|
2� 1 ��4121
<br /> DEED DF TRUST
<br /> {��ntlrlu�d} Page 3
<br /> any ad��rse judgment before enforcemen�against the Property. Trustor shall nam� Lender as an additivnal oblig�e
<br /> under any surety I�and furnished in the con�est pro�eedings.
<br /> Evidence af Paymen�. Trustor sha�� upon demand �urnish t❑ Lender satis�actory e�idence afi payment of the �ax�s
<br /> or assessments and shall au�harize the appropriate go�ernmental official to deli�er to Lender at any time a written
<br /> statemen�o�the taxes and assessmen�s against the Prape�ty.
<br /> Not��e of Cvnstruc�ivn. Trustar shall natify Lender at least fif�een t 15} days be�ore any work is commenc�d, any
<br /> ser��ces are furnished, ❑r any materials are supplied ro �he Property, if any mechanic`s �ien, materialmen's lien, or
<br /> ather lien could be asserted on account o� the work, ser�ices, or materials, Trustor will upvn request o� Lender
<br /> �urnish �o Lender ad�an�e assurances satis#ac�vey t� Lender that Trustor can and will pay fihe cost o� such
<br /> impro�ements.
<br /> PR�PERTY DAMAGE INSURANCE. The fvllvwing provisions relating t� insuring �h� Proper�y are a par�of th�s Deed of
<br /> Trus�.
<br /> Main�enan�e of lnsurance. Trustor sha�l pro�ur� and maintain policies �f �ire �nsuranc� with s�anda�d ex�ended
<br /> ca�erage endorsem�nts on a repla��ment basis for the full insurable �alue co�ering all Impro�ements on the Rea(
<br /> Property in an amaunt su����ien� to a�oid applicat�on of any coinsuran�e claus�, and w�th a s�andard mor�gagee
<br /> ��ause in fa�or❑f Lender. Trustor sha�� alsa �rocu�e and mainta�n comprehensi�e genera( I�at�ili�y �nsurance in such
<br /> co�erage amounts as Lender may request wi�h T�ustee and Lender being named as additional insureds in such
<br /> I�ability insuranc� pali�ies. Addi�ionaiiy, Trus�or shall maintain such o�her insurance, in�luding but not limited to
<br /> hazard, business �nterruption, and boiler insurance, as Lender may reasanab�y require. Palicies shali be wri�ten �n
<br /> form, amoun�s, co�erag�s and basis reasonably acceptable to Lender and issued by a company ❑r companies
<br /> reasonably a�ceptable to Lender. Trustor, upon reques� of L�nder, will deli�er to Lender from ��me to time €he
<br /> policies or certificates of insurance in farm satisfactory to Lender, in�luding stipula�ions �hat co�erages will not be
<br /> cancelled or diminished withou� at (east thirty t3Q} days prior wrififien not�ce to Lender. Each insurance p�licy also
<br /> shall include an endors�ment pra�id�ng that�o�erage in fa�or�f Lender vvi�i nvt be impair�d in any way hy any act,
<br /> omiss�on or de�ault of Trus�tor or any ather person, 5hould the Real Property he located in an area designated hy
<br /> the Administrator of th� Federal Emergency Management Ag�ncy as a special flood hazard area, Trustor agrees to
<br /> obta�n and maintain Federal Flood insurance, i� a�ailable, f�r the full unpaid principa� balan�e o�the (oan and any
<br /> prior liens on the property securing the loan, up to �he maximum policy limits set under �he Na�iona! Flood
<br /> Insurance Program, a�as otherwise required by Lender, and to mainta�n su�h insu�an�e far the term of the loan.
<br /> App�ica�ivn of Pro�eeds. Trustor shalL promp�ly noti�y Lender of any loss or damage to the Property. Lender may
<br /> make proof of loss if Trustor fails to do sv with�n fif�een 4153 days of the casualty. Whe�her o� not Lender's
<br /> security is impaired, Lender may, at Lender's election, rece��e and r��aEn the prviceeds of any insurance and apply
<br /> the proceeds tv the reducti�n af the (ndebtedness, paym�nt of any lien affecting the Praperty, ar the restaration
<br /> and repair o�the Prap�rty. l� Lender elects to apply the proceeds to r�stora�ion and repair, Trustar shall r�pair or
<br /> rep�ace the damaged or destrayed Impro�ements in a manner satisfactory �o Lender. Lender shall, upon
<br /> satisfacto�y proo� o� such expendi�ure, pay ar reimhurse Trustor from th� proceeds for �h� reasonah�e cost of
<br /> repair or restoratian if Trustor �s not in default under this De�d of Trus�. Any proceeds which ha�� not been
<br /> disbursed wi�hin 18D days after their receip� and which Lender has nvt cammit�ed �� the repair or restvrativn vf
<br /> the Property sha�l be used �irst to pay any amount ❑wing to Lender under this ❑e�d v�Trust, then �a pay accrued
<br /> in��rest, and the remainder, if any, shall be applied �o th� p�incipal balance of the Indebtedn�ss. I� Lender hD�dS
<br /> any proceeds after payment in fuli of the �ndebtedness, such proceeds shall be paid to Trustor as Trustor`s
<br /> inte�ests may appear.
<br /> Trustor`s Report on [nsurance. lJpon request of Lender, howe�er not more than once a year, Trustor shai� furnish
<br /> to Lender a report on each ex�sting policy of insurance shvwing; {1} the nam� of the insurer; �2� the risks
<br /> insured; 43} the amaunt o� the policy; �4� �he property insur�d, the �hen curren� replac�men� �alue of such
<br /> property, and the manner o�determining tha'��alue; and �5� the expira�ivn date of�he p�licy. Trustor shall, upon
<br /> request of Lender, ha�e an independent appraiser satisfac�tary to Lender determine the cash�a1ue r�placemen�eost
<br /> �f�h� Property.
<br /> TAX AND INSURANCE RESERVES. Subject ta any limitations and consistent w�th any requiremen�s set by applicab[e
<br /> law, Lend�r may require Trustor �o ma�ntain with Lender reser�es �or payment of annual taxes, assessments, and
<br /> insuranc� premiums, whi�h reser��s shall he created �y an initial dep�s�t and subsequent monthEy payments, or
<br /> payments at su�h other inter�al as payments under the No�e may be due, of a sum estimated by Lender to tae suf�icient
<br /> �a pay the to�al annual taxes, ass�ssmen�s, and �nsurance premiums Lender reasonably anticipates to �ae paid from
<br /> �hese reser�es. The reserve funds sha�l be held by Lender as a general depasit from Trustor, which Lender may satis�y
<br /> by paymen� vf the taxes, assessm�nts, and insuran�e prem�ums required �a be paid by Trus�ar as �hey l�ecome due.
<br /> Lender shall ha�e the right to draw upon the r�ser�e funds to pay such items, and Lender sha�t nat be required to
<br /> determine �he �alidity or accuracy of any item before payin� i�. Nothing in the Deed of Trust shall be c�nstrued as
<br /> r�qu�ring Lender to ad�ance other monies �or such purpvses, and Lender shall not incur any liab���ty for anything i� may
<br /> do �r ami� to d❑ with ��spe�t to the reserve account. Subjec� to any limitations set by appli�abie law, if the reser�e
<br /> funds disc�flse a shartage or de�fi�iency, Trus�or sha�� pay such shortage or de��ciency as required by Lender, All
<br /> amounts in�he reser�e accaunt are her�by pledged �o further secure�he Indebtedness, and Lender is hereby authori��d
<br /> to withdraw and app�y such amoun�s on the Indebtedness upon the accurrenc�vf an E�ent o�De�Faul�. Lender shall not
<br /> he required �o pay any interest or earn�ngs on th� reser�e funds unless requ�red by law or agreed to by Lender in
<br /> w�iting. Lender does no� ho[d the reser�e funds in trust for Trustor, and Lender is no�Trustor's agent �ar payment ❑�
<br /> �he taxes and ass�ssments required t� �e paid by Trustor,
<br /> LEN�ER'S E�PENDITURES. If any act�on or proceeding is c�mmenced that wauld materia��y affect Lend�r's �nterest in
<br /> �he Pr�p��ty or i�f Trus�or fails t❑ c�mp�y wi�h any pro�ision ❑f�h�s ❑eed of Trust or any Related D�cuments, incfud+ng
<br /> but not limited ta Trustor's fa�lure to d�scharge or pay when due any amounts Trustar is required �o discharge or pay
<br /> under this Deed of Trust ar any Related Dacuments, Lender on Trustor's beha�#may �but shall no� be obfigated toy take
<br /> any actian tha� Lender deems appropriate, including but no� limited to discharging or paying all �axes, �iens, security
<br /> int�res�s, encumbrances and�ther claims, at any time le�ied or piaced on�h� P�aperty and paying all casts far insuring,
<br /> ma�ntaining and preser�ing the Prvperty. A!I su�h expenditures incurred or paid hy Lender �or such purpases will then
<br /> bear in�erest at the �ate charged under the Note from the date incurred or paid by Lender ta the da�e �� �epayment by
<br /> Trustor. A�� such expenses w�fi becvme a par� af the lndeb�edness and, at L�nder's option, will �A� he payable on
<br /> demand; tB} be added to the balan�� of the Nate and be appv�t�aned among and he payahle with any ins€allment
<br /> payments to t�ecome due during ei�her �13 the term o� any appii�ab�e insuranc� policy; �r ��} the remaining term o�
<br /> th� Note; or �Cy be trea�ed as a balloon payment which will be due and payable at the Note's maturity. The Deed vf
<br /> Trust alsv wi�l secure payment af �hese amoun�s. Such righ� sha�� �e in additian ta all othe� righ�s and remedies to
<br /> whi�h Lender may be entitled upon Default.
<br /> VIIARRANTY; DEFENSE�F T�TLE. The follow�ng pra�isions rela�ing ta ownership o�the Property are a part a�this Deed
<br /> of Trust:
<br /> Ti#!e. Trustor warrants that: �a� Trustor holds good and marketab�e title af record to the P�operty in fe� simpl�,
<br /> free and c�ear of all �iens and encumbrances ather than those set ��rth in �he Rea� Property d�scription or in any
<br /> tit�e insurance policy, title report, vr final t€t�e opinion issued in fa��r of, and acce�ted by, Lender in cvnnection
<br /> with this Deed ❑f Trust, and {b� T�ustor has the full right, power, and authority�o�xe�ute and deii�er�his Deed❑f
<br /> Trust ta �end�r.
<br /> .,
<br /> � �
<br /> �
<br />
|