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2� 1 ��3�39
<br /> vEE� �F -r�usT
<br /> ��vntinued� Page 3
<br /> form, amaunts, co�e�ages and basis reasonably ac�eptahle to Lender and issued by a company or �vmpanies
<br /> reasonably ac�eptah�e ta Lender. Trustor, upon request o�f Lender, wi11 deli�er �o Lender from time to tfine the
<br /> poiicies or certi�icates o# insurance in �orm satisfactory to Lender, inc(uding stipulatians that co�erages w�fl not be
<br /> �ancelled or diminished without at leas�thirty t3�� days prior written notice�o Lender. Each insurance pol�cy also
<br /> shall include an endorsement pro�iding�hat co�erage �n fa�flr of Lend�r will not be impaired in any way by any ac�,
<br /> omission Q� default o�Trus�or ❑� any other person. Should the Real Proper�y be lacated in an area desi�nated by
<br /> the Admin€sfirator o�the Federa� Emergency Management Agency as a special flaod hazard area, Trustor agrees tv
<br /> obtain and maintain Federal F�ood Insurance, i# a�ailable, for the ful� unpaid prin�ipal balance of the �van and any
<br /> priar �iens an the proper�y securing the loan, up �a �he maximum poli�y lim�ts s�t under �he Nati�nai Flood
<br /> Insurance Program, or as oth�rwise required by Lender, and ta maintain such insurance for the term vf the �oan.
<br /> Application of Proce�ds. Trustor shall prvmptly notify Lender of any lass vr damage to the P�aperty. Lender may
<br /> make praa� of loss i# Trustor �ails �a do so wi�hin fi�teen �15y days o# the casualty. VIlhether or nvt Lender's
<br /> SeCuri�y is impair�d, Lender may, a� Lender's election, recei�e and r�ta�n the praceeds of any insurance and apply
<br /> �he proceeds �o the reduction of the Indebtedness, paymen� ❑f any lien affecting the Pr�pe�ty, or the restorativn
<br /> and repa�� vf�he Property. I� Lender e�ects �❑ apply the proceeds to res�vration and repair, Trustor shall repair or
<br /> replace �he damaged or destroyed [mpra�ements in a manner satisfactory �o Lender. Lender shall, upon
<br /> satisfactory prao� o� such expendi�ure, pay ar reimburse Trust�r frvm the pr�ceeds �or th� reasonab�e cost of
<br /> repair ar restvration if Trustor is nvt in default und�r this Deed of Trust, Any praceeds which ha�e not been
<br /> disbursed wi�hin 1 SD days a�ter their re�eipt and wh�ch Lender has not cvmm�tted to �he repair or resto�ation of
<br /> �he Prvperty shall be used f�rst tv pay any amoun# owing ta Lender under this Deed of Trust, then to pay ac�rued
<br /> interest, and the remainder, if any, shall be applied ta the principaf balanc� of the lndebtedness. If Lend�r holds
<br /> any proceeds after payment in full of �h� Indebtedness, su�h proceeds shall be paid tv Trus�or as Trus�or's
<br /> interests may appear.
<br /> Trustor's Rep�rt on Insurance. Upon request af Lend�r, howe�er nat mare than ance a year, Trus�or sha11 furnish
<br /> to Lender a report vn each exis�ing po�icy of insurance shvwing: �1} the name ofi the �nsurer; ��j the risks
<br /> insured; �3� the amount o� the policy; �4� th� proper�y insured, �he then curren� rep�a�ement �alue of such
<br /> property, and the manner�f de�ermin�ng tha��alue; and �5y the �xpira�ion dat� of the poficy. Trustor shall, upon
<br /> requ�st vf Lender, ha�e an indep�nd�nt appraiser sa�isfa��ory to Lender det�rmin�the cash�alue replacemen�cost
<br /> of the Property.
<br /> TAX AND �NSURANCE RESERVES. 5ubject to any limitafiions and consistent with any requ�remen�s set by appli�able
<br /> law, Lend�r may require Trustor t� maintain with Lender rese��es �or paym�nt of annuaf taxes, assessments, and
<br /> insurance premiums, which reser�es shail �e �reated by an in�tial deposit and subsequent month�y payments, ❑r
<br /> paym�nts a�such other inter�al as paymen�s under the Not� may be due, af a sum estimated by Lender to be su�ficien�
<br /> to pay the �total annual taxes, assessments, and insurance premiums L�nder reasonably anticipates t❑ be paid from
<br /> these reser�es. The reser�e�unds shall be heid by Lend�r as a genera! depasit firom Trustor, wh�ch Lend�r may satisfy
<br /> by payment of the tax�s, assessments, and insurance premiums required to be paid by Trustor as they become due.
<br /> Lender shali ha�� the righ� to draw upon the reser�e #unds �o pay such items, and Lender shall nat be requir�d ta
<br /> determine the �alidity or accuracy of any item bef�re paying it, No�hing in th� ❑eed of Trust shall be cvns�rued as
<br /> requiring Lender to ad�ance ather monies for such purposes, and Lender shall not incur any �iabili�y for anything it may
<br /> do or amit to do with respect to �he reser�e ac�ount. Subject to any limitat�ans set by appli�able Law, �f the reser�e
<br /> funds disclase a shortage or deficiency, Trustor shall pay such shartage or deficiency as required by Lender. A1l
<br /> am�unts in the reser�e accaun�are h�reby pledged tv�urther secure the lndebtedness, and Lender is hereby autharized
<br /> ta withdraw and apply such amounts ❑n�he Indebtedness upon the occurrence of an E�ent of Defau�t. L�nde�shall not
<br /> be required to pay any interest vr earnings on the reser�e �unds un�ess required by law or agreed to hy Lender in
<br /> writ�ng. L�nde� dves not hald the reser�e funds in trus� �o� Trustar, and Lender is nvt Trustvr's agen� for paymen� of
<br /> the taxes and assessments requi�ed tv be paid by Trustor.
<br /> LENDER'S EXPENDITURES. If any ac�ion or proceeding is �ommenced that wvuld materially a��ect Lender's interes� in
<br /> the Property or if Trustor�ails ta eomply with any prov�s�on of this Deed of Trust or any Related Documents, including
<br /> but no� iim�ted to T�ustor'S fa��ure to discharge ar pay when due any amvunts T�ustar is required to d�s�harge or pay
<br /> under th�s Deed �f Trus�or any Related ❑ocuments, Lender on Trustor's behaE'�may ��ut shall not be abligated to} take
<br /> any aCtian that Lender deems appropriate, including hut not limited to discharg�ng vr paying all �axes, liens, security
<br /> interests, en�umhrances and other c[aims, at any time le�ied o�p�aced vn the Praper�y and paying a�l cQsts far insurin�,
<br /> maintaining and preser�ing the Property. All such expenditures incurred or paid by Lender fior such purposes wi�� then
<br /> bear interes� at the rate charged under the Note from the date in�urred vr paid by Lend�r to the date o� repayment by
<br /> Trustor. All such expenses will become a part of the Ind�btedness and, at Lender's vption, will �A3 he payab�e on
<br /> demand; �By be added to the halance of the Note and he apportivned among and be payable with any installment
<br /> payments to b�come due during either �1� �he term of any applicable insurance policy; or {2� the remaining term a�
<br /> the Note; ar ��3 be treated as a ba�foon payment whi�h will he due and payable at the Note's maturity. The Deed of
<br /> Trust afsv will secure paymen� of these am�unts. 5uch right shall be in additivn t❑ a�� other rights and remedies to
<br /> which Lender may be�nt�tl�d upon D�faul�.
<br /> WARRANTY; DEFENSE�F TfTLE. The following pro�isivns r�lating to own�rship of the Praper�y are a par�of this Deed
<br /> of Trust:
<br /> Title. Trustar warrants that: �a� Trustor hvlds go�d and marketable title a� reco�d to the Property in fee simple,
<br /> free and clear of all liens and encumbrances other than those set farth in the Real Property descripti�n ar in any
<br /> title insuran�e po�i�y, title report, or fina! title vpinion issued in fa�ar of, and accep�ed by, Lender in connec�ian
<br /> with this ❑�ed o�Trus�, and �b� Trustor has the full r�ght, power, and au�hority to execute and deli�er this Deed of
<br /> Trust to Lender.
<br /> Defense of Title. Subject to the exceptian in �he paragraph abo�e, Trus�or warran�ts and wiil fare�er defend the
<br /> title to �he Prope�ty against the lawful claims of a�{ persons. In the e�en� any action or p�oceeding is �ommenced
<br /> tha�questions Trustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustor shali defend the
<br /> action at Trustvr's expense. Trustor may be the nom�nal par�y in such proceeding, but Lender shall he entitled to
<br /> participate in the proceeding and to b� represent�d in the proc�eding by c�unsel of Lender's own �haice, and
<br /> Trustor wil! deli�er, or �ause to be deli�ered, to Lender such instruments as Lender may request from time to �ime
<br /> �o permit such participa�ion.
<br /> Compiiance Wi�h Laws. Trustor warrants that �he Property and Trustor's use of the Property camplies with all
<br /> existing applicable laws, ordinances, and regulations of go�ernmental authorities.
<br /> SurWi�al of Representa�tians and Warranties. All representarivns, ►rvarranties, and agreements made by Trustor in
<br /> this Deed o�Trust sha�� sur�i�e the exe�ut�on and deli��ry of�his Deed of Trust, shall be continuing in nature, and
<br /> shail remain �n full f�rce and ef�ect until su�h time as Trust�r's Endebtedness shall b� pa�d in full.
<br /> C�NDEMNAT�nN. The�oll�wing pro�isions rela�ting to condemnation proceedings are a part of�his Deed of Trust:
<br /> Proceedings. I� any proc�eding in candemnat�on is filed, Trustor shal� promp�ly nati�y Lender in writing, and
<br /> Trustvr shall prvmptly take SUGh steps as may be necessary �� defend the activn and abtain the award, Trustvr
<br /> may b�the nominal party in su�h proc�eding, but Lender shall be entitled to participat� in th� proce�ding and�t� be
<br /> represented in the prviceeding by �ounsel vf its own �hoice, and Trustor wiil deli�er or cause to be deli�ered to
<br /> Lender such instrumen�s and dacumentation as may be requested �y Lend�r #rvm time ta time to permi� such
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