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2� 1 ���351
<br /> DEED �F TRUST
<br /> ���ntinued} Pase 3
<br /> furnish to Lender ad�ance assurances satisfactvey to Lender that Trustor can and wi�i pay the cost of such
<br /> impro�emen#s.
<br /> PR�PERTY DAMAGE INSURANCE. The fo�iowing pro�isions rel�ting ta insuring the Prvperty are� part of this �esd o#
<br /> Trust.
<br /> Maintenan�e of lnsurance. Trustor shal� procure and maintain policies of fire insurance with standacd extend�d
<br /> co�erage endvrsements vn a #air ►►alue basis for the fult insu�able value cv�ering a�l Impro�ements an the Real
<br /> Property in an amount suf#ic�ent to avaid app��cat�on ❑f any coinsurance clause� and with a standard mvrtgagee
<br /> ciause in fa�ar of Lender. Trustor sha�t a�so prvcure and main#ain camprehensi►►e general liability insurance in such
<br /> co�erage amvunts as Lender may request wi#h Trustee �nd L�nder b�ing named as additiona! insureds in such
<br /> liabili�y insurance po�icies. Additionally, Trustor shall maint�in such ather insurance, including but nvt limited to
<br /> hazard, business interruptian, and boiler insurance, as Lender may reasonably require. Polic�es shall be written in
<br /> form, amaunts, c8verages and basis reason�b�y accepta�ie to Lender end issued by a company ar campanies
<br /> reasonably ac�sptable t❑ Lender. Trustor, upon request of Lender, wil� del��er to Lender from tims to �ime #he
<br /> policies or�ertifica�es of insurance in fvrm setisfactary to Lende�, including stipulations that co►►erages will n�t be
<br /> Canceiled ar diminished withaut at least thirty �3ay days priar written notice to Lender. Each insurance paiicy alsv
<br /> shall include an sndvrsement pra�idin�that co�erage in fa�or of Lender wEl�not be impaired in any way by�ny�ct.
<br /> omission or defauft o�Trustor vr any other pe�son. 5hauld the Rea[ Property be Iocated in an araa desigr�ated by
<br /> the Administrator of the Federai Emergency Mana�ement Agency es a specia� �iood hazard�rea, Trustor agrees to
<br /> obtain and maintain Federai Fiood �nsurence, if a�aila�ls. for the tu�l unpaid prin�ipal ba�ance of#he Ioan and any
<br /> pri�r liens ❑n the pr�perty secu�ing the ��an, up to tlte maximum poiicy limits set under ths National Ftaod
<br /> Insurance Program, or as otherwise required by Lender.and tv maintain such insurance for the term af the�v�n.
<br /> Appli�ation o�Pro�eeds. Trustar sh�ll promptly nvtify Lender of any ioss or damage to the Property. Lenda�may
<br /> make proof af Ioss if Trustor fails to do so within �ifteen �'�5y days of the casu�jty. 1Nhether or not Lender's
<br /> security is impaired� Lender may. at Lender's elec#ior�, receive and retain the procee�s of any insurance an� apply
<br /> the procegds to the reductian of the Indeatedn�ss, Rayment of any lien affecting the Property, or the restoration
<br /> and repair af the Prvperty. If Lender e�ects to apply the pracesds to restora#ion and repair, Trustor shall repair ar
<br /> replace the damaged ar destroyed Impro►remen�s in a manner satisfactary to Lender. Lender shaf�. upon
<br /> sat�sfacto�y proaf of such expenditure� pay o� raimhurse Trus�or from #he prviceeds for the reasonahle cost ❑#
<br /> repair or restoratian if Trustvr is not in default unde� this Deed o# Trust. Any praceeds whiGh ha�e nvt been
<br /> disbursed within '18� days after their receipt�nd which Lender has not committed to the repeir vr restoration of
<br /> the Property shall be used tirst ta pay any amount awing to Lender under this ❑eed ot Trust. then to pay accrued
<br /> interest. and the remaind�r, if any� sha{I be applied to the prin�ipal ba[ence af the indebtedness. �f Lender halds
<br /> any procseds aftsr payment in full af the Indebtec�ness, auch proceeds sha�i be paid to Trustor es Trustar's
<br /> interests may appear.
<br /> Trustor's Report on insurance. Upon request of Lender, howe�er nvt mvrs than nn�e a year, Trustor shali furnish
<br /> to Lender a report on each existing poiicy a# �nsurance shawing: ��y the name of the insurer; �2} the risks
<br /> insured; �3j the amoun# ofi the policy; �4� the property �nsu�ed. the then current rep�a�ement �alug of such
<br /> praperty, and the mannsr vf dete�min�ng that��1ue; and �6f the expirativn d�te of#he policy. Trustor shall, upon
<br /> request at Lender, ha�e an independant appraiser satisfactory to L�nder determir�e the cash�alue repla�ement cost
<br /> of the Pr�perty.
<br /> LENDER'S EXPENDITURES. If any actian or prviceeding is �ammen�ed that would materially affect Lender's interest in
<br /> the Praperty or i�Trustor fails#o�omply with any pro��s+on�t this �sed af Trust or any Reiated ❑ocuments, including
<br /> but not limited ta Trus#or's fsilur� to discharge vr pay whsn due �ny amvunts Trustvr is required to dis�harge vr pay
<br /> under this Deed vf Trust or any Related Documents, Lender on Trustar's behal#may tbut shall not be ob�igated taf take
<br /> any action that Lender deems apprQprEat�, includina but not limited t� disGharging ❑r paying al! taxes, liens, security
<br /> interests, encumbrances and other claims� et any time[e�ied or Rlaced on the Property end payins at1 costs�or insuring,
<br /> maintaining and preser�ing the Property. AI# such expenditures �ncurred or paid by Lender far such purposes will then
<br /> bear interest at the rate charged under the Note from the d�te incurred or paid hy Lender to the date v# repayment hy
<br /> Trustor. A�! such expenses wi�! become a psrt of the lndebtedness and, at Lender's optian, will �Af be payable �n
<br /> demand; �8� be added to the ba�ance at #he Nvte and be �pportianed among and be payable with any insta�iment
<br /> payments �o became due during either �1} the term of any app�icable insuran�e p�l��y; or t7� the rema�n�ng term of
<br /> the Nate; ar �Cf be treated as a balloon payment which w�ll ba due and payable at tha Note's maturity. The ❑eed of
<br /> Trust also wi�l se�ure payment of these amaunts. 5uch rEght shali be in addition to all other rights and remedies to
<br /> which Lender m�y be entitled upan Default.
<br /> WARRANTY;DEFENSE DF T1TLE. The following pr��isivns r�l�tin9 ta awnership vf the Proper�y are a part of this Deed
<br /> of Trust:
<br /> Tit[e. Trus�or warrants that: �af Trustor halds gvvd end marketable title af record to th� Property in fee simple,
<br /> free and c�eer nf al! liens and encumbrances flther th�n those set forth in the Real Property description vr in any
<br /> titie insurance policy, title report. vr finai titl� �pinion issued in fa�or of� and ac�epted by, Lend�r in connection
<br /> with this Deed ot Trust, and tbf Trustar has the full right. power,and authority#o execute and deli�er this Deed of
<br /> Trust tv Lander.
<br /> Dafense af T�tle. Subject to the exception in the par�g�aph abo�e, Trustor warrants and will fvre�er defend the
<br /> titie to#he Property against the lawful c�a�ms of all persans. In the e�ent any a�tian ar proceeding is cpmmenced
<br /> that quest��ns Trustor's#�tlg ar the interest of Trustee or Lender under this Deed�f Trust, Tcus�ar shall defend the
<br /> action at Trustar's expense. Trustnr may be the nominal party �n such proceeding, but Lender shall be entitled to
<br /> participate in the proce�ding and to be represented �n #he proceeding by counsei af Lender's ❑wn choice, and
<br /> Trustar will deii�er, ar cause tv be deli�ered,ta Lender such tnstruments as Lender may requgst�rom tEme to time
<br /> to permit such participation.
<br /> Compli�nce INith Laws. Trustor w�rrants that the Property and Trustor's use of #he Property compliss wi#h all
<br /> existing applicable laws, ordinances.and regulations af gv�ernmental autharities.
<br /> Sur�i�al af Representatians and Vllarranties. All rgpresentations, warranties, and agreements made hy Trustor in
<br /> this Deed of Trust shafl sur�i�e the execution and delivery of this Deed of Trust, shal! he continuing En nature, and
<br /> shai#remain in full force and effect until such time as Borrower's Indebtedness shall be paid in full.
<br /> Ct�N�3EMNAT��N. The fallawing pro�isians rel�ting to condemnati�n proceedings are a part af this aeed a#Trus#:
<br /> �roceedinss. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and
<br /> Trustvr shal! promptiy take such steps as may be necessary to defend the acti�n and vbtain th� eward. Trustar
<br /> may he the nominal party in such proceeding, but Lender sha�!be entitled t�partic�pate in the proceeding and ta be
<br /> represented in th� proceeding by cvunse! of fts own chaice, and Trustor wi�I deli►►er or cause tv be deli�ered to
<br /> Lender such instrum�nts and documentation �s may b� �requested by Lender from time to time to permit such
<br /> participati�n.
<br /> Application of Net Proceads. !f all or any part of the Property is cvndemned hy eminent domain proceedings ar by
<br /> any prviceeding or purchase in lieu of condemnat�on, Lendsr mey at its�lection require that all ar any portion of the
<br /> net pro�eeds of the award be applied t❑ the �ndebtedness or the repair or rest�ratfvn of the P�aperty. The net
<br /> proceeds of the award shall mean the award after payment o�all reasonable cos�s. expenses� end attorneys' �ees
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