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2� 15�77� 1
<br /> DE�� �F T�t1ST
<br /> .
<br /> { �C1ttC�u� Page 3
<br /> l�abil3ty insu�ance po�icies. Addit�ana�ly, Trustor shall maintain such o�her �nsuranee, in�luding bu� not fimi�ed �o
<br /> ha�ard, business int�rruption, and boiler insurance, as Lender may �reas�nahiy require. Pv[i�ies sha�! be written i.n
<br /> torm, amoun�s, �ove�ages and hasis reasanab�y aceept�b�e �o �ende� aRd issued by a �ompany or compar�ies
<br /> reas�nably acceptab[e t❑ Lender. Trustar, upan request of Lender, will deliver to Lender fr�m time to time �-he
<br /> paliCies or cer�ifica�es of insurance in #arm satisfaGtpry to L�nd�r� inc[uding s�ipulati�ns that Go�erages will not be
<br /> cancell�d or diminished v�ith�ut at Ieast thirty �3�} days prior written no�i�e�o Lender. Each €nsurance policy a�so
<br /> shall includ�an endarsemen�praviding�ha�co�erage in fa�or of Lender w�ll na�be impaired in any way by any ac�,
<br /> amissivn or default af Trus�or or any other person. 5hould the Real Property be �vcated in an area des�gnated by
<br /> the Administra�or of the Federal Emergency Management Agency as a spec�af ��ood hazard area, T�ustor agr�es�o
<br /> ❑bta�n and maint��n Federa! F�ood lnsurance. i# aWai�able, for�he fuff unpaid principal �alanee o��he loan and any
<br /> p�-ior liens on the property securing �h� taan� up #a the max�mum paf�cy lim�ts se� under the Natianal Flaod
<br /> �nsuranGe Pragram,or as otherinrise�equired by Lender, and to maintain such�nsuranc�for�he term n�the laan.
<br /> Appiication of Pr��eeds. Trustor sha�I prompt€y nvti�y Lender of any lvss or darnage tv the Property. Lender may
<br /> make proof of �ass if Trust�r faifs �a do so within f��-k�en {15� days o�F the casualty. V1lh�ther or nvfi Lenc�e�'s
<br /> securi�y 3s �mpaired, Lender may, a�Lender's el�ction, rece�ve and retair��he praceeds o�any insuran�e and app�y
<br /> the prviceeds �o �he redu��ion vf the �ndebtedness, payment �f any lien affecting the P�operty, or �he restoration
<br /> and repair o�`the Property. lf Lender elec�s to apply the pr�eeeds tv restarat�on and repair, Trustar sha�� �epair or
<br /> r�p�ace the damaged or destroyed lmprovements En a manner satisfactory ta �ender. Lender shatt, upon
<br /> satisfa�tory prao� o# su�h expendifiure, pay or reimburse Trus�ar from th� proc�eds �ar the reasanable cos� of
<br /> repair or rest�ration if Trustor is not in de�ault unde�r this �eed af Trust. Any praceeds which have na� been
<br /> disbu�sed withfn �8� days a#ter their receip� and which L�nd�r has not commit�ed �o the repair or res#oration o�F
<br /> the Praperty shaf� be used first�o pay any amount ovving to Lender under�his Deed o�Trust. �hen to pay acerued
<br /> interest, and the remainder, if any, shali be app�fed ta the princ�pa� ba�ance of the �ndebtedness. lfi Lender hafds
<br /> any p�-oceeds after payment in fu�� o� �he Indeb�tedness, sueh prv�eeds shall be paid to T�ustor as Trustor's
<br /> int�rests may appear.
<br /> Trustvr's Repor�on [nsurance, lJpon request�f Lend�r, howe�er nat more fihan ance a yea�, Trustor shalf furnish
<br /> �o Lender a report on each ��is�t�ng poiicy of insurance shovtir�ng: {1� the name �f the insurer; ��� �he risks
<br /> insur�d; �3� the amount �� the po�icy; �4} the praperty insur�d, th� then curren� rep�acement value of such
<br /> prvpec-ty, and the manner Q�determ�n�ng that vafue; and �5} the expir�tion date of�he palicy. Trustor shall, upon
<br /> request a�Lende�, have an independent appraiser satis�actory to Lender determine�he cash�a�ue rep[acement�os�
<br /> of the Property.
<br /> TAX AND 1NSURANCF RESERVES. Subject to any limitat��ns and Gonsisten� wi�h any requi��men�ts set by app�icable
<br /> taw, Lender may requ�re Trustor to maintain with Lender res�rves f�r paymen� �f annuai �axes, assessments, and
<br /> irisurance premiums, v�rhich reser�es shall b� �reated by an �nitial deposit and subsequent mon�hly payments, or
<br /> payments a�such a�her in�erval as paymen�s under the Note may be due, o�a sum es�imated hy Lender to be suf�ic�en�
<br /> to pay �he �otal annual #axes, assessm�nts, and insurance pr�miums Lender reasonab�y anticipat�s to be paid �rom
<br /> .�these �eserves. The r�ser�e funds shall be held �y Lender as a general deposit firom T�-ustar, which Lende� may satisfy
<br /> by paymen� af�he taxes, assessments, and insurance premiums required �a be pa�d hy Trustar as they became due.
<br /> Lender shall ha�e �he right to draw upon �he reser�e funds to pay such items, and Lender shall not be required ta
<br /> �e�termine �he �a�idity ar accura�y o� any item before paying it. Not�ing i� the C3�ed o� Trus� shal� be cons�trued as
<br /> r��uiring Lender�o ad�ance other monies#vr such purposes, and Lender shail not in�ur any Iiabili�y far anything i�may
<br /> �a or omit ta do v�r�th respe�t to fihe reser�e accoun�. Subject to any ��mitat�ons set by appli�able �aw, if the reser�e
<br /> funds d�sc�ase a shortage Qr de�3�iency, Trustor sha�l pay such shortage ar deficiency as requ�r�d by Lender. AII
<br /> amounts in�he rese��e account are hereby p�edged to further secure the fndebtedness, and Lender is hereby authorized
<br /> t�withdraw and appfy such amounts on�he 1 ndebtedness upon�he pccurrence�f an E�ent o�Default. Lender shall nat
<br /> be required t❑ pay any interest ar earnings on �he reserve �#unds unless r�quired by lav+r vr agreed t❑ by Lender in
<br /> wri�ing. Lender does no� hold �he reser�e -Funds in trus� for Trustor, and Lender is not Trustor's agen�-�or paymen� af
<br /> the taxes and assessrnen�s required fo be paid by Trustor.
<br /> LENDER'S E�CPENDITURES. I�any ac�ion or proceeding is �vmmen�ed �hat wau�d ma��rially affec�C Lender's �nterest in
<br /> th� Prop�rty ar if Trustor�Fai�s to �omp�y with any p�o�is�on o��his �e�d o�Trust or any Related Dacumen#s, including
<br /> bu� n��t limite� tv Trustor's fai�ure to discharge or pay when due any amaunts Trustor is required �o discharge or pay
<br /> unde�this Deed ❑t Trust or�ny Related Documen�s, Lender an Trustar`s behaif may �but shal! not be obliga�ed to} tak�
<br /> any action thart Lend�r deems appropriate, including bu� nvt limited to dischar9ing or paying a[C tax�s, liens, security
<br /> interes�s, encumbrances and oth�r�laims, at any�ime le�ied ar placed vn the Property and paying all costs�or insuringr
<br /> rnain�aining and preser�ing the Property. All such exper�di�ures incurred or�Oa�d i�y Lender�ar such �urposes wi�! then
<br /> bear an�eres�at the �ate char�ed under the lVo�� frort7 �he da��. in�ur�-ed �r paid hy Lender to the date of r�paymen� by
<br /> Trustar. �1� suc� �xpenses �rvi�� b�cvrne � par�t o� the �nd�b�edness and, a� Lender's �p-�ian, �nrill �1�� be payable on
<br /> demand; ��� �e �d�e� �o �h� ba�ance oa �he �[o�e and �e app�rtEor�ed ar,nang and �e �ay�ble v►rith aray ins�a��ment
<br /> p�yrr3ents �to becarr�e due du�En� either �7� the �errn Q��ny �pplsc�b�e in�uranc� po[icy; or ��� the remaining term o�
<br /> ��e Note, or (C} h�:�r�ated as a bal�oon payment whfch wi!! be due and pa�ab[e at the 1Vote`s maturi�y. The Deed a�
<br /> T�ust also vtiri�l secu�e payment o� th�se amounts. 5uch �igh�t sha�� be �n a�dition to all othe�- r�ghts and remed�es to
<br /> which Lender may be entit�-ed upon Default.
<br /> V1fARRANTY; DEFENSE�F T1TLE. The fo�lo�nring pro�isions relating to ownership o€the Praper�y are a pa�t❑f this Deed
<br /> o�Trust:
<br /> Title. Trustor warrants that: �a} Trustor holds �ood and marke�ab�e tit�e a� re�orc� to the Prape�ty in fee simple,
<br /> �ree and clear of al� liens and �ncumbran�e� other �han �hose set �orth in the Real Proper�y description or in any
<br /> titl� insuranee poliGy, title report, o� #inal title �pi�ion �ssued ��r fa�or a�, and accepted b�, Lender in connecti�n
<br /> w�th this Deed a�Trust` ancf {by"1"`rustor has the�ui! righ�, power, and authority�o exe�u�e a�i�aeli�e�#his Deed��
<br /> T�ust to Lende�o
<br /> D��ense o�T���e. Subj�ct t❑ the exception ir� the paragraph abav�, Trustar �rvarra�ts and wt�[ for��er defend the
<br /> tit[e to the Proper�y agains�the lawful �laims �f al! persons. !r�the e�ent any acti�n or pro�e�ding Es com�nen�ed
<br /> tha�questians Trusto�'�tit�e❑r th� inte�es�of Trustee or Lender under�h�s �e�d o�Trust,Trusto�-s�al� d�tend th�
<br /> actian at Trustor's expense. Trustor may be �he nominal party in such proc�eding, bu�Lender sha[€ be�n�ti�led t�
<br /> partieipate in �h� praceeding and to be rep�esented in the proc�eding by counsel of Lender's own chaice, and
<br /> Trustor irvill de[Ever, vr cause to be de[i�ered, to Lender suCh ins�truments as Lender may request�rom �ime to tim�
<br /> to permi�such par�i�ipation.
<br /> Comp��ance Vllith Laws. Trustar warrants �ha� �he Proper�y and Trus�or`s use ❑� t�e Praper�y ��m��ies with all
<br /> exis�ing appli�able laws, o�-dinances, and regula�ians af gvvernmentai au�h�rities.
<br /> Surv�v�f a� �epresen�a�ions and Warr�nties. A!� �-epresentations, wa�-rar�t�es, and agreements made by Trustor �n
<br /> �h�s Deed a��rus�s�a[[ survive the ex�cu�ion and del�very �f-�his Deed of Trusf, sh��f b� �ontinuing in nature, and
<br /> shafl rema'rn in full for�e and ef�ect un�il such�irne as�rus�arPs indebtedness sh�1� be paid ir��ulla
<br /> C��IDE�NI�TI�N, �h��o����ving prv�is�ons r�lating to condemna��on pr�ceeding� are a part vf�his �7�ed af�rus�e
<br /> Prviceeding�. ff any praceeding in c�ndemnatfon �s fiEed, �frustor shaC[ prampa�ly noti�y Lender in writing, and
<br /> Trustar sha[E prampt[y take such steps as rr�ay be ne�essary to de�end �he action and obtain the award. Trustar
<br /> may be-the nominal party�n such praceeding. but Lender shall be entitled t�parts�ipate in-�he proceeding and-ro be
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