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2� 1 �� 1397
<br /> �E�v �F T�usT
<br /> ���ntinued� Page �
<br /> Property in an amaunt suffictent t� a�oid applicatian of any coinsuran�e clause, end with � standard martgagee
<br /> clause in fa�or of Lender. T�ustor shal!a�sv pracurs and me�ntain camprehensi�e�enerel liability insuran��in such
<br /> ca�erage amounts as Lender may request with Trustee and Lender t�eing named as additians� insureds �n such
<br /> �iability insurance po�icies. Additional�y, Trustar shall maint�in such uther insurance, including but n�t lim�ted to
<br /> haza�d, business interruptivn, and bailer insu�ance, as Lender may reasonably require, Pa�icies sha�l be written in
<br /> form, amaunts, co�era�es and basis reasonably acceptable t� Lender �nd issued by a company or compen�es
<br /> r�asonably a�ceptahle tv Lender. Trustor, upon request o� Lender, wil! de�i�er to Lender from time to time the
<br /> palicies v�cgct�ficates of�nsurance in farm satis#actocy to Lsnds�r. in�ludsng stipuRations that�v�erages will not be
<br /> cancef[ed or diminished withaut a�least thirty �3�f days prior wr�tten notice to Lender. Each�nsurance policy a�so
<br /> shall include an endorsernent pro�iding that c�verage in fa�or ot Lender wi�l not be impaired in any way�y any act,
<br /> omission or default of Trustvr or any other persan. Shauld the Real Propsrty be Ivcated in an area designated by
<br /> the Admin�strator o#the Federal Emergency Management Agency as a spe�ial fEaod ha�ard area, Trustor agr�es#�
<br /> obtain and ma�nta�n Federal Flvod Insurance, if a►►ailable, fo�the full unpaid principal baiance of the loan end any
<br /> priar liens an the property securing the laan, up to the maximum poli�y �imits set under the Nat�onal Fiood
<br /> Insuran�e Program.or as otherwise required by Len�er. end to maintain such insu�ance for the term of the Ioan.
<br /> Appfication of Pra�seds. Tru$tvr shail prompt�y natify Lender a�any iass ar dema�e t�the Pr�perty. Lender may
<br /> make praaf vf lass if Trustor �ails ta do sa within fifteen �9 5� days of the �esualty. Whether vr not Lende�'s
<br /> se�urity is impaired, Lender may, at Lender's e�eGtion, recei�e and retaln the proe�eds of�ny insurance end apply
<br /> thg proceeds to the reduction af the indebtedness, peyment af eny �ien affecting the Property, vr the restor�tion
<br /> and repair a�the Property, If Lender elects tv �pply the procee�s to restoration �nd repair, Trustor shall repair or
<br /> reptace the damaged or destrayed �mpto�ements in a manner sstis#actory to Lender. tender she��, upon
<br /> satisfa�tory proa�F at such expenditure. pay or reimburse Trustor fram the proceeds for the reasan�ble cost af
<br /> repair ❑r restaration �f Trustor �s not in de�au�t under th�s ❑ged �f Trust. Any p�ocasds which ha�e not been
<br /> d+'sbursed within �8Q days after their receipt and whi�h Lender has not cvmmitted to �he rep�ir or restar�tion o#
<br /> the Property shal� be us�d first t❑ pay any amaunt❑wing#a Lender under this Deed of Trust� then ta pay ��crued
<br /> interest, and the remainder, if any, shall be appiied to the principal balance of the �ndebtedness. �# Lender holds
<br /> any proceeds after paymen# in full of the Indebtedness, such prviceeds shall be paid tp Trustor as Trus#ar's
<br /> interests may appear.
<br /> Trustor's Repart an lnsuran�e. Upan request of Lender, however nvt more than once a year,Trustor shell furnish
<br /> to Lender a report nn each �xisting policy of insurance showing: I Z� the name of the insurer; t�� the risks
<br /> insured; �3y the �mount o� the policy; ��f #he proRerty insured, the then curr�nt replecement �elue o� such
<br /> property. and the manne��f determining tha#�aiue; and t5} the expiration date af the policy. Trustor shall, upon
<br /> request of Lender. ha�e an independent eppr�iser�atisf�ctvey to Lender dete►mine th�cash��iue rep�acement c�s#
<br /> o�the Prvpsrty.
<br /> TA�C AND lNSURANCE RESERVES. Sub�e�t t� any limitations and consistent with any requErements s�t by ap�licable
<br /> I�w. Lender may require Trustor to maintain with Lender resen►es for peyment o� ennual taxes. assessments► and
<br /> insurance premiums, wh�ch reser�es shall be created by an in�t�al depastt and suhsequent monthly payments, ❑r
<br /> payments at such other inter�ai as payments unde�the hlot� m�y be due, nf a sum estimated by Lender to be sufficient
<br /> tv pay the tot�l annual taxes, �ssessments, end insurance prem�ums Lender r�a�onab�y anticipates ta bs paid from
<br /> th�se �esar�es. The�eser�e funds shail be hesd by Lender as a generat deposit from Trustor, which Lender may satisfy
<br /> by paym�nt of the taxgs. �sseasments, and insuranca premiums requ�red to he paid by Trustor as they bacflm� due.
<br /> Lender shall ha�e the ri�ht to draw upon the ras��va funds tv pay such itsms. end Lender sha�� n�t t�e required t8
<br /> determine �he �aiidity or accuracy of any item before pay�n9 it. Nothing in the �eed of Trust shall be canst�rued as
<br /> requiring Lender to ad�ance other monies for such purpasss� and Lend��shall nat incur any liahility for anythRng'st rrtay
<br /> da or omit to dv with respect to �he resen►e ac�au�t. 5ubjact tv a�y �imitetions set by appficable law, i#th� reser�e
<br /> funds disc�ose a shartage or deficiency� Trustflr sha�l pay such shortage ❑r deficiency as requ�red by Lende�. All
<br /> amounts in the reser�e aGcvunt are herehy pledged to furth�r secure ths lndebtedness� and Lender is hereby authorized
<br /> ta wi�hdraw and epply such emounts on the Indebtedness upon the oc�urren�e o�an E�ent af Default. Lender sh�ll not
<br /> be requ�red ta pay any interest vr ea�nings on ti�e raser�e #unds un�ess required by law vr agresd to by �.ender in
<br /> writing. Lender does no# hold the rese+ve funds in trust�ar Trust�r. and Lender is not Trustor's agent#ar paym�nt of
<br /> the taxes and assessmsnts�equiced to k�e paid by Tfustor.
<br /> LENDER'S EXF�N�ITURES. I�eny action �r pr�ceeding is cammenced that wvu�d materially affe�t Lender's interes�in
<br /> the Prope�ty ❑r if Trustor�ai�s to c�mply with any pra�ision�f this Deed af Trust or any Related aacumenis. including
<br /> but not iimited ta T►ustor's �ailure to discharge ar pay when due �ny emaunts Trustor is required to discharge ❑r pay
<br /> under this ❑ead of Trust fl�a�ny Re�ated DaGuments, Lendet on Trustar's behaif may �but sha11 nvt be obligs#ed to� take
<br /> any actEvn that Lender deems appropriate, including but not limited to discharging flr paying afr taxes, liens, security
<br /> interests, encumbrances and❑ther G[aim$,at any ttme levied or placed an the Prvperty and paying all costs for insuring�
<br /> maintaining and p�eser�ing the Property. AI� su�h expenditures incurred or paid #�y Lender far such purposes will then
<br /> bear interest �t the rate cha�rged under the Note from the date incurred ❑r paid by Lender to the date of repeymsnt by
<br /> Trustor. AEf such exp�nses w��! became a part of ths fndebtedness and, at Lender's optian, wi�! �Ay ba payeble an
<br /> demand; �B� be added to �he baiance of the N�te and be apportioned among and t�e payable with any installment
<br /> payments ta be�ome due during �ith�r t 1� the term of any app�icable insur�nce poticy; or �2j the remaining term of
<br /> the Nvte; or �C) be trsated as a balloon payment which wiit be due and payeble at the Nate's maturtty. The Deed of
<br /> T:ust a�so wi!! secure paymant of xhese amounts. Such right shall be in addit�on to all vther rights and remedies t�
<br /> which Lender may be entitled upon�efault.
<br /> WARRANTY;DEFENSE�F TITLE. The tol�owing prv�isions relat�n�t�ownership o�the Property are a part of this Deed
<br /> o�Trust:
<br /> Title. Trustnr war�ants�hat: ta� Trustor holds gaod and m�rket�ble tit�e of record ta the Property in fee simple,
<br /> free and clear af a�i iisr,s and encumbrances �ther than thvse set forth in the Rea! Property description or in any
<br /> title insurance pol+cy, title r�pvrt� or �Final title opinion issued in fa�ar qf, and ac��pted by, Lender in cannectEan
<br /> with this Deed af Trust, and �hf Trust�r has the full right� p�wer. and authority to execute and deli�er th�s Deed of
<br /> Trust tv Lender.
<br /> Defanse of Title. Subject to the ex�eptian in the para�raph aba�e, Trustor warrants and will fa�a�er defend the
<br /> title t�the Property egainst the lawfu!claims af all persons. In the e�ent�ny action or proceeding is commenced
<br /> that quest�vns Trustor's titie or the interest of Trustes vr Lendsr under this Deed vi Trust, Trustvr sh�ll de#end#he
<br /> a�tion at Trustor's expense. Trustor may be the nomina� party in such proceeding, but Lender shal� be entitled to
<br /> participate in the proce�ding and to be repreaented in the proceeding by caunsei a# Lender's own choice, and
<br /> Trustor wisl deli�er, ar cause to be delivered. to Lender such�nstruments as Lender ms�y requsst fram time to tim�
<br /> to p�rmit such participation.
<br /> Campliance With L�ws. T�ustor w8rrants thet #he Property and Trustvr's use of the Prop�rty complies with alf
<br /> ex�sting appficable laws, vrdinances,and regu�ations ot go��rnm�ntal authoritias.
<br /> Sur�i��l vf Re�resentatinns and Warranties. Aii represen#ations. warranties, and agreements made by Trustor in
<br /> this Deed o#Trust sha��sur�i�e the�xecution and deli�ery of this Deed�f Trust, sh�!! be cantinuing in neture, and
<br /> shali remain in#ull fvrce and effect until such time as Trustor's lndebtedngss shali be paid in full.
<br /> C�NDEMNATi�N. The�vllowing pro�isions re�ating to canderr�n�tion pra�eedings are a aart o�this Deed of Trust:
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