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2� 1 ��4745
<br /> DEED �F TRUST
<br /> ���n�inued� Page 3
<br /> poli�ies or certif��ates of insu�-ance �n form satisfactory ta Lender, including stipu�ativns that cv�e�ages will not be
<br /> canceiled �r diminished w�thout at least thirty �3�y days prior writ�en natic� to Lender. Each insurance policy alsa
<br /> sha�! include an endorsement pro�iding�hat co�erage in#a�or of Lend�r wi�1 not be impaired in any way by any ac�,
<br /> ❑missi�n or default o� Trus�vr or any other persvn. 5hould the Rea[ Praperty be located in an area designated by
<br /> the Adm�nistra�or o�the Federa� Emergency Management Agency as a special flood hazard area, Trustor agrees to
<br /> o�tain and maintain Federal F[o�d lnsuran�e, i� a�ailable, �or the full unpaid principal balanee of �he loan and any
<br /> prior li�ns on the proper�y securing the loan, up tv the maximum policy limits set under the National F[oad
<br /> Insurance Program, or as otherwise required hy Lender, and ta maintain such insurance for�he term of�he loan.
<br /> App�ica#ion of Praceeds. T�ustor shall promptly nv�ify Lender �f any �oss or damage to the Property. Lende� may
<br /> make proof o� ioss if Trustor fails to do so wi�hin fi�teen �15� days o� the casualty. Whether or not Lsnder's
<br /> securi�y is impaired, Lender may, at Lender`s election, recei�e and retain the proceeds ❑f any insurance and apply
<br /> the proceeds to �he reduc�ion of the Indebtedness, payment of any �ien affecting the Prvper�y, ar the res�oration
<br /> and repair of the Property. If Lender elects ta apply the proceeds to restora�ion and repair, Trustor shall repair or
<br /> replace the damaged or destroyed Imprv�ements in a manner satisfac�ory �a Lender. Lender shall, upan
<br /> satisfactory proaf of such expenditure, pay vr reimhurse Trustar fram the pr�ceeds �ar the reasonable cost ❑f
<br /> repair ar restoration if Trustor is not �n de�ault under this ❑eed af Trus�. Any proceeds which ha�e n�t heen
<br /> disbursed wi�hin 18� days a�ter their r�c�ipt and which L�nder has not committed to �he repair ❑r res�oratian of
<br /> the Property sha�l be used first to pay any amount owing to Lender und�r th�s Deed vf Trust, then to pay accrued
<br /> inter�st, and the remainder, i� any, shall be appli�d to the principal balance of the Indebtedness. If Lender holds
<br /> any proceeds a�ter payment in �ull of �he Indeh�edness, such pro�eeds shal� be paid t� Trustor as Trustor`s
<br /> inter�sts may appear.
<br /> Trustor's Report on lnsurance. Upon re�uest af Lender, howe�er not more �han once a year, Trus�or shalf fu�nish
<br /> to Lender a report an each exis�ing poiicy of insurance showing: �'1� the name of the �nsurer; �2� th� risks
<br /> insured; �3y the amount af �he pvlicy; �4� �he prop�rty insured, th� then current rep�ac�men� �alue af such
<br /> pr�perty, and the manner❑#determining that �alue; and �5} the expiration date vf�he policy. Trus�or sha��, upon
<br /> requ�st vf Lender, ha�e an independent appraiser satis�actary to Lend�r determine the cash value replac�ment cost
<br /> o�the Prop��ty.
<br /> TAX AND 1NSURANCE RESERVES. Subjec� t� any limitations and consistent with any requiremen�s set by applicable
<br /> faw, Lender may require Trustar to maintain with Lender reser�es far payment of annua� taxes, assessments, and
<br /> insurance premiums, which reser�es shall be �r�at�d by an ini�tial depasit and subsequent monthly paymen�s, or
<br /> payments at such o�her inter�al as payments under the Note may be due, Q�a sum estimated by Lender�a be sufficient
<br /> to pay the t�tal annua� taxes, assessments, and insurance premiums Lender reasonably antiGipa�es to be paid from
<br /> these reser��s. The r�s�rve funds shal� be held by Lende� as a general dep�sit from Trustor, which Lender may satisfy
<br /> by payment o� the taxes, assessments, and insurance pr�miums r�quired �o be paid by Trustor as they b�Gome due.
<br /> Lender shall ha�e the right to draw upvn the reser�e �unds to pay such �tems, and Lender shall not b� requir�d �❑
<br /> determine -�he �alidi�y or a�curacy o� any item before paying i�. Na�hing in the Deed �� Trust shall b� �onstrued as
<br /> requir�ng Lender ta ad�ance other monies �or such purposes, and Lender sha## nvt in�ur any fiability for anything it may
<br /> do or omi� �o do wi�h respect ta the r�s�r�e accvunt. Subje�t to any limitations se� by appiicable law, i� the reser��
<br /> �unds disclose a shortage or deficiency, Trus�or sha�! pay such shortage or deficiency as required by Lender. AI(
<br /> amounts in the reser�e account are herehy pl�dged to further secure the Indebtedness, and Lender is hereby authori�ed
<br /> to withdraw and apply such amoun�s an the I ndeb�edness upan�he occurrence af an E�ent o�r❑e#aul�. Lender shall not
<br /> be required to pay any interest or earnings on the reserve funds unless required by law vr agreed to by Lender �n
<br /> writing. Lender does not hv�d the r�ser�e �unds in trust #or Trus�ar, and L�nder is not Trustor's agent far paymen� of
<br /> the taxes and assessments required�o be paid by Trustor.
<br /> LENDER'S EXPENDITURES. I� any action or proceeding is commenced that woufd materially affect Lender's interest in
<br /> the Praperty �r if T�ustor �ails to comply with any pro�ision o�this Deed of Trust or any Relat�d Documents, including
<br /> but not limited �o Trustor's fai�ur� to discharg� or pay when due any amounts Trustor is required �v dis�harge or pay
<br /> under this Deed of T�ust or any Related D��um�nts, Lender on Trustor's behalf may {but shall not be ohligated to} take
<br /> any ac�ion tha� Lender deems appropriate, including but nvt limited to discharging or paying all taxes, liens, security
<br /> int�res�s, encumbrances and other claims, at any t�me le�ied or placed on�the Property and paying al� costs for insuring,
<br /> maintaining and preser�ing the Property. All such exp�ndi�ures incu�red flr paid by Lender for such purpflses will then
<br /> b�ar in�erest at the rate charged under the Note �rom the date incurred or paid by Lender ta the date of repaym�nt by
<br /> Trustor. Alf such expenses will become a par� of the lndebtedness and, at Lender's opt�on, will �A� be payable on
<br /> demand; �By i�e add�d �o the f�alance �f the Not� and be appor�ion�d among and b� paya�le with any installment
<br /> payments to become due during either 41} the �erm o# any applicable insurance policy; or ��� �he rema�ning �term of
<br /> the Note; ar �C3 be treated as a ha[loon payment which will be due and payable a�the Not��S ma�urity. The Deed of
<br /> Trust also will secure payment ❑f these amoun�s. 5uch right shall b� in additian to all �th�� righ�s and remedies �v
<br /> which Lender may be entitled upon Default.
<br /> V1IARRANTY; DEFENSE DF T�TLE. Th�fa€lowing pro�isions relating ta�wnership of the Property are a par�❑f this Deed
<br /> o�Trust:
<br /> Title. Trustar warrants that: {ay Trustor holds good and marketable fiitle of record to the Property in �ee simple,
<br /> �ree and Glear of all liens and encumbrances other �han those set far�h in the Real Property d�scription or in any
<br /> title insurance policy, �itle repart, or final title opinivn issued �n fa�or of, and a�cepted by, Lender in connection
<br /> with this Deed o�Trust, and �by Trus�or has the full right, power, and authority to execute and de[i�er this Deed o€
<br /> Trust to Lend�r.
<br /> De�ense of Title. Sub�ect to the excep�ion in �h� paragraph abo�e, Trus�or warrants and will fore��r defend the
<br /> ti�le to �h� Property against the lawful claims o�all persons. In �he e�ent any action �r proCeeding is commenced
<br /> �hat�uest�ans Trust�r's title ar the int�rest af Truste� or Lender under this Deed of Trust, Trus�or shal� d�fend the
<br /> action at Trustor`s expense. Trustor may be the nom�nal party in such pra�eeding, hut Lend�r shall be enti�led to
<br /> part�cipa�e in �he proceeding and t❑ be represen�ed in the praceeding by counsel of Lender's awn chaice, and
<br /> Trustor will deli�er, or cause to be deli���ed, to Lender such instruments as Lender may request from tim� tv time
<br /> to permit such participatian.
<br /> Compliance Vll�th Laws. Trustar warrants that the Pr�p�rty and Trus�or's use of the Property camplies with all
<br /> existing applicab�e laws, ardinances, and regu�ations of go�ernmental authorities.
<br /> Sur�i�a� ofi Representatians and V1larranties. A!I represen�ati�ns, warranties, and agreements made �y Trustvr in
<br /> this �eed of Trust shall sur�i�e the execution and deli�ery �f this Deed of Trust, sha�l be cantinuing in na�ure, and
<br /> shall remain in fuil force and e��e�t until such time as Trustor's Ind�bt�dness shall k�e paid in full.
<br /> C�NDEMNAT�DN. Th�foilowing pra�isians relating to �ondemnation proceedings are a part o�this Deed��Trust:
<br /> Prviceedings. If any prviceeding in cond�mnation is filed, Trustor shall prvmp�ly noti�y Lender in wri�ing, and
<br /> Trus�or shall prompt�y take such steps as may be necessary to d���nd the a��ion and ohtain th� award. Trustor
<br /> may be the nominal party in such proceeding, but Lender shall be entit�ed to participate in the proceeding and to be
<br /> represented in �he proceeding by caunsel of its own choice, and Trustor will deli�er ar cause �❑ be de���ered to
<br /> Lender such instruments and documentati�n as may be requested �y Lender from time t❑ time t❑ permi� such
<br /> parti�ipation.
<br /> Appli�ation of Net Praceeds. I�all or any part of the Proper�y is condemned by em�nent domain pro��edings or by
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