|
2� 1 ��41 � 1
<br /> DEE D �F TRUST
<br /> �Continued} Page 3
<br /> paf�cies or certificat�s �f insurance in form satisfactory to Lender, including stipula�ions �hat ca�erages will not be
<br /> cancelled ar diminished without at least thirty �3�} days prior writt�n no�ic� to L�nder. Each insurance policy alsa
<br /> sha�� include an endors�ment pro�iding that ca�erage in fa�or of L�nder wilf not h� impaired in any way t�y any act,
<br /> omission �r default o�Trustor ar any ❑ther person. 5hould �he Real Property be located in an area designated �y
<br /> the Administratvr�f the Federa! Emerg�ncy Management Agency as a spe�ia� �lovd hazard area, Trustor agrees to
<br /> obtain and main�ain Federal Flood Insurance, �f a�ai�able, �or the full unpaid principal f�a�ance af the loan and any
<br /> prior liens on th� property securing the loan, up t� the maximum policy limits set under th� Nativnal F�ood
<br /> Insurance Program, o�as otherwise requ�red by Lende�, and�o maintain such �nsurance�or the term of the loan,
<br /> Applicativn of Proceeds. Trustor shall promp�ly nati�y Lender v� any loss o� damage �o the Property. Lender may
<br /> make proof of loss if Trustor fails to do sa with�n fifteen t15} days v� th� casualty. Whethe� or not Lender's
<br /> security is impaired, Lender may, at Lender's el�ction, recei�e and retain the proce�ds of any insurance and apply
<br /> the proceeds to the reduct�on of the Indebtedness, payment of any li�n affec�ing the Property, or the resto�ation
<br /> and repair af the Property. If Lend�� ele��s ta appiy �he praceeds to restora�ion and repair, Trustor shall repair or
<br /> replace �he damaged or destroyed Impro�ements �n a manner satis�actory to Lender. Lender shai�, upon
<br /> satisfactory proof af such expenditur�, pay o� r�imburse Trustor from �he pr�c�ed� for the reasanabfe c�st of
<br /> repair o� restorat�on if Trustor is not in defau�t under th�s Deed of Trust. Any pr�ceeds which ha�e not been
<br /> disbursed within 18❑ days af�er their reCeipt and which Lender has not cammitted tv �he repair or restoration of
<br /> the Proper�y shall be used firs�to pay any amoun�owing �v Lender under this Deed vf Trust, then t� pay accrued
<br /> in�erest, and the remainder, if any, shall be applied to the prin�ipal balan�e of the Indebtedness. !f Lender holds
<br /> any praceeds af�er paymen� in fuil ❑f the �ndebtedness, such proceeds shali be paid to Trus�or as Trus�or's
<br /> in��rests may appear,
<br /> Trustor's Repvrt vn lnsuran�e. lJpon request of Lender, hvwe�er not more than once a year, Trustor shall �urnish
<br /> to Lender a r�por� on each existing policy of insurance showing; {1} �he name vf �he insurer; 4�} the risks
<br /> insured; �3} the amoun� ❑f the palicy; {4} the praperty insur�d, the �hen current rep�acem�nt �afue of such
<br /> prop��ty, and �he manner of det�rmining that�alue; and �53 the expirati�n date of the po[icy. Trustor shall, up�n
<br /> request of L�nder, ha�e an independent appraiser satisfactary to L�nder determ�ne the cash�alue repfacement cvst
<br /> ofi the Proper�y.
<br /> TAX AND iNSURANGE RESERVES. 5ubject to any iimitat�ons and consisten� with any requir�men�s set by appli�ab�e
<br /> law, Lender may require Trustor �o maintain with Lende� reser�es fo� payment o�F annua! taxes, assessments, and
<br /> insurance premiums, which res�r�es shall be �reated by an initia� deposit and subsequent monthly payments, or
<br /> payments at su�h othe� inter�a! as payments und�r the Note may be due, of a sum es�imated by Lende�to be suf�icient
<br /> to pay the total annual �taxes, assessments, and insurance premiums Lender reasona�ly anticipates to be paid �rom
<br /> these reser�es. The reser�e funds shal� be held by Lender as a general dep�sit from Trustflr, which Lender may satisfy
<br /> by payment o� the taxes, assessments, and insurance premiums required to be paid by Trustor as they become due.
<br /> Lender shall ha�e the right to draw upon the reser�e funds to pay such items, and Lender shall no� be required ta
<br /> determ�ne �he �alidi�ty or accuracy of any item before paying it. N�thing in the Deed of Trust shall t�� construed as
<br /> requiring �ender ta ad�ance ath�r monies �o� su�h purpases, and Lender shall not incur any ��abili�y fvr anything it may
<br /> d� or omit to do �rvith respect ta the rese��e account. 5ubject to any limitations set by applicable law, if �he reser�e
<br /> funds disc�ose a shortage or defici�ncy, Trus�or shall pay such shortage or defiCiency as required by Lender. All
<br /> amvunts in the reser�e account are hereby pledged to fur�h�r secure the Indebtedness, and Lender is hereby autharized
<br /> �o withdraw and apply such amounts on the Ind�btedness upon the occurrence of an E�ent of De�ault. Lender shall not
<br /> be �equired to pay any interes� or earnings on �he �es�rve funds unless requir�d by law or agreed to by Lender in
<br /> wri�ing. Lender does n�t hold �he reser�e funds in �rust �ar Trus�or, and Lender �s not Trustor's agent for payment of
<br /> the�axes and assessments required to be paid hy Trustar.
<br /> LENDER'S EXPENDfTURES. �� any actian ❑r proceeding is �ommenced tha� would ma�erially affect Lender's in�erest in
<br /> the Proper�ty or if Trustor �ails �o comply with any pro�ision of this D�ed �f Trust �r any Related Documents, including
<br /> but not �imited to Trustor's failure t� discharge or pay when due any amounts Trustor is required �a discharge or pay
<br /> under�this ❑eed of Trust vr any Related Dacuments, Lender on Trus�or's behalf may {but shall not be a#�ligated to} take
<br /> any ac�ion that Lender deems appropriate, including but not �imited �v discharging or paying all taxes, liens, s��urity
<br /> interests, encumbrances and other claims, at any time le�ied ar piaced on the Prvperty and paying all cos�s�or insuring,
<br /> main�ain�ng and preser�ing the Property. All such expenditures inGurred or paid by Lender for such purposes wiil then
<br /> k�ear inte�est at the rate charged under the Note from �h� date incurred or paid by Lender to th� date vf repayment by
<br /> Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will �A} be payalale ❑n
<br /> demand; �B� be added �o the balance of the Note and be apportioned among and be payab�e uvith any installment
<br /> payments to become du� during e�th�r ��y the term of any applicab[e insurance policy; or ��} the remaining �erm ��
<br /> the Note; or �G} be treated as a balloon paym�nt which will he due and payab[e at the Note's ma�urity. The ❑eed of
<br /> Trust also wi�! secure payment o� these amounts. 5uch right shail be in addition t❑ all other righ�s and remedies t�
<br /> which Lender may b��ntitled upon Default.
<br /> WARRANTY; DEFENSE�F TiTLE. The foll�wing pro�isions relating to ownership af the Property are a part of�his De�d
<br /> of Trust:
<br /> Title. Trus�or warrants �hat: 4a� Trustor holds good and marke�able t�t�e of record �v the Prape�ty in �ee simp�e,
<br /> fre� and clear of all li�ns and encumbran�es other than those set forth in �he Real P�aper�y d�scription or in any
<br /> title insurance policy, tit�e report, or final title ❑pinion issued in fa�or o#, and accepted by, Lender in connection
<br /> with this Deed af Trust, and �b} Trustor has the full right, power, and authori�y tv execu�e and dsli�er this ❑eed of
<br /> Trust to Lender.
<br /> Defense af Title. 5ubject �o the exception in the paragraph abo�e, Trustor warrants and wi�� fore�er d�#end �h�
<br /> title �o the Proper�y against the lawful �laims of all persons. ln the e�ent any action or proceeding is commenced
<br /> that questions Trusto�'s ti�le or�he in�erest of Truste� or Lender under this Deed af Trust, Trustor shall defend the
<br /> act�on at Trustor`s expense. Trustar may be the nominal par�y in such proceed�ng, bu� Lende� shall be entitled t❑
<br /> parti�ipate in the proceeding and ta be r�pres�n�ed in �he proceeding hy counsel of Lender's own choice, and
<br /> T�ustor wil� deli�er, �r cause to he deli�ered, �o Lend�r such instruments as Lender may reques�from time �o time
<br /> �o permit such participa�ion.
<br /> Compliance Wi�h Laws. Trustar warrants tha� �h� Pr�per�y and Trus�or's use of �he Property comp�ies with a!I
<br /> existing applicable [aws, ordinances, and regula�ions o�ga�ernmental authorities.
<br /> Sur�ival o� Representatinns and V1larranties, All representatians, warran�ies, and agreements made by Trus�or in
<br /> th�s Deed of Trus�shal! sur�i�e the execution and deli�ery of this Deed of Trust, shall be cvntinuing in nafiure, and
<br /> sha�� remain in full forc� and effect until such time as Trustor's �ndebtedness sha[[ be paid in full.
<br /> CDNDEMNAT�DN. The fol[owing pro��s�ons relating ta condemnation praceedings are a part of this Deed of T�ust:
<br /> Pro�eedings. �f any praceeding in condemnation is filed, Trus�or shall promptfy notify Lender in writ�ng, and
<br /> Trustor shall p�vmptly take such steps as may be necessary ta defend �he action and �b�ain the award. Trustvr
<br /> may be th� nominal party in such praceeding, �ut Lender sha�l be en�itl�d ta participate in the proceeding and to be
<br /> represented in �he pr�ceeding by counsel of its own chaice, and Trusta� will deli�er or cause ta be deli�ered to
<br /> Lend�r such instruments and d�cumen�ation as may be requesfied by Lender from time to tim� to permit such
<br /> participation.
<br /> Applicatian o#Net Proceeds. �f all o� any part of th� Praperty �s condemned by eminent damain pro�eedings or by
<br />
|