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2� 1 ��41 ��
<br /> DEED �F TRUST
<br /> ��ontinued� Pa�e 3
<br /> or assessments and shall authorize the appropriate goWernmental o��icia! tv deli�er to Lender at any time a wr�tten
<br /> statement o�the�axes and assessments agains��he Property.
<br /> Notice ❑# GvnstruGtion. Trus�or shall noti#y Lender at (east fif�een 415� days befare any work is commenced, any
<br /> s���ices are furnished, or any materials are supplied ta the Property, i� any mechanic�5 �IEI"l, materialmen's lien, �r
<br /> other lien couid be asser�ed on ac�ount of the work, ser�ices, or materials. Trustor will upon �equest ❑f Lende�
<br /> furnish to Lender ad�ance assurances satisfac�ory to Lender that Trus�ar �an and will pay the �ost vf su�h
<br /> impro�ements.
<br /> PR�PERTY DAMAGE INSURANCE. The following pro�isions rela�ing to insuring the Pr�per�y ar� a part of�his Deed af
<br /> Trust.
<br /> Maintenance v# Insurance. Trus�or sha�4 procure and main�ain pol��i�s of fire �nsurance with standard extended
<br /> co�erage endorsements on a replacement basis far the �ull insurable �alue �a�ering all Impro�ements vn the Real
<br /> Property in an amount su��icien� to a�oid application of any coinsuran�e clause, and with a standard mortgagee
<br /> claus� in favvr o� Lender. Trus�ar sha�! also procure and mainta�n comprehensi�e general liability �nsuran�e in such
<br /> co�erage amounts as Lender may request with Trustee and Lender b�in� named as additional insur�ds in SUCh
<br /> iiability insurance policies. Additivnally, Trustor shall maintain such ather insurance, inc�uding but nflt limited t�
<br /> hazard, �usiness interrupt�on, and b�iler insurance, as Lender may reasvnably requir�. Poficies sha[f be wri��en in
<br /> fiorm, amounts, cv�erag�s and basis reasona��y accep�able to Lender and issued by a campany or cvmpanies
<br /> reasonat�ly acc�prable �o Lender. Trustor, upon req�est o� Lender, will deli�er t❑ Lender �rom tim� to time the
<br /> poli�ies or certi�icates o� insurance in form satis�actary to Lender, including stipulati�ns �hat co�erages will nvt be
<br /> cance��ed or diminished without at leas�thirty �3�} days prior wri��en natice ta Lender. Each insu�an�e policy afso
<br /> shall �nclude an endorsemen�pra�iding tha����erage in fa�ar of Lender wi�l not be impa�red in any way by any act,
<br /> omissivn or de�aul� o� Trustor or any other persan. 5h�ufd the Real Property be located in an area designated by
<br /> the Administrator of the Federai Emergency Management Agency as a special flood hazard area, Trustvr agrees to
<br /> obtain and maintain Federal Flovd lnsurance, i# a�ailabl�, far the full unpaid principa� balance of the Ivan and any
<br /> prior liens on the property securing the laan, up to th� maximum po�icy [imi�s set under the National Fload
<br /> Insurance Program, or as o�herw�se requir�d �y Lender, and t❑ main�ain such insurance far the�erm o�the I�an.
<br /> Appfica�ion of Prviceeds. Trustor shall prvmptly notify Lender af any loss or damage ta the Property. Lend�r may
<br /> make proo� of loss i� Trustor fails to d❑ so within fifteen �153 days of the casualty. Whether ar no� Lende�'s
<br /> se�uri�y is impaired, Lend�r may, a� Lender's elec�ion, recei�e and retain the proceeds of any insurance and apply
<br /> �he proceeds �❑ the reduction vf the Ind�btedness, paymen� of any lien affecting the Prop�rty, vr �he restoration
<br /> and repa�r of the Proper�y. I� Lender e�ects ta appiy the proceeds to res�oration and repair, Trustar shal! repair or
<br /> replace �he damaged or des�royed �mpro�ements in a manner sa�isfactory �o Lender. Lender shall, upon
<br /> satisfactary proo� of such expenditure, pay or re�mburse Trustor fram the praceeds for �he reasonable cost of
<br /> repair or resto�ativn if Trustor is not in defau(t under this Deed of Trust. Any proceeds which ha�e no� heen
<br /> disbu�sed within 18Q days after their re�eipt and which L�nder has not committed to the repair or r�storation of
<br /> the Property shall be used �irst to pay any amount ovuing �o Lender und�r this ❑eed o�Trus�, then to pay accrued
<br /> interest, and the r�mainder, if any, shall be applied t❑ the principal balance afi the Indebtedness. I� Lender halds
<br /> any pr�ce�ds after payment in full of the Indeb�edness, such proceeds shali be paid t� Trustor as Trustor�5
<br /> interests may appear.
<br /> Trustvr's Report on InsuranG�. Upan reques�of Lender, how��er not more than once a year, Trustor sha�� furnish
<br /> to Lender a repart on each existing pali�y af insurar��e showing: �1} the name ❑f the insurer; ��} the risks
<br /> insur�d; �3� the amount of th� poli�y; {4� the property insured, �he th�n current r�pla�ement �a�ue of such
<br /> property, and the manner of determining that�afue; and {53 the expiration date of the policy. Trustar shall, upon
<br /> request af Lender, have an independent appra�ser sa�isfacto�y ta Lender determin�the cash �alue replacem�n�cost
<br /> af th� Property.
<br /> TAX AND 1N5URANCE RESERVES. 5ub�ect to any limi�ations and consistent wi�h any requirements set by applicable
<br /> law, Lender may require Trustor to maintain with Lender reser�es far paymen� of annual taxes, assessments, and
<br /> insurance premiums, which reser�es shal! be created by an initial deposi� and subsequen� manthly paym�nts, or
<br /> paymen�s at such other in�er�a( as payments under the Nflte may be due, af a sum estima�ed by Lender tv be sufficien�
<br /> to pay the total annual �axes, assessments, and insuran�e premiums Lender reasonably antic�pates tv be paid from
<br /> these reser�es. Th� reser�e funds shall be held by Lender as a genera� deposit fr�m Trustor, which Lender may satisfy
<br /> by payment af the �axes, assessments, and insurance premiums r�quired to be paid by Trustvr as they become du�.
<br /> Lender sha�l ha�e the right to draw upon the reser�e funds to pay such items, and Lender shail nvt be �equired tv
<br /> determine the �alidity or accuracy vf any item before paying i�. Nothing in the ❑eed of Trust shall be construed as
<br /> requiring L�nder to ad�ance other monies far such purposes, and Lender shall nat incur any liability for anything it may
<br /> do ar omit t❑ d� with respect to the reser�e a���unt. 5ubject to any limitations set by app�icable law, i� the reser��
<br /> funds disclase a shortage or defi�iency, Trus�or sha�l pay such shortage or deficiency as required by Lender. All
<br /> amounts in the reser�e acc�un� are he�eby pledged �o further secure the Indebtedness, and Lender is h�r�by autharized
<br /> �o withdraw and apply such amounts an the (nd�btedness upon the o�currence o�an E�ent of Default. Lender shall not
<br /> be required to pay any interest or earnings on the reserWe funds unl�ss r�quired by law vr agreed to by Lender in
<br /> writing. Lender does nat hoid �he reser�e funds in trust for Trustor, and Lender is not Trustor's agent fa� payment v�
<br /> �he�ax�s and assessments required ta be paid by Trustor.
<br /> LEN�ER'S EXPENDITURES. I�f any actian or proc�eding is commenced thaf would materially affec� Lend��'s interest in
<br /> the Property or if Trus�or fails to compiy wi�h any pro�ision ❑�this Deed o�Trust or any Related Documents, �n�lud�ng
<br /> bu� nat limi�ed �o Trustor's �ailure �o discharge o� pay when due any amounts Trus�or is required to discharg� or pay
<br /> under this Deed af Trust ar any Re�ated Documents, Lender on Trus�or's behalf may {but shall not be obligated toy tak�
<br /> any action that Lender de�ms appropriate, inc�uding but not limited to discharging or paying all taxes, liens, security
<br /> interests, encum�rances and �th�r claims, at any�ime le�ied or placed on the Property and paying af� costs fvr insuring,
<br /> maintaining and preser�ing �he Property, Al[ such expenditures in�urred or paid by Lender for su�h purposes w�Il then
<br /> bear interest at the rate charged under the Nate from the date in�urred or paid by Lend�r to �he da�ke o# repaym�nt by
<br /> Trustor. All such expenses will b�came a part ❑f the Indebtedness and, at Lender's option, will �A} be payable �n
<br /> demand; �6� he add�d �o the ha�ance of the Nvte and be appor�ian�d among and be payable with any installment
<br /> paym�nts to become due during e�ther �1 y the term of any applicable insuran�e pali�y; or ��} the �emaining term vf
<br /> the Note; or {C} be treated as a balloon payment which wil� be due and payable at the Note's maturifiy. Th� Deed of
<br /> Trust also uvi�� secure payment �f these am�unts. Such right shall be in addi�ion to aIl other rights and remedies to
<br /> which Lender may b�en�i�led upon Default.
<br /> WARRANTY; DEFENSE�F T�TLE. The fallowing �aro�isions reiating to ownership of�he Property ar� a part of this Deed
<br /> of Trust:
<br /> Title. Trustar warrants that: �a} Trus�or ho�ds good and marketable tit�e of record �o the Prop�rty in �ee simpie,
<br /> free and cfea� of all [�ens and encumbrances other �han those set forth in the Real Prop�rty des�ription or in any
<br /> title �nsuranc� policy, �itle report, or final titl� opinion issued in fa�or o�, and acc�pted by, Lender in canne�tion
<br /> with this Deed of Trust, and �by Trustor has the�ull right, p�wer, and authority�o execute and deli�er this Deed o�
<br /> Trust to Lender.
<br /> Defense vf Tit�e. Subject to the exc�ptian in the paragraph aho��, Trust�r warran�s and will fore�er de#end the
<br /> ti�le t❑ the Property against the law�u� claims of a�I persans. In the e�ent any action or praceeding is commen�ed
<br /> that questions T�ustor's tit�e or the in�erest�f Trustee or Lender under this ❑eed o#Trus�, T�ustor shall defend the
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