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2� 1 ��358�
<br /> vEE� oF T�u�-r
<br /> �Continued� Page 3
<br /> �orm, amounts, co�erages and basis reasonably acceptab�e t❑ Lender and issu�d by a �ompany or �ompanies
<br /> reasonably acceptable tn Lender. Trustor, upon request of Lender, will de�i�er to Lender from time �o time the
<br /> policies or certificates af insurance in form sa�isfactary to Lender, including st�pulafiions that co�erages will nvt be
<br /> cancelled or diminished without a� least thirty �3Q� days priar written no�i�e ta L�nder. Each insuran�e poli�y also
<br /> shall include an endorsement pro�iding that co�erag� in fa�or of Lender will not be impair�d in any way �y any act,
<br /> omissian or default of Trustor or any other persvn. Shfluld �he Rea� Proper�y be �acated in an ar�a designated by
<br /> the Administrator o�the Federa! Emergency Management Agency as a special flood hazard area, Trus�or ag�ees tv
<br /> obta�n and main�ain Federal F[ood Insurance, i# a�ailat�ie, for the ful[ unpaid principa� balan�e o� the �oan and any
<br /> prior liens on the proper�y securing the loan, up to the maximum policy limits set under the Nati�nai Flood
<br /> Insuran�e Pr�gram, or as v�he�w�se required hy Lender, and to maintain su�h insuranc� for�he term vf�he loan.
<br /> Application of Prviceeds. Trusta� shall promptly no�ify Lender af any loss or damage ta the Property. L�nder may
<br /> make proo� o� lass �� Trustor fails to do so within fifteen �15y days o# the casua�ty. Whether or not L�nder�5
<br /> security is impaired, Lender may, at Lender's �lec�iQn, recei�e and retain the proceeds of any insurance and apply
<br /> the proceeds to th� reduction of the �ndet�tedness, payment of any �ien affecting the Property, or the restoratian
<br /> and repair a#the Property. if L�nder elects t❑ apply the prv�eeds to restora�ion and repair, Trustor shall repair or
<br /> replace the damaged �r destroyed Impra��men�s in a manner satisfaC�ory �o Lender. Lender sha�f, upon
<br /> sat�sfactory proofi ❑� SUCh expenditure, pay or r�imburse Trus�or from the proceeds for the reasonable cost of
<br /> r�pa�r or restora�ion i# Trustor is no� �n d�#ault under this Deed o� Trust. Any p�oceeds which ha�e not been
<br /> disbursed w�thin '�8� days afte� their receipt and which Lender has not committed to the repair or r�storatian vf
<br /> th� P�operty shall be us�d �irst to pay any amoun� owing to Lender under this Deed of Trus�, �hen to pay accrued
<br /> interest, and the rema�nder, if any, shall be applied �o the principal ba�ance of the Indebtedness. If Lender halds
<br /> any proceeds af�er paym�nt in full of the Indeb�edness, such prviceeds shall be paid to Trustor as Trustor's
<br /> interests may app�ar.
<br /> Trustor's Report on Insuran�e. Upon request of L�nder, howe��r nat more than once a year, Trustor sha�1 �Furnish
<br /> ta Lender a report on each exis'�ing pa�icy vf insurance shvwing: �1� th� nam� of the insurer; ��j the risks
<br /> insured; t3� the amoun� o� �he policy; �4} �he property insured, the then current replac�ment �a[ue of such
<br /> proper�y, and th� manner o�determining that�alue; and �5} �he expirativn date o�the pofiCy. Trustor shall, upon
<br /> reques�o�Lender, ha�e an independent appraiser satis�a�tory�o Lender determine th��ash�a�ue repla��m�nt cos�
<br /> o�the Prap�rty,
<br /> TAX AND iNSURANCE RESERVES. 5u��ect ta any limitations and Gonsistent with any requirements set by applicable
<br /> law, Lender may require Trus�or �o maintain with Lend�r r�ser�es for payment o� annual taxes, assessments, and
<br /> insurance premiums, which �ese��es shall be created hy an ini�ial deposit and subsequ�nt monthly payments, or
<br /> payments at such other inter�al as payments under the Nate may h� du�, ❑f a sum estima�ed hy Lender ta be sufificient
<br /> to pay �he total annual taxes, assessm�nts, and insurance premiums Lender reasonably antic�pates t❑ be paid fr�m
<br /> these reser�es. The r�ser�e funds shall be held by Lender as a gene�a! depvsit from Trust�r, which Lender may satisfy
<br /> by payment of the taxes, assessments, and insurance premiums required t� be paid by Trustor as they becvme due.
<br /> Lender shal� ha�e the righ� to draw upon the reser�e funds �� pay such i�ems, and Lender shall not b� required ta
<br /> determine the �alidity or accuracy of any item �efore paying it, Nothing in the Deed of Trust shall be construed as
<br /> requiring Lender�a ad�ance other mvnies �ar su�h purposes, and Lender shall no� incur any �ia�ility for anything it may
<br /> do ❑r omit to do w�th respect tv the reser�e a�count. 5ubject to any limitat�ons set by applicable law, i� the reser�e
<br /> funds disc�ose a shortage ❑r deficiency, Trus�or shali pay such shar�age ❑r deficien�y as required by Lender. A!I
<br /> amvunts in the reser�e accaunt are herehy pledged�o furth�r s�cure the Indebtedness, and Lender is hereby autharized
<br /> �� wi�hdraw and ap�ly such amounts on the Indebtedness upon the accurr�nce flf an E�ent❑�❑efault. Lender sha�� not
<br /> be requi�ed to pay any inter�s� or earnings on �he reser�e funds unless required �y law or agreed to by Lender in
<br /> wri�ing. Lender does not h�ld the reser�e funds in tru$t fvr T�ustar, and Lender is n�t Trustor's ag�nt fvr payment of
<br /> the taxes and assessments requir�d ta be paid by Trus�or,
<br /> LENaER'S EXPEN�ITURES. [f any actian or proceeding is commenced that wauld materially aff�ct Lender's interest in
<br /> the Property or if Trustor fails ta cvmply with any pro�ision of this Deed ofi Trust o� any Related ❑v�uments, including
<br /> but not �imited to Trustor's failur� to discharge or pay when due any amoun�s Trustor is requ�red to discharge or pay
<br /> und�r�his Deed of Trust or any Rela�ed Documents, Lender vn Trustor's behalf may �bu�shall not be ❑bligated tv� �ake
<br /> any a��ion that Lender deems appropriafie, including but not limit�d to discharg�ng or paying a11 taxes, liens, security
<br /> interests, encumbrances and other Glaims, at any time ie�ied or p[aced on�he Property and paying all �osts#or insuring,
<br /> maintaining and preser�ing the Praperty. A11 such expenditures incurred or paid �y Lender �or such purposes will then
<br /> b�ar in�erest at�h� rate charged under the No�e from the da�e incu�red or paid by Lender to the da�e of repayment by
<br /> Trustor. A�I such expenses wili became a part of the lndebtedness and, at Lender`s aption, will �A} �e payable on
<br /> demand; 4B} be added to the balance o� the Nvte and be apportiflned among and be paya�le with any installment
<br /> payments ta become due dur�ng ei�her 41} the term of any app[�cahle insurance policy; or 42} �he remaining �erm o�
<br /> the No��; or �Cy be treated as a balloon payment v►rhich will be due and payah�e at the Nate's maturity. The ❑eed o�
<br /> Trust also will secure payment af these amounts. 5uch right shall be in add�t�an �o all other rights and remedi�s to
<br /> which L�nder may be entitled upon De�ault.
<br /> WARRANTY; DEFENSE�F T1TLE. The follawing pro�isions relating tv ownership af the P�operty are a part of�his D�ed
<br /> o�Trust:
<br /> Title. Trust�� warrants tha�: �a� Trustar holds gaod and marketable tit�e �f record to �he Property in fee simp�e,
<br /> free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any
<br /> ti�le insuranc� policy, tit�� repvrt, or �inal �itl� apinion issued in fa�or �f, and accepted t�y, Lender in cvnn�ction
<br /> wi�h this ❑eed o�Trust, and tby Trustor has the�ull righ�, power, and authority tv execute and deli�er this Deed o�
<br /> Trust to Lender.
<br /> Defense of Title. Subject to �he sxception in the paragraph abo�e, Trustor warran�s and will fore�er defend �he
<br /> ti�le to the Prap�rty against the �awfu� claims o� a�� persvns. In the ��ent any action vr proceeding is commenced
<br /> that questions Trustor's�itle or the interest of Truste� or Lend�r under this Deed of Trust, Trustor sha�� defend the
<br /> action at Trusto�'s expense. Trustor may be th� nominal party in su�h pro�eeding, hut Lender shall be en�itled to
<br /> participate in the proceeding and t� be represented in the proceeding hy counsel ot Lender's own choice, and
<br /> Trustor will del��er, or cause to be deli�ered, to Lender such instruments as Lender may request from time to time
<br /> to p�rmit such parti�ipatian.
<br /> Compliance With Laws. Trustor warrants that the Proper�y and Trus�or's use af the P�operty complies wi�h a�!
<br /> existing applicabl� laws, ordinances, and regulations of go�ernmental au�h�riti�s.
<br /> 5ur�'r�af o� Represen�atians and Vllarranties. All represen�atians, warranties, and agreements made hy Trustor in
<br /> this ❑eed of Trust shall sur�iWe�he ex�cution and deliWery vf this Deed ❑f T�ust, shall be continuing in nature, and
<br /> shall remain in full force and effect unt�l such�ime as Trustor's Indebtedness shall be paid �n full.
<br /> C�N�EMNATIQN. The fallowing pro�isi�ns �eiating to condemnation proceedings are a par�of this ❑eed of T�ust:
<br /> Proceed�ngs. If any proce�ding in cond�mna�i�n is filed, Trustor shall promptly notify Lender in writing, and
<br /> Trus�or shall promptly take such steps as may �e necessary t❑ de�end the action and obtain �he award. Trus�or
<br /> may be th� nominal party in su�h pro��eding, hu�L�nd�r shall be entitled tv part�cipate in the prviceeding and to �e
<br /> represented in �he p�oceeding t�y counsel of its Qwn choice, and Trustor will d��i�er or cause ta be d�li�ered to
<br /> Lender su�h ins�ruments and dacumentation as may he reques�ed by Lender from time to time to p�rm�� su�h
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