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2� 1 �� 172�
<br /> DEED DF TF�UST
<br /> �Contitlued� Page 3
<br /> policies or �erti�rica�es of insurance in form satisfactory ta Lender, incfuding stipulations that cv�erages will not be
<br /> �ancelled or d�minished withou�at [east thir�y �3�� days prior wr�tten no�ice t� Lender, Each insurance pvlicy also
<br /> sha�� include an endorsemen�pro�id�ng that co�erage in fa�or of Lender will not be impaired in any way by any act,
<br /> omission or d��ault of Trustor or any vther person. Shvuld the R�a! Property t�e �ocated in an area designated by
<br /> the Administratvr of the Federal Emergency Manag�ment Agency as a spe�iai �rlvvd hazard area, Trustvr agrees to
<br /> abtain and maintain Federal Flvod [nsurance, if a�ailable, �or the full unpaid principal ba[ance �f the Ivan and any
<br /> prior Eiens an the prvp�rty securing the loan, up to the maximum pvli�y limits set under the National Flaod
<br /> [nsurance Program, or as otherwise required by Lender, and to maintain such insurance for the term o�r the loan.
<br /> Applicat�on af Prviceeds. Trustor shall promptly noti�y Lender of any �oss or damage tv �he Property. Lender may
<br /> make proof o� �oss if Trustor fails to da so within �ifteen ��5j days vf the casualty. Whether or not Lender's
<br /> security is impa��ed, Lender may, at Lender`s �lect�an, recei�e and retain the praceeds o�any insurance and app�y
<br /> the praceeds to the redu�tivn vf the Inde�tedness, paymen� ❑f any lien affect€ng the Property, or the res�oration
<br /> and r�pair of the Property. [f Lender elects to app�y the prviceeds tfl res�oration and repair, Trustor shall repair ❑r
<br /> replaGe the damaged ❑� destroyed Impro�ements in a manner sa�isfactory to Lender. Lender shall, up�n
<br /> satisfactory p�-vof ❑f such exp�nditure, pay or reimburse Trustor from the proceeds for the �easonable cost afi
<br /> repair or restoration i�F T�ustor is nat in default under this Deed o� Trust. Any proceeds whi�h ha�e not been
<br /> d+sbursed within �8Q days after th�ir �-eceipt and which Lender has nvt committed tv th� rspair or restoratian o�
<br /> �h� Prvperty shall be used first to pay any amaunt owing to Lend�r under th�s Deed of Trust, then to pay accrued
<br /> int�rest, and the rema�nder, if any, shall be appfied tv �he principal balance o� the indebtedn�ss, If Lender ho�ds
<br /> any proceeds af�er paymen� in ful� o� #he Indehtedness, such proceeds shal� be pa�d �o Trus#ar as Trustor's
<br /> interests may appear.
<br /> Trustvr's Report vn lnsurance. Upon request of Lender, howe�er not more than once a year, Trustnr shall �urnish
<br /> to Lender a �epvr-� �n each existing poliGy v� insurance shawing: ��� the name o� the insurer; ��} the risks
<br /> insured; �33 �he amaunt of the pvlicy; �4} the prvperty insured, the then current replacement �alue of such
<br /> property, and the manner of determ�n�ng that�a�ue; and ��} the expiration date of the po�icy. Trustor shalf, upon
<br /> request o�Lender, ha�e an independent apprais�r satisfiactory to Lender determine�he cash�alue rep�acement cost
<br /> of the Property.
<br /> TAX AND LNSI]RAN�E RESERVES. Subje�t fio any limi�ations and cvnsis�ent w�th any requirements set by app[icable
<br /> law, Lender may require Trustor �o maintain with Lender reser�es �or payment �f annual taxes, assessments, and
<br /> insurance premiums, which reser�es shall be �r�ated by an ini�ial dep�sit and subsequen� mvnthly payments, or
<br /> payments at such other inter�a[ as payments under�he Not� may b�due, o�a sum estimated hy Lender to be su��icient
<br /> to pay the �tv�al annual �axes, assessments, and insurance premiums Lender reasonably anticipates �v he paid from
<br /> these reser�es. Th� reser�� funds shall be h��d �y Lende�as a general depvsi��rom Trustor, which Lender may satisfy
<br /> by payment of the taxes, ass�ssments, and insurance premiums required t❑ be paid by Trusfior as they become due.
<br /> Lender shall ha�e the right to draw upon the reser�e �unds to pay such items, and Lender sha1� not be required t�
<br /> determine the �alid�ty or accuracy of any item b�fore paying it, Nothing in the Deed vf Trust sha11 be construed as
<br /> requir�ng Lender to ad�ance other monies �or su�h purposes, and Lende�shall not incur any liaf�i��ty for anything it may
<br /> do or vmi� to do wi�h respect �o �he reser�e ac�ount. Sub�ect to any fimi�a#i�ns set by appficable law, �f the reser�e
<br /> funds disclose a shortage or deficiency, Trus�ar sha11 pay su�h shortage or de�iciency as required by Lender, A�1
<br /> amaunts �n th� reser�e accoun�are hereby pledged�� further s�cure the Indehtedness, and L�nder is he�eby autho�ized
<br /> to withdraw and apply such amounts❑n the fndebtedness upon the vccurrence o�an E�ent o�ae�fault. Lender shall not
<br /> be required ta pay any interest or earnings on the reser�e �unds unless required by law vr agreed tv by Lender in
<br /> writing. Lender does nat hold the reser�e funds in trust for Trustor, and Lender is not Trustvr`s agent �or payment of
<br /> �he taxes and assessments required to be paid by Trustflr.
<br /> LENDER'S EXPENDITURES. !f any aGtion flr proceeding �s commenced that wvuld materia�ly affe�t Lender's �nt�res� in
<br /> the Property ❑r ifi Trustar�ails �o comply with any pro�ision o�th�s Deed of Trust or any Re�ated Documents, inciuding
<br /> hut not limited tv Trus�or`s fai�ure to discharge or pay when due any amaunts Trustor is required �o discharge or pay
<br /> under this Deed of Trus�or any Rela�ed Do�uments, Lender an Trustar's �eha�f may 4but shall nat be obligated to3 take
<br /> any action that Lender deems appropriate, inc�uding but not 1imi�ed to discharging or paying a�� taxes, liens, security
<br /> interests, encumhrances and oth�r claims, at any�ime le�ied or placed on the Prvperty and paying a�� cvsts fvr insuring,
<br /> ma�ntaining and preser�ing the Property. A!� such expenditures incurr�d flr paid by Lender fvr such purpos�s will then
<br /> l�ear interest at the rate charged under the Note from the date incurred v� paid by L�nder ta the da�e of repayment �y
<br /> Trustor. All such expenses will become a par� of the fndeh�edness and, a� Lender's op�ion, will �Ay be payable on
<br /> d�mand; {B� be added �o the balance o# the Note and he apportivned amvng and be payabfe with any ins�a�Im�nt
<br /> paymen�s tv b�come due during either �1} the t��m o� any app[icaf�ie insuranc� policy; ar ��} the remaining term of
<br /> the Note; ❑r �C� be treated as a balloon paym�nt which will be due and payable at the Note's maturity. The D��d ❑f
<br /> Trus� also will se�ure paymen� af these amounts. Su�h right shall be in addition to all other rights and remedies tv
<br /> which Lende�may be�ntitled upon De�faul�.
<br /> WARRANTY; DEFENSE�F TITLE. The follawin� pro�isians relating to ownership of the Property ar� a part of this Deed
<br /> of Trust:
<br /> T�tle. Trustar warrants �hat: {a} Trustor holds good and marketab[e title afi record to the Property in fee simple,
<br /> free and �[ear of all liens and encumbrances other than those set forth in the Rea! Property description ❑r in any
<br /> t�tle insurance pvlicy, tit�e r�par�, vr finai title opinivn issued in fa�or v#, and a�cepted by, Lender in connection
<br /> with this Deed❑f Trust, and 4h} Trustor has the full right, pawer, and authari�y t�execu�e and deli�er this Deed of
<br /> Trust tv Lender.
<br /> ��fense of Title. Subject to the exception in �he paragraph abo�e, Trustor warrants and will fflre��r de�end �he
<br /> title ta the Property aga�nst the �awfu[ cfa�ms of all p�rsons. �n fihe e��n� any activn or prviceeding is comm�n�ed
<br /> that questi�ns T�us�or's�itle or th� interest af Trustee vr Lender under this Deed af Trus�, Trustar shafl de�end the
<br /> a�tion a�Trustor's expense. Trustor may be the naminal party in such prviceeding, but Lender shall be entitled to
<br /> participa�e in th� pro�eeding and to be represented in the proceeding by counsel of Lender's vwn choice, and
<br /> Trustor will deli�er, or�ause to be deli�ered, to Lender such instruments as Lender may request from #ime to�im�
<br /> to p�rmit such participation.
<br /> Cvmpliance V11ith Laws. Trustor warrants that the Prvperty and Trustar's use of the Property complies with all
<br /> existing applicable �aws, ordinances, and regu�ativns of go�ernmen�al author�ties.
<br /> Sur�i�al af Representativns and Warranties. All �epresentations, warranties, and agre�men�s made by Trustor in
<br /> this Deed of Trust shall sur�i�e the execution and deli�ery of this De�d af Trust, shaf[ �e continuing in nature, and
<br /> shalf remain in fulf�vrce and efi�ect until su�h time as Trustor's Indebtedness shall be paid in full.
<br /> CONDEMNATi�N. The�o��vwing pro�isions relating�o condemnation proceedings are a part o�this Deed afi Trust:
<br /> Proceed�ngs. If any pro�eeding in condemnation is filed, Trustvr shall pr�mptly no#ify Lencler in writing, and
<br /> Trustor shall promptly take su�h st�ps as may be necessary to de�end the activn and o�tain the award. Trustor
<br /> may be the nomina[ party in such praceeding, but Lender shal[ be entitled to participate in th� proceeding and to be
<br /> represented in �he proceeding by counsel of its o►nrn Ghoice, and Trustor wi�f deli�er or cause �to be deli�er�d to
<br /> Lender such instruments and documentation as may be request�d by Lend�r from �im� to tim� to permit such
<br /> participation.
<br /> Application o�r Ne� Proceeds. If a[[ ar any par�of th� Prvperty i� �ondemned by eminent d�main pro���dings or by
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