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2� 1 ��47�9
<br /> DEED C]F TRUST
<br /> �Continued� Page 3
<br /> palicies or certificates af insu�ance in form sa�isfacto�y to Lende�, including stipulatians that co�erages wii[ not be
<br /> cancelled or diminished withaut a� least thirty �3�� days prior written natice to Lender. Each insurance po[icy also
<br /> sha�1 include an endorsement pro�iding that co�erage in fa�vr of Lender wilf not be impaired in any v►ray by any act,
<br /> omission or default of Trustor or any ofiher person. Should the Real Pr�perty be lo�ated in an area designated by
<br /> the Administra�or a�the Federal Emergency Management Ag�ncy as a special flaod hazard area, Trustvr agrees�o
<br /> obtain and maintain Federaf Flovd Insurance, if a�ailable, far �he �ull unpaid principa� balan�e o� �he loan and any
<br /> prior liens on the prvperty securing �he lvan, up to the maximum poficy fimits set under the Natiana� Flaod
<br /> �nsuran�e Program, or as otherwise required by Lender, and t❑ main�ain such insurance fvr the term of the Ivan.
<br /> Applicat�an of Pro�eeds, Trustor sha�� pramptly notify Lender of any I�ss or damage to the Proper�y. Lender may
<br /> make proof of loss if Trustor fails t❑ dv so within fif�e�n �15� days o� the �asualty. VIlhether vr nat L�nd�r's
<br /> securi�y is impaired, Lend�� may, at Lender's ef�ctivn, �ecei�e and reta€n the proceeds �f any insurance and apply
<br /> the pr�ceeds to th� reduct�on of the Indeb�edn�ss, paym�nt of any l'ten affecting the Property, or the restvra�ion
<br /> and repair of the Property. If Lender elects t� apply �h� proceeds ta r�stora�ion and repair, Trus�or sha�� repair ar
<br /> replace �he damaged or destroyed lmpro��m�nts in a manner satisfact�ry �o Lender. Lender shall, upvn
<br /> sa�isfactory proof of such expenditure, pay ❑r reimburse Trus�ar from the praceeds �or �he reas�nabl� cost of
<br /> repair or �esto�ation if Trus�or is not in default under �his Deed of Trus�. Any proceeds which ha�e not k�een
<br /> disbursed within 18� days after their receipt and which Lender has not committ�d �o the repair or restora�ion o�
<br /> �he Proper�y shal� �e used firs�to pay any am�un�owing to Lender under this D�ed �f Trust, then to pay a��rued
<br /> interest, and the remainder, if any, shall b� applied �o the principal balance of the Indeb#edn�ss. lf Lender hvlds
<br /> any pro�eeds after paymen� in full af the Indeb�edness, su�h praceeds shall be paid to Trustor as Trustor's
<br /> in�erests may appear.
<br /> Trustor's Rep�rt vn lnsurance. lJpon �equest of Lend�r, hvwe�er not mare than once a year, Trustar shall �urnish
<br /> tv Lender a repvr� on each exist�ng policy af insurance shvwing: �1� �he name af the �nsurer; �2} �he Ck5I�5
<br /> €nsu�ed; �3� the amount vf th� policy; 44� �he property insured, the then curren� replacement �alue ❑f such
<br /> property, and the manner of determining that�alue; and �5y the �xpira�ian date of the po)icy. Trustvr shall, upon
<br /> request af Lender, ha�e an independent appraiser sat�s�actvey to Lender determine the cash�alue r�placement cost
<br /> of the Property.
<br /> TAX AND INSURANCE RESERVES, Subject tv any limitations and consistent with any requirements set hy app��cable
<br /> law, Lender may requ�re Trustor to maintain with Lender res�r�es �or payment of annual tax�s, assessm�nts, and
<br /> insurance premiums, which reserves shall be creat�d by an initial deposit and subsequent monthly payments, or
<br /> paymen�s at such other inter�al as payments under the Note may b�due, of a sum estima�ed by Lender t� be sufficient
<br /> t❑ pay the total annual taxes, assessmen�s, and insurance premiums Lender reasanably antic�pates to be paid fram
<br /> �hese r�ser�es. The res�r�e funds shall be he�d by Lender as a genera� depvsit f�am Trustor, which Lender may satis#y
<br /> by paymen� of �he taxes, assessments, and insurance premiums required to be paid �y Trustor as they become due.
<br /> Lender shall ha�e �he r�ght �v d�aw upon the reser�e �unds �❑ pay such items, and Lender shall not be required �a
<br /> determine th� �alidity or accura�y ❑f any item befare paying it. Nothing in the Deed o� Trus� sha�� be construed as
<br /> re�uiring Lender�a ad�ance other monies �or such purposes, and L�nder sha�l not incur any liability #or anything it may
<br /> do or vmit tv do w�th respe�t to the r�ser�e account. Subject to any limitations s�t hy applicab�e 1aw, if the reser�e
<br /> funds disc�ose a shortage o� defici�ncy, Trustor shall pay such shortage or deficiency as r�quired by Lender. Alf
<br /> amounts in the reser�e accoun�t are herehy pl�dged to �urther secure th� Indebtedn�ss, and Lender is hereby au�hvrized
<br /> �a withdraw and apply such amounts on�he Indehtedness upon�he oc�urren�e vf an E�ent of Default. Lender shall not
<br /> be �equi�ed to pay any interest vr earnings on �he reser�e �unds unless re�uired by'�aw or agreed to by Lender in
<br /> wri�ing. Lende� does not hold th� reser�e funds in �rust for Trustor, and �ender is no�Trustvr's agent far payment of
<br /> the taxes and assessments requir�d to be pa�d by Trustor.
<br /> LENDER'S EXPENDITURES. I�any ac�i�n or proceeding is commen�ed that would mate�ially affect Lender's interest in
<br /> the Prvperty or if Trustor fails �o comply with any pro�isian of this Deed af Trust or any Related Documents, including
<br /> hut no� �imited to Trustor`s failure to discharge flr pay when due any amounts Trustar is required tv discharge ar pay
<br /> under this ❑eed of Trust or any Related Documents, Lender on Trustar's behalf may �but shall nat be obligated to� take
<br /> any a��ion that Lender deems appr�pr�ate, incfuding bu� not limited to discharging �r paying all taxes, liens, security
<br /> interes�s, encumbrances and other�laims, at any time le�ied vr placed on the Prvperty and paying all cos�s for insuring,
<br /> main�aining and preser�ing the Prope�ty. All such expenditures incurr�d o� paid by Lender far su�h purposes will �hen
<br /> bear interes� at the ra'�e �harged under the Nate from �h� date in�urred or paid by Lender to the date �f repaym�nt by
<br /> Trustor. All such expens�s will become a parfi of the lnd�btedness and, a� Lend��'s option, will �Ay be payabl� an
<br /> demand; �B� be add�d to the balance of the Nv�e and be apportioned among and �e payable with any ins�allment
<br /> paym�nts to become due during either �1� the �erm o� any applicab�e insurance policy; or �2� the �emaining term of
<br /> the Nate; or �C} be treated as a balloon paymen� which will be due and paya�le a�the Not�'s maturi�y. The ❑eed of
<br /> Trust alsa will secure paym�nt of these amounts. Such right shail �e in addition to all a�her rights and remedies to
<br /> which Lender may be en�itled upon De�auit.
<br /> WARRANTY; QEFENSE�F TITLE. The�ollowing pra�isions relating�o awne�ship of the Property are a part of this Deed
<br /> o�Trus�t:
<br /> Title. Trustvr warrants that: �a} Trustor holds goad and marketab�e �itle of record to the Prop�r�y in fee simple,
<br /> free and clear of afl liens and encumhrances other �han fihase set forth in �he Real Property description or in any
<br /> title insurance pali�y, title report, or final tit�e opinion issued in fa�or of, and accepted by, Lender in connec�ivn
<br /> with this D�ed of Trust, and �b� Trustor has the full right, power, and au�hority to execute and deliver this Deed of
<br /> Trust ta Lender.
<br /> Defense vf Titfe. 5ut��ect to the except�an in the para�raph abo�e, Trustor warrants and will fore�er defend the
<br /> t�tle to the Prvperty against�he fawful claims of a[� persvns. In �he ��ent any ac�ion vr proceeding is cvmmenced
<br /> tha�questions Trustar's title or the inte�est of Trustee or Lender under this Deed of Trust, Trus�or shall defend�he
<br /> activn at Trustor's expense. Trustor may be the nominal party in such proc�eding, but Lender sha�l be entitled �o
<br /> participate in the prviceeding and tv be re�resent�d in the proceeding by counsel �f Lender`s own choice, and
<br /> Trus�or wi�� deli�er, or �ause ta be deli��red, ta Lender su�h instruments as Lender may �equest fr�m time�o time
<br /> to permit such participa�ion.
<br /> Complian�e Vlli�h Laws. Trustor warran�ks tha� the P�oper�y and Trus�or's use af the Proper�y c�mplies rrvith ali
<br /> existing applicable laws, ardinances, and regula�ions��go�ernmenta! au�horities.
<br /> SurWival ofi Represen#ativns and Warran#ies. All represenra�ions, warranties, and agreements made by Trus�or in
<br /> �h�s ❑eed af Trust shall sur�i�e the execution and de�i�ery ❑f this Deed of Trust, shall be continuing €n nature, and
<br /> shall remain in full force and effect unti�such time as Trusfior's lndebtedness sha�� be paid �n#ull.
<br /> C�NDEIVINATI�N. The�allowing pro�isians r��ating�o condemnation proceedings are a par�of this Deed o�Trust:
<br /> Proceedings. If any proceeding in c�ndemnation is fiiled, Trustor shall pramptiy notify Lender in writing, and
<br /> Trustvr sha�! prompt�y take such steps as may be necessary t� de�end the action and obtain the award. Trus�t�r
<br /> may be the nominal party in such prviceed€ng, bu�Lender shall be entitled to pa�ticipate in the pro�eeding and�o be
<br /> represented in the praceeding by cvunsef of it5 Dwn chaice, and Trustor will deii�er vr cause to be defi�ered to
<br /> L�nder such ins�ruments and do�umentation as may be requested by Lend�r �ram �ime to time �o permit such
<br /> participativn.
<br /> Applicatian of Net Pro�eeds. I�a11 or any part o�f the Property is candemned by eminen�doma�n proceedings ar by
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