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2� 1 ��33��
<br /> vEEv oF T�us-r
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<br /> I�ability insurance policies. Additionally, Trustor shall ma�ntain such other insurance, in�[uding but not limited to
<br /> hazard, business €nterrupt�on, and bo�ler insurance, as Lender may reasonably r�quire. Policies shall be written in
<br /> fo�m, amounts, ca�erages and basis reasonab�y acceptable to Lender and issued by a campany or companies
<br /> reasonably acceptable to Lender. Trustor, upan request o� Lender, wi�1 deli�er to Lender f�om time to time the
<br /> pol�cies or certificates af insurance in f�rm satisfactory to Lender, in�lud�ng s�ipulations that co�erages wifl no� �e
<br /> cancelled or diminished without at least thirty �3�; days prior writ�en natice �o Lender. Each €nsuran�e policy also
<br /> sha�l include an endorsem�nt pro�iding that co�erage in fa�or❑�Lender wili nv'�be impaired in any way hy any ac�t,
<br /> omission or de�au[t of Trustor or any other pers�n. Shoufd the Real Proper�y be located in an area designated by
<br /> the Administra�or o�the Federal Emergency Manag�men�Agency as a special flood hazard ar�a, Trustvr ag��es �o
<br /> obtain and main�ain Federal Flood Insuran�e, if a�ailable, for the �ull unpaid prin�ipa� balance o�the loan and any
<br /> prior liens vn the property securing the [aan, up to the maximum po�icy �imits set und�r �he National Flood
<br /> Insurance Program, o�as otherwise r��uired by Lender, and ta main�ain such insurance for�h�t�rm of�h� loan.
<br /> Application vf P�oc�eds. Trustar shal[ promptly notify Lende� a� any �oss or damage �o the Prop�rty. Lend�r may
<br /> make proo� of loss if Trusto� fails to do sa with�n fifteen 415� days o� the casualty. VIlhether or nat Lender`s
<br /> securi�y is impaired, Lender may, at Lender's electian, re�ei�e and re�ain �he proceeds of any insurance and apply
<br /> the proceeds �❑ the reduction of the Inde��edness, payment of any lien a�fec�ing th� Property, or th� restoration
<br /> and repa�r of�he Proper�y. I� Lender �lec�s to apply �he pro�eeds to restora'tion and repair, Trustvr shal� repair ar
<br /> replace �he damaged ❑r destroyed impro�ements in a manner satis�actvey to Lender. Lender shall, upon
<br /> satisfa�to�y proo� of such expenditure, pay or reimburse Trustor from the proceeds �vr the reasonah[e cos� of
<br /> repair or res��ration �f Trustor is not in defau�t under th�s Deed �� Trus�. Any prviceeds which ha�e na� be�n
<br /> disburs�d wi�hin 18� days after th��r receipt and which Lender has nvt committed to the repair vr restoration �f
<br /> the Property shall be used �irs�t to pay any amount owing to Lend�r under this Deed ❑f Trust, then tv pay accrued
<br /> interest, and th� remainder, if any, shall be applied �o the principa[ �alance of the Indebtedness. lf L�ndsr holds
<br /> any praceeds a�ter paymen� in full of th� �ndeb�edness, such pro�eeds sha(� be paid �o Trustor as Trustor's
<br /> in�erests may appear.
<br /> Trustvr's R�part on Insurance. LJpon r��uest af Lender, hvwe�er n�t more �han ance a year, Trusto� shall furnish
<br /> to Lender a report on each existing po[icy of insurance showing: �1} the name of �he insurer; {2} �he risks
<br /> insured; {3� the amoun� o� the p�licy; �4} th� proper�y insured, �he th�n current �eplacement �alue of su�h
<br /> pr�per�y, and the manner o�determining that�alue; and �5} the expiration date of the policy. Trustvr shall, upon
<br /> request of Lender, ha�e an ind�pendent appraiser sat�sfac�ory ta Lender determine the cash�alue replacement cost
<br /> o#the Praperty.
<br /> TAX AND lNSURANCE RESERVES. 5ubject to any lim�tations and �onsis�ent with any r�quirements set by appl�cahle
<br /> law, L�nder may require Trustor to maintain with Lender r�ser�es �or payment of annual taxes, assessments, and
<br /> �nsuran�e premiums, which reser�es sha11 he created by an initial deposit and subsequent monthly payments, flr
<br /> paymen�s at such ❑ther int�r�al as payments under the Note may be du�, of a sum estimated by Lender to be sufficient
<br /> to pay �he total annual taxes, assessmen�s, and insuran�e premiums Lender reas�nably antic�pates �o be paid from
<br /> these reser�es. The reser�e funds shall he held �y Lender as a genera� deposit from Trus�or, which Lend�r may satfs�y
<br /> by payment of the taxes, assessments, and insurance premiums required to 1�e pa�d by Trustor as they become due.
<br /> Lender shall ha�e the right to draw upon th� reser�e �unds to pay such i�ems, and Lender shall nat he required to
<br /> determin� the �a�idity ar accura�y of any item befare paying i�. Nothing in the ❑eed �f Trust shall be construed as
<br /> requiring Lender t� ad�ance o�her monies for such purposes, and Lender shall not inGur any �iabiii�y fv� anything it may
<br /> d❑ or omit to da with r�spect to the reser�e account. Sub�ec� to any limitations se� by applicable {aw, if the �eser�e
<br /> funds disclose a shartage or de�icien�y, Trus�or sha�� pay such shortage or deficiency as requi�ed by Lender. All
<br /> am�unts in the reser�e acc�unt are hereby pledg�d to fur�her secure the Indehtedness, and L�nder is hereby authorized
<br /> to w�thdraw and app�y su�h amoun�s on the (ndebtedness upon the occurrence vf an Event af Default. Lender shall not
<br /> be requir�d to pay any �nterest or earnings an the reserve fiunds unless required �y law vr agreed to by Lender in
<br /> writing, Lender daes no� hold �he reser�e funds in trust far Trus�or, and Lender is not Trust�r's agen't for payment o� �
<br /> the taxes and assessments r�quired to !�e paid �y Trus�or.
<br /> LENDER'S EXPENDITURES. If any action ar proceeding is commen��d that would materially a#fec� Lende�'s in�erest in
<br /> the Proper�y or i�Trustor fails �o comply with any pro��sion of this Deed of Trust �r any Reiated Documents, including
<br /> bu� nat limi�ed �o Trustor's �ailure to dis�harge or pay w�en due any amounts Trustor is required to dischar�e or pay
<br /> under this Deed of Trust vr any Related ❑ocuments, Lender on T�ustor`s behal� may �but shall nat be obliga�ed to} take
<br /> any ac�tion that Lender deems apprapriate, including but not lim�ted �o discharging or paying all taxes, liens, security
<br /> interests, encumbranc�s and other claims, at any t€me le�ied ar placed on the Property and paying all casts far insuring,
<br /> maintaining and preser�ing the Property. All such sxpenditures incurred or paid t�y Lender for such purposes will �hen
<br /> bear in�erest a� the rate charged under the N�te �rom the date incurred or paid by Lender to the da�e of repayment by
<br /> Trus�or. Ail such expenses will b�came a part of the Indehtedness and, a� Lender's ap�ion, will �Ay he payable vn
<br /> demand; �B} be added to the ba[ance of the No�e and be apportioned among and be payahle with any installm�nt
<br /> payments to become due during e�xher ��} the fierm of any applicabl� insurance policy; or 4�} the remaining term ❑�
<br /> �he Note; or {�3 be tr�atsd as a balloon paymen� which will be due and payab�e at the Nate�S ma�urity. The Deed af
<br /> Trust a�sa will secure paymen� o� th�se amounts. 5uch right shal[ he in addit�on tfl all other rights and remedies to
<br /> whi�h Lender may be ent�t6ed upon Defaul�.
<br /> VIlARRANTY; ❑EFENSE❑F T[TLE. The following pro�isi�ns rela�ing to ownership of the Property are a part v�this ���d
<br /> �f Trust:
<br /> Tit�e. Trus�or warrants that: �a� Trusta� holds good and marketable ti�le o� record t� �h� Property in fee simp�e,
<br /> free and �fear of all �iens and encumbrances o�h�r than those set fvrth in the Real Property description vr in any
<br /> title insurance policy, title report, or fina� title opin�on issued in �a�or ❑f, and accep�ed by, Lender in connect��n
<br /> with this Deed af Trust, and �b3 Trustor has the fu�� r�ght, power, and author�ty to execute and def��er this Deed o#
<br /> Trust ta Lender.
<br /> ❑efense of Title. Suhjec� to the exception in the paragraph aho�e, Trusto� warrants and will f�re�er defend the
<br /> title ta the Praperty against the lawful c�aims of a[[ persons. In the e�ent any ac�ion or praceeding is comm�nced
<br /> that questions Trustar's title or the interest❑f Trustee �r Lender under this Deed af Trust, Trust�r shall defend the
<br /> actian at Trus�or's expense. Trus�or may be �the nominal party in such proceeding, but Lender sha�l be entit�ed �o
<br /> participate in th� p�oceeding and to be represented in the proceeding by counsel o� L�nd�r's own choice, and
<br /> Trustar w��l deli�er, or cause t❑ be de�i�ered, to Lender such instruments as Lender may request�rom �ime ta time
<br /> to permit such part�cipativn,
<br /> Compliance V11i�h Laws, Trustvr warrants �hat the Proper�y and Trustor's use of the Proper�y complies with a1l
<br /> existing appli�a�le �aws, �rd�nances, and regulations af go�ernm�ntal authorities.
<br /> Sur�i�al nf Repr�sentativns and Warranties. All r�presentations, warranties, and agreemen�s made by Trustor in
<br /> this Deed of Trus�shall sur�i�e the �xecution and deli�ery of this Deed o�Trust, shal[ �e continu�ng in nature, and
<br /> shall remain in full �orce and effe�t unti� such�ime as Trus�or's Indebtedn�ss shall be pa�d in full.
<br /> C�NDEMNATIQN. The�ollowing pro�isions r�lating t� condemnati�rn proceedings are a part af this �3eed of Trust:
<br /> Pro�eedings. If any proceeding in condemnation �s filed, Trustor shall promp�ly noti�y Lender �n wri�ing, and
<br /> Trustor shali prompt�y take such steps as may b� necessary to defend the actian and obtain the award. Trustor
<br /> may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be
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