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2� 1 ��2991
<br /> DEED �F TRUST
<br /> �C�ntinued� Page 3
<br /> form, amaunts, cv�erag�s and basis reasona�ly acceptable �a Lender and issued by a company vr campanies
<br /> reas�nably acceptable tfl Lender. Trus�or, upon request �f Lender, will deli��r �❑ Lender from time tv time the
<br /> policies ❑r certificates ❑f insuran�e in farm satis�ac�ory ta Lender, incfuding s�ipulations that co��rages wi[� not be
<br /> cance[[ed or diminished without at �eas��hirty �3�} days pri�r wri��en notice�o Lender. Each �nsurance policy also
<br /> shall inc�ude an endorsement pro�iding that co�erage in fa�or of Lender will na�be impaired in any way by any ac�,
<br /> omission or default of Trustor or any ather person. Sh�u(d the Fieal Property be [ocated in an area designated �y
<br /> �he Administrator of th� Federal Emergency Management Agency as a spe�ial flood ha�ard ar�a, Trustor agrees�o
<br /> obtain and maintain Federal Flood �nsurance, if a�ailab[e, for the �ull unpaid principal balance o# the �oan and any
<br /> prior liens on �he pr�p�rty securing the loan, up to �he maximum policy limits se� under the Nat�onal Flood
<br /> lnsurance Pr�gram, vr as otherwise required by Lender, and ta maintain such insurance fvr the term ❑f the �oan.
<br /> Appli�a#ion of Proceeds. Trus�or shall promptly notify Lender of any loss or damage to the Property. Lender may
<br /> make proaf a� loss if Trustor fails to da so within fift�en �15y days of the casualty. VlJhether vr not L�nder's
<br /> security is impa�red, Lendsr may, at Lend�r's ele�tion, re�ei�e and retain the pro�eeds of any insurance and apply
<br /> th� proceeds to the reductivn of the Indebtedness, payment of any [ien affecting the Property, or �he �estara�ian
<br /> and repair of the Prvperty. �f Lender ele�ts ta apply the proceeds to restoration and repair, Trustor shal[ repair or
<br /> replace the damaged or destroyed Impro�emen�s in a manner satisfactory to Lender. Lender sha��, upvn
<br /> satis�actory p�flof o� such expenditure, pay ❑r reimburse Trustor from the proce�ds �or �he reasonable cost of
<br /> repair or restaration i� Trus�vr is not �n default und�r this ❑�ed a� Trus�. Any proceeds which ha�� no� been
<br /> disbursed within �84 days after their receipt and which Lender has not committed �o �he repair or rest�ration of
<br /> the Prflperty shall be used #irst�a pay any amount owing to L�nder under this Deed of Trus�, then to pay accrued
<br /> interest, and the rema�nder, if any, shall be applied to the principa( �alance o� the Indebtedness. If L�nder holds
<br /> any proceeds af�er payment in full of the Indeb�edness, such proceeds sha�� be paid �o Trus�or as Trus�or's
<br /> €n�e�ests may appear.
<br /> Trus#or's Report nn Insuran�e. Upon request ofi Lender, howe��r nat more than onGe a year, Trustor shall furnish
<br /> to Lender a report on �ach exis�ing po��cy of insu�ance showing: ��y the nam� of the insurer; {�} the risks
<br /> insured; �3} the amvunt of the policy; �4y the property �nsured, �he then �urrent replacement �alue of such
<br /> property, and �he manner o#determining tha��alue; and �5� the expiratian date of the palicy. Trustvr shall, upon
<br /> request of Lender, ha�e an independ�nt appraise�satisfactory tv Lender determine th� cash value replacement cost
<br /> o#the Property.
<br /> TAX AND �NSURANCE RESERVES. Subject to any limi�ations and cansistent wi�h any requirem�nts se� hy appiicable
<br /> law, Lender may r�quire Trusrar t� maintain with Lender reser�es for paymen� o� annual taxes, assessments, and
<br /> insurance premiums, which reser�es shall be �reated by an ini�ial 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 to be sufficient
<br /> tv pay the 'total annual taxes, assessments, and insurance premiums Lender reasanably anticipa�es to be paid fram
<br /> these reser�es. The r�ser�e�unds shall he held by Lender as a genera! depasit from Trustor, which Lender may satisfy
<br /> by payment v� the taxes, assessmen�s, and insurance premiums required t� be paid by Trustor as �hey become due.
<br /> Lender shal! ha�e the right to draw upvn the rese��e funds ta �ay such items, and Lender shall not be required to
<br /> determine the �alidity vr accuracy ot any item before paying €t. No�hing in the �3eed a� Trust sha�l f�e cvnstru�d as
<br /> �equiring Lender to ad�ance other m�n�es #or such purpases, and Lender sha�l not incur any liability for anything it may
<br /> do or omit to d� with respe�t 'to �he reser�e account. 5ubject �a any limitations set by applica�[e law, if the reser�e
<br /> funds disclase a shar�ag� or deficiency, Trustor shall pay such shortage or deficiency as required by Lender. All
<br /> amounts in the reser�e a�coun�are hereby pledged to further se�ure the indeb�edn�ss, and Lender is hereby authori�ed
<br /> to withdraw and apply such amounts on�he Indebtedness upon�he o�currence o�an E�ent of De�ault. Lender shall nat
<br /> be required to pay any interest or earnings on the res�rr�e �unds unless �equired by �aw or agreed to by Lender in
<br /> writing. Lender does not hold the reserve �unds in trust for Trustor, and Lender �s not Trustor's agent �or payment �f
<br /> �he taxes and assessm�nts requi��d ta b� paid by Trustor.
<br /> LENDER'S EXPENf]ITURES. lf any a��ion o� proceeding is cvmmenced tha� woufd material[y affec� Lende�'s interest in
<br /> th� Praper�y o� if Trustor fails to comply with any pro�isian af this Deed of Trust or any Reiated D�cum�nts, �nclud�ng
<br /> but not (imited to Trustor's faifure to discharge or pay when due any amounts Trus�ar is required ta discharge or pay
<br /> under this ❑eed of Trust❑r any Related Documents, Lender on Trustor`s beha�f may �but shall nat b� ❑bligated to} take
<br /> any a�tivn that Lend�r deems approp�iate, including but n�t �imited �o discharging or paying all taxes, liens, securi�y
<br /> int�rests, encumbrances and other cla�ms, a�any time le�ied or pla�ed �n the Praperty and paying a�1 casts for insuring,
<br /> maintaining and preser�ing the Praperty. All such expenditures incurred ❑r paid by Lender for such purposes will �hen
<br /> bear interes� at the rate charged under th� Note from the da�e incurred vr paid by Lender to the da�e of repayment by
<br /> Trustor. All such exp�nses will b�came a part af the Indeb�edn�ss and, at Lender's aption, wi11 �Ay �e payable on
<br /> demand; tB} be added tv the balance ❑f the Nate and be apport�oned among and �e payable with any �nstallment
<br /> paymen�s ta hecome due during ei�her �1� �he term o# any applicable insurance palicy; ar t�} '�he remaining term ��
<br /> the Note; or �C} b� ��eated as a balloon payment which will b� due and payable at the Note's maturity. The Deed o�
<br /> Trust als❑ wili secure paym�nt of these amaun�s. Su�h righ� shall he in add��ion tv all other rights and remedies to
<br /> which Lender may be enti�led upan Default.
<br /> VIIARRANTY; ❑EFENSE UF TITLE. The�o�lawing pra�isions relat�ng to ownership❑f the Property are a par�af this Deed
<br /> o�Trust:
<br /> Title. Trustor warrants that: �a� Trus�ar ha�ds good and marke�ab[e ��tle af record �o the Property in f�e simple,
<br /> �r�� and clear of all liens and encumbrances other than thvse set forth in �he Rea� Prvperty descrip�ivn ar in any
<br /> title insuranc� policy, title report, or final t�tle opinion �ssued in fa�o� of, and accepted by, Lender in connectian
<br /> with this De�d vf Trust, and �b� Trus�or has the full righ�, power, and authvrity to execu�e and deli�er th�s ❑eed of
<br /> Trust ta �ender.
<br /> Defense of Title. 5ubject �o the excepti�n in the paragraph abo�e, Trustor warrants and wil� #ore�er de�end the
<br /> title �a the Proper�y agains�the lawful claims of all persons. i n the e�ent any action or proceeding is commenced
<br /> that questions Trustor's ti�le ar the in�erest o�Trustee or L�nder under this ❑eed of Trus�, Trustor shall de�end the
<br /> action a�Trustor's sxpense. Trustor may be the nominal party �n such prviceeding, but Lender shall he entitled to
<br /> part���pate in �he proceeding and �o he represen�ed in �he prviceed�ng by counse� vf Lender's vwn �ho�ce, and
<br /> Trustor will deli�er, or cause t❑ be deli�ered, ta Lender such ins�ruments as Lende� may request#rvm time to time
<br /> t� permir such par�icipation.
<br /> Cvmpliance VIJi#h Laws. Trustor warrants that �he Property and Trustor's use of the Prvperty complies ►rvirh all
<br /> existing applicable laws, ❑rdinances, and regu[at�ons of go�ernmen�al authorities.
<br /> Survival vf Representatians and VIlarran�ies. Alf representativns, warrant�es, and ag�eements made by Trustor in
<br /> this Deed of Trust shal[ sur�i�e the execu�ion and deli�ery o�this Deed o�Trust, shall �e continuing in nature, and
<br /> shall remain in fiull force and effect until su�h time as Trustvr's Indebtedness shall be paid in fufl.
<br /> C�NDEMNATIDN. The follow�n� pro�is€ons relating to Gondemnation proceed�ngs are a part of this Deed af Trust:
<br /> Prviceedings. �# any proc�eding in condemnation is filed, Trustor sha[� promptly natify Lender in writing, and
<br /> Trustor shall pr�mptly take such steps as may be necessary to defend the action and obtain the award. Trusto�
<br /> may be th� n�minal party in such proceeding, but Lender shall be en�i�led to participate in the proceeding and to he
<br /> represented in the proceeding by counsel of its own �hoice, and Trustor will deli�er ar cause t❑ be deli�ered to
<br /> Lender such instruments and do�um�ntation as may be requested by Lender from time to �ime to permit such
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