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<br /> vEE� �F T�usT
<br /> �C�nttt�ued� Pa�e 3
<br /> eove�age en���sements �n a r�p�a�emen� basis for the fu�� insu�able value cvvering a!! impro�emen�s on the Rea1
<br /> Praperty in an amount sufFicien� �o avoid app�ication of any coinsuranc� ciaus�, and with a standard mortgagee
<br /> c�ause in�a�ar❑f Lenderr together wi�h such o�h�r hazard and Iiability insurance as Lender may reasonab�y require.
<br /> Poiicies shall be wri�fen in form, amountsf co�erages and basis reasvnabIy accep�able �o Lender and issued by a
<br /> company or companies reasonab�y acceptabte ta Lender. Trustor, upan r-equest of Lenderr wrII d�Ii�er-to Lender
<br /> from�ime�a �ime�he policies or �er�ificates o�F in�urancs in farm satisfa�tor��o Lender� inGluding stipulations�hat
<br /> co�erages will not be canc�lled or diminishe�i wi�hou�at least thirty �3�� days priar wri���n natice to Lender. Each
<br /> insu�an�e policy also shalI incIud� an �ndorsement providing �ha� co�erage in fa�or ❑� Lender wiII no� be impaired
<br /> in any way by any actf amissiQn or defaui�o�Trus�or or any ather person. Shoutd the Reat Praperty he iocat�d in
<br /> an area designated by�he adminis�t-ator ❑f�he F�deral Emergency Manag�ment Agency as a sp�cial fl�ad hazard
<br /> area, Trus�or agrees to ❑b�ain and maintain Federal Flaad Insuran�e, if a�ailable, fiar the maximum amaun� of
<br /> Borrawer's credit line and the full unpaid principai balance of any prior Iiens on the property securing the Iaan, up
<br /> to the maximum po[icy limits s�t under the Nationai F�aad Insu�ance Program, or as otherwi�e required by Lender,
<br /> and�o maintain such insurance far th�term of the taan.
<br /> App�i�ation af Prviceeds. Trustor shall promptly nati�y Lender of any loss ar damage t� the Property i�' �he
<br /> es�rma�ed cost of repair or rep�acemen� exceeds $'�,DDD.��. Lender may make proof of lass if Trus�or fails to do
<br /> so within�ifteen {�5} days o#the casualty. Whether or nat Lender's security is impaired, Lende� may, at Lender's
<br /> efec�ion, receive and �e�axn �he prac�eds o� any insurance and apply �he proce�ds t❑ the reductian ❑f the
<br /> indebtedness, paymen� af any lien affecting �he Property, or the rest�ra�ion and repair ot�he Pr�perty. !� Lender
<br /> elects �o apply the proceeds �o r�es�a�a�ion and repairE Tr�stor �ha�� repair ar replace the damaged ar des-Croyed
<br /> Impro�ements in a manner sa�isfac�ory to Lender. Lender shall, upon satisfa�tory proof❑�F such expenditure, pay
<br /> or reimburs�Trus�or frvm the proc�eds �For�he reasonable cos� o� repair or res�ora�ion if Trustar is no� in defauit
<br /> unde�- this Deed ❑f Trust. Any proceeds which have not been disbursed with�n "18� days after their re�eip� and
<br /> which Lender has not c�mmitted to th� repair❑r res�oratian of th� Property shall be used ��rs�ta pay any am�un�
<br /> owing �o Lender unde��his Deed of Trus�, then t� pay ac�rued interest, and the remainderr it any, shall be applisd
<br /> fio �he principaE bajance of �he Indeb�edness. I�' Lender holds any proc�eds after paym�nt in full of �he
<br /> Indeb��dness, suGh proceeds shall �e paid�❑Trus�or as Trustar's in�eres�s may appear.
<br /> Complian�� with Existing fndehtedness. During the peri�d in whi�h any Existing lndebtedness describ�d beCow is
<br /> in effec�, complianc� wi�h the insuran�e pro�isions contained in the ins�rument eviden�ing such Existing
<br /> indeb�edness shall cons�itute compliance with �he insurance pro�isi�ns under this Deed o� Trust, t❑ the �xten�
<br /> comp!lan�e with the terms ❑f this D�ed of Trust would consti�ute a duplicatian ❑� insurance requirement. I� any
<br /> proceeds from the insuran�e become payable on ��ss, �he pro�isi�ns in�his Deed ❑f Trust for di�ision ❑f proceeds
<br /> shall appfy only�o that partion at the proc�eds nofi payable to�he holder of the Existing lndebtedness.
<br /> LENDER'S EXPEN�ITURES. If Trustor fails �A} to keep �he Praperty firee of all taxes, liens, secu��ty interests,
<br /> encumbrances, and other cIaims, {B} ta pTo�ide any required insuranc� on �he Property, �C} �o make repairs �o the
<br /> Prope�ty ar �a comply with any obEzgation to maintain Exis�rng lndeb�edness in good standing as required �elow, then
<br /> Lender may d� so. lf any acfion or prac�eding is commenced tha� wou[d materiai�y a�fect Lend�r's int�rests in the
<br /> Property, then Lender on Trustor's behalf may, but is not required to, take any a��ion that Lender believes to be
<br /> appropria�e to prate�t Lender's in��rests. AIE exp�ns�s incu�-�ed or paid by Lender �or such purpases will then bear
<br /> interes� a� �h� rate charged under the �redi� Agreemen� fram the date incurred ar paid by Lender �o the date of
<br /> repayment by Trustar. AI� such expens�s wil� become a par� of fihe Indeb�edness and, a� Lender's ❑ptTon, wi�� {A} b�
<br /> payable an demand; �B} be added to the bajance o�F the Credit agr�ement and be apportioned amang and be payabie
<br /> with any ins�allment payments�o became due during either �'�) the�erm of any applicab�e insurance policy; or ��y the
<br /> remaining term a�r the Credi�Agreemen�; or {C} be trea�ed as a ballafln payment which v+rili be due and payable at the
<br /> Credi�Agreement's maturity. Th� ❑eed af Trus�a�s❑ will secure paymenfi vf�hese amaunts. The rights pro�ided for in
<br /> this paragraph shall be in addit��n t❑ any other righ�s or any remedies to which Lender may b� entitl�d an a�count of
<br /> any de-Fau1�, Any such a�tion by Lender shai� nvt be construed as �uring th� default sa as t� bar Lender from any
<br /> remedy�hat if o�herwise wou�d ha�e had.
<br /> WARRANTY; DEFENSE�F T1TLE. The�oliowing pra�isivns reiating�o ownership o�the Prop�rty ar�a part a�this Deed
<br /> afi Trus�:
<br /> Titfe. Trustar warrants �hat: {a} Trustar hoids gaod and marke�abie titie o-� record to �he Prop�rty in fee simple,
<br /> �ree and ciear vf aII Iiens and encumbrances ather �han those set far�h [n fhe Rea� Praperty description ❑r in �h�
<br /> Existing Ind�btedness sectian be�ow or in any t�itle insurance po�icy, titI�report, or final titCe opinion issued in fa�or
<br /> of, and accepted by, L�nd�r in connecti�n with this Deed of T�ust� and {b} Tru��or has the full rightr power, and
<br /> authority to execute and deli��r thzs Deed of Trust ta Lender.
<br /> aefense vf T�tle. Subje�t to fhe ex�eptivn in �he paragraph abo�e, Trustor war�rants and wili f�re�er de�end the
<br /> �itle to the Property agains�the lawful Glaims o�a!! persans. ln the even�any actiQn or praceeding is commenced
<br /> �ha�t ques�ians Trustor's ti�le ❑�r the in�eres�af Trustee ar Lender under this ❑eed of Trus�r Trus�or shalI defend the
<br /> actian at Trusfor's expense. Trustor may be the nominai party in such p�'oceeding, bu� Lender shail be entitled to
<br /> participa�e in �he proceed�ng and to be represented in the proceeding by counse� af Lender`s awn �haic�, and
<br /> T�usfor will deli�er, or cause to be delivet�ed, ta Lender su�h ins�rumen�s as Lender may request from time t❑ time
<br /> �o permif such par�i�ipa�ian.
<br /> C�mplian�e With Laws. Trustvr warrants thafi �he Property and Trus�or's use ❑�the Property compjies wrth ai[
<br /> existing applicable iaws, ordinances, and regula�ians of go�ernm�n�ai authoritie�.
<br /> Sur�i�a[ af Pr�mises. Aii pramises, agre�men�s, and s�atements Trustor has made in �his Deed of Trust shaii
<br /> surv��e�he execution and deli�ery of fhis �eed �f Trust, sha!! be continuing in nafure and shall r�main in full farce
<br /> and effe�t un���such��me as Borrower's lndebtedness is paid in fu��.
<br /> E]CfSTIN� lNOEBTEDNESS. The fallawing pra�isions concerning Existing lndeht�dness are a part of this De�d o�Tru�t:
<br /> Existing Lien. The Iien a� this Deed o� Trus� securing the [ndebtedness may be se�andary and inferior to an
<br /> ex'tsting �ien. T�usto�express�y cav�nants and agrees t'o pay, or see to the payment of, t'he �xis�ing lndebt�dness
<br /> and ta pre�en�any default❑n such indebtedness, any defaui�under th�instruments e�idencing such ind�btedness,
<br /> or any defau��under any security do�ument�for such indeb�edness,
<br /> N❑ Modifcation. Trus�or sha!! not enfer info any agr�emen� wi�h the holder o�F any mortgag�, deed o� �rus�, or
<br /> other se�urity ag�reemen� which has priority ❑�er �his Deed ❑� T�usfi by whiGh tha� agreem�nt is modified,
<br /> amended, ex�k�nded, or ren�wed wi�h�ut �he priQr writken cansent ❑f Lender. Trustar shall ne"r�her request nor
<br /> accep�any fu�ure ad�ances under any such securi�y agreemen�wi�haut the prior written consen�o�Lender.
<br /> CaNDFMNATION.. The fotlowing pra�isians re�ating ta condemnation pro�eedings are a part af this Deed ot Trust:
<br /> Proceedings. if any proceeding �n condemnation is filed, Trustor shall pramp�Iy no�ify Lender in writing, and
<br /> Trus�ar shall promptly �ake such steps as may be necessary t❑ defend the acfiion and obtain �he award. Trustor
<br /> may be the nominaI party�n such proceeding, but Lend�r shall be entitled to participa�e in�he proceeding and�o be
<br /> represent�d in the proceeding by counse! of i�s awn choice, and Trus�or will deli�er or cause to be deiivered to
<br /> Lender such instruments and do�umenta�ian as may be requested by Lender from time �❑ �ime to permi� such
<br /> participa�zon.
<br /> App�ication vf Net Proceeds. �f all ❑r any part of�he Property is candemned by eminent domair� proceedings o�by
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