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2� 1 ��4592
<br /> DEE� �F TRUST
<br /> t�vntinued} Page 3
<br /> hazard, business interruptivn, and boiler insurance, as L�nder may reasonably �equire. Palicies shal� he written in
<br /> fvrm, amounts, co�erages and basis reasonably acceptable �v L�nder and issued by a company or compan�es
<br /> reasonab�y acceptable ta Lender. Trustor, upon request ❑� Lender, will deliver to Lender from time �o time the
<br /> policies or cer�ificates of insurance in form sat�s�a��ory to Lender, in��uding stipu�ations that �o�erages wi�l not he
<br /> can�elled or diminished without at �east thirty 43�} days prior wri�ten notice tv Lender. Each insurance policy als❑
<br /> shall in�lude an endorsement pro�iding tha�co�e�age in fa�or of Lender will not be impaired in any way by any act,
<br /> amissivn or default o#Trustvr or any oth�r person. 5hou[d th� R�al Property be loca�ed in an area designated by
<br /> �he Administrator of the F�deral Emergen�y Management Agency as a special flovd hazard area, Trustor agrees t�
<br /> abtain and maintain Federa� Flood Insurance, i� a�ailable, for the �ull unpaid prin��pa� balance o� the ioan and any
<br /> prior �iens on the property securing the Ivan, up to the maximum policy �im�ts se� under the Nativnal Flood
<br /> fnsuran�e Program, or as otherwise required by Lender, and t� maintain such insuran�e for the term of the loan.
<br /> Application vf Pro�eeds. Trus�or shall prampt�y nvtify Lender of any loss or damage to the Property. Lender may
<br /> make prao# of loss if Trustvr fails ta do so within fifteen t 1 a} days o� the casualty. Vllhether vr not Lender's
<br /> security is impaired, Lende� may, at Lender's e�ection, recei�e and r�tain the pr�ceeds of any insuranc� and app�y
<br /> the proceeds �o the reductivn of the Indebtedn�ss, paym�nt of any f�en affecting the Prope�ty, or the res�oratian
<br /> and repair vf�he Property, l# Lender elec�s to apply �he proceeds to r�stora�ion and repair, Trustor shal! repair ar
<br /> replace the damaged or destrayed �mpro�ements in a manner satisfac�ary ta Lender. Lender shall, upon
<br /> satisfactory proof of such expenditure, pay or reimburse Trustor �rom the proceeds fvr the reasvnab�e Gos� of
<br /> repair ar restoration if Trustor is not in default under this D�ed �f Trust. Any praceeds which ha�e not been
<br /> disbursed within 18❑ days a�t�r their receipt and which �ender has nvt commit�ed t� the repair or restoratiQn of
<br /> the Property shall be used fi�st to pay any amount owing tv Lender under�his Deed o�Trust, then to pay accrued
<br /> int�rest, and �he remainder, €� any, sha�f be applied to the principal balance of the lndebtedness. If Lender holds
<br /> any proc�eds after payment in �ull of �he Indebtedness, such pro�eeds shall be paid to Trustor as Trustor�5
<br /> interes�s may appear.
<br /> Trustor's Repar�❑n Insurance. upon re�u�s�vf L�nder, howe�er no� more than once a year, Trustor sha[� furnish
<br /> t� Lender a report on ea�h existing pa��cy af insuran�e showing: �'I} the name o� the insurer; �2� th� risks
<br /> insured; 43} �he amount of the pvlicy; �43 #h� prvperty insured, �he �hen �urrent repla�ement �alue v� SUCI�
<br /> proper�y, and the manner�f determining tha� �alue; and �5y the expiration date of the policy. Trustor sha[f, upon
<br /> requ�st af Lender, ha�e an independent appraiser satisfactory to Lender determine the cash�alue replacement cost
<br /> of fihe Prop�rty.
<br /> TA� AN❑ INSIJRANCE RESERVES. 5ubject to any limi�kations and cansistent with any r�quirements s�t �y applicable
<br /> law, Lender may �equire Trust�r t❑ ma�ntain with Lender reser�es �or paymen� af annual taxes, assessments, and
<br /> insurance premiums, which reser�es shail he �reated by an initial deposit and subsequent manthly paym�nts, ❑r
<br /> paymen�s at su�h other inter�al as payments under�the Note may be due, of a sum est+ma�ed by Lender to be sufficient
<br /> to pay the to�al annual taxes, assessmen�s, and insurance premiums Lender reasanahly anticipates to b� paid from
<br /> these reser�es. The �eser�e funds shall be held by Lend�r as a gen�ra� d�posit�from Trustor, which Lender may satisfy
<br /> by paym�nt af the taxes, assessments, and insuran�e premiums required to b� paid by Trustor as �hey becvme due.
<br /> Lender shall ha�e the right to draw upon the reser�e �unds �o pay such items, and Lender shall not be required to
<br /> determ€ne the �al�dity �� accuracy of any item b�fore paying it, Nothing in the IJeed of Trus� shaf( t�e construed as
<br /> r�quiring Lender to ad�ancs o�her monies �ar such purposes, and L�nder sha�� nat incur any liability �or anything it may
<br /> do or ami� to do wi�h respe�t to the reser�e account. Sub�ect to any limitations set by applicable �aw, if th� reser�e
<br /> funds disclose a shortage or deficiency, Trustor shall pay such shvrtage or deficiency as required by Lender. All
<br /> amounts in the reser�e account are hereby pledged to fur�her secure the lndebtedness, and Lender is hereby au�horized
<br /> to withdraw and app�y such amounts on the �ndebtedness up�n the occurrence of an E�ent vf De�aul�. Lender shall not
<br /> be required �a pay any interest ❑r earnings an the r�serUe funds unless required by Caw or agreed to by Lender in
<br /> writing. Lender da�s no� ho�d the res�r�e funds �n trus� far Trustor, and Lender is n�t Trustor's agen� fior payment o�
<br /> the taxes and assessmen�s �equired t� be paid by Trustor.
<br /> LENDER'S EXPENDITURES. lf any acfiion or prace�ding is commenced �hat wvuld materially af�ect Lender's interest in
<br /> �he Property or if Trus�or fa��s to comply with any pro�is�on of this ❑��d o#Trust or any Related Do�uments, including
<br /> but not limited to Trus�or's failure �a discharge or pay when due any amoun�s Trustor is requ�red to discharge ar pay
<br /> under this Deed vf Trust or any Refated �o�uments, Lender on Trustor's behalf may tbu�sha[� not be ohf�gated �o} take
<br /> any actian that Lender deems appropriate, inc�uding but nat limi�ed to discharging or paying a�1 taxes, liens, security
<br /> interes�s, encumbranc�s and other cla�ms, at any time le�ied ar placed on the Praperty and paying all �osts for insuring,
<br /> main�ain�ng and pr�ser�ing the Property. All such expend�tures incurred or paid by Lender for suGh purpases will then
<br /> bear in�erest at the ra�e charged under the Note from the date in�urred or paid by Lender to the date of repayment hy
<br /> Trus�or. All such expenses will become a part of the Indebtedness and, at Lender's aption, will �Ay be paya�le ❑n
<br /> demand; �B� b� added �a the balance of �he Nvte and be appvrtianed amvng and be payab�e with any ins�al[m�nt
<br /> payments �a become du� during either �1 y the term of any applica��� insurance poli�y; or �2} �he remaining term ❑f
<br /> the Note; or �C3 be treated as a ballaon paymen� which will �e due and payable at the Note's maturity. The De�d of
<br /> Trust also wil[ seGure payment of these amaun�s. 5uch righ� shali be in addition �o al� other rights and remedies to
<br /> which Lender may be entitled upon D�fault.
<br /> WARRANTY; DEFENSE❑F TITLE. The fio�lowing pro�isians relating to ownership of the Prvperty ar� a part of this Deed
<br /> of Trust:
<br /> Title, Trustor warrants �hat: �a} Trustor holds goad and marke�abl� tit�e of re��rd tv the Property in f�e simple,
<br /> f��e and clear o� a�l liens and en�um�rances �ther than th�se se� fiorth in the Rea� Pr�perty descrip�ion �r �n any
<br /> ��tle insurance po�icy, title re�aort, �r �inal title �p�nion 155Ll�'C� in fia�or ��, and ac�epted by, Lender in connection
<br /> w�th this Deed ❑�Trus�, and �b} Trustor has the�ull right, power, and authori�y to execu�e and deli�er this Deed vf
<br /> Trust to Lender.
<br /> Defense of Title. Su�ject to the �xception in the paragraph abo�e, Trustor warrants and w�ll �ore�er de�end �he
<br /> �itle to �he Prvperty against the lawful claims o#all persons. In the e��nt any a�t�on vr pro��eding �s cvmmenced
<br /> that questians Trustor's tit�e vr the interest of Trustee vr Lender under this Deed af Trust, Trustor shall de�end th�
<br /> action at Trustar's expens�. Trustor may be the nominal party in such proce�ding, but Lend�r shall be entit�ed to
<br /> parti�ipate in the prviceeding and ta be represented in the proceeding by counsei ❑� Lender's awn choice, and
<br /> Trus�or wi�l deli�er, ar�ause to be d��i�ered, �o Lender such �nstruments as Lender may request�rom �ime to time
<br /> t� permit such part�cipatian.
<br /> Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all
<br /> existing applicable �aws, ordinances, and regulati�ns�f go�ernmental authar�ties.
<br /> SurWival of Representativns and Vllarranties. All represen�a�ivns, warranties, and agreements mad� by Trustar in
<br /> thl5 ❑�ed af Trust shall sur�i�e the exe�utian and del��ery ❑f�his Deed of Trust, shall be �ontinuing in nature, and
<br /> shalf remain in#ull far�e and effect until such time as Trustar's Indebtedness shall be paid in�u11.
<br /> C�NDEMNATI�N. The foll�wing pro�isions relating to condemnation proceedings ar� a part of this Deed ❑f Trust:
<br /> Praceedings. I# any p�oceeding in condemnat�on is �iled, Trus€or sha�� prompt�y nv�ify Lender in writing, and
<br /> Trustor shall pramptly take such steps as may be ne�essary to defend the action and obtain the award. Trus�ar
<br /> may be the nam�nal party in su�h proceeding, but Lender shall be entit�ed to participate in�he proc�eding and to be
<br /> represented in th� proceeding by couns�l of its own choice, and Trusfior will d�li�er vr cause to be d�fi�er�d �o
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