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2� 1 �� 14� 1
<br /> DEED �F TRUST
<br /> ��ontinu�d} Page 3
<br /> form, amounts, ca�erages and basis r�asvnably accepta�le t❑ Lender and issued by a company or cvmpanies
<br /> reasonably acceptable ta Lender. Trustor, upon request of Lender, will deli�er to Lend�r from tim� to time �he
<br /> poli�i�s or certificates of insurance in �form satisfactary tv Lender, inc�uding sfiipu�atians that co�erag�s will not be
<br /> cancelled ❑r diminished withvut at least th�rty �34� days prior written notice to Lender. Each insuran�e policy also
<br /> shall inc[ude an endorsement pro�iding that co�erage in�a�or of Lender will not be impaired in any way hy any act,
<br /> omissivn or defau[t of Trustor or any other person. 5hau�d the Reaf P�vper�y b� Ivcat�d in an area designated by
<br /> �he Administra�vr a�the Federa! Emergency Management Agency as a special flaod hazard area, Trustor agrees to
<br /> obtain and main�ain Federal Flaod Insurance, i� a�ailable, for �he �ull unpaid principa! balance of the loan and any
<br /> prior �iens on the p�oper�y securing the loan, up to th� maximum pa�icy �imits set under �he National Flood
<br /> [nsurance Program, �r as otherwise required by Lender, and to maintain such insurance#vr the term of the €oan.
<br /> Application o� Proceeds. Trus�or shall promptly notify Lender o� any loss or damage �o the Property. Lender may
<br /> make proof �� ioss if Trustor fails to do so within fif�een �15} days ❑f th� casualty. Whe�her or nQ� Lender's
<br /> security �s impaired, Lender may, at Lender's election, re�ei�e and re�ain the praceeds o�any insurance and apply
<br /> fihe proceeds to the reductivn of the Indebtedness, paymen# �� any lien affect�ng �he Prap�rty, or the restaration
<br /> and repair of the Property. If Lender elects to app�y the proceeds to restoration and repair, Trustor shall repa€r or
<br /> rep[ace the damaged vr destroyed lmpro�ements in a manne� satisfactory to Lender. Lender shall, upan
<br /> satisfa��tory proo# af such expenditure, pay or reimhu�se Trustvr fi�am the pr���eds �or �h� reasonable cost v�
<br /> repa�r ❑r restoratian if T�ustar is nat in d�fault under this Deed of Trust. Any proceeds which ha�e not h�en
<br /> disE�ursed within 1$Q days a#ter �heir receip� and which Lender has na� �ommitted �o the repair or restora�ion o�
<br /> the P�aperty sha11 he us�d firs�to pay any amount awing t❑ Lender under th�s Deed of T�ust, then to pay accrued
<br /> interest, and the remainder, if any, shall be applied to the principal balan�e o� the Indebtedness. If Lender holds
<br /> any praceeds after payment in fuf[ o� the Indehtedness, such pro�eeds shall be paid �a Trustor as Trustor's
<br /> interests may appear.
<br /> Trustar's Repart on lnsurance. Llpon r�quest of Lender, hvwe�er not more fihan once a year, Trustor shall furnish
<br /> tv Lender a report on each exis�ing palicy af insurance showing: �1} the nam� of the insurer; �2} the risks
<br /> insured; �3y the amount o# the policy; �4} the pr�perty insur�d, the �hen curren� rep�acement �alue of such
<br /> prQperty, and the manner of de�ermining that�alue; and �5} �he �xpiration date of�he policy. Trustor shall, upan
<br /> requ�st of Lender, ha�e an independent appraiser satis�actory to Lender determ�ne the�ash�alue replacemen�cost
<br /> of the Property.
<br /> TA� AND INSURANCE RESERVES. Subject to any lim��ations and consisten� with any requir�men�s set by applicab[�
<br /> law, Lender may require Trustar tv maintain with L�nd�r reser�es for paymen� o� annual taxes, assessments, and
<br /> insurance premiums, which reser�es shall be created by an initia� deposit and subsequent mon�hly payments, or
<br /> payments a�such other int�r�al as payments under the Nate may be due, of a sum estima�ed by Lender�o k�e suffici�nt
<br /> to pay fihe �ota� annual taxes, assessments, and insurance premiums Lender reasanably ant+�ipa�es to be paid frvm
<br /> these reser�es. The reser�e funds shal! be held hy L�nd�r as a general deposit�from Trustor, which Lender may �atis�y
<br /> by paymen� of �he taxes, assessments, and �nsuranc� premiums required �o be paid �y Trus�or as they became due.
<br /> Lender shall ha�e �he right to draw upon the rese��e funds to pay such items, and Lender shall not be rsquired to
<br /> determine the �alidity or accura�y a� any i�em be�ore paying it. Nathing in the aeed o� T�us� shal[ be �onstrued as
<br /> requir�ng Lender to ad�ance other mon�es �vr such purpas�s, and Lender shall nat incur any {iability fior anything it may
<br /> do or omit t� do wi�h respect tv the reser�e a�c�unt. 5ubject ta any limi�ations set by applicable law, if the reser�e
<br /> �unds disclose a shartage ❑r deficiency, Trus�ar shall pay such shortage or deficiency as required by Lender. All
<br /> amaunts in the reser�e accaun�are herehy pledged to fur�her secure the Indebtedness, and Lender is hereby authorized
<br /> t� withdraw and apply such amounts on the lndebtedness upon the accurrence af an E�ent o�Defau[t. Lender shal� na�
<br /> �� required �o pay any interest flr �arnings on the reser�e funds unless requi�ed by law �r agreed ta by Lender in
<br /> writing. Lender dves nat hold the reser�e funds �n trust for Trustor, and Lender is not Trus�or's ag�nt for payment of
<br /> �h��axes and assessments requ€red to be paid by Trustvr,
<br /> LENDER'S EXPENDlTURES. I�any action ❑r proceeding is commenced that wvuld materially af�ect Lender's interest in
<br /> the Property or i�Trus�or fails �o comply with any pra�is�on of this ❑eed of Trus#or any Related ❑ocuments, including
<br /> but not limi�ed fio Trustor's failure to discharge ar pay when due any amoun�s Trusfior is required to discharge or pay
<br /> under th�s Deed a�Trus�or any Related Dacumen�s, Lender an Trustor's hehalf may �but shall nat be abligated to� �ake
<br /> any activn that Lender deems appropriate, including but no� limited t❑ discharging ar paying a!1 taxes, li�ns, security
<br /> �nterests, encumbran�es and ather claims, at any time 1��ied ❑r placed on�he Property and paying all cvsts fvr insuring,
<br /> mainta�ning and preser�ing the Property. All such expenditures incurred or paid f�y Lender for such purposes will then
<br /> bear interest at the rat� charged under the Nvte �rom the date incurred or paid hy Lender ta the da�e o� repayment hy
<br /> Trustor. All such expenses v►rill b�com� a part o� the Indebtedness and, at Lender`s aption, will 4A� be payab�e on
<br /> demand; �B} be added #o the ba�ance of the Note and b� apportioned among and be payable with any insta��ment
<br /> payments to become due during either ��) the term �f any appliGable insurance policy; ar �2y the remaining te�m of
<br /> the Note; or �C� be trea�ed as a k�alloon paymen� which wi11 be due and payable at�he No�e's maturity. The Deed of
<br /> Trust a�sv will secure paym�nt ofi these amounts. Such right shall be in addition to all o�her r�ghts and remedies �a
<br /> which Lender may be en�itled upvn Default.
<br /> WARRANTY; DEFENSE DF TITLE. The f�l[ow�ng pro�isi�ns relating to ownership of the Property are a part a�this Deed
<br /> of Trust:
<br /> Tit[e. Trustor warrants that: {ay Trusta� holds go�d and marke�ab[e title of recQrd to the Property in fee simple,
<br /> �ree and clear of all liens and encumbrances v�her than thase set forth in the Real Praperty des�ription or in any
<br /> title insuran�e po�icy, title repor�, or fina� title apinion issued in �fa�or o�, and accepted by, Lender in connection
<br /> with this ❑eed of Trust, and {b� Trust�r has the full right, power, and authority t��xe�u��and deli�er this Deed of
<br /> Trust to Lender.
<br /> Defense o#Title. Subje�t to the except�on in �he parag�aph abo�e, Trustar warrants and wiEl fore�er de�end �he
<br /> title �o the Property against�he lav►rful claims �f all persons. [n the e�ent any action or proceeding is cvmmenced
<br /> that ques�ions Trustor's tit[e or the interest❑�r Trustee or Lender under�h�s Deed o�Trusr, Trustor shall de��nd the
<br /> acti�n at Trustor's expense. Trus�or may be the nomina� party in such proce�ding, but Lender shall be entitled to
<br /> part�cipate in the prviceeding and to be represen�ed in �he praceeding by c�unse� of Lender's own chaice, and
<br /> Trustor will deli�er, ar cause to he deli�ered, to Lender such �ns�ruments as Lend�r may request�rom �ime t❑ time
<br /> ta permit such participation.
<br /> Gvmpt�an�e Vtilith Laws. Trusto� warrants that the Property and Trustor's use of the Prvperty complies with all
<br /> existing applicable [aws, ordinances, and regu[at�vns of go��rnmental author�ties.
<br /> Sur�ivat of Representations and Warran�ies. AI� representations, warranties, and agreements mad� by Trustor in
<br /> this D��d o�Trust shall sur�i�e the execution and deli�ery ❑�this Deed of Trust, shall be continuing in natur�, and
<br /> shall rema�n in fu�l�a�ce and ef�ect until such time as Trustor's Indebt�dn�ss shall be pa�d in full.
<br /> C�NDEMNATI�N. The�ollowin� pro�isions relating to condemnat�vn praceedings are a part of fihis ❑e�d of Trust:
<br /> Pro�eedings. If any prviceeding in cvndemnat��n is filed, Trustor shalf pramp�ly nat�fy Lend�r in wri�ing, and
<br /> Trus�or shali prompt�y take such steps as may be necessary t❑ defend the action and ot�tain the award. Trustor
<br /> may be th� nvminaf party in such proc�eding, but Lender shall �ae enti�led to participate in the proceeding and to be
<br /> rep�esented �n the pr�ce�ding by counsel of its ov►rn choice, and Trustor wif[ deli�er or cause to be de�i�ered to
<br /> Lender such instruments and documentativn as may i�e request�d by Lend�r �r�m time ta time �v permit such
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