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2� 15�7793
<br /> DEED �F TRUST
<br /> �Cont�nued� Page 3
<br /> PRQPERTY DAMAGE INSIIRANCE. The fol�vwing pro�isions relat�ng tv insuring the Praperty are a part o#this Deed vf
<br /> Trust.
<br /> Maintenance of Insu�ance. Trustar shall procure and maintain policies af fire insurance with standard extended
<br /> �overage endorsemen#s on a replacemsnt basis for the fu�f insurabfe �alue co�ering ai� Im�ro�ements on the Real
<br /> Praperty in an amount sufificien� to a�vid app#icatian of any cvinsurance clause, and with a standard mortgagee
<br /> clause in fa�or of Lend�r. Trustor shafl alsa procure and maintain cvmprehensi�e general I�ability insurance fn such
<br /> c�ve�age amaunts as Lender may request with Trustse and Lender being named as additional insureds in such
<br /> liability insuran�� pvlicies. Additivnally, Trust�r shall rnaintain su�h other insurance, including but nvt limited to
<br /> hazard, business interruption, and boiler insurance, as Lender may reasanably require. Po�icies shall be written in
<br /> form, amounts, co�erages and basis reasonably acceptable to L�nder and 'rssued by a company or companies
<br /> reasanably acceptabie �o Lender. Trustor, upon request ❑f Lender, will d�li�er t❑ L�nder fram time tv t�me the
<br /> polieies ar certificates of insurance in form satisfa�tory to Lender, including st�pulations that co�erages wil! not b�
<br /> canCell�d or diminished without at least thirty (3Dy days prior written noti�e#o L�nder. Each insuran�e policy also
<br /> shall include an endarsement pro►►iding that co��rag�in fa�or af Lender will not be impaired in any way by any act,
<br /> omissivn or defaul� of Trustor or any v�her persvn. 5hauld the Real Property he located in an area designated by
<br /> the Administratvr of the Federal Emergency Management Agency as a special flood hazard aree, Trustor agrees to
<br /> obtain and maintain Federal Flo�d Insu�ance, i# a�ailable, for the ful� unpaid principai balance af the �oan and any
<br /> prior liens vn the property securing the loan, up t� the rnaximum pali�y limits set under the Nativnal Flaod
<br /> #nsurance Program, or as otherwise required hy Lender� and ta maintain such insuranc��vr the term of the I�an.
<br /> Application af Proceeds. Trustor shall pramptly not�#y Lender of any Ivss vf d�mage to the Property. Lender may
<br /> make pravf o� Ioss if Trustor fails to do so within #ifteen �15j days o� the �asualty. Whether ar nflt Lend�r's
<br /> se�urity is impaired, Lender rnay, at Lender's electian, recei�e and retain th� prviceeds ❑f any �nsurance and apply
<br /> the proceeds to the reduction ❑fi �he Indebtedness, payment vf any lien af�ecting the Praperty, or the restoratian
<br /> and repair of the P�aperty. If Lender eleGts t� apply the prviceeds ta restoration and repair, Trustor shai� repair vr
<br /> r�place the damaged ar destroyed Impro�ements in a manner satisfactory to Lender. Lender shali, upon
<br /> satisfactory proof o� such expenditure, pay or reim�urse Trustor from the proceeds far the reasonabte cost of
<br /> repair or rsstara#ion if Trustor is not in default under this ❑eed af Trust. Any proceeds which ha�e not k���n
<br /> disbursed within 18� days after their receipt and which Lender has not cvmmitted ta the repair or restoration of
<br /> the Property shall be us�d first tv pay any amaunt awing tv Lender under this ❑eed of Trust, then to pay accrued
<br /> interest, and the r�mainder. if any, shall be applied t❑ the principa� balan�e of the Indehtedness. If Lender holds
<br /> any prv�eeds after payment in fuli of the Indebtedness, such prv�e�ds shall be paid to Trustar as Trustor's
<br /> interests may appear.
<br /> Trustvr's Report on insurence. llpan request ai Lender, hvwe�er nat more than vnce a year, Trustar shall furnish
<br /> tv Lender a report on each existing palicy of insurancs showing: �1 j the name of the �nsurer; [�f the risks
<br /> insured; �3y the amaunt of the policy; ��� the �roperty insured, the then current rgplacem�nt �alue of such
<br /> property, and the manner o#determining that�alue; and t5j the expiration date of the policy. Trustar shall, upan
<br /> request vf Lender, ha�e an independent appraiser satisfactory ta Lender determine the cash�alue replacement cost
<br /> of the Property.
<br /> TAX AN� �NSURANCE RESERVES. 5ubject tv any limitativns and consistent with any requirements set by applicable
<br /> law, Lender may require Trustor tv maintain with Lender reser�es for payment of annual taxes, assessrnents, and
<br /> insurance premiums, which resen►es shall be created by an initial deposit and subsequent monthly paymen�s, or
<br /> payments a#such o#her inter�al as payments under the Note may h�due, of a surn estimated by Lender tv be sufficient
<br /> to pay the tvtal annual taxes, assessrnents, and insurance premiums Lender reasona�ly anticipetes to he paid from
<br /> these reser�es. The reser�e funds sha�l be held by Lender as a general deposi�from Trustor, which Lend�r may satisfy
<br /> by payment of the taxes. assessments, and insurance premiums required tv be paid by Trustar as they be�vme due.
<br /> Lender shall ha�e the right to draw upan the res�r�e #unds ta pay such items, and Lender shall not he required to
<br /> determine the �alidity ar accuracy of any item before pay'rng it. Nothing in the Deed of Trust shal� be construed as
<br /> requiring Lender t❑ ad►►ance o#her monies for such purposes, and Lender shall nvt in�ur any liabiiity for anything it may
<br /> da ❑r ❑mit to da ►n►ith respec� to the reser�e ac�ount. Sub�e�t to any limitations set by applicable law, if the reser�e
<br /> funds disclvse a shortage ❑r deficiency, Trustvr shall pay such shortage or deficiency as required by L�nder. All
<br /> arnounts in the res�r�e account are hereby pledged tv further secure the Indebtedness, and Lend�r is hereby euthorized
<br /> to withdraw and apply such amaunts on the Indebtedness upon the vccurren�e of an E�en�of Default. Lender shall not
<br /> b� required to pay any interest or earnings vn the reser�e funds unless required by law vr agreed to by Lender in
<br /> writing. Lender does nvt hold the reser�e funds in trust for Trustor, and Lender is not Trus�or's agent for payment af
<br /> the taxes and assessments required to be paid by Trustor.
<br /> LEN�]ER'S EXPEND�TURES. If any action or prviceeding is cvmmenced that would materia��y affect Lender`s �nterest in
<br /> the Property ❑r if Trustar#ails to comply with any pro�isian ❑f this Deed o#Trust or any Rel�t�d ❑ocuments, inc�uding
<br /> but not limited tv Trus�vr's #ailure to discharge or pay when due any amounts Trustor is required ta disch�rge nr pay
<br /> under this Deed of Trust�r any Related Dacuments. Lender vn Trustor's behalf may �but shall not he❑hiigated to) take
<br /> any action that Lender deems appropria#e. including but nat lim�ted tv discharging or paying all taxes, liens, security
<br /> interests, sncumbrances and ather claims. at any time le�ied❑r placed�n the Prvperty and peying all �osts f�r�nsuring.
<br /> main#aining and preser�ing the Prvperty. All such expenditures incurred or paid by Lender for such purposes w�ll then
<br /> bear in�erest at the rate charged under the Note frvm #he date in�urred vr paid by L�nder tv the date of repaym�nt by
<br /> Trustor. Afl su�h expenses wifl become a part of the Indebtedn�ss and, at Lender's option, will �Ay be payahle on
<br /> t�emand; �6y be added ta the balance of the Nvte and be appartioned among and be payabl� with any installment
<br /> payments to become due during either t 1 y the term of any applicable insuran�e policy; or (�f the remaining term of
<br /> the Note; or tCy be trea#ed as a balloan payment which wi�! be due and payable at the Note's maturity. The Deed af
<br /> Trust also will secure payment of these amaun#s. Such right shall be in additivn ta all other rights and remedies to
<br /> which Lender may he entitled upon D�fault.
<br /> WARRANTY;DEFENSE QF T�TLE. The fvllowing pro�isivns relating to ownership o#the Prvperty are a part of this Deed
<br /> vf Trust:
<br /> Tit�e. Trustar warrants that: �af Trustvr holds good and marketable title vf record to the Praperty in fee simple.
<br /> free and clear of all liens and encumhrances vth�r than those set forth in the Rea1 Proper�y description or in any
<br /> title insurance policy� tit�e rep�rt, or final title vpinivn issued in fa�or of, and accepted by, L�nder in c�nnection
<br /> with this Deed of Trust, and �by Trustor has the full right, power, and�uthority tv exe�ute and d�li�er this Ueed of
<br /> Trust tv Lender.
<br /> Defense of Ti#le. 5ubject tv the exception in the paragraph abo�e. Trustor warrants and wi�l fore�er defend th�
<br /> titie tv the Property against the lawful claims of all persans. In the e�ent any a�#ion or proceeding is commenced
<br /> that questions Trustor's tit�e or the interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the
<br /> action at Trustor's expense. Trustor may be the nvminal party in such proceeding, but Lender shall be entitled to
<br /> participate in the proceeding and to be represen#ed in the proceeding by counsel of Lender's own choice, and
<br /> Trustor will deli�er. or cause to be deli�ered, to Lender such instruments as Lend�r may r�quest from time#o time
<br /> to permit such participation.
<br /> Complianc� With Lews. Trust�r warrants that the Property and Trustor's use of th� Property complies with al�
<br /> existing applicable laws,ardinances. and regulations vf go�ernmental authorities.
<br /> Sur�i�al of Representations �nd Werranties, All representations, warranties, and agreements made by Trustor in
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