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2� 1 ��3279
<br /> DEED �F TRUST
<br /> �Continued} Page 3
<br /> co�erage amounts as Lender may requ�st wi�h Trustee and Lender being named as addit�onal insur�ds in such
<br /> liability insurance policies. Additionally, Trustor shall maintain such other insurance, including bu� not limited to
<br /> hazard, business interruptian, and k�oiler insuran�e, as Lender may reasonably require. Policies shall be written in
<br /> �orm, amounts, co�erages and �asis reasonably acceptahle to Lender and issued hy a company or companies
<br /> r�asonably accep�abl� to Lender. Trus�or, upan request of Lender, w�i1 deli�er to Lender from time �o tim� the
<br /> po�€�ies or ce�tificates o� insurance in �orm satisfactory to Lender, including s�ipulations tha� co�erages wit� n�t be
<br /> canCelled a�diminished withaut at leas�thirty �30y days p�ivr written noti�e�o Lender. Each �nsurance po��cy alsv
<br /> shail include an endo�sement p�o�iding that co�erage in#a�ar af Lender will not be impaired in any way by any ac�,
<br /> vmission or default o�Trustor or any other person. 5hould the R�a( Property be [ocated in an area designated by
<br /> the Administrator o�F�he Fede�a� Emergency Management Agency as a special flood hazard area, Trus�vr agrees tv
<br /> obtain and main�ain Federal F[ood Insurance, if a�ailable, far the fu[� unpaid principal balan�e o�th� �oan and any
<br /> prior �iens on the pr�perty securing the loan, up to �he maximum palicy lim�ts set under the Na#i�na� Flvod
<br /> lnsurance P�ogram, ar as otherwise required by Lender, and�o maintain such insuran�e for�he term of�he loan.
<br /> Applica��on of Prv�e�ds. Trustor shall prvmptly na�ify Lender of any loss or damage to the Prop�rty. Lender may
<br /> make proo� of Ioss �f Trus�or fails to do so within fifteen ��5y days af the casualty. Whether or not L�nder's
<br /> securi�y is impaired, Lender may, at Lender's elec�tion, recei�e and retain the proceeds of any insuran�e and apply
<br /> the proceeds to the reduc�ion of rhe �ndebtedness, payment of any �ien affecting the Properfiy, or the r�storatian
<br /> and repair of the Property. I� Lender ele�ts ta apply the praceeds t� restora�i�n and repair, T�ustor shall repair or
<br /> replace the damaged or destrayed Impro�ements in a manner satisfa�tvey to Lender. Lender sha��, upon
<br /> satisfactory proof o� such expenditure, pay or reimbu�se Trus�vr f�am the praceeds for th� reasvnable cost vf
<br /> repair or restora�ion if Trustor is not in default under �his ❑eed o� Trust. Any p�viceeds whi�h ha�e not been
<br /> dishursed within �8� days afte� their rece�pt and which Lend�r has not cammitted to the repair or restoration of
<br /> �he Property shall #�e used first�o pay any amoun�t owing to Lend�r under this ❑eed o�Trust, then to pay accrued
<br /> int�rss�, and the r�mainder, i� any, shall be applied �o the principal ba�ance of the Indebtedness. If Lender holds
<br /> any proceeds af�er payment in full of the indebtedness, such proceeds shall b� paid ta Trustar as Trustor's
<br /> interests may appear.
<br /> Trus#ar`s Repar�an lnsurance. Upon request of Lender, howe�er not more than once a year, Trustor shall furn�sh
<br /> ta Lender a report on each ex�sting poli�y o� insurance showing: �1} the name a� the insurer; ��� the r�sks
<br /> insured; t3} the amount ofi the policy; {4} the praperty insured, the then current replacem�nt �alue of such
<br /> proper�y, and the manner vf det�rmining that�alue; and t5} the expira�ion date of the policy. Trustor shall, upon
<br /> reques�o�Lender, ha�e an independent appraiser satisfactory�o Lender determine the cash�alue �eplacement cost
<br /> o�the Prvperty.
<br /> TAX AN❑ INSURANCE RESERVES. Subject to any lim�tations and cansisren� with any requirem�nts set by applicable
<br /> law, Lender may require Trustor t❑ maintain wi�h Lender reser�es fior payment ❑f annual �axes, assessments, and
<br /> insuranc� premiums, which reser�es shall be created by an in�t�al deposit and subsequ�nt mon�hly paymen�s, or
<br /> payments at such other int���al as paymen�s under�he No�e may be due, of a sum �s�imafied by Lender�a be suffici�nt
<br /> to pay the �otal annual taxes, assessmen�s, and �nsurance premiums Lender reasonab�y anticipa�es to he paid from
<br /> these reserves. The reser�e funds shal! be held by Lender as a �eneral d�posit from Trustor, which Lender may satis�y
<br /> by payment of �he taxes, assessments, and insu�ance premiums required to b� paid by Trustor as �hey be�ome due.
<br /> Lender shall ha�e the right ta draw upon �he reserve funds to pay such items, and L�nder shall not be required to
<br /> determine �he �alidi�y or accuracy a� any item befvre paying it. Nv�hing in the Deed of Trus� shal� be constru�d as
<br /> requ�ring Lender to ad�ance ather monies for such purposes, and Lender shall no� incur any liability �or any�hing it may
<br /> d� or vmit to do with respect ta the reser�e ac�ount. Subject �v any ��mita�ions set by applicab�e law, if th� ��ser��
<br /> funds disclose a shartage or defi�iency, Trustor shall pay such shortage or d��iciency as required by Lender. All
<br /> amvun�s in�he reser�� accvunt are hereby pledged to further secure�he lndebtedn�ss, and Lsnd�r is herehy autharized
<br /> �o wi�hdraw and apply su�h amounts�n the lndebtedness upon the occurrence of an E�en�af Defaul�. Lender shall n�t
<br /> be required to pay any �nt�r�st or earn€ngs on the reserue funds unless required by law or agreed t� by Lend�r in
<br /> wrifiing, Lender does no� hold the reser�� funds in trust for Trustor, and Lender �s not Trustor's agen� far payment �f
<br /> the taxes and assessments required�� be paid by Trustor.
<br /> LEN�ER'S E�PENDITURES. If any a�tion �r proceeding is cvmmenced tha� wau�d ma�erially a��ect Lender's interest in
<br /> the Praperty or if Trus�or fai�s to c�mply wi�h any pra�ision of th�s ❑eed af Trust or any Related ❑o�uments, including
<br /> but n�t I�mited fio Trus�or's failure to discharge vr pay when due any amounts Trus�or is required ta dis�harge or pay
<br /> under this De�d o�Trust or any Related Documents, Lender on T�ustor's behalf may �bu#sha�1 nat be ab��gated toy take
<br /> any action �hat Lender deems appropriate, including but not [im�ted to discharging or paying all �axes, liens, s�curity
<br /> in�erests, encumbrances and v�her cIaims, a�any time le�ied ar pla�ed on the Proper�y and paying all casts for insur€ng,
<br /> mainta�ning and preservin� the Proper�y. All such expenditur�s incurred or paid by Lender for such purposes will then
<br /> bear interest at the rate charged under �he Not� ��om th� dat� incurred or paid by Lender to the date o� repayment hy
<br /> Trustor. All such expenses vvill become a part of the Indebtedness and, at Lender's vption, will �Ay he payable an
<br /> demand; �B� be added to �he bafance of th� Note and be apportioned among and be payable with any ins�aflment
<br /> payments �� �ecome due during eith�r ��y the term of any applicable insurance policy; or t�} �he remaining �erm o�
<br /> the Note; or �C} be treated as a baliaon payment which wi[� b� due and payable a�the Nate's maturity. The Deed o�
<br /> Trust also wi�� se�ure payment of these amounts. Su�h right shall b� in addi�ion t� a[� other rights and remedies ta
<br /> whi�h Lender may be enti�led upon Default,
<br /> V1IARRANTY; DEFENSE OF TtTLE. The fallowing pro�isions re�ating�❑ownership of the Proper�y are a part of�h�s Deed
<br /> of Trust:
<br /> Title, Trus�or wa�rants that: �a� Trusto� holds good and marketab[e title afi �ecord tv the Prope�ty in #ee simple,
<br /> free and clear of all liens and encumbrances a�her than those set �arth in �he F�ea! Praper�ty descriptian �r in any
<br /> �i�le insurance po��cy, �i�le r�por�, or final title opinion issued in fa�or of, and accepted by, Lender in connection
<br /> wi�h this Deed of Trus�, and 4by Trustor has�he ful� right, power, and au�hority ta execu�e and deli�er this ❑eed of
<br /> Trust ta Lender.
<br /> De�ense of Tit[e. Sub�ect to the exceptian in the paragraph abo�e, Trustor warrants and wi�� #ore�er d�fend the
<br /> ti�le ta �he Property against the �av►rfu[ c{aims of al! persans, ln the e�en� any action ar proc��ding is commen�ed
<br /> tha�questions Trustar's tit[e ar the inte�est of Trustee or Lender under this Deed of Trus�, Trustor shall defend the
<br /> activn at Trustor's �xpense. Trus�or may be the nominal par�y in such proceeding, but Lender shall be entitled to
<br /> par�icipate in th� proceeding and to be represented in the proceeding by counse! ❑f Lender's awn chvice, and
<br /> Trus�or ►rvill deli��r, ❑r cause to t�e deli�ered, to Lender such ins�ruments as Lender may request�rom time to t�me
<br /> �a permit su�h part�cipativn.
<br /> Compliance With Laws. Trustor warrants that the Property and Trustar's use vf the Property complies with a!I
<br /> exis�ing app�icable laws, ordinan�es, and regu�ations of go�ernmen�al authorities.
<br /> Sur�i�al of Repres�ntations and VlJarranties. All representations, warranties, and agre�ments made �y Trustor in
<br /> �h�s ❑eed of Trus�shal� sur�i�e the execution and deliWery of this Deed of Trust, shall be cflntinuing in nature, and
<br /> shal! remain �n full f�rce and effect until such time as Trustor's Indebtedness shall he paid in full.
<br /> CQNDENlNATI�N. The foll�w�ng pro�isions relating ta candemnation proceedings ar� a par�of this Deed of Trust:
<br /> Proceedings. �# any proceeding in condemnation is filed, Trust�� shall promptfy no�ify Lender in writing, and
<br /> Trustor shall p�omptly take such steps as may be necessary to de�end the actinn and obtain �h� award. Trus�or
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