed that w�uld materially a�fect Lender's interest in
<br /> the Proper�y or if Trustvr fai�s to �omply with any pro�isian of this Deed of Trust or any Related Documents� including
<br /> bu# not limited to Trustor's failure to discharge vr pay ►►vhen due any amounts Trustor is required ta discharge vr pay
<br /> under this Deed o#Trust or any Rela#ed Dvcuments, Lender on Trustvr's behalf may �hut shall not be obligated tof take
<br /> any actian that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens. security
<br /> interests, encumbrances and other claims, a�any time I��i�d vr plac�d on the Prnperty and pay�ng all costs for insuring,
<br /> maintaining and preser�ing the Property. All such expenditures incurred or paid by L�nder for such purposes wi!! then
<br /> bear interes# at the ra#e �harged under the Note frvm the date incurred or paid by Lender tv the date vf repayment by
<br /> Trustor. All such expenses will become a parx of the Indebtedness and. at Lender's option, will �A� be payable vn
<br /> demand; �By be added to th� balance o� the Note and be apportioned among and be payable with any installment
<br /> payments tv become due during either �1) the term of any appiicable insurance pvlicy; or ��f the remaining term vf
<br /> ths Note; ar �C� be trsated as a halloon payment which will he due and payahle at the Note's maturity. The Deed of
<br /> Trust alsa wiil secure payment �f these amounts. Such right shafl be in addition ta all other rights and remedies to
<br /> which Lender may be entitled upan De#ault.
<br /> WARRANTY: DEFENSE�F TITLE. The fial�owing prv�isions relating ta awnership❑f the Property are a part of this Deed
<br /> ❑f Trust:
<br /> Titfe. Trustor warrants that: �ay Trustor holds good and marketahle title of record to the Praper#y in f�e simpfe,
<br /> �ree and ci�ar❑f all liens and encumbrances ather than those set forth in the Real Praperty descriptian ar in any
<br /> title insurance policy, trtle rep�rt, or #inai title opinion issued in fa�or of. and accepted by. Lender in �anne�tion
<br /> with this❑eed of Trust. and �by Trustor has the full right, power, and authority to execute and del��er this Deed of
<br /> Trust to Lender.
<br /> Defense of Title. 5uhje�t t❑ the exception in the paragraph abo�e. Trustar warrants and wil! for��er de#end the
<br /> title �o the Property against the fawful claims af all persvns. In#h�e�ent any activn or proceeding is comm�nced
<br /> that quest+ons Trustor's title or the interest of Trust�e or Lender under this Deed of Trust, Trustor shall defend the
<br /> a�tion at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shall be entitled to
<br /> participate in th� praceeding and to be represented in the proceed�ng by counse! �f Lender's vwn �hvice, and
<br /> Trustor will deli�er, or cause to be deli�ered, to Lender such instruments as Lender may request from time ta time
<br /> tv permit su�h part�cipation.
<br /> Compliance With Laws. Trustar warrants that the Property and Trustor's use �f th� Proper#y �omplies with all
<br /> existing applicable laws� ordinances� and regulativns of go�ernmental authorities.
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