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2� 1 ���43�
<br /> DEED �F TRUST
<br /> ��ontinued� Page 3
<br /> policies ar cerfii�icates o�insuranC� in form satisfactory to Lender, including stipulativns �hat coverag�s will nat be
<br /> cancelled ❑r diminished v+rithaut at I�ast�hirty t3�f days prior written nvtice t4 Lender. Each insuranc� palicy also
<br /> shafl inc�ude an endorsement prv�iding that co�erage in fa�or of Lender will not be impaired in any way by any a�t,
<br /> omissi�n or defiault of Trus�or v�- any v�ther person. 5hould �the Real Property be located in an area designated �y
<br /> �he Administrator of the Federal Emergency Management Agency as a special ffood hazard area, Trustor agrees t�
<br /> obtain and maintain Federal Flood Insurance, i� a�ai[able, for �he ful[ unpaid prin�ipaf balan�e af the I�an and any
<br /> prio� liens an the property securing the Ioan, up to the maxfmum palicy limits set under �he Nativnal Flood
<br /> Insu�-ance Prvgram, or as otherwise required by Lender. and�o maintain such insurance for th�term❑f the loan.
<br /> Appli�a#ion ❑f Rra�eeds. Trustor sha[[ prQmptly notify Lender o�any loss or damage to the Property. Lende� may
<br /> make proa� o� iass i� Trustar �aifs �o d� sa w�thin �if�een t 15y days v# th� �asualty. VIlhe�her or not Lender's
<br /> security is �mpaired. L�nder may, at Lende�'s election, rec�i�e and r�tain the prnc��ds o�any insurance and apply
<br /> the proceeds t❑ the reductian �f �h� 1nd�htedness, payment vf any lien a��ecting the Praperty, or �he restvration
<br /> and repair ofi the Property. If Lender elects t� apply the pra��eds tv resta�ation and repair, Trustor shalf repair or
<br /> r�p�ace the damag�d ar destroyed impro�ements in a manner satisfactory to Lender. Lender shall, upon
<br /> satis�actary proofi of such exp�nditure, pay a� �eimburse Trustor from the pra�eeds f�r the r�asona�l� cvst of
<br /> r�pair or restaration if Trustor is nnt in default under this Deed af Trust. Any proceeds �vhich ha�e not been
<br /> dis�ursed within 1$� days a�ter �heir receipt and which Lender has nat �ommitted to �he repair or restarat�an ��
<br /> the Property shall �e used firs�to pay any amount ov►ring to Lend�r und�r this ❑eed af Trus�, then�o pay accrued
<br /> interest, and �h� remainder, if any, shall be applied 'to the prin�ipa� balanc� of the indeb�edness. If Lender hvlds
<br /> any proc�eds a�ter payment in full of �he Indebtedness, such prace�ds shall be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> Trustor's Repart an insurance. Upon �-�quest of Lender, hou+re�er nvt m�r� than on�e a year, Trustor shaii furnish
<br /> to Lender a repart on �ach exist�ng p�iicy o� insurance showing: �1 f the name af �he insurer; ��� th� r�sks
<br /> insured; �3� the amvunt of th� pa�icy; �4} the property insured, the then current rep[acement �alue of such
<br /> prvperty, and the manne��f determining that�aiue; and �5� �he expiration da�e o�the policy. Trustor shall, upon
<br /> request ofi Lender, ha�e an independent appraiser satisfac�ory�v Lender determine the cash�a[ue replacemen�t�vst
<br /> ��the Property,
<br /> TAX AND INSURANCE RESERVES, Subject tv any limitatians and consist�nt with any requirements se� by app[�cable
<br /> law, Lender may r�qu�r� Trustor to maintain with Lender reser�es for payment of annual taxes, assessments, and
<br /> insurance pr�miums, which reser�es shall be created by an initiaf dep�sit and subsequent monthly paym�nts, vr
<br /> payments at su�h othe� int�r�ai as paym�nts under the Note may be due, o#a sum estimated by Lender to be sufficient
<br /> �o pay the 'total annual taxes, assessments, and insu�ance premiums Lender r�asona�ly anticipat�s ta be paid from
<br /> thes� reser�es. The reser�e �unds shall �e heid by Lender as a general depasit from Trustar, which Lender may satisfy
<br /> by payment of the tax�s, assessments, and insurance premiums required to he paid by Trustor as they became due,
<br /> Lender shali ha�� the right to draw upvn the reser�e funds to pay su�h items, and Lender sha�1 no� �e requir�d to
<br /> de�ermine the �afidity ❑r accuracy of any item hefvre paying it. Nath�ng in the De�d af Trus� shall �e construed as
<br /> requiring Lender t� ad�ance other monies f�r such purposes, and Lender shail nat incur any liability far anything it may
<br /> do ❑r omit to da with respe�t ta �h� r�s�r�� a�cvunt. Suf�j�ct ta any limita�i�ns set by applicable larr►r, if the reser�e
<br /> funds discl�se a shortag� ar deficiency, Trus��r shall pay such sh�rtage ar deficiency as required by Lender. A1l
<br /> amaunts in the reser�e acc�unt ar� h�rehy pfedged to�further secure the Indeb�edness, and Lender is hereby authvrized
<br /> ta withdraw and apply such amaunts on�he Indebtedness upvn�he oc�urrenc�o�an E�ent❑f Defau[t. Lender shall not
<br /> b� required t� pay any interest or earnings on #he reserWe �unds unless required by faw ❑r agreed to t�y Lender in
<br /> writing. Lend�r dves no� hold the reser�s #unds in trust for Trustor, and Lender is nv�Trustor's agent for payment of
<br /> the tax�s and assessmen�s r�quired ta be paid by Trustor.
<br /> LENDER'S EXPENDITURES. ff any ac�ion ar prviceeding is commen�ed that would materially affe�t Lender's interest in
<br /> the Praperty ar if Trustor#ails t❑ comply with any pro�isi�n of this Deed of Trust or any Related Dvcuments, including
<br /> bu� no� ��m�ted to Trustor's failure to dis�harge or pay when due any amoun�s Trustor is required tfl discharge or pay
<br /> under this De�d af Trust or any Related �ocuments, L�nder vn Trustor's behalf may �but shall not be obliga�ed to� tak�
<br /> any action �ha� Lender deems appropriate, inGluding �ut not limited fio d�schargin� ar paying a!l taxes, liens� security
<br /> int�rests, encumbran�es and ather claims, a�k any time le��ed or placed on the Prvperty and pay�ng all costs for insuring,
<br /> maintaining and preser�ing fihe Pr�perty. Ail such expend��ures �ncu�-red ar paid by Lender �vr such purposes wi11 �hen
<br /> bear �nterest at the ra�e charg�d under the Nate from the date incurred ar paid by Lender to the date of repayment by
<br /> Trustar. Alf such expenses will be�ome a part o# #he lndehtedness and, at Lender's vption. wiil {Aj E�e payable on
<br /> demand; �Bf be added ta the halance vf the Note and be appartivned amang and b� payable v►ri�h any insta[lment
<br /> payments ta become due during either t�� the �erm o� any applicable insuran�e policy; or t�� the remaining term ❑f
<br /> the No�e; or ��f be treated as a balloon payment which ►rvill be due and payabfe at the Note`s maturity. The D�ed ot
<br /> Trus� alsfl will secure payment of �hese amaunts, Such right shall be in additi�n �v all other rights and r�medies ta
<br /> which Lender may be entitf�d upon Default.
<br /> 1NARRANTY; DEFENSE DF TITLE. Th�fvl[owing pro�isions r�lating ta ownership o�the Prvperty are a part of this ❑eed
<br /> vf Trust:
<br /> T�x1e. Trustor warrants that: �ay Trustar holds gaod and marketahle title of recard to the Proper�ty in fee simple,
<br /> free and clear of all liens and �ncumhrances vther than those set fvrth in the Real Property description or in any
<br /> titl� insurance poliGy, title report, ❑r final ti��e opinion issued in fa�or of, and acc�pt�d by, Lender in connectivn
<br /> with this Deed af Trust, and �b� Trustor has the full right, power, and au�hvrity�o execute and deliver this �eed af
<br /> T�ust tv Lender.
<br /> Defense af Title. Subje�t to the exception in the paragraph abo�e, Trustar warrants and will fore��r de�end the
<br /> title tv th� Prvperty against the lawful cla�ms af al� p�rsons. In the e�ent any actian or proceeding is commenced
<br /> that questivns Trustar's title flr�he interest of Trustee ❑r Lender unde�this Deed of Trust, Trustar shall defend the
<br /> a�tivn at Trus�or's exp�nse. Trustor may �e the nominal party in such proceeding, but Lender shall �e entifiled to
<br /> participate in the proceeding and to be represented in the proceeding by counse� v� L�nder's own choic�, and
<br /> Trustar►rvill deli�er, or cause t❑ �� deli�ered, to Lender such ins�ruments as Lender may request from ��me to time
<br /> �o permit su�h participation.
<br /> Compiian�e Vll�th Laws. Trus�or warrants that �he Property and Trustor's use of �h� Praperty c�mplies with a[[
<br /> existing app�i�ab[e la►rvs, or�inan�es, and regulatians v�ga�ernmental autharities.
<br /> 5urvi►ral o� Representativns and Warranties, Alf representat�ons, warranties, and ag�eements made by Trustor in
<br /> this Deed v�Trust shal[ sur�i�e the �xecutian and deli�ery o�this De�d of Trust. shafi be �ontinuing in na�ure, and
<br /> shall remain in full force and ef�ec#until such time as Trustor's lndebtedness shall be pa�d in full.
<br /> CDNDEMNATi�N. The foll�wing prvvisions relating to condemna�ivn pro�eedings are a part ofi this De�d of Trust:
<br /> Prviceedings. If any proceeding in cvndemnatian is fiied, Trusto� shall promptly natify L�nder in writing, and
<br /> Trustvr shall promptly take such steps as may be necessary t❑ defiend the action and o�ta�n the award. Trustor
<br /> may be the nominal pa�ty in such praceeding, but Lende�r shall be entitled�o par�icipa�e in the praceeding and to be
<br /> represented in the prv�eeding by counsei af i�s own choi�e, and Trustor will deli�e� ❑r caus� to be deli�ered �❑
<br /> Lender such instrumen�s and dvcumen�ation as may be requested by Lender from �ime to fiime to permit such
<br /> participation.
<br /> Applicativn af Net Proceeds. Ifi all or any part of the Property is �ondemned by eminent dvmain prviceedings or by
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