|
2� 1 ��41 �9
<br /> DEED DF TRUST
<br /> ���ntinued� Page 3
<br /> area, Trustor ag�ees to obtain and ma�ntain Federai F�aod lnsuranc�, if a�ailabfe, fvr the maximum amount of
<br /> Trustor`s credi� lin� and the fufl unpaid principai halance of any pr�or liens vn the p�operty securing �he ioan, up�v
<br /> the maximum po�i�y lirr�its set under the Nativnal Fl�od Insurance Program, ar as otherwise required by Lender, and
<br /> to maintain such insurance for the term of the loan.
<br /> Appli�ation of Proceeds. Trustar shai� pramp-�ly noti�y Lender of any lvss or damage to the Prap�r�y if the
<br /> �s�imated cast of r�pair ar repfacement exce�ds $�,�QD.�Q. Lender may make praof of loss if Trustor fails to do
<br /> so within fi�teen ��5� days of the casualty. VIlhether or nv� ��nder's se�uri�y is impaired, Lender may, at Lender's
<br /> ele�tian, recei�� and re�ain �he proceeds of any insurance and app[y the proceeds to the reduction af the
<br /> Indebtedness, payment �f any lien affecting �h� Pr�per�y, ❑r the restora�ion and repair of the Proper�y. l� Lender
<br /> elects to appiy the proceeds to restoration and repair, Trus�or shafl repair or replace the damaged or destroy�d
<br /> lmprov�ments in a manner satis�actory �o Lend�r. Lender shall, upan satisfactary proof of such expend€ture, pay
<br /> or reimburse Trus�or #ram the proceeds for the reasonable cost o� repair ❑r restoratian if Trustor is nat €n default
<br /> under this ❑eed o� Trust. Any proceeds which ha�e not been disbursed within 18Q days after their receip� and
<br /> which Lender has nat �ommitted �o the repair or restvration vf the Property sha�! be used �irs�t�a pay any amount
<br /> awing to Lend�� under this Deed ofi Trust, then ta pay accrued interest, and the remainder, if any, shal� b� applEed
<br /> to the principaf balance of �he lndebtedness. If Lender holds any proceeds af�er paymen� in full of the
<br /> indelatedness, such pro��eds shall b� paid�o Trustor as Trustor's interests may appear.
<br /> Complian�e with Existing Indebtedness. During the p�ri�d in which any Ex€sting lndebtedne�s described below is
<br /> in effe�t, compliance with the insurance p�o�isians contained in th� instrument e�idencing such Existing
<br /> Indebtedness shall cons�titute �omplian�� with the insurance pro�isions under this Deed of Trust, �o the ex�ent
<br /> campliance wi�h the terms vf this ❑eed of Trust wvuld �anstitute a duplication of insurance r�quirement. I� any
<br /> proceeds from the insurance become payable vn lass, the prv�isions in this D�ed o�Trust�or di��sivn of pro�eeds
<br /> sha�� apply only t�that portian of the praceeds no�payabie to�h�holder of the Existing lnd�htedness,
<br /> LENDER'S EXPEN�ITURES. �� Trustor fails {A} to k�ep the Property fr�e of alf taxes, [iens, security interests,
<br /> encumbrances, and ather claims, �6} to pra�ide any required insurance �n �he Property, �C� to make repairs ta th�
<br /> Property ❑r t� comply with any vbligat€on tv maintain Exis�ing lnd��tedness in good standing as required below, then
<br /> Lender may dv so. If any act�on or prviceeding is commen�ed that would ma�erially affiect Lender's interes�s in the
<br /> Praper�y, then Lender on Trus�or's hehalf may, #�ut is not required to, take any action �ha� Lender b�lie�es to be
<br /> apprapriate to protect Lend�r's in�erests. All �xpenses incurred vr paid by Lender for such purposes will then bear
<br /> �n�erest at the rate charged under fihe ��edit Agreement ��om the date incut�red ar paid by Lender to the date �f
<br /> repayment by Trustor. All such expenses wil[ be�ome a part af�he lnde�tedness and, at Lender's op�ian, wil! �A� be
<br /> payahle ❑n demand; �B� be added to �he balance o�the Credi� Agreement and be appartioned among and be payable
<br /> with any �ns�allment payments to become due during eith�r �1} the term o�any applicab�e insurance policy; or {2� �he
<br /> remaining term of the Credit Agreemen�; or {C} be treated as a ballvon payment whi�h wi�� be due and payable a�the
<br /> Credit Agreemen�'s maturity. The Deed �f Trust aiso will secure paymen�of�hese amoun�s. The righ�s pro�ided for in
<br /> this paragraph shall he in addition �o any other rights or any remedies to whi�h Lender may be entit��d on acc�unt of
<br /> any d�fiaulfi. Any su�h action by Lender shall not t�e c�nstrued as curing the default s� as �o �ar Lend�r �rom any
<br /> remedy that it a�herwise would ha�e had.
<br /> VIIARRANTY; DEFENSE�F TITLE. The�oiiowing pro�isions rela�ing t�vwnership of th� Proper�y are a part of�his Deed
<br /> o�Trust:
<br /> Ti�ie. Trustor warrants tha�: �a� T�ustor hofds gavd and mark�table title of record t❑ the Prop�rty in fe� simple,
<br /> free and clea� o# all liens and encumbrances other than those set forth in the �eal Prape�ty description ar in the
<br /> Exis�ing lndebtedness section below ar in any ti�le insurance policy, title rspvrt, vr final title opinivn issued in�a�or
<br /> of, and accepted by, Lender in connection w�th th�s Deed of Trust, and �by Trustor has �he fu�l right, power, and
<br /> authari�y to execute and del��er this Deed of Trust to Lender.
<br /> De#ense vf Title. Subje�t to the except�on in the paragraph abo�e, Trustar warrants and wiil fore�er def�nd the
<br /> title to th� Property agains�the law�ul claims o�a1! pers�ns. In the e�en� any a�t�on or proceeding is commen�ed
<br /> �hat ques�tions Trus�or's t€tie or the int�rest af Trustee or Lender under this ❑eed�f Trust, Trustor shai! defend the
<br /> actiQn at Trustor's expense. Trustor may be the nominal party �n su�h p�aceeding, but Lender shall �e entitled to
<br /> par�icipate in the pro�eeding and t❑ �� repres�nted �n the proceeding by caunsel a#� Lender's own choEce, and
<br /> Trus�or will deli�er, or cause to be deli�ered, to Lend�r such instrum�nts as Lender may r��uest firom time to time
<br /> ta permit su�h participation.
<br /> Compliance Wi�h Laws. Trustvr warrants that the Praperty and Trus�or's use o� fihe Property complies with a�!
<br /> ex€sting applicat�le larrvs, ord�nances, and regula�ions of go�ernmen�a[ authorities.
<br /> 5ur�i�a1 of Promises. All promises, agreements, and statements Trustor has made in this Deed ot Trust shall
<br /> sur�i�e the execution and deli�ery of this Deed o�f Trust, sha�l be continu�ng in na�ure and shall remain in �ul! force
<br /> and ef�ect un�il such time as Trustar's �ndebt�dness is paid in full.
<br /> E�ISTING INDEBTEDNESS. The follvwing pro�isions cvn��rning Existing lnd��tedness are a part of this ❑e�d af Trus�:
<br /> Ex�sting Lien. The I�en vf �his Deed of Trust securir�g the Indebtedness may be se�ondary and inferior to an
<br /> existing 1ien. Trus�vr expressly co�enants and agre�s �o pay, or see ta �he payment❑f, the Existing �ndebtedness
<br /> and�a pre�ent any d�fault vn such indebtedness, any defauit under the �nstrum�nts e�idenGing such �ndebtedness,
<br /> or any default under any se�urity documen�s for such indebtedness,
<br /> No Mndifica�ion. Trus�ar shali not en�er into any agreement with the hoide� �� any mortgage, deed of trust, or
<br /> o�her secu�ity agreement which has priority o�er this Deed o� Trust hy whi�h that agreement is modified,
<br /> amended, extended, or renewed without the prior ►rvritten cans�n� af Lender. Trustor shal! neither request nvr
<br /> ac�ept any fu�ure ad�ances under any su�h s�curity agreement►rvithout�he pri�r written consent of Lender.
<br /> C�NDEMNATI�N. The following pro�isions relating�o candemnation proceedings ar�a part of this Deed of Trust:
<br /> Praceedings. lfi any proceeding in condemnation is filed, Trustor shall promp#fy not�#y Lender in wri�ing, and
<br /> Trustor shalf pramptly take such steps as may be n�cessary tv def�nd the a�tivn and o�tain the award. Trus�ar
<br /> may b�the nomina� party in su�h praceeding, but Lender shall be�ntitled to par�ticipate in the proceeding and to be
<br /> represent�d in the pro�eed�ng !�y Gouns�l of i�s own choice, and Trustor will deli�er or cause �o be deli�ered �o
<br /> Lender such instruments and documen�a�ion as may be requested by Lender frvm t�me �o tim� tv permit such
<br /> partic�pa�ion,
<br /> Appiicativn of Ne� Praceeds. If aif ar any part o�the Property is condemned by emin�nt domain pra�eedings o� by
<br /> any praceeding or purchase in lieu of candemna�ion, Lender may a�its efectian require�hat ail ar any portion vf the
<br /> net prvice�ds vfi the award be app�€ed tv �he lndebtedness ar the repair or rest�ratian of the Property. The net
<br /> proceeds af the award shall mean the award after payment of all reasona��e costs, exp�nses, and attvrneys' �ees
<br /> incurred hy Trustee ar Lender in connectian w�th the condemnatian.
<br /> IN(PQSiTI�N �F TAXES, FEES AND CHARGES BY G�VERNMENTAL AUTH�RITlES. The fof��wing pro�is�ons rela�ing
<br /> to gfl�ernmenta�taxes, fees and charges are a part o�this Deed of Trust:
<br /> Current Taxes. F�es and Gharges. Upon request by Lender, Trus�ar sha�l execute such documen�s in addition to
<br /> this Deed af Trust and take whate�er❑the�action is r�quested by Lender�o perfect and continue Lender's fien on
<br /> the Reai Prap�r�y. Trustor shafl reimburse Lender for ali taxes, as d�scribed �elow, together with a�l expenses
<br />
|