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2� 1 �� 19�9
<br /> DEED DF TRUST
<br /> ��ontinued� Page 3
<br /> reasvnably a�ceptabfe �o Lender. Trustor, up�n reques� of Lender, will d�li�er to Lender from time to time the
<br /> po[icies �r certificates o� insuranc� in �orm satis�actory t❑ Lender, including stipula�ions that co�erages will no� be
<br /> cance�led or diminish�d without at f�ast thirty �30} day� prior wr�tten notice to Lend�r. Each insurance policy also
<br /> sha[[ include an endorsement pro�iding that ca�erage �n fa�or of Lender vuill not b� impaired in any way by any a��,
<br /> �missian or default af Trustor or any other person. Should the Rea� Property b� €aca�ed in an area designated by
<br /> the Administratar of the F�deral Emergency Management Agency as a special flovd hazard area, Trus�or agr�es tv
<br /> �btain and maint�in Federal Flaad Insurance, if a�ailah�e, for the full unpaid principal balance o�the �van and any
<br /> prior liens on the property se�uring the loan, up �a �he maximum policy limits set under �he Na�iona[ Flood
<br /> lnsurance Program, vr as othe�wise required by Lender, and to maintain such insu�ance for the term of�he �aan.
<br /> App�i�ation of Prv�eeds. Trustor shal[ prnmptly noti�y Lender vf any loss or damage to the Prop�rty. L�nde� may
<br /> make proof of �oss if T�ustor fails t� do so wi�h�n �i�teen �15} days of �he casualty. Whether or not Lender`s
<br /> security �s impaired, Lende� may, at Lender's electian, r�cei�e and retain the proceeds of any insurance and apply
<br /> the pr�ceeds to the redu�t�on of the Indeb€edness, payment af any lien affecting the Property, or the restorativn
<br /> and repair vf the Property. If Lender elects �o apply the proce�ds to res�orati�n and repair, T�ustor shall r�pa�r or
<br /> repfac� the damaged or des�royed Impro�ements in a manner satisfactory t❑ Lender. Lender shall, upon
<br /> satisfactory proo� ofi su�h �xpenditure, pay ❑r re�mburse Trustar from the proceeds �or the reasonable cost of
<br /> repair vr restoration if Trustvr is not in default und�r this Deed o# Trus�. Any proceeds which have not been
<br /> disbursed within 18� days af�er their receip� and which Lender has no� committed tv the repair or restorativn ❑f
<br /> the Praperty shall be used firs�ta pay any am�unt ❑wing to Lender under th�s Deed of Trust, then to pay accrued
<br /> interest, and the remainder, if any, shall be appfied to the principa! balance a� the [ndebtedness. If Lende� holds
<br /> any prviceeds af�er payment in fu�� �f the Indebtedness, such prflceeds sha�l be paid ta Trustvr as Trus�or`s
<br /> interests may appear.
<br /> Trustor`s Repvr�on Insurance. Upon request of Lender, howe�e� no� more than on�e a year, Trustvr shall fiurnish
<br /> ta L�nder a report on each existing policy of insurance showing: �1 y th� name �f th� �nsurer; �2� the risks
<br /> insu�ed; �3} the amount of the policy; �4y the praperty insured, �he then current replacement �alue of such
<br /> praperty, and the manner of determining that�alue; and t5} the expiration date vfi the policy. Trusfior shall, upon
<br /> reques�o�Lender, ha�e an independen�apprais�r satisfactory t❑ Lender determine�he cash�alue rep�acement cost
<br /> o�the Property.
<br /> TAX AND INSURANCE RESERVES, Su�jec'� to any limita�i�ns and consisten� with any requirements set by applicable
<br /> law, Lender may require Trustor to maintain with ��nder �eser�es far payment o# annual �axes, assessments, and
<br /> insurance prem�ums, which reser�es sha11 �e �reated by an initial deposit and subsequent monthly payments, or
<br /> payments at such ❑�her inter�al as payments under�he No�e may be due, of a sum estimated by Lender to be sufficien�
<br /> tv pay �he total annual taxes, assessments, and insurance premiums Lender �easanably anticipa�es to he paid fram
<br /> these reser��s. The reser�e fiunds shall he he{d by Lender as a general deposit from Trustar, which Lender may satis�y
<br /> by payment af the taxes, ass�ssmen�s, and insurance premiums required '�o be paid by T�ustor as they hecome due.
<br /> Lender shall ha�e the right ta draw upon the reser�e �unds �v pay su�h i�ems, and Lender sha�l nvt b� required �❑
<br /> determine the �a[idity or accura�y of any item before paying i�. Nothing in the ❑eed of Trust shall be �onstrued as
<br /> requiring Lender to ad�ance other monies for such purp�ses, and Lender shall not incur any lia�ility for anyth�ng it may
<br /> do or omit to do with respect fi❑ the reser�e account. 5ubject to any limi�a�ians set �y app[icable law, if the reser��
<br /> funds disclvse a shor�age or deficiency, Trustvr shal� pay 5LlCh shortag� or d��iciency as required by Lender. All
<br /> amounts in the r�ser�e account are her�by pledged�o fur�her secure the Indebtedness, and Lender is hereby authorized
<br /> to withdraw and apply such amounts on the Indebt�dness upon the occurrence o�an E�en#ofi❑e#aul�. Lender shall not
<br /> be r�quired �a pay any interes� or earnings on th� reser�e funds unless required �y law or agreed to by Lender in
<br /> writing. Lender does not hvld �he r�ser�e fiunds in trus� for Trustor, and Lender is no�Trustor's agent �or payment vf
<br /> the taxes and assessments requi�ed ta be paid by Trus�or,
<br /> LENDER'S EXPENDITURES. 1�F any ac�ion or prfl�eeding is commenced that wvuld materially affect L�nder`s �n�erest in
<br /> the Praperty or �f Trustor fails ta comply with any prv�ision of this ❑eed o�Trust or any Rela�ted Documen�s, includ�ng
<br /> but no� limified to Trustor`s fai�ure to discharge or pay when due any amounts Trustor is required to discharg� or pay
<br /> under this Deed vf Trus�or any Rela�ed D�cumen�s, L�nder on Trustor's behalf may {but shall not be ❑bligated to} take
<br /> any a�tion that Lender deems apprvpriate, including but nat limited to discharging or paying a[f taxes, liens, security
<br /> interests, en�umbrances and other claims, at any tim� le�ied or placed on the Property and paying all cos�s fv�insuring,
<br /> maintaining and p�eser�ing the Prvperty. All such �xpendi�ures incurrsd or paid by Lender for such purpases will then
<br /> bear int�r�s� at the ra�e charged under the Nv�e from the da�e incu�red ar paid �y Lender�o th� date ❑f repayment by
<br /> Trus�or. All such expenses will become a part o� �he Indebtedness and, at Lender's option, will �A� be payable on
<br /> demand; �By he added �o the bafance of the Note and be apport�aned among and be payabls ►rvith any ins�allment
<br /> payments to become due during either �1� �he te�m of any app�icable insurance poli�y; o� ��3 the remaining term o�
<br /> the Note; or tC3 be trea�ed as a ballovn payment whiGh wilt be due and payah�e at the Note's ma�urity. The Deed o�
<br /> Trust alsv wif� secure paymen�t �f these amounts. Such right shall be in addition �o all othe� rights and remedies to
<br /> which Lender may be entitled upon ❑efaul�.
<br /> WARRANTY; DEFENSE�F T�TLE. The�allowing p�o�isions relat�ng to ownersh�p vf the Prop�rty are a par�of�his Deed
<br /> of Trus�:
<br /> Ti�le. Trustor warrants that: �a} Trust�r halds goad and marketable title of record to the Property in fee simple,
<br /> free and clear vf all liens and encumbrances other than thase se� f�rth in the Real Proper�y description ar in any
<br /> title insurance pvlicy, �itle repvr�, or fina{ title vpinion issued in fa�or o�, and ac�epted by, Lender in conn�ction
<br /> with this Deed of Trus�, and �b3 Trus�or has the full right, pvwer, and authori�y to execute and de���er this Deed o�
<br /> Trust ta Lender.
<br /> Defense of Title. Sula�ec� to the excepti�n �n the paragraph aho�e, Trustor warrants and will fore�er defiend the
<br /> title to the Prvperty against the lawful claims v� all persons. In the e�ent any action or pro�eeding is �omm�nced
<br /> that questions Trustor's title or�he in�erest o�Trus�ee or Lender under th�s Deed of T�ust, Trustar shal� defend the
<br /> action at Trus�or's expense. Trus�or may be the nomina� party in su�h proceeding, but Lender shail be en�itled �o
<br /> participate in the proceeding and to �e r�presented in �he proc�edin� by counse[ v� Lend�r's own choice, and
<br /> Trustor will deli�e�, or cause to be deli��red, to Lender such ins�ruments as Lender may request#�om �im�to t�me
<br /> to p�rmit such participatian,
<br /> �vmp[�ance W�th Laws. Trustor warrants tha� �he Property and Trustor's use of the Property complies with all
<br /> existing appliGab�� laws, ard�nanCes, and regula�ions o�ga�ernmentaf authorities.
<br /> Sur�i�al of Represen�ations and V1larranties. All representations, war�anties, and agreements made hy Trusto� in
<br /> this Deed of Trust shall sur�i��fihe execution and de[iWe�y of�his Deed of Trust, shall b� cvntinuing in nature, and
<br /> shall remain in fu���or�e and e�f#ec�unti[such time as Trustor's Indebtedness shall be paid in full.
<br /> CnNaEMNATI�N. The following prfl�isions r�(ating�o cvndemnation proce�dings are a part of�his Deed af Trust:
<br /> Proceedings. I� any praceeding in condemnation is filed, Trustor shall promp�fy noti�y Lend�r in wri�ing, and
<br /> Trus�tvr shall promptly take such steps as may be necessary to defend �he ac�ion and obtain the award. Trustor
<br /> may be the nomina� party in such proceeding, but Lender shall be entitfed to participate in the proceeding and to be
<br /> r�presented in the proceeding by counsel af its own choice, and Trustar wil� deli�er or cause to be deli�ered to
<br /> �ender such instruments and dacumen�a�ion as may be requested by Lend�r firom tim� to time ta permit suCh
<br /> participation.
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