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2� 1 �� 1719
<br /> DEED �F TRUST
<br /> �C�t1tiClued� Page 3
<br /> impro�ements.
<br /> PRDPERTY DAMAGE INSURAN�E. The following pro�isions relating �� insuring the Property are a part o��his Deed af
<br /> Trust.
<br /> Ma�ntenance of Insuran�e. Trustor shall procure and maintain policies o� �ire insurance with standard extended
<br /> co�erage endorsements on a replacement basis for the fu[� insurable �alu� co�ering all Impro�ements on th� Rea!
<br /> Property in an amount sufficient to a�oid application of any coinsurance clause, and with a standard mortgagee
<br /> cfause in fa�or of Lender. Trustor shall als❑ procure and maintain comprehensiv�gen�rai liability insurance �n such
<br /> co�erage amaunts as Lender may request with Trustee and Lender being named as addi�ivna� insureds in such
<br /> liat�ili�y insurance policies. Additionally, Trustor shalC maintain such other insurance, in�luding but not limited to
<br /> hazard, business interruptivn, and boiler insurance, as Lender may reasona�ly require. Policies shal� be written in
<br /> form, amounts, co��rages and basis reasonahly a�ceptahle to Lender and issued hy a company or compani�s
<br /> reasonab�y acceptab�� ta Lender. Trustor, upon request a� Lender, will deli�er �o Lender �rom time tv �ime the
<br /> policies or �er�ifi�a#es o� insuran�e in �orm sat�sfa�tory to Lender, in�luding stipulations that ca�erages wil[ nat bs
<br /> cancelled ar diminished without at least thirty {3�} days prior written natice �v Lender. Each insurance pvlicy als❑
<br /> shall include an endorsement prv�iding tha��o�erage in�a�vr vf Lender wi11 nvt be impai�ed in any way by any act,
<br /> om�ssion o� defau[t of Trustor ❑r any ❑ther person. Shouid �he Real Proper�y be lacated in an ar�a designat�d by
<br /> th� Administra�or o�the Federai Emergency Management Agency as a special fload hazard area, Trus�vr agrees tv
<br /> abtain and maintain Federal Flood Insurance, if a�ai[ahie, for the �ull unpaid principai balance af the foan and any
<br /> prior liens an the property securing �he loan, up �a the max�mum policy limits se� under �he Natiana� Flood
<br /> lnsurance Program, or as otherwise required by Lender, and to ma�ntain su�h insurance for�he t�rm ❑f the ioan.
<br /> App�i�ation of Proc�eds. Trustor sha�� pramptly noti�y Lender af any foss or damage to the Proper�y. Lender may
<br /> make praof o� �ass if Trustor fails fio dv so within fifteen ��5� days of th� casual�y. Whether or not Lender's
<br /> se�urity is impaired, Lender may, at Lender's e[ecti�n, recei�e and re�ain the proceeds a�any �nsurance and apply
<br /> the proceeds to the reduction of the Indebtedness, payment o� any lien a�fect�ng the PrQp�rty, or the restorativn
<br /> and repair of the Property. [f Lende� elects to app�y the prviceeds to restoration and repair, Trus�or shail repair or
<br /> repface the damaged or destroyed Impro�ements in a manner satisfactvey to Lender. Lender sha11, upon
<br /> satisfac€ory prvaf ❑f such expenditure, pay or reimburse Trustvr �rom the pro�eeds far the reas�nable cost flf
<br /> repair or restora�ion i� Trustor is n�t in defauft under this Deed �f Trust. Any pro���ds which ha�e nat �een
<br /> disbursed within 1 S� days after their receipt and which L�nder has not cammi��ed to the repair or restora�ion o�F
<br /> �he Property shall be used �irst to pay any amoun�orrving to Lender under this ❑eed o�Trust, then �� pay accrued
<br /> in�erest, and �he remainder, if any, sha[� be applied to the principal balance ofi the Indeb�edness. If Lender halds
<br /> any proceeds aft�r payment in �ull of the Indebtedness, su�h proceeds shall be paid to Trustvr as Trustor's
<br /> in�erests may appear.
<br /> Trustor's Repor#vn lnsurance. Upon r�quest of Lender, howe�er not more than once a year, Trustor shall furnish
<br /> to L�nder a report on each existing policy of insurance show�ng: �1� �he name of the �nsurer; 42} the risks
<br /> insured; �3� the amount vf the pvl�cy; �4� th� prvperty insured, the then current replacemen# �alue ❑f such
<br /> property, and the manner af determ�nin� �hat�alue; and �5� the expira�ion date of the pol�cy. Trust�r shall, upon
<br /> reques�of Lender, ha�� an independent appraiser satisfactory ta Lender determine'�he cash�alue replacement cost
<br /> vf the Property.
<br /> TAX AND INSURANCE RESERVES. Sub�ect to any limitatians and consistent with any re�uirements set by appli�able
<br /> �aw, Lender may require Trustor �a maintain with Lender reser�es �or paymen� ❑f annua! taxes, ass�ssments, and
<br /> insurance premiums, which reser�es shall be crea�ed by an ini�ial deposit and subsequen� monthly payments� or
<br /> paymen�s at such other in�er�af as payments under the Nate may he due, of a sum estimated by Lende�-to be sut�icien�
<br /> to pay the to�al annual �axes, assessments, and insuran�e premiums Lender reasvnably antic�paxes to be paid �rom
<br /> �hese reser�es. The reser�e funds sha[� be held hy L�nder as a gene�al deposit from Trus�or, which Lender may sa�isfy
<br /> by payment of �he taxes, assessments, and insurance premiums required t❑ be paid by Trustor as they becvme due.
<br /> Lender shall ha�� the right tv draw upon �he reser�e fiunds to pay such i#ems, and Lender sha11 no� E�e required to
<br /> det�rmine �he �a�idi�y o� accuracy a� any item be�ore paying it. Nothing in the Deed of Trust shall be cons�rued as
<br /> requ�ring Lender to ad�ance other monies for such purposes, and Lender shall nvt incur any l�ability for anything it may
<br /> do or omi� t� do with respect to the reser�e ac�ount. Subj�ct to any limitatinns se'� by applicable law, if the reserv�
<br /> �unds disclose a shortage or de�iciency, Trustor shall pay such shartage or deficiency as required by Lend�r. A�1
<br /> amoun�s in�he �eser�e account are hereby pledged to�urther secure th� Indebtedness, and Lender is hereby authorized
<br /> to withdraw and apply such amounts on the Indebtedness upon�he occurr�nce❑fi an E�ent of Defauit. Lender shall not
<br /> be required to pay any interest or earnings an the res���e funds un�ess required by law or agreed to by Lender in
<br /> writing. Lender does na� hold the rese��e funds in trust for Trustor, and Lender is not Trustor's agen� fvr payment of
<br /> the taxes and assessmen�ts required to be paid by T�ustor.
<br /> LENDER'S EXPEND�TURES. If any action or pro�eeding is commenced tha� would ma�erial�y a�#ec� Lender's interest in
<br /> the Pr�perty or i�Trustor fails tv comp�y with any prv�isian af this Deed of Trust vr any Refated Dvcuments, including
<br /> f�ut not limited to Trustvr's fiailure to discharge flr pay when due any amounts Trustvr is required ta dis�ha�ge or pay
<br /> under this Deed vf Trust or any Related Documents, Lender on Trustor's behatf may �but shalf nat be ab[igated �o� take
<br /> any action that Lender deems appropriate, including hut nvt lim�ted tv dis�harging or paying af� taxes, [iens, security
<br /> �n�erests, encumbrances and a�her c�aims, a�any time le�ied or placed on the Property and paying all costs�o�insuring,
<br /> maintaining and p�-eser�ing the Property. All su�h expenditures incurred or paid by Lender �or such purp�ses will then
<br /> bear interest at th� rate charged under the Note �rom the date incurred or paid hy �ender to the date af repayment by
<br /> Trustvr. All su�h �xpenses will become a part of the Indebtedness and, at Lender`s option, will �A� �e payable on
<br /> demand; 46y be added �o the balance ❑f the Note and be appartivn�d amang and be payab�e with any installment
<br /> payments �o became due during either t�� �h� term af any applica�le insurance policy; or {2} �he r�ma�ning term of
<br /> the Note; or 4C} be treated as a bal�flon payment which will be due and payable a�the Note's maturity. The Deed v�
<br /> Trust alsv w�Il secure payment ❑f these amounts. 5uch right shal� be in addition to alf other rights and remedies �ta
<br /> which Lender may be entit�ed upon ❑e�ault.
<br /> VIIARRANTY: ❑EFENSE aF T[TLE. The following pra�isions re[ating�v ownership of�he Praperty are a part vf this Deed
<br /> of Trust:
<br /> Title. Trustor warrants that: �a} Trus�vr ho�ds gaod and marketable titfe a� record to �he Property in fee simpfe,
<br /> free and c��ar of all liens and encumbranGes other �han those se� forth in the Real Property descr�ption or in any
<br /> titl� insurance palicy, t�tle report, �r final title opinion issued in fa�or vf, and accepted by, Lender in connection
<br /> with�his C]eed of Trust, and �b� Trustor has the�ull right, pow�r, and authar�ty to execute and de[i�er this Deed v�
<br /> Trust ta Lender.
<br /> Defense of Title. 5ubject to th� excep�ion �n the paragraph abv�e, Trustar warrants and will fior���r defend the
<br /> �itle to the Property agains�the lawful claims of all persans. In the e�ent any action or prviceeding is cammenced
<br /> that questions Trusto�'s title or�he interest o�Trustee vr L�nder under this Deed of Trust, Trustor shall defend the
<br /> act�on at Trustor's expense. Trustor may be �he nominal party in such proceeding, but Lender shal[ be entitled to
<br /> participate in the proceeding and to be repres�nted in the proceeding by caunsel of Lender's ❑wn choice, and
<br /> Trustor w�ll deli�er, ar cause ta he deli�ered, to Lender such instruments as Lender may reques�frvm time to time
<br /> to permi�such participatian.
<br /> Cvmpliance Wi�h Laws. Trus�or warran�s that the Prvp�rty and Trus�vr's use of the Prop�rty campfies with alf
<br /> existing appficable law�, �rdinances, and regulatians of go�ernm�ntal authorities.
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