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2� 15�8445
<br /> DEED �]F TRLJ�T
<br /> tC[]nt�nued� Page 3
<br /> hazard. bus'rness interruption, and bviler insurance, as Lender may reasonably require. Polici�s shall �e written in
<br /> �arm, amounts, c��erages and basis reas�nably accep�tabi� tv Lend�r and issued by a �vmpany ❑r companies
<br /> reasvnably accepfiable �o L�nder, Trustor, upan requesfi of L�nder, vuill d�liver to L�nder from time ta time the
<br /> pvlicies or certi�i�ates of insurance in fvrm satis�ractory to Lender, inclu��ng stipulativns that co�erages v►rili nvt be
<br /> cancelled or dimin�shed uvithout at ieast thirty �3�} days prior written notice fio Lender. Each insuran�e policy also
<br /> sha�[ include an endorsement p�o�iding that c��era�e in fa�ar o�f Lender will nvx be impa�red in any way by any a�t,
<br /> om�ss�an or default of TrustQr flr any ❑the� person. Shvuld the Real Praperty be �ocated in an area designated by
<br /> the Administratar vf the Federal Emergen�y Management Agency as a special flood ha�ard area, Trustor agrees ta
<br /> ❑btain and main�ain Federal Flood lnsurance, if a�ailal�le, �or the �ull unpaid prin�ipal ba�an�e ot the l�an and any
<br /> pri�r liens an the property securing the IQan, up ta the maximum pof�cy limits set under the Nati�naf F�ood
<br /> Insurance Pr�gram, or as otherwise required by Lender. and to maintain su�h insurance for�he te�m af the Ioan.
<br /> Applicatian of Proceeds. Trustar shall promptly nvti�y Lend�r of any loss vr damage to the Prvperty. Lender may
<br /> make provf v# Ioss if Trustor �ai�s tv do sa wi�hin fifteen �15y days o� the �asualty. Whether or n�t Lender's
<br /> security is impaired, L�nder may, at Lender's electian, recei�e and refiain th� proce�ds vf any insurance and apply
<br /> the proc�eds tv �he reductian ❑f the Inde�tedness, payment af any lien affec�ing the Property, ar the restoratian
<br /> and r�pair�f the Proper�y. I# Lender elec�s �o apply �he praceeds ta restvration and-r�pair. Trustor shall repair or
<br /> repia�e tha damaged or destroyed Impro�em�nts in a manner satisfiactory to Lender. Lender shall, upon
<br /> satis#actory praof vf such expenditure, pay �r reimburse Trustor firom the pro�eeds far the r�asanable �ost af
<br /> repair or restarat�on if Trustor is n�t in default und�r �h�s Deed ❑� Trust. Any proceeds which have nv# been
<br /> dishursed within 18� days after their rece�p� and whi�h Lender has nvt committed t� the repair or res#ora�ian �f
<br /> the Prape�ty shali be used �irst to pay any amount owing to Lender under th�s Deed af Trust, then to pay accrued
<br /> interest, and the remainder, �� any, shall be applied tv th� principa! �afance of the lnd�btedness. lf Lender halds
<br /> any praceeds after payment in fu�� a# th� Indebtedness, such proceeds shail b� paid t� Trustor as Tt�ustor's
<br /> interests may appear.
<br /> Trustor's Repart on lnsurance. Upon request❑fi Lender, howe�er not more than vnce a year, Trustor shall furnish
<br /> t❑ Lender a repart on each �xisting policy of insuran�e shauving: ��� the name of �h� insurer; {2� the risks
<br /> insured; �3f the amount of the poli�y; �4} the prvperty insured, the then current repla�ement �alue of such
<br /> property, and the manner of determining that�afue; and �5y the expiration date ��the poli�y, Trustar shall, upon
<br /> reques�af Lende�, ha�e an independent appraiser satisfacfiory ta Lender dete�mine th� cash�alue replacemen�cost
<br /> af th� Proper�y.
<br /> TA�AND �NSURANCE RESERVES. 5ubject to any iimitations and c�nsistent v+rith any requirements s�t by applicable
<br /> law, L�nd�r may �equire Trustor to maintain wifih Lender reser�es far paym�nt of annual taxes, assessments, and
<br /> insurance premiums, which reserves shall 1�e �reated by an initiaf d�p�sit and subsequent monthly payments, or
<br /> payments at such ofiher inter�al as payment� under the Not� may be due, ofi a sum estimated by Lend�r to be su�rficient
<br /> to pay the �otal annual taxes, assessm�nts, and insurance premiums Lender reasvnably ant�cipates ta be paid �rom
<br /> th�se reser�es. The r�ser�e funds shafl b� held by Lender as a general depvsit�rom Trustar, which Lend�r may satisfy
<br /> by payment of the taxes, ass�ssments, and insurance premiums required tv be paid by Trustar as �hey �ecome due.
<br /> Lender shall ha�� the righ� t❑ draw upon the r�ser�e funds to pay such items, and Lende� sha!! n�t he required t❑
<br /> determine the �alidity or a��uracy of any item before paying it. Nothing in the ❑eed vf Trust shall �e construed as
<br /> rsquiring Lender tv ad�ance other monies fvr su�h purposes, and Lend�r shall no� incur any liabili�y for anything i� may
<br /> do or omi�t to d❑ with respect to the reser�e account. Subj�ct to any iimitations set hy applicable la►rv, ifi th� res�r�e
<br /> funds disclose a shor�a�e or defic�en�y, Trustor shall pay such shartage or de�iciency as required by Lender. All
<br /> amvunts in fihe r�ser�e account are hereby pledged to�ur�her se�ure the lndebtedness, and L�nder is h�reby authorized
<br /> to wifihdraw and apply such am�unts an the lndeb��dness upan the occurren�e af an E�ent af Def�ult. Lender shall nvt
<br /> be r�quired to pay any interest or �arnings an the reser�e funds un[ess requir�d by law ❑r agreed to by Lender in
<br /> wri�ing. Lender dves not hold the reser�e funds in trust for Trustvr, and Lender i5 not Trus�or's agent for paym�nt of
<br /> �he taxes and assessments required t❑ �e paEd hy Trustar.
<br /> LENDER`5 EXPENDITL�RES. I�any a�ti�n vr prviceed�ng is commenced that would matsrialky afifect Lender's interest in
<br /> �he Prop�rty vr if Trus�or fails ta camply with any pro�ision of this Deed af Trust or any Refated Documents, including
<br /> but nat IimE�ed to Trus�or's failure �o discharge �r pay v►rhen due any amounts Trus�or is required fio discharge �r pay
<br /> und��this D�ed of Trust vr any Related Dacuments, Lender an Trustor's behalf may �but sha�l not b� �bligated#�y take
<br /> any a�tion that L�nd�r deems apprapria�e, in�luding but not �imi�ed to dischargin� ❑r paying all taxes, li�ns, s�curity
<br /> in�erests, encumbran�es and other�laims, at any time fe�i�d or placed on the Property and paying a11 costs fvr insuring,
<br /> maintaining and preser�ing the PrQperty. Ail su�h �xp�nditures incurred or paid by Lender �ar such purpvses wil! then
<br /> bear interest at the rate charged under the N�te from the date �ncu�red or paid by Lender ta the date of repayment by
<br /> Trustvr. All such expenses wi�l hecflme a part �f the lndebtedness and, a� Lender's optian, wil� �Ay be payable an
<br /> demand; {By �e added to the halance af the Nate and he apportianed am�ng and �ae payable with any insta�lmen�
<br /> paymen�s tv becvme due during either ��y the �erm o� any appficabl� insurance pol�cy; ar �2� �he remaining term v�
<br /> the Note; ar {C� be treafied as a baffo�n payment ►n►hich will be due and payahle at the Na#e`s maturi�y. The Deed of
<br /> Trust alsv will secure payment of these amaunts. Such �right shall be in addition to a!I ather rights and remedies �o
<br /> which Lender may be entifiled upon De#au��.
<br /> VIrARRANTY: ❑EFENSE�F TITLE. The following pra�isions re�ating to ownership v�the Prflperty are a part of this Deed
<br /> of Trust;
<br /> Titie. Trustor warrants that: �ay Trustar holds gnod and marketable title of record t� the Praperty in fee simp�e,
<br /> free and clear �f all liens and encumbrances vther than those sefi farth in the Rea! Praperty descriptivn or in any
<br /> �itle insuran�e policy, title repor�� or final title opinion issued in �avvr of, and a�c�p�ed hy, Lender in connectian
<br /> with this Deed of Trust, and �by Trustor has the fuf! right, p�w�r, and authority t❑execu�e and de�i�er this ❑��d o�
<br /> Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph abvve, Trustor warrants and will fore�er de�end �he
<br /> titEe to the Proper�y against the lawful cla�ms o# a�l pe�rsons. !n the e�ent any actian or praceeding is �ommen�ed
<br /> that questians Trustor"s title o�the interest of Trustee ar Lender under this D�ed �f Trust, Trustar shall defend the
<br /> a�tion at Trustor's expense. Trusfi�r may tae the nominal party in su�h proceeding, lau�t Lender shall he entitled to
<br /> participate in �he proceeding and to be represented in �h� prv�eed�ng by caunsel of Lender's awn chQEce, and
<br /> Trus�or wil! deli�er, �r cause to be delr�er�d. tv Lender such instruments as Lender may request from time tv time
<br /> to permit such participafiion.
<br /> Cvmplian�e 11Vith Laws. Trustor warrants thafi the Prop�r�y and Trus�or's use ofi the Property �amplies rrvith all
<br /> �xist�ng appliGable lav►►s, a�dinances, and regula�ions o#go�ernmentai authvrities.
<br /> Sur►►i►►al o� Representations and Warranties. All representations, vuarranties, and agreemen�s made hy Trustvr in
<br /> this Deed o�Trust shall sur�i�e the execution and deli�ery of this �]eed of Trust, shall he continuing in nature, and
<br /> sha11 remain in ful�force and effect until such time as Trustor's Ind�bt�dness shal[ be paid in fu!!.
<br /> ��]NDEMNAT�DN. The following pra�is�ons relating ta condemnatian pro�eedings ar� a part af this Deed❑f Trust:
<br /> Proceedings. lf any proceeding in condemnatian is �iled, Trustar shall prvmptly notify Lender in writing, and
<br /> Trustvr shall promptly tak� su�h steps as may �e necessary to defend the action and obtain �he award. Trustor
<br /> may �e the nominal party in such prflceeding, bufi Lender shafl b�entitled to par�icipa�e in the prviceeding and t❑ be
<br /> represent�d �n th� proceeding by counsel af its own chvi�e, and Trustvr wi�i deli�er �r cause to be deli�er�d tv
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