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2� 1 �� 1388
<br /> DEED []F TRUST
<br /> 4�ontinued� Pa�e 3
<br /> policies �r certificates of insurance �n form satisfactory to L�nder, including stipulations �hat co�erages wi�� n�t be
<br /> canCel�ed or dimin�shed without a� least th��ty t3�� days prior written notic� to Lender. Each �nsurance policy also
<br /> shall inG�ude an endorsement pro�iding�hat c��erage in fa�or v#Lender will nat b� impaired in any way by any act,
<br /> vmission or default of Trust�r or any other persan. 5hauld the Real Property he located in an area designated f�y
<br /> the Administrator o�the Federa� Emergency Management Agency as a spe�iaf ��oad ha�ard area, Trus�ar agrees to
<br /> obtain and maintain Federal F[ovd Insuranc�, i� a�ailable, for �he full unpaid principal balance a��he loan and any
<br /> prior liens on the proper�y securing the loan, up to the maximum poli�y limits se� under �he Na�ionaf Fload
<br /> [nsurance Program, �r as otherwise required hy Lender, and t� maintain such insurance for the term vf the lvan.
<br /> Applicat�on of Pro�eeds. Trustor sha�l prvmptfy noti�y Lender ❑f any Ioss �r damage ta the Property. Lender may
<br /> make proo� o# loss if Trustor fa��s fio do so within fifteen {15� days of �he casualty. VIlhether or na� Lender's
<br /> securi�y is impaired, Lender may, at Lender's ef�ct�on, recei�e and retain the proceeds �f any insurance and app�y
<br /> the proceeds to the reduction �f the Inde��edness, paymen� ❑f any lien affecting the Property, or the restvration
<br /> and repair o#the Praperty. 1f Lende� elects to apply the pro��eds to restoration and repair, Trustor shall repair or
<br /> replace the damaged or destroyed lmpra�ements in a manner satis�fac�vey to Lender. Lend�r shall, up�n
<br /> satisfac�vey p�oof of such expenditure, pay or raimburse Trustor f�om the proce�ds for the reasanable cost of
<br /> r�pair ar restorativn if Trus�or is nat in default under this ❑eed of Trus�. Any proce�ds which ha�e no� be�n
<br /> disbursed within �8� days af�er their receipt and which Lender has not committed tv the repair or �estora�ion �f
<br /> th� Proper�y shall be used first tv pay any amount owing to Lender unde� this ❑eed o�Trust, then ta pay accrued
<br /> in�t�r�st, and the remainder, if any, shali be applied to the principal ba�ance ofi the lnd�btedness. If Lender holds
<br /> any praceeds a�ter payment in �ull o� �he Ind�btedness, such pr�ceed� shall be paid ta Trustar as Trus�or's
<br /> interests may appear.
<br /> Trustor's Report on Insuranc�. Upon reques�af Lender, howe�er n�t more than once a year, Trusta� shall �urnish
<br /> �o Lender a report on each exis�ing po[icy of insurance showing; �1� the name of the insurer; ��� the risks
<br /> insured; �3y the amount o� the pvlicy; {4� the property insured, the �h�n �urrent r�p�acement �a�ue vf such
<br /> property, and the manner a�determining that�alue; and �5} the expirat�on date of the pol�cy. Trus�or sha�l, upon
<br /> request❑f�ender, ha�e an independent appraiser satis�acto�y to Lender de�ermine the cash�alue replacement cast
<br /> of�h� Proper�y,
<br /> TAX AND INSURAN�E RESERVES. Subject ta any [imi�a�ians and consistent ��rvith any requ��em�nts set by applicable
<br /> law, Lende� may requir� Trust�r �o main�ain with Lender r�ser�es for payment of annual taxes, assessments, and
<br /> insurance premiums, whi�h �ese��es shall b� created by an initial deposi� �nd subsequent monthly payments, vr
<br /> payments at such other in�er�al as payments under the Note may be due, a�a sum estimated by Lender to b� sufficient
<br /> �v pay �h� tatal annual �axes, assessments, and insuran�e premiums Lend�� reasonably anti�ipates to be paid from
<br /> �hese reser�es. The reser�� funds shall b� held by Lender as a general d�pasit from Trustar, which Lender may sa�isfy
<br /> by payment �f the taxes, assessments, and insurance prem�ums required �o be paid by Trustor as th�y becflme due.
<br /> Lender shall ha�e the right to draw upon the reser�e �unds tv pay such �tems, and Lender shall nvt be required to
<br /> determine the �a�idity or accuracy of any item before paying it. N�th�ng in �he Deed o� Trus� shall be construed as
<br /> requiring Lender to ad�anc� other monies for such purposes, and Lender shall not incur any liability �or any�hing it may
<br /> do ar omit to do with resp�ct �o the reser�e account. Subject to any limi�ations s�t by appli�ab[e �aw, if �he reser�e
<br /> �unds disclose a shortage or defic�ency, Trustor shall pay such shortage �r d��icien�y as requi�ed by Lender. All
<br /> amounts in the reser�e accoun�are hereby pledged ta�ur�her secu�e the Indebtedness, and Lender is hereby authorized
<br /> ta w�thdraw and apply suGh amounts on�he lnde�tedness upon the occurrence of an E�en�❑f De#au�t. Lender shall not
<br /> !�e required to pay any in�erest or earnings an �he reser�e funds unless requ�red by iaw ar agreed to by Lender in
<br /> writing. Lender daes not hold the r�ser�e funds in trust for Trustvr, and Lend�r is no�Trustar's agent for payment of
<br /> the taxes and assessments required to be paid hy Trustor,
<br /> LEN�ER'S E?CPENDITURES. lf any action or proceeding �s commenced that wc�uld ma�erially a��ect Lender's interest in
<br /> the Praperty vr if Trustor�ails to comply with any pro�isivn o��his Deed of Tr�st or any Related ❑o�um�nts, including
<br /> but nv� limit�d to Trustor`s faiiure to discharge or pay wh�n due any amounts Trustor is r��uired to discharge or pay
<br /> under thEs ❑eed vf Trust or any Reiated Do�uments, Lender on Trus�or's behal�may ��ut sha�� not be obligated ta� take
<br /> any action tha� Lender deems appropriate, including but not limi�ed �v discharging vr paying all taxes, liens, se�uri�y
<br /> interests, en�umbrances and other claims, at any�ime fe��ed or pla�ed on the Property and paying all costs for insuring,
<br /> maintaining and preser�ing the Proper�y. A�� su�h �xpend�t�res incurred or paid by Lender �or such purpases will �hen
<br /> bear interes� at the �ate cha�ged under the No�e frvm the date incurred or pa�d by L�nder to the date of repaymen� by
<br /> Trustor. All such expenses will becom� a par� of th� �ndebtedness and, at Lender's option, will �Ay be paya�le vn
<br /> demand; �B� be added to �he balance o� the Not� and be apportioned among and be payable with any installment
<br /> payments ta bec�me due during ei�her �13 �he �erm of any applicable insuran�e poli�y; ar t2� �he rema�ning �erm of
<br /> the Not�; or �C� be trea�ed as a ballo�n payment which will be due and payable a�the Note's ma�uri�y. The Deed af
<br /> Trus� a�sa will s�cure payment of �hese amaun�s. Such right shall be in add��ian to a�l other rights and remedies to
<br /> which Lender may be entitled upvn Defau�t.
<br /> WARRANTY; DEFENSE QF TITLE. The f��lnwing pro�is�ons rela�ing to ownership of the Property are a part vf this ❑eed
<br /> �f Trust:
<br /> Title. Trusfior warrants �hat: f a� Trustor holds gaad and marketabfe title of recard �a the Property in fee simple,
<br /> fr�e and clear of all liens and encumbrances ather than those set �orth in the Rea� Proper�y desc�ipti�n or in any
<br /> tifife �nsurance policy, title repor�, or �inal title opinion issued in fa�or v�, and accepted by, Lende� in connection
<br /> wi�h this ❑eed of Trust, and tby Trustar has�he fu[I right, power, and authvrity to�xecute and de[i�er this Deed of
<br /> Trust ta Lender.
<br /> Defense of Title. 5u�ject to �he exc�ptian in the paragraph abo��, Trustor warrants and will fore�er defend the
<br /> tit�e to the Property against the lawful claims of alf persons. ln the e�ent any a�ti�n or proceeding is �ommenced
<br /> that questions Trustor's�itle �r the interest of Trustee or Lender under this ❑eed o�Trust, Trustor shall defend �h�
<br /> a�tion at Trustor's expense. Trustor may be the nominal par�y in such pro�eeding, but Lender sha�� be en�i�led to
<br /> participa�e in the pr�ceeding and to be represented in the proceeding by counse[ o� Lender's vwn choice, and
<br /> Trustor will del��er, or cause �o be d��i�ered, to Lender such instrum�nts as Lender may request��om time't❑tim�
<br /> to permi�such participat�on.
<br /> Compliance 'Vlrith Laws. Trus�or warrants tha� the P�aperty and Trustor's use vf the Proper�y complies wi�h all
<br /> exist�ng applicable laws, ordinances, and regula�ions o�go�ernmental authorities.
<br /> Sur�i�al vf Representations and 1Narran#�es. All representations, warrant�es, and agreements made by Trustar in
<br /> this Deed of Trust shall sur�i�e the exeeution and deli�ery v�this Deed o�Trust, shall be continuing in nature, and
<br /> shall remain in fu[f�a�ce and e�#ect un�il su�h time as Trustar's Indeb�edness shall be paid in�ul�.
<br /> CaNDEMNATlDN. Th�fv�lawing prv�isions relating to condemnation proceedin�s are a part o�this Deed of Trust:
<br /> Proceedings. I# any proceeding �n condemnation �s filed, Trustar shall prompt[y natify Lend�r in writing, and
<br /> Trustor shall pramp�ly take such steps as may be necessary to defend the action and o�tain the awa�d. Trustar
<br /> may be�he nominal party in su�h pro�e�ding, but Lender shall be entit��d to par�icipate in the proceeding and to be
<br /> represented in the proceeding by C�un5e1 of its own choice, and Trustor will deli�er or cause to be defi�er�d to
<br /> Lend�r such �nstrum�nts and documentation as may �e reques�ed by Lender from time ta �ime ta p�rmit such
<br /> partic�pation.
<br /> Applica#ion o#Net Proceeds. I�a11 or any pa�t of the Prope�ty is cond�mned by sminent domain proceedings or �y
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