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2� 1 ��4�98
<br /> DEED �F TRUST
<br /> ���ntinued� Page 3
<br /> hazard, business interrupti�n, and boiler insu�ance, as Lender may reasvnabfy require. Policies shai� he written in
<br /> form, amoun�s, co�erages and bas�s reasona�ly acceptable to Lender and €ssued by a company or companies
<br /> reasonab[y acc�ptatale to Lender. Trus�or, upon request vf Lender, will deli�er to Lender from time to time �he
<br /> policies ar certificates a� insurance in form satisfac�ory �a Lender, including stipula�ions �hat co��rages will not !�e
<br /> �ancelled or dimin�shed without at ieast�hirty �30y days prior written noti�e to Lender. EaGh insurance policy also
<br /> shall inc[ude an endorsement pro�iding�hat ca�erage in�a�vr of Lender wili nat be impa�red in any way by any act,
<br /> omissian or default ❑f Trustor or any other person. 5hou�d the Reai Praperty he lacated �n an area designated by
<br /> �he Administrato�of the F�deral Emergency Management Agency as a specia� �laod ha�ard area, Trustar agr�es to
<br /> obtain and maintain Federa� Flood lnsuran�e, if a�ailatale, for the fu(� unpaid principal balance of the Ioan and any
<br /> p�ior [iens an th� property securing the loan, up �o the maximum policy limits set under the National F[ood
<br /> Insuran�e Program, or as otherwise required by Lender, and to maintain such insurance f�r th�term o�the Ioan.
<br /> App[�cativn of Proceeds. Trustvr shali pramptly notify Lender of any lass or damag� to the Praperty. Lend�r may
<br /> make proof of Ioss i� Trustor fails t� do s❑ within fifteen 415} days o� the casualty. Whether or not Lender`s
<br /> security is impaired, Lender may, at L�nder's efectivn, rece��e and retain the proceeds af any insurance and app�y
<br /> the praceeds �o the reduct�an af the Indebtedness, payment of any iien affecting the Property, or the res�oration
<br /> and repair of�he Proper�y. If Lend�r elec�s to apply �he proceeds to �estoration and repai�, Trustor shall repair or
<br /> replace �he damaged or des�royed Impro�ements in a manner satisfactory tv Lender. Lend�r shall, upon
<br /> satisfactory proa� of such expenditure, pay ❑r reimburse Trustor from the pr�ceeds for the reasonable cast of
<br /> repair ar r�s�oration �f Trustor is n�t in default under €his ❑eed o� Trust, Any proceeds whi�h ha�e not b�en
<br /> d�sbursed wi�hin 18� days af�er their rec�ipt and which Lender has nat committed �o the repair or res�orativn of
<br /> the Praperty sha�l be used first to pay any amoun�owing �to Lender under this Deed of Trust, then to pay accrued
<br /> interest, and the remainder, if any, shall be applied ta the principa� balanc� af the �ndebtedness. If Lender holds
<br /> any pr�ceeds after paymen� �n fu�l af the lndebtedness, such proceeds shafl be paid t❑ Trustor as Trustor's
<br /> interests may appear.
<br /> Trustor`s Report on lnsuranc�. Upvn �equest of Lend��, howe�er not m�re �han on�e a year, Trustor shal! furnish
<br /> to Lender a report on each existing policy of insurance sh�wing: {�y the name of the insurer; �2y the risks
<br /> insured; 43� the amount of the palicy; �4� �he property insured, the �then current replacem�nt �alue afi such
<br /> property, and the manner ofi determining that value; and �5� the expiration da�e o�the policy. Trustor shail, up�n
<br /> �equest of Lender, ha�e an independent appraiser satisfac�ory to Lender determine the cash�a�ue replac�ment�ost
<br /> of the Prape�ty.
<br /> TAX AND INSURANCE RESERVES. Subject to any I�mita�ions and cansistent wi�h any requirements set by applicable
<br /> law, Lender may require Trustar to ma�ntain with Lender reser�es f�r payment o� annual taxes, ass�ssments, and
<br /> insurance premiums, which r�ser�es shall he cr�ated by an ini�ial deposit and sut�sequent monthly payments, �r
<br /> paymen�s at su�h ❑ther inter�al as payments under the Note may �e due, of a sum estimafed by Lender to be su�#ici�n�
<br /> t� pay �he total annual taxes, assessments, and insuran�e premiums Lender reasanably ant�cipates t❑ be paid ��am
<br /> these reser�es. The reser�e funds shall be h�ld by Lend�r as a genera� deposit f�om Trustor, which Lender may satisfy
<br /> by paymen�t of �he taxes, assessments, and insurance premiums required to be paid by Trustor as �hey become due.
<br /> Lender shali ha�� the right to dravv upon the reser�e funds �o pay such items, and L�nder shall nat be required to
<br /> de�ermine the �al�dity or accuracy o� any item befare paying i�. Nothing in the Deed o� Trust shail be construed as
<br /> r�quiring Lend�r t❑ ad�an�e o�her manies for such purposes, and Lender shal� not incu� any liabi�€ty for anything it may
<br /> da or omit to do wi�h respe�t ta the reser�e a�count. 5ubject to any limitatians set by applica�ie law, i# the reser�e
<br /> '�unds dis�lose a shortage or deficiency, Trus�or shall pay such shortage or d��iciency as required by Lender. A11
<br /> amounts in�he res�r�e aCcount are here�y pledged to �urthe�secure the lndebtedness, and Lender is hereby authorized
<br /> to withdraw and apply such amounts on the indebtedness upon�he o�currence a�an E�ent o�Default. �ender shall not
<br /> �ae req�ir�d ta pay any interss� or earnings on the res�rve �unds un�ess required hy law ar agreed to by Lender �n
<br /> writing. Lender daes not hold �he reser�e funds in �rust �or Trus�or, and Lender is not Trustvr`s agent for payment of
<br /> th�taxes and assessments required to be paid hy Trus�or.
<br /> LENDER'S EXPENDITURES. If any actian or proceeding is commenced tha� wouid materia��y affect Lender`s inter�st in
<br /> the Property or if Trus�or fails t� camply with any provision of this Deed of T�ust or any Related Documents, including
<br /> but not limited �fl Trustor's �ailure to discha�ge or pay when due any amoun�s Trust�r is required �o discharge or pay
<br /> under this Deed vf Trust or any Related �acumen�s, Lender on Trustor's behalf may tbut shall nat be abligated �ay take
<br /> any ac�ion that Lender deems apprvpriate, in�luding �u�t not limited �o discharging o� paying all taxes, �i�ns, security
<br /> interests, en�umbrances and other�laims, at any time le�ied�r placed on xhe Property and paying all �osts for insuring,
<br /> maintaining and preser�ing the Prop�rty. All such expenditures incurred or paid by Lender �ar such purposes wi�� then
<br /> bear interest a��he rate charged under the Note �rom �he date incurred or paid by Lender fio the date af repayment by
<br /> Trustor. A�� such expens�s will hecome a part of the Indebtedness and, a� Lender's ap�tion, will tA} be payable �n
<br /> demand; �6} be added to �he balance of th� Note and be apportioned among and he payable with any �nsta�lmen�
<br /> paymen�s to became due du�ing eith�r �1 f the term of any applicable insurance policy; or ��� �he remaining term a�
<br /> the Na�e; or 4C� be treated as a bailoan payment which w��l be due and payable at the Note's matur�ty. The Deed of
<br /> Trust also will secure payment of th�se am�unts. Such r�ght shall be in addition to all �ther rights and remedies to
<br /> which Lender may he entitled upon De�ault.
<br /> WARRANTY; DEFENSE QF TITLE. Th�fflllowing pro�isions re�ating�o awnership��the Pr�perty are a part of�his ❑eed
<br /> of Trust:
<br /> Title. Trustor warrants that: �a� T�ustor hvids good and marketab�e title ofi record to the Property in �ee simpl�,
<br /> free and clear o� a11 liens and en�umbran�es other than those set forth in �he Real Prop��ty description ar in any
<br /> title insurance policy, title report, a� final titfe opinion issusd in fa��r af, and accep�ed by, Lender in connectivn
<br /> with this Deed o�Trust, and tby Trustar has the full right, pawer, and authority to execute and deli�er this Deed of
<br /> Trus�to Lender,
<br /> Defense af Title. Subjec� t❑ the exception in the paragraph abv�e, Trustor warrants and wi�l fore�e� de#end the
<br /> tit�e to the Property against�he �awfu� �laims of a�l persons. I n the e�ent any action vr proce�ding is commenced
<br /> that questians Trustar's title vr the inte�est of Trustee or Lender under�h�s Deed of Trus�, Trustor shal[ defend the
<br /> action at Trustor's expense. Trus�or may be the naminal party in such proceeding, but Lender shall be entitled to
<br /> partic�pa�e in the praceeding and t❑ be represented in the proceeding by counse( ❑f Lender's own chaice, and
<br /> Trustar will deli��r, or cause to f�e deli��r�d, t❑ Lender su�h instrumen�s as Lender may request�rom �im� tn time
<br /> to permit such participatian.
<br /> Cvmpliance With Laws. Trustor warrants tha� the Proper�ty and Trus�or's use of the Property complies w�th all
<br /> existing appiicable laws, ardinances, and regula�ians o�go�ernmental au�hor�ties.
<br /> 5ur►►ival vf Representations and Warranties. All representations, warranties, and agr�ements made by Trustor in
<br /> this Deed of Trust sha[� sur�i�e the exe�uti�n and deliv��y of�his D�ed of Trust, shall be can�inuing in na�ure, and
<br /> shall r�main in�ull for�� and effect until su�h time as Trustor`s �ndehtedness shail be paid in full.
<br /> �DNDEMNATI�N. The fvllowing pra�isions rela�ing to condemnation proceedings are a part of this Deed of T�ust:
<br /> Proceedings, If any prviceed�ng in �ond�mnation is filed, Trustor shal[ promp�ly notify Lender in writing, and
<br /> Trustor shal[ pramptly take such steps as may he necessary to defend th� a�tion and obtain the award. Trustor
<br /> may be the nominal party in such proceeding, hut Lende�shall be entitled t� participa�e in the proceed�ng and to he
<br /> repr�sented in the proceeding by counsel of its own choice, and Trustor wif� deli�er or cause �o be deli�ered to
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