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2� 1 ��37��
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<br /> DEEa �F TRU�T
<br /> ��a ntin ued} Page 3
<br /> form. amaunts. �averages and ba�is reas�nably acc�ptab�e t❑ Lender and issued by a campany ar campani�s
<br /> reasonat�lY aceeptable #Q Lend�r. Trustar, upon requ�st of L�nder, will del�ver ta Lender from time tv time the
<br /> polieie� �r certificates oi insurance in fvrm satisfactary to Lender, including stipulations th�t caverages will nat be
<br /> canc�lled or diminished with�ut at least thirty �34) days privr written notiG�to Lender. Each insu�ance policy also
<br /> sh�[I include an�ndors�ment praviding that coverage in fa�or af Lender will not be irnpaired�n any wa�by any act,
<br /> amissian ar default of Trustar or any ather person. Should th� Real Property b� loGated in an area designated by
<br /> the Administrator of the F�deral Emergency Managernent A�enGy as a spe�ial fload hazard ar�a. Trustar agrees ta
<br /> obtain and maintain Federal Flaod Insurance, if aWa+iable, fvr the full unpaid principal balanc� �f the laan and any
<br /> prior liens on the prop�rty securing the �aan, up ta the m�ximum pol�cy I�mits set under the National F�Qod
<br /> I nsuranc� Program, or as atherwise required by Lender, and ta maintairr such insuranc� for the term vf the loan.
<br /> Applicat�an af Praceeds. Trustor�hall pr�mptly natifiy Lender of�ny Eo�s or d2�mag� to the Property. Lender may
<br /> rnake p�oof of 14ss if Trustor fails tQ da so within �ifteen �15} days of the ca�ualty. V�Ihether ar n�t Lender's
<br /> security is impaired, Lendgr may, at Lend�r's eleGtion, recei�e and retain the prac��ds�f any in$uran�e and apply
<br /> the prvice�ds to the reducti�n af the lndebt�dness, payment of any lie�r affecting the Propert�r, ar the restoration
<br /> and repair of the Prvp�rty. If Lender elects to apply th� proceeds ta rest�ratiQn and r�pair, Trus#Qr sh�fl repair or
<br /> replace the d$maged ar destroyed lmprav�ments in a mann�r satisfactary to Lender. Lender shall, upan
<br /> satisfactory proaf af �uch expenditure, pay or reimburse Trustor frorn the prac�eds fior th� r�asanable cost of
<br /> r�pair ar r�staratian if Trustor is nat in default under this ❑�ed of Trust. Any pr�c�eds which have not been
<br /> di�burs�d within 18Q deys efter thetr receipt and which Lender has nat committ�d to th� repair or restoratian of
<br /> the Property shall be used first t� pay any amaunt owin�to Lender under this Deed of Trust, then t�pay accrued
<br /> in#er�5t, and th� r�mainder� if any, shall be applied ta the principal balance �f the Indebtedness. If L�nder hol�s
<br /> �ny pr�ceeds after payment �n fu11 of the Indebtedness. such praceeds shall b� paid to Trustor as Trustor's
<br /> inter�sts m�y appear.
<br /> Trustor's Report on In$uranc�, Upon r��ueSt af Lend�r, hvwe�er not mare than vnce a year, Trustor sh�ll turnish
<br /> to Lend�r a report or� each existing policy o# in�urance shvwing: �1� th� name of the �nsurer; ��f the risks
<br /> insured; �31 the amount of th� palicy; �4� the property insur�d, the then Gurrent r�placement Walu� of such
<br /> propert�►, and the manner of determining th�t value; and �5f the�xpiration date a�the policy, Trustor shall, up4n
<br /> request of Lender, heWe ar��ndep�ndent appraiser satisf�ctary to Lender dstermine the cash�alue rep�acement cost
<br /> of the Property,
<br /> TA]�C AND 1N�UFiANCE RESERVES. Subject t�any limitatians and cansist�nt with any requir�ments set by �pplicabl�
<br /> law, Lender rnay require Trustor tv maint�in with Lender reser�es for p�ym�nt vf annu�l taxes, �sse�sm�nts, and
<br /> insurance premiums, which res�rv�s shall be �reat�� by a�n initial deposit and �ubs�quent monthly payments, ar
<br /> pa�m�nta at such other inter�al as payments under the Note may ��due,af a sum estim�ted �y Lender to be sufficient
<br /> ta pay th� total �nnual taxes. assessments, and insur�nc� premiUms Lender re�sanahly anticipates to b� paid fram
<br /> these reser�es. The reser►�e funds shalE be held by Lender as a gener�l deposit from Trusto�, w�ri�h L�nder may sati�fy
<br /> by payment of the taxes, assessments, and insuran�� premiums r�quired ta b� paid iay Trustor as they �ecame due.
<br /> Lender shall ha�e the right ta draw upon the r�s�rWe funds to p�y such items, and Lender sh�ll not be required to
<br /> determins the �ralidity or ac�uracy af any item b�f�re paying it. Nathing in ihe Q�ed 4f Trust shall be �anstrued a5
<br /> requ�ring L�nder tc� advance other manies for such purposes, �nd Lender shall n�t in�ur any liability far anything it may
<br /> da or omit to da with re�pect t4 the reserve a�count. �ubject to any limit�tians sei by appli�able law, if ths reserwe
<br /> funds di�Gtose a sharta�e �r defiCien�y, Trustor sh�11 pay such shvrtag� or d�f�ciency as required by Lender. Ail
<br /> amaunts in#he reser�e account are here�y pledg�d t�further se�ure the Indebtedness, and Lender is h�reay autharized
<br /> to withdr�w end apply su�h amounts an the Indebtedn��s up�n the oc�urrence of an Event o�Default. Lender shall no�
<br /> be require�f to psy an�r interest vr earnings �n the res�rve funds uniess required by law ar agreed t� by Lender in
<br /> writing. Lender does not hold the reserv� funds in trust f�r Trustar, and L�nder is not Trustvr's agent far payrnent af
<br /> Ehe t8�ces and assessments required to be paid ay Trustor.
<br /> LENDER'S EXPE�IIDITURES. If any actian or proce�ding is c�mm�nced that would mat�rially att�ct Lende�''s �r�ter�$i �n
<br /> the Praperty or if Trust�f faiis ta c�mp�y with any prouisio�af this aeed of Trust vr any Related avcuments, in�luding
<br /> but not limited to Trust�r's Failure tv dis�harge ar Q�y when due any amaunts TrUstor is required ta discharge ar pay
<br /> under this Deed af Trust vr any R�lated Documents, Lender an Tru$tor's behalf may {but shail not be obligated to� tal�e
<br /> an� action that Lende� deems apprvpriate, inc�u�ing but not �im�ted to disch�rging ar paying a!� raxes, liens, security
<br /> int�rests.en�umbran�es and other cleims, at any time levied�r placed�n ths Property and p�ying all casts for insurir�g'
<br /> maintaining and preserwing the Rrvperty. All such exp�ndi#ur�s incurred �r paid by Lender��r such purposes w'tll then
<br /> be�r interest at #he r�te charg�d und�r the Nvte #rom the dat� incurred vr paid by Lender to the date a� repayment by�
<br /> Trustor. AI� su�h �xpenses will become a part at t�e Indebtedness and, at Lender's aption, will �A� be payab�e vn
<br /> demSnd; �B} b� added ta the balance af the N�t� and be apportivned among and b� payahle witn any in�tallment
<br /> paym�nts ta becvme due during �ither �1) the i�rm af any applica�le in�urance policy; ar �2� t�r� remaining tsrm of
<br /> the Nvte; or �C� be tr�ated as a ballvon pa�ment which will b� due and payable at the Not�'s maturity. The D��d of
<br /> Trust als� wril� secut� �ayment of the�� amourrts. Sueh rig�t shall be in add�ti�n t� all other rights and rem�dies to
<br /> whi�h Lender m�y be entitled upvn De#au1t.
<br /> WARF�ANTY:DEFENSE QF TITLE. The follawing prvvisions relating to awnership vf the Frop�rty are a part�f this❑eed
<br /> vf Trust:
<br /> Title. Trustar warrants thai: �a) Tr�st�r ho�ds ��ad an�i marketable title of re�ord to the Pr4perty in fe� simple,
<br /> free and clear of �II liens and encumt�rances �ther than thase s�t farth in the Real Property de�criptian or in any
<br /> title insurance pQlicy, title r�port, or firral titl� ��inion issue� in f��ar of, and a���pted by, Lender in conne���on
<br /> wirh rhis Qeed ot T�usr, and 4by Trustor�has the fu�l righi, pawer, and authority to�xecute and deliver ihis i�eed of
<br /> Tr�st t� Lender.
<br /> Defanse of Titl�. Subject to the except�on in the paragraph at�v�e, Trustor warrants and will fore�er defend the
<br /> title t� the Property ayainst the lawful claims of all �ersons. In the event any actian ar proceeding is cornmenced
<br /> that qu�stians Trustor's title or the inter�st of Truste�or Lender under this De�d of Trust, Trustor�hall d�fen�the
<br /> a���an at Trustar's�xpen$e. Trustor may be the nominal party in such pr��eedin�, but L�nder shall be �ntitled ta
<br /> p�r#icipate in the prace�ding and �ia k�e represen�ed in the praGeeding by caunse� of Lend�r'S ❑wn ch�iGe� and
<br /> Trustor will c!eli��r, ar cause ta!�e deEiverQd, to Lend�r such instruments as Lender rnay r�c�uest fram tirne to time
<br /> ta p�rmir suc:h partic+patiorr.
<br /> CQmpli�nce With Lews. Trustar warrants that the PrQpert� and Trustvr's use af the Prop�rty �amplies with all
<br /> existing app�i�able laws, �rdinarrc�$, and re�ulativns of ga�ernmental authorities.
<br /> Sur�i�al af Rap�es�ntetions end Vllarranties. All repr�sentations, warranties, and agreements made b� TrustQr in
<br /> this Ueed ❑f Trust sha�l survive the�xecutian and de�i�ery vf this Deed of Tru�t, shal!be cantinuin� in nature� and
<br /> shall remain in full forc�and effect until such time as Trustor's lndebtedness shall be paid in full.
<br /> �ONDEMNATIQN. The fol�awing provisions relating#o cond�mnation proceed�ngs are�parY�f this Deed Qf T�ust:
<br /> Pr��esdings. If any proceeding in �ond$mnatian is iiled, Trust�r shalt pr�mptly notify Lender in writing, �nd
<br /> Trust�r shalE prQmptly take su��r steps as m�y b� necessary to defend the aetion and obtain the award. Trustvr
<br /> may loe the nvmir�al party i�ti such prviceeding, but Lender shall be entitled to participate in the prviceeding and ta be
<br /> repr�sent�d in the Nroce�ding ay �ouns�l o� its awn choice, and Trustar will deliuer ar cause to t�� cieli�ered to
<br /> Lender such in�trum�nt� and �ocum�ntation as may b� r�ques#ed by L�nd�r from time to tirne Eo permit $uch
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