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2� 1 ����75
<br /> DEED �F TRUST
<br /> ��ontinued� Page 3
<br /> cancel�ed or diminished wi�hou�t at ieast thirty �3�y days prior►rvr�tt�n nvtice to Lender. Each insurance p�licy a�so
<br /> shall include an endorsemen#prv�id�ng that co�erage in �a�ar of Lender will not be impaired in any way�y any act,
<br /> amissivn or default af Trustor or any ��her persan. Shauld the Real Property be lacated in an area designa��d �y
<br /> �he Administrator o�fihe Federal EmergenGy Management A��ncy as a sp��ial flood hazard area, Trustor agrees �o
<br /> vbtain and ma�n#ain Federal Fioad �nsurance, i� a�a�iable, for the full unpaid princ�pal balanc� of the (aan and any
<br /> prior liens on the proper�y securing �he �oan, up to the maximum policy �imits se� under �he Na�ional Fload
<br /> Insuran�e Program, vr as a�herwise required by Lender. and to maintain such insurance#vr the term af the laan.
<br /> Application v#Proceeds. Trustor sha[( promptly nafiify Lender of�any foss or damage to#h� Praperty. Lender may
<br /> make proaf of �oss ifi Trustor faifs to do so within fifteen �15f days af �he casualty. Wh��her ar not Lender's
<br /> securi�y is impaired, Lender may, at Lender's �lection, re�ei�e and re�ain the proceeds af any insuran�e and appfy
<br /> �he proceeds ta the reductian af the Indebtedness, paymen� of any lien a��ect�ng the Praperty, vr the res�ora�ian
<br /> and repair of the Proper�y. l� Lends�e�ects �a apply the proce�ds '�v restora�tivn and repair, Trustvr shall repair or
<br /> replace the damaged or destroyed impro�ements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfac�ory proof a�F such expendi�ure, pay or reimburse Trustor �rom �he proce�ds fvr the reasonable cos� of
<br /> repa�r ar restoratian i� Trustor is not in default under this Deed o# Trus�. Any proceeds which ha�e not been
<br /> disbursed within 180 days after their r�c�ipt and which Lender has no� committed to the repair ar restoratian a�
<br /> the Praper�y shall be used first tv pay any amount owing to Lender under this De�d of Trust, then to pay accrued
<br /> interest, and �he remainder, if any, shall be applied to the principai balance o� th� �nd�btedn�ss. If Lender holds
<br /> any proceeds after payment in �ul[ of the fndebtedness, such proceeds shali be paid to Trustar as Trustor's
<br /> infierests may appear,
<br /> Trustar's R�port an Insurance. Upon request af Lender, howe�er nat mar� than vnce a year, Trustar shafl furnish
<br /> to Lender a repvr� on each existing policy o# insu�anc� shov►►ing: {1� the name of the insurer; ��� the risks
<br /> insured; �3� the amount o� the p�licy; t4� the p�-operty insured, the �hen current rep[acemen� value vf such
<br /> proper�y, and the manner a�determining that�aiue; and t5f the expira�ion date of the policy, Trustor shall, upon
<br /> request a�Lender, ha�e an independent appra�ser satis�actory to Lender de�ermine the cash�alue replacement cost
<br /> af the Property.
<br /> TAX AND INSURANCE RESERVES. Sub�ec�t �o any limitations and consisfient with any requirements set by applicable
<br /> Iaw, Lender may require Trus�or ta maintain ►►vith Lender reserves for paymen� ofi annual taxes, assessments, and
<br /> insuranGe premiums, which reser�es shalf be crea�ed by an initial depasit and subsequent manthly payments, or
<br /> payments at such vther inter�a[ as payments under th� Note may be due, o�a sum estimated by Lender to be suffici�nt
<br /> ta pay the tota� annual taxes, assessmen�s, and insurance premiums Lender reasonably anticipates to be paid from
<br /> these reser�es, The reser�e funds shall �e held by Lender as a general deposit from Trustor, which Lender may satisfy
<br /> by payment of the taxes, assessments, and insurance premiums required �a be pa�d hy Trustor as they become du�.
<br /> Lender shafl ha�e �he right to draw upan �he reser�e funds to pay such items, and Lender shafl not be require� ta
<br /> determ�ne the �alidity ar accuracy vf any item before paying it. Nv�hing in the Deed of Trust shafl be construed as
<br /> requiring Lender to ad�ance other monies#tir suGh purposesr and Lender shafl not incur any ��abifi�y for anything it may
<br /> dv ar omit ta da with respe�t to �he reser�e accvunt. Sub�ect to any limitations sefi by applicab[e favu, if the reser�e
<br /> �unds disclo�e a shortage ar de�iciency, Trus�or shall pay such shortage or deficien�y as required by Lender. All
<br /> amounts in�he reserve account are hereby pledged to fiurther secure the lndebtedness, and Lender is hereby�uthoriz�d
<br /> ta withdraw and apply such amounts on the Indebtedness upon the occurrence of an E�en�o�Default. Lender sha�l not
<br /> be required to pay any interest or earnings �n the reser�e �Funds unless �equired by �aw vr agreed t� by Lender in
<br /> w��ting. L�nder daes not hald the reserve �unds in trus� �vr Trustor, and Lender is nflt Trustvr'� agent for payment o�
<br /> the�axes and assessments required�o be paid by Trusto�.
<br /> LENDER'S Ei�PENDITURES. If any action or praceeding is commenced �hat wauld materially affect Lender's int�res� in
<br /> the Property ar if Trustvr�ails to comply with any prv�ision o��his Deed ofi Trust ar any Reiated Documents, incfuding
<br /> but not limited �a Trus'tar's fai[ure to discharge vr pay when due any amounts Trustor is required to discharge or pay
<br /> under this Deed of Trust or any Related Documents, Lender vn Trus�or's behalf may ��ut shall nvt be ohligated ta� 'take
<br /> any action tha� Lender deems appr�priate, incfuding but no� limi#ed t� discharging or paying all taxes, liens, se�urity
<br /> interes�s, encumbrances and other claims, at any time le�ied or placed on the Prape�ty and paying a�[costs for insuring,
<br /> maintaining and preserWing the Praperty. All such expenditur�s incurred or paid by Lender fior such purposes will then
<br /> bear interes� at the ra�e charged under the Nate from the da�e incurred or paid by Lender to the date of repayment hy
<br /> Trustar. Aff such expenses wili becvme a part ofi the indebtedness and, at Lender's optian, will tA} be payable on
<br /> demand; �B� be added to the baiance afi the Note and be apportioned among and be payable with any installm�nt
<br /> payments �v become due during either �1 y the term vf any applicable insuranc� policy; or t2� the remaining �erm ot
<br /> the No�e; or =C} be �reated as a balloon paym�nt whi�h wi!! be due and payabie at the Note'� maturity. The Deed o�
<br /> Trust a�so ►nrill secure paymen�t o� these amounfis. 5uch right shali he �n addi�ion �o a11 other righ�s and �emedies to
<br /> which Lender may be entitled upon De�ault.
<br /> WARRANTY; DEFENSE�F TITLE. The�ollvwing pra�isivns relating to ownership of the Prflperty are a part af this Deed
<br /> o�Trust:
<br /> Ti#!e. Trus�Cor warrants that: ta} Trus'�or hvfds gaad and marketable t���e af record 'tv th� Property in ��e simp�e,
<br /> free and clear of afl liens and encumb�ances ather than �hose se� forth in the Real Prape��y descriptian vr in any
<br /> title insurance pvli�y, �i�[e repart. or fina[ tit�� opinion issued in favvr af, and accepted by, Lender in cannec�ivn
<br /> with�this Deed of Trus't, and tb}Trustor has�he�FuII right, power, and auth�rity ta exe�ute and deli�er this Deed af
<br /> Trust�o Lender.
<br /> Defense of Tit�e, Sub�eGt ta fihe exceptian in �#he paragraph a�a�e, Trus�or wa�rants and wili fiorever de�Fend �he
<br /> title to the Property against the law�u[ cfaims of a�l persans. f n the e�ent any action or proceeding is �ammenced
<br /> that questians Trustor's t�#le ar the interest of Trustee Qr Lender under�this �eed v�Trust, Trustor shali defend the
<br /> action �t Trustor's expense. Trus'tor may be �he naminai party in such proceeding, but Lender sha�� be entitled �o
<br /> participate in the proce�ding and to be represented in the proceeding by cvunsel of Lender's awn chaice, and
<br /> Trustor will defi�er, or cause ta be deli�ered, 'to Lender such instruments as Lender may request�rom time ta tim�
<br /> ta pe�mit such partiGipation.
<br /> Comp��ance Wi�h Laws. Trus�tQr warran'ts that the Property and Trustor's use ofi �he Property comp�ies with af�
<br /> existing app[icable laws, vrdinances, and regulations a�F governmen�tal authorities.
<br /> Sur��►rat o� Represen�atians and Warranti�s. All representa�ions, war�anties, and agreements made by Trustor in
<br /> this Deed afi Trust shafl sur�i�e the ex�cution and def��ery of�this De�d af Trust, shall be cvntinuing in nature, and
<br /> sha[[ remain in full force and e�fect unfiil such time as Trustor's lnd�bt�dness�hall be paid in�ull.
<br /> CaNDEMNATI�N. The�olfo►rving pro�isiflns rela�'rng ta cond�mnation proceedings are a part a��h�s Deed of Trust:
<br /> Praceedings. lf any proceeding in condemnation is �i�ed, Trustor shall promptly n�tify Lender in wri�ing, and
<br /> Trustor shafl promptly take such s�eps as may be necessary fia defend the actian and vbtain the avvard. Trustor
<br /> may be t�he naminal party in such prviceeding, but Lender shaf f be enti�led to particiPate in th� prac�ed�ng and to be
<br /> represented in the proceed�ng by counse� o� i�s own chvice, and Trustar wilf deli�er or cause to be defi�ered �o
<br /> Lender su�h instrumen�5 and documentatian a� may be reques��d by Lender from time to time tv permit such
<br /> �aarfii�ipativn.
<br /> Applicativn vf Ne�Prviceeds. ['�al� or any part o�the Property is candemned by eminent domain praceedings or by
<br /> any proceeding or purchase in lieu o�condemna�ion, Lender may at its e[�c�ian require that all or any portion of the
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