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<br /> 2� 1 ��2��5
<br /> DEED �F TRUST
<br /> tCont�nued� Pa�e �
<br /> farm, amounts, co�erages and basis reasonably acceptable t� Lender and issued by a company or companies
<br /> reasonably a�ceptable to Lender. Trustor. upvn request af Lender, will deii�er to Lender fram time to time the
<br /> polici�s vr certifi�ates of insurance in form satisfactory tv Lender, including stipulations that co�erages will not be
<br /> cancelied or dim�nished without at least thir�y �30y days prior written natice to Lender. Each insurance policy also
<br /> sha�! incfude an endorsement prv�iding that c��srage in fa�o�of Lender will not be impaired in any way by any act.
<br /> ❑miss�on or default of Trustor �r any vther person. Should the Rea� Property be located in an area designated hy
<br /> the Administratar of the Federal Emergency Management Ag�ncy as a special flood hazard area, Trustor agrees t❑
<br /> abtain and maintain Federal F1ood Insuran�e, if a�ailable, for the full unpaid principal ha�ance of the loan and any
<br /> privr liens vn the prvperty securing the Ivan, up to the maximum policy limits set under the Nati�nal Flood
<br /> Insurance Program, or as vtherwise required by Lender, and to maintain such insurance fior the term of the loan.
<br /> Appfication of Proceeds. Trustor sha�1 promptly notify Lender of any Ioss or damage to the Praperty. Lender may
<br /> make proof af Ivss if Trustar fails to do so within fiifteen �15� days of the casualty. Whether or not Lender's
<br /> security is impaired, Lender may, at Lender's electivn, recei►►e and retain the proceeds v# any insuran�e and appiy
<br /> the proceeds to the reduction of the Indebtedness. paym�nt of any lien affecting the Property, or the res�vratian
<br /> and repair❑f the Property. If Lender elects to apply the praceeds tv r�storatian and repair. Trustor shall repair or
<br /> replace the damaged vr destrayed Impro�ements in a manner satisfactory to Lender. Lender shall, upan
<br /> satisfactory praofi of such expenditure, pay or reimhurse Trustor from the proceeds for the reasonable cost of
<br /> repair or restoration if Trustvr is not in default under this Deed of Trust. Any proceeds which ha�e not heen
<br /> d+sbursed within �8� days aft�r the�r receipt and which Lender has not c�mmitted to the repair or restoration of
<br /> the Property shall be used first to pay any amount owing tv Lender under this ❑eed of Trust, then to pay accrued
<br /> interest, and th� remainder, if any, shall be applied to the principal balance o# the Indebtedness. If Lender hoids
<br /> any praceeds after payment in ful! afi the Indebtedness, such praceeds shall be paid to Trustvr as Trustor's
<br /> interests may appear.
<br /> Trustor`s Report vn lnsurance. Upon reques�of Lender, how��er nvt mvre than once a year, Trustor shall furnish
<br /> to Lender a r�port on each existing policy afi insurance shawing: �1} the name of the insurer; ��� the risks
<br /> insured; �3} th� amount of the policy; �4y the prvperty insured. th� then current replacement �alue of su�h
<br /> pr�perty, and the manner of determining that�alue; and t5� the expiration date of the pvlicy. Trustor shall, upon
<br /> request of Lender, ha�e an independent appraiser satisfactory to Lender determin�the cash�alue replacement c�st
<br /> af the Property.
<br /> TAX AND INSURANCE RESERVES. Subject to any limitations and cvnsistent with any requirements set by applicable
<br /> law, Lender may require Trustor tv maintain with Lender reser�es for payment ❑f annual taxes, assessments, and
<br /> insurance premiums. which reser�es shall be created by an initial deposit and subsequent monthly payments, or
<br /> payments at such other inter�al as payments under the Note may be due, of a sum estimated by Lender tv be sufficient
<br /> to pay the tvtal annual taxes, assessments, and insurance premiums Lender reasonahly antic�pates t❑ be paid from
<br /> these reser�es. The r�ser�e funds sha�l be held by Lender as a general depvsit fr�m Trustor, which Lender may satis�y
<br /> by payment vfi the taxes, assessments, and insurance premiums required tv be paid by Trustvr as they became due.
<br /> Lender shall ha�e the right to draw upon the reser�e funds to pay such items, and Lender shall not be required to
<br /> determine the �alidity �r accuracy o# any item befvre paying it. Nothing in the Deed of Trust sha�l be construed as
<br /> requiring Lender to ad�ancs oth�r monies fvr such purposes. and Lender shall not�ncur any liability for anything i# may
<br /> do or omit t� do with respect to the reser�e account. 5ubject ta any limitations set by app�icable law, if the reser�e
<br /> funds disclose a shortage �r de#iciency, Trustor shall pay such shortage or de#iciency as required by Lender. All
<br /> amaunts in th� reser�e a�cvunt are hereby pledged tv further secure the Indebtedness, and Lender is hereby authvrized
<br /> tv withdraw and apply such amounts on#he Indehtedness upvn the occurrence of an E�ent of Default. Lender shall not
<br /> be required tv pay any interest or earnings on the r�serae funds unless required by law or agreed tv by Lender in
<br /> writing. Lender dves nvt hold the reser�e funds in trust for Trustor, and Lender is not Trustvr's agent for payment of
<br /> the taxes and assessments required tv be paid by Trustvr.
<br /> LENDER'S EXPENDITURE�. ff any activn or proceeding is commenced that w�uld materially affect L�nder's interest in
<br /> the Praperty or if Trustor #ails to cvmply with any pro�isivn Qf this Deed of Trust or any Related Documents, including
<br /> but n�t limited t❑ Trustor's #ailure ta discharge or pay when due any amounts Trust�r is required tv discharge or pay
<br /> under this Deed v�Trust�r any Related Documents, Lender on Trustor's behalf may �hut shall n�t be vbligated to} take
<br /> any action that Lender d�ems apprvpriate, including but not limited to discharging vr paying all taxes. liens, security
<br /> interests, encumbranc�s and nther claims, at any time le�ied or placed vn the Praperty and paying all costs for insuring,
<br /> maintaining and pres�r�ing the Property. A!I such expenditures incurred or paid by Lender for such purposes will then
<br /> bear interest at the ra#e charged under the Note #ram the date incurred or paid by Lender to the date o# repayment by
<br /> Trustor. All such expenses will beCome a part of the Indebtedness and. at Lender's option, wiil �A� be payable on
<br /> demand; tBy be added tv the balance �f the Note and be app�rti�ned am�ng and be payable with any instaflment
<br /> payments to �ecome due during either �1 y the term of any applicable insurance policy; or ��} the remaining te�m of
<br /> the Note; or tC� be tr�ated as a ha�ivan payment which will be due and payabie at#he Note's maturity. The D�ed of
<br /> Trust also will secure payment of these amounts. Such right shall b� in addition to all other rights and remedies to
<br /> which Lender may be entitled upon Default.
<br /> WARRANTY; DEFENSE�F TITLE. The fvllowing prv�isi�ns relating to own�rship o#the Property are a part❑f this Deed
<br /> of Trust:
<br /> Title. Trustor warrants that: taf Trustvr hvlds gvod and marketable title of re�ord to the Property in fee simple,
<br /> free and clear of all liens and encumbrances other than those set farth in the Real Property descriptivn or in any
<br /> title insurance policy. title repart, or final title ❑pinion issued in fa�or af, and accepted by, Lender in connectivn
<br /> with this Deed vf Trust. and �by Trustar has the full right, power, and authvrity tv execute and deli�er this Deed vf
<br /> Trust to Lender.
<br /> Defense of Title. Subje�t tv the exception in the paragraph abo�e, Trustor warrants and will fvre�er de#end the
<br /> title to the Proper#y against the law#ul �laims v� all persons. In the e�ent any action vr praceeding is commenced
<br /> that questi�ns Trustor's title or the interest v#Truste� or Lend�r under this Deed �f Trust, Trustar shail defend the
<br /> action at Trustor's expense. Trustor may he the nominal party in such proceeding. but Lender shail be entitled to
<br /> participate in the proceeding and to be repres�n#ed in the proceeding by counsel of Lender's vwn choi�e, and
<br /> Trustor wil� deli�e�, or cause to be deli�ered, to Lender such instruments as Lender may request from tim� to time
<br /> tv permit such parti�ipation.
<br /> Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Prvperty cvmplies with all
<br /> existing applicable laws, ordinances, and re�ulations of gv�ernmental authvrities.
<br /> 5ur�i�al of Representa#ivns and Vllarranties. All representativns, warranties, and agreements made by Trustor in
<br /> this De�d of Trust shal! sur�i►►e the executivn and deli�ery of this Deed �f Trust, shall be continuing in nature, and
<br /> shall remain in full force and ef#ect until such time as Trustor's Indebt�dness sha�l be paid in full.
<br /> C�NDEMNATI�N. The fo�lowing prv►►isivns reiating tv condemnation proceedings are a part of this Deed af Trust:
<br /> Pro�eedings. �f any proceeding in condemnation is fiiled. Trustor shall �romptly notify Lender in writing, and
<br /> Trustor shall promptly take such steps as may be necessary to defend #he action and obtain the award. Trustvr
<br /> may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be
<br /> represented in the proceeding by counsel of its awn chaice, and Trustar will d��i�er vr cause ta be deli�ered to
<br /> Lender such instruments and documentation as may be requested by Lender from time �o time t❑ permit such
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