|
2� 1 ��2453
<br /> DEEa t]F TRUST
<br /> ��ontinued� Page 3
<br /> dispute o�er the obligati�n t❑ pay, sa Iong as Lender's interest in the Praper�y is na#jeopardized. !f a lien arises vr
<br /> is filed as a result af nonpayment, T�ustvr shall within fi#�een {�5� days a�ter the lien arises �r, if a lien is �iled,
<br /> within fift��n �15} days a�ter Trustor has no�ice of the �il�ngr S�CI.ICe the discharge of the lien, ar if reques�ed by
<br /> Lender, d�posit with Lender�ash�r a sufficient�orporate surety bond or other security satisfac�ory ta Lender in an
<br /> amount suf�icient to discharge the I�en plus any casts and a��arneys' �ees, ar other charges that could a�crue as a
<br /> result o�a fvreclasur�or sale under the lien. ln any con�est, Trust�r sha�l defend itsel�and Lender and shall satisfy
<br /> any ad�erse judgment�efore en�arcemen�against the Property. Trustor shall name L�nder as an add�tional obligee
<br /> under any surety bond furnished in the�on�test praceedings.
<br /> E�idence af Payment. Trusto� shall upvn d�mand furnish to Lender sa�isfactvey e�idence of paym�nt�f the taxes
<br /> vr assessments and shall author�ze the appropriate go�ernmental offi�ial to deli�er t❑ Lender at any time a written
<br /> statemen�of the taxes and assessments aga�nst�he Property.
<br /> Notice ❑�Cnnstructivn. Trustv� shall noti�y Lender at I�ast �ifteen �15� days b��ore any work is commenc�d, any
<br /> ser�ices are #urnished, or any materials are supplied ta the Property, if any mechan�c's lien, materiafinen's 1ien, or
<br /> other lien could be asser�ted an account o� the work, ser�ices, vr ma�eria�s. Trustor will upon request ofi Lender
<br /> furn�sh �o Lender ad�ance assurances satisfactory tv Lend�r that Trustor can and will pay the cost of such
<br /> impro�ements.
<br /> �'R�PERTY ❑AMAGE lNSURANCE. The �ailvwing pra�isions relating to insuring the Property are a part vf this Deed of
<br /> Trust.
<br /> Maintenan�e of Insurance. Trustor shall prncur� and maintain polic�es of fire insurance with s�andard �xtended
<br /> �o�erage endorsements on a repfacement bas�s ffl� the �ull �nsurabie �alue ca�er�ng a!! lmpro�ements on the Real
<br /> Property in an amount sufficient to a�vid appli�a�ivn of any coinsurance clause, and with a standard mor�gagee
<br /> clause in�a�or of Lender. Trustor shall also pracure and maintain compreh�nsi�e general iiability insurance in such
<br /> c��erage amounts as Lender may request with Trus#ee and Lender being named as additiona� insureds �n such
<br /> liabiiity insurance poli�ies. Addi�ionally, Trustor sha�l maintain su�h o�her insu�anc�, includ€ng �u� not limited to
<br /> ha�ard, business interruption, and bvil�r insurance, as Lender may reasana�ly require. Policies shall be written in
<br /> fvrm, amaunts, co�erages and basis reasonably acceptabl� �o Lender and issued by a �ampany or companies
<br /> reasonably accep�able �� Lender. Trustor, upon request vf Lender, rrviil deli�er to Lend�r frvm time �o time the
<br /> palicies o� c�rtificates o� insuran�e in form satisfa�tory tv Lender, inciuding stipulations that co�erages will not #�e
<br /> canCell�d ar diminish�d v►rithout at �east�hirty 43�� days prior written no�ice to Lender. Ea�h insurance policy a�so
<br /> shall include an endorsement pro�iding tha#cQ�erage in fa�or��Lender will nat�e impai�-ed in any way by any act,
<br /> omission vr d��au�t of Trustor or any other persan. Should the Real �'roperty be loca�ed in an area designated by
<br /> �he Administrator of the Federal Emergency Management Agen�y as a special flood ha�ard area, Trustor agrees to
<br /> obtain and maintain Federal Flood �nsuran�e, i� a�ailab�e, �vr the full unpaid principal balance of the loan and any
<br /> prior I�ens �n the proper�y se�ur�ng the �aan, up to the max�mum policy limits set under the National Flo�d
<br /> Insurance Program, or as otherwise required by Lsnder, and t� maintain su�h insurance for the term vf�he I�an.
<br /> Applicativn o� Pra�eeds. Trust�r shall p�omptly notify Lender �# any loss or damage to the Property. Lender may
<br /> make proo� O� I�55 if Trustor fails t� da so with�n �ifteen t�5} days of the casualty. Whe�her ar not Lender's
<br /> security is impaired, Lender may, at Lender`s election, recei�e and retain#he proceeds of any insurance and apply
<br /> the proceeds �o the redu�tian �f �he lndeb#edness, payment of any lien affecting the Property, or the res�oratian
<br /> and repa�r of the Proper�y. 1f Lender ele�ts to apply the proceeds tv res�orativn and repair, Trustar shall repair or
<br /> repla�e the damaged vr d�stroyed Impro�emen�s in a manner sa�isfactory tv Lender. Lender shall, upon
<br /> satisfac�ory proflf of su�h expendi�ure, pay ar �eimburse Trus�or �rom the praceeds for the reasonat�le cast of
<br /> repair vr restora�ion if T�ustor is not in default under this Deed of Trust. Any prv�eeds which ha�e not been
<br /> disbursed wi�hin 1$0 days after th�ir re�eip� and which Lender has nat committed to the repair or restoration ❑�
<br /> the Proper�y shalf be used first�❑ pay any amvunt �wing to Lender under this Deed o�Trust, then �v pay accrued
<br /> interest, and the remainder, �# any, shall k�� applied �o the principal balance a� the Indebtedness. I� Lender holds
<br /> any proceeds after payment in �ull of �he Indebtedness, such proceeds shal� be paid t� Trustor as Trustvr`s
<br /> interests may appear.
<br /> Compliance wi�h Exis#ing �ndebtedness. During the period in which any Exis�ing fnd�btedness described below is
<br /> in eff�ct, complianc� wi�h the insurance pra��s�ons �on�ained in the instrument e�iden�ing such Existing
<br /> lndebtedness sha�i cons�itute compliance with the insurance pro�isivns under this Deed af Trust, to the extent
<br /> comp�iance with the terms af this Deed o� Trus� would constitute a duplicatian v� insurance �equi�ement. If any
<br /> proceeds f��m the �nsurance becom� payable vn loss, the pro�isions in this Deed of Trust for di�ision of prviceeds
<br /> shall app[y❑nly to that portion ofi the proceeds not payable to�he holder o�th� Exis�ing lndebtedness.
<br /> Trustor's Report on [nsurance, Upan request o� Lender, howe�er nat more than onc� a year, Trustor shall �urnish
<br /> to Lender a report an �ach existing policy �f insurance showing: t 1� �he name vf the insurer; {�� the �isks
<br /> �nsured; �3} the amvun# �f the p�licy; �4} #he prop�rty insured, �he then current r�placement �alue of such
<br /> property, and the manner o�determining that�alue; and �5� the expirativn date o#the policy. Trustor sha��, upan
<br /> reques�of Lend�r, ha�e an ind�pendent appraiser satisfa�tory tv Lender determ�ne the cash�alue�eplacement cost
<br /> of the Property.
<br /> TAX AND �NSURANCE RESERVES. Su�ject ta any limitat��ns and consistent with any requ�r�ments set by applicab(e
<br /> law, Lender may require Trus�or t❑ maintain with Lender reserves f�r paymen� of annual taxes, assessments, and
<br /> insuran�e premiums, v►►hich reser�es shall be created by an initial deposi� and subsequent monthly payments, or
<br /> payments at such a�ther inter�al as payments under the Nvte may �e due, o�a sum estimated by Lender�o be suffi�ient
<br /> �❑ pay the total annua� taxes, ass�ssments, and insurance premiums Lender reasvna�ly anticipates ta �e paid f�am
<br /> thss� reser�es. The reser�e�unds shall be held by Lender as a genera� deposi�from Trustar, which Lender may satisfy
<br /> by paymen� af the �axes, assessments, and insurance premiums required to �e paid by Trustar as they �e�am� due.
<br /> Lende� shall ha�e the right to draw upon the res�r�e funds t❑ pay such items, and Lender shall na� be required to
<br /> determine �he �alidity or accuracy vf any item before paying it. No�hing in the Deed of T�ust sha�l be �anstrued as
<br /> requiring Lender to ad�ance ather monies �or such purposes, and Lender shail not in�ur any �iabi�ity far anything it may
<br /> do or om�t to do with respe�t �o the r�s���e account. Subject �v any limitations set by applicable law, if the reser�e
<br /> funds disciose a shvrtage or deficiency, Trustvr shali pay such shorfiage or deficiency as �equired by Lender. Af[
<br /> amaunts in the �eser�e accvun�are hereby pledged to fur�her secure�he Indeb�edness, and Lender is heref�y au�hori�ed
<br /> tv withdraw and app�y such amounts on the Indebtedness upon the���urrence of an E�ent o�Defiault. Lender shall nat
<br /> be required t❑ pay any interest or ea�nings on the reser�e �unds unless required by law or agreed �o by Lender in
<br /> writing. Lender d��s nat hald the reser�e funds �n t�us� for Trustor, and Lender is nat Trusto�'s agent for payment of
<br /> the tax�s and assessments required to be paid by Trustor.
<br /> LENDER'S EXPENDlTURES. If any action or proceeding is cvmmenced that would materially affect L�nder's interest in
<br /> the Property or if Trus'�or#aifs to comply with any pro�ision o�F�his Deed ❑f Trust vr any Related D�cumen�s, inc�uding
<br /> but nvt fimi�ed �o Trus�or's failu�e ta comp�y v►►ith any abligati�n to maintain Existing �ndeb�edness in gvvd s�anding as
<br /> required l�el�w, ar�o discharge vr pay when due any amounts Trus�tvr is required tv dis�harge ar pay under this Deed o#
<br /> Trus� ❑r any Rela�ed Dacuments, Lender on Trustor's behal� may �but sha�� not be �bligated �of �ake any a�tion tha�
<br /> Lender deems appropriate, including but not limited to discharging ar paying all taxes, liens, security int�res�s,
<br /> encumbrances and vther c�aims, at any time I��ied or p�a�ed an the Property and paying af� costs for insuring,
<br /> maintaining and preser�ing the Property. All suGh �xp�nditures in�urred or pa�d hy Lender for such purposes wil� then
<br /> �ear interest at�he rate charged under the No�e from the dat� incurred or paid by Lender to the da�e of repaym�nt by
<br />
|