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2� 1 ��� 175
<br /> DEED �F TRUST
<br /> �Cont�nued� Page 3
<br /> cance��ed or diminished without at feast thirty {3�} days prior wri�ten notice to Lender. Each insurance po��cy also
<br /> shall include an endor�ement p�v�id�ng that co�erage in fiavor of Lerrder wi�[ not be impaired in any way by any act,
<br /> omission vr default�#Trustor or any o�her person. Shauld the Real Prvperty be Iocafi�d in an area designat�d by
<br /> the Administrator ofi�he Federal Emergency Nf anagem�nt Agency as a special �Fl�od hazard area, Trustar agrees to
<br /> o�ta�n and main�ain Federa� Flood Insurance, �f a�ailable� �or �he fu�1 unpaid principa! balance o�the loan and any
<br /> priar liens vn the property securing the laan, up tv �fihe maximum po��cy limits se� under �he Na�ional F�o�d
<br /> lnsurance Program, or as otherw�se requ�red by Lender, and�v main�ain su�h insurance�Fvr�he term of the loan.
<br /> Appli�a�ian of Proceeds. Trustor shall promptly notify L�nder ofi any loss ar damage ta the Prope�ty. Lender may
<br /> make proof of iass �� Trus'tor fiai�s �a dv so within �ifteen �15� days of the casual�ty. VIlhether �r not Lender's
<br /> security is impaired. Lender may. at Lender's e[e�#�on, rec�i�e and retain �he proce�ds vf any insurance and app�y
<br /> the praceeds to �he reduction of the lndebtedness, payment af any ��en affecting �the Praper�y, or the restara�ion
<br /> and repair of�he Prvperty. l� Lender e�ects ta app[y the proceeds ta �estora�ion and repa�r, Trustor shall repair or
<br /> repface �he damaged or destroyed Impro�ements in a manner satis�acto�y to Lender. Lender shall, upon
<br /> satis�actvey proof af such expenditure� pay ar reimburse Trustor from the proceeds for the reasonabfe cost of
<br /> repair or restvration if Trustar is not �n default under �his Deed of Trust. Any procesds which ha�e not been
<br /> d�sbursed within 18� days after their receip� and which Lender has not committed to �he repair or restaration of
<br /> the Property shail be us�d #irs�t tv pay any amount owing to Lender under this Deed of Trus�, then to pay accrued
<br /> in�eres�, and fihe remainder, if any. sha[[ be applied to the principal bafance of the lndebtedness. If Lender holds
<br /> any praceeds a#ter payment in �u�f o� the fndeb'�edness, such proceeds shal� b� paid to Trustor as Trus�or's
<br /> interests may appear.
<br /> Trustor's Repvr�on Insurance. Upvn reques�of Lender, howe��r nat mare than ance a year, Trustvr shali �urnish
<br /> ta Lender a repor� vn each exis�ing palicy of insurance shawing: �1� the name o� the insurer; �Z� the risks
<br /> insured; �3} the amoun� of �he policy; �4y the praperty insured, �he then current rep�acement vaiu� o� such
<br /> property, and �he manner o�determining tha��alue; and t5] the expiration da�e o�f�he policy. Trustvr shali, upon
<br /> request o�Lender, ha�e an independent appraiser satisfaGtary to Lender determine the�ash�alue replacemen�cflst
<br /> of the Property.
<br /> TAX AND �NSURANCE RESERVES. Subject to any limitations and cansist�nt with any requirem�nts set by applicable
<br /> law. Lender may require Trustvr to maintain with Lender reserves f�r payment o� annua� taxes� assessments, and
<br /> insurance premiums. which reser��s shall be crea�ed by an 'rni�ia! deposi� and subsequent mvn�hly paymen�s, or
<br /> paymen�s at such o�her inter�al as paymen�s under the Nvte may k�e due, of a sum estimated by Lender#o be su��icient
<br /> to pay the �o�al annual taxes, assessmen�s, and insurance premiums Lender reasonably anticipates �o he paid #rom
<br /> �hese reser�es. The reser�e funds shall be held �y Lender as a genera[ deposi�t fram Trustvr, whi�h Lender may satisfy
<br /> by payment of �he taxes, assessments. and insurance prem�ums required to be pa�d by Trustor as they become due.
<br /> Lender �hal[ have the righ� to draw upon the reser�e funds ta pay such items, and Lender sha�[ nat be required �❑
<br /> determine the �alidity ar accuracy o� any i�em be�are paying it. Nofih�ng in th� ❑eed o� Trust shall be construed as
<br /> requiring Lender to ad�ance o'ther monies for such purposes, and Lender shall no�incur any liability for anything �t may
<br /> do or omix ta do wi�h respect to �the reser�e accaunt. 5ubject to any limitations set by applicable �aw, if the res�r�e
<br /> funds disclose a shortage ar deficiency, Trustvr sha[[ pay such shvrtage or deficien�y as required by Lender. Alf
<br /> amounts in the reser�e account are hereby pfedged ta#urther secure the [ndehtedness, and Lender is hereby author�z�d
<br /> ta withdraw and app�y such amaunts on the Inde��edness upon the occurrence of an E�ent of Default. Lender shall not
<br /> be required �o pay any interest or ea�rnings on the reserve funds unless required by law or agreed to by Lender in
<br /> writing. Lender does not hald the reser�e �unds in �rust fvr Trus�to�, and Lender is nvt Trustor's agent for payment of
<br /> the taxes and assessments required to be paid by Trustor.
<br /> LENDER'S EXPENDiTURES. If any action or proceeding is cammenced tha� wou[d materially affec� Lender's interes� in
<br /> �he Property or if Trus�or�ails to camply with any pra�ision of this Deed of Trus�vr any F�elated Dvcumsn�s, incfuding
<br /> but not limited to Trustor's faiiure tv discharge or pay ►nrhen due any amounts Trustor is required �o discharge or pay
<br /> under�his Deed af Trust or any Fiela�ed Dacuments, Lender an Trustvr's behal�may tbut shal! nat b� obligated �v� take
<br /> any actian that Lender deems apprapriate, including bu� nat limited to discharging ar paying a!I taxes, Iiens, security
<br /> interests, encumbrances and other cfaims, at any time le�ied or plaGed on�he Property and paying al! c�sts�or insuring,
<br /> main�aining and preser�ing the Prvperty. A[[ su�h expendi�ures incurred or paid by Lender for such purpases wi�l then
<br /> hear in�erest at the rate charged under the Note from the da�e incurred or paid by Lender to �he da�e a� repaym�nt by
<br /> Trustor. A�[ such expenses wi11 become a part a� the Indebtedness and, at Lende�'s option. wilf �A} be payab�e vn
<br /> demand; {By be added tv the balance af the Nvte and �e apporti�ned among and be payab�e with any installment
<br /> payments to become due during eifiher ��� the �erm of any applicab�e insu�-an�e po�icy; or t2} the remaining term of
<br /> the Na�e; or �Cj be treated as a baflaon payment which will be due and payable at the Note's maturity. The ❑eed ofi
<br /> Trust also will secure payment of these amounts. Such right shafl be in additivn to all o�her rights and rem�di�s to
<br /> which L�nder may�e entitled upon Defauft.
<br /> WARRANTY;DEFENSE OF TITLE. The�a��awing pro�isians relating to awnership of the Praperty are a par�of�his Deed
<br /> o�Trus#;
<br /> T�tle. Trustor warran�s �hat: �a� Trustvr halds govd and marketabie title o� record to the Praperty in ��e simple,
<br /> free and ��ear a� a[f [iens and encumbrances o�her than thvse set �orth �n the Reai Praperty descriptian ar in any
<br /> title insurance pa��cy, �ti#le repar�, ar final �i�le vpinion issued in �a�or af, and accepted by, Lender �n cvnnection
<br /> with this Deed o#Trust, and =bf Trustor has the full right, power, and autharity to execut�and deli�er this Deed of
<br /> Trust�v Lender.
<br /> Defense of Title. Subject ta the exceptian �n the paragraph aha�e, Trustor warrants and will �ore�er defend the
<br /> �i�le �v the Praper�y against the la►rvful claims of ali persons. In the e�ent any action or proceeding is cvmmenced
<br /> tha�quest'rons Trustor's titie or the interest o#Trus�ee or Lender under th�s Deed af Trus�t, Trustor shall defend the
<br /> actian at Trustor's expense. Trus�or may be the nvminai party in su�h proceeding, but Lender shafl be entitled �o
<br /> partic�pate in the proceeding and to be repres�n�ed in the praceeding by cvunse� vf Lender's vwn choice, and
<br /> Trustor will deliver, ar cause�ta be delivered, �v Lender such instruments as Lender may�equest�rom �ime�o time
<br /> to permit such participation.
<br /> �ampliance Wi�h Laws. Trustar warrants thafi the Property and T�ustar's use of the Prvperty complies with all
<br /> exis�ing applicable laws, ard�nan�e�, and regulafiions�f go�ernmental authorities.
<br /> Sur�i�al of Representativns and Warran�ies. AI! representa�tions, warran���s, and agre�ments made by Trustor in
<br /> this Deed a�Trus�sha[[ survive the exeGut�on and deli�ery af�his Deed vf Trust, sha�! be continuing in nature, and
<br /> sha11 remain in fulf force and effect untif such time as Trustor's Indeb�edness sh�ll be paid in fu�l.
<br /> C�NQEMNATIQN. The�olla►rving pro�is'rons re[ating ta condemnativn praceedings are a par�flfi this Deed o�Trusfi:
<br /> Prviceedings. !f any proceeding in cvndemnation �s fi�ed, Trustor sha�l promp�Iy no�tifiy Lender in writing, and
<br /> Trus�or shall promptly take such steps as may be nec�ssary to de�end �he action and obtain the award. Trustar
<br /> may be the nomina! party in such proceeding, hut Lender shall b�enti�ied ta participate in the proceeding and�o�e
<br /> represen�ed in the proceeding by caunsel of its own choice, and Trustor wi�l deli�er or cause to be def i�ered �o
<br /> Lender such instrumen�s and documentation as may be reques�ed by L�nder #rom �time ta time ta permit such
<br /> participation.
<br /> Application o�Net Proceeds, If all or any part of the Property is condemned by eminen�domain praceedings or by
<br /> any proceeding or purGhase in [ieu af condemnation, Lender may at ifis election require that ail or any portivn of the
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