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2� 1 ��48� 1
<br /> DEED �F TRLJST
<br /> �Continued} Pa�e 3
<br /> po��cies ❑r certificates of insurance �n f�rm satisfactory ta Lender, including st�pulations that co�erages will not be
<br /> cancelled or diminished withQut at least th�rty �3�� days prior writt�n noti�e to Lender. Each insurance policy also
<br /> sha�l include an endorsement providing that ca�erage in #a�or af Lender will not be impair�d in any way hy any act,
<br /> omission ❑r defaul�t of Trustor or any othe� person. Should the R�al Property be la�ated in an area designated by
<br /> th� Admin€stra�or o�the Federal Emerg�ncy Managemen� Agency as a spe�ia� flovd hazard area, Trustor agrees to
<br /> ok�tain and maintain Federal F�ood Insurance, if a�ai�abie, �or the full unpaid principal ba�ance of the loan and any
<br /> prior �iens on the property securing �h� loan, up t❑ the maximum poLicy limi'�s set under the National Flood
<br /> lnsuranc� Program, or as otherwise required by Lender, and to maintain such insuranc��or the term o#the Ioan.
<br /> Applicat�on o#Proceeds. Trustar shall pr�mptly notify Lender o�any loss or damage t❑ �he Property. Lender may
<br /> make proaf of loss if Trustor �ails to do so with�n fifteen �15� days o� the casualty. Whe#h�r or not Lender's
<br /> security is impaired, Lende� may, at Lender`s e[ection, receive and retain �he pro�eeds of any insurance and apply
<br /> the pr�ceeds to the reduc�ian of the Indebtedness, payment a# any lien affe��ing the Property, ❑r the restoratian
<br /> and repair ❑f the Property. If Lender elec�s ta apply the proceeds �o restvration and repair, Trustor shall r�pair or
<br /> replace the damaged ar des�royed Impro�ements in a manner satis�actory to �ender. Lender sha��, upon
<br /> sa�isfactory praof of such �xpenditure, pay or reimburse Trustor �ram �h� proceeds far the reasonable cost of
<br /> repair or restoration if Trustor is not in defau�t under this Deed of Trust. Any proceeds wh�ch ha�e not t�een
<br /> disbu�sed with�n 180 days after the�r receipt and which Lsnder has not committed to the repair or restorativn of
<br /> the Proper�y shall be used firs�to pay any amaunt ovuing to Lender under this ❑eed o�Trus�, then to pay a�crued
<br /> in�er�st, and the remainder, if any, shall be applied �❑ the principal balance of �the Indeb�edness. If Lender hvlds
<br /> any proceeds af�er paymen� in fuil of the �ndebtedness, su�h proceeds shall be paid to Trustor as Trustor's
<br /> int�rests may appear.
<br /> Trustar's Report on �nsuranc�. Upon request of Lender, howe�er not more than vnce a year, Trus�or shall furnish
<br /> to Lender a report �n eaGh �xisting policy ❑� insurance showing: �1� the name vf �he insurer; ��y the risks
<br /> insured; 43� the amoun� of the policy; �4} �he property insured, the �hen cur�en� replacemen� �alue of such
<br /> proper€y, and �he manner of determining that �alue; and �5� the expiration date ❑f the poticy. Trustor shall, upon
<br /> request of Lender, ha�e an independent appraiser satis�actory to Lender de�ermine the�ash�alue r�placemen�cost
<br /> o�the Proper'ty.
<br /> TOIX A�VD iNSURANCE RESERVES. Subject to any limitations and consistent with any requ�rements s�t by applicabl�
<br /> law, Lend�r may require Trustor to ma�ntain with Lender res�r�es for payment of annua� taxes, assessm�nts, and
<br /> insuran�e premiums, which reserv�s shall �e c�eated by an initial deposit and subsequent monthly payments, or
<br /> payments a�such other interval as paymen�s under the Note may he due, of a sum estimated by Lender to be sufficient
<br /> to pay the �ota1 annual taxes, assessments, and insurance premiums Lender reasona�ly anticipates to be paid from
<br /> these reser�es. The reser�e funds shall be heid by Lender as a genera� deposit fram Trus�or, which Lender may satisfy
<br /> �y payment a� the �axes, assessmen�s, and insurance premiums required t� be paid hy Trustar as they b�came due.
<br /> Lender sha�f ha�e the righ� to draw upon the r�s�r�e funds �a pay su�h items, and Lender shall not be requir�d ta
<br /> determine the �alid�ty or a�cura�y o� any item be�ore paying �t. Nothing �n the �eed ❑� Trust sha!! be �onstru�d as
<br /> requiring Lender to ad�ance ather moni�s for such purposes, and Lend�r shall not incur any liability �ar anything it may
<br /> do or omit �a do wi�h respect t❑ the reser�e accoun�. Subject to any �imitations set by applicable law, if th� reser�e
<br /> funds disclase a shortage or de��ciency, Trustor shall pay such shortage or de�ic�ency as required by Lender. All
<br /> amaunts in the reser�e account are hereby p(edged to further se�ure�he Indebtedness, and Lender �s here�y au�horized
<br /> tv w�thdraw and apply such amounts on the Indebtedn�ss upon the occurrence a�an E�ent�f Default. Lender shall not
<br /> be required �o pay any �n�erest or earnings an the reser�e funds unless required by law or agreed to by Lender in
<br /> writing. Lender does not hold the reser�e funds in trust for Trustor, and Lender is not Trustvr`s agent #or payment af
<br /> th�taxes and assessments r�quired ta b� paid by Trustor.
<br /> LENDER'S EXPENDITURES. If any action or praceeding �s commen�ed that �rvould materially affect Lender's interest �n
<br /> the Proper�y or i�Trustar fails t� comply with any prv�ision ❑�this ❑e�d of Trust or any Rela�ed Documents, in�luding
<br /> bu� not limited �o Trustar's failure to discharge or pay when due any amounts Trustor is required to discharge or pay
<br /> under this Deed of Trust or any Re�ated Documents, Lencler on Trus�or's behalf may �but shall n�t t�e obligat�d tof take
<br /> any action that Lender deems appropriate, including but not limi�ed to discharging or paying all taxes, liens, security
<br /> interests, encumbranc�s and oth�r claims, at any�ime le�ied or plac�d❑n the Proper�y and paying all ��sts#or insuring,
<br /> maintaining and preser�ing the Property. A�� such expenditures incurred or paid by Lender for such purposes will then
<br /> hear in�erest at �he rate charg�d under the Nate from the da�e incu�red �r paid hy Lender to the date of repaym�nt �y
<br /> T�ustor. A�� such exp�nses w�ll become a par� ❑fi the Indeb�edness and, at Lender's ❑pti�n, will {A� be payatale on
<br /> demand; �B} be added ta the balance of the Nat� and be appartioned among and be payable w�th any �ns�a�iment
<br /> payments to become due during eith�r �1} the term ❑f any ap�licable insu�ance pvlicy; or �2y the r�maining term vf
<br /> �he Note; �r �C� be treated as a ba�loan payment whiCh wi�� be due and payable at ths Nvte's maturity. The Deed of
<br /> Trust alsa will secure paymen# o� these amoun�ts. Such right shall be �n addition to all o�her �ights and rem�dies to
<br /> which Lender may b�entitled upon Default.
<br /> WARRANTY; DEFENSE QF TITLE. The follawing pro�isions rela�ing to ov►rnership o�the Prop�rty are a part of this Deed
<br /> af Trust:
<br /> Title. Trustor warrants that: 4a� Trustor hvlds good and mark�table title v� record to the Prvperty in fee simp[e,
<br /> �ree and clear v� all liens and encumbrances other than �hose set for�h in the Real Prape�ty des�ription or in any
<br /> title insurance policy, tit�e report, or final �itfe opinian 155U�� in fa�or o€, and accept�d by, Lender in connectivn
<br /> with this Deed of Trust, and {b} Trustor has the full right, power, and authority�o execute and deli�er�his Deed of
<br /> Trust to Lender.
<br /> ❑efense of Title. 5ubject tv the �xcep�ion in the paragraph aba�e, T�ustvr warrants and wi�l fvre�er defend the
<br /> title to the Proper�y against the lawful �laims of all p�rsons. !n th� e�en� any act�an or proceed�ng is commenced
<br /> that questions Trusto�'s ti�le or�he in�erest of Trus�ee or Lender under this Deed o�Trus�, T�ustar shall de#end the
<br /> act€on a�Trustar`s expense. Trustor may be the namina� party in such proceeding, but Lender shall �e entitled to
<br /> participate in the proc�eding and to be represen�ed in �he pro�eeding by counsel af Lender's own choice, and
<br /> Trustar will defi�er, or cause t� �e deli�ered, to Lender such ins�ruments as Lender may request fram time ta time
<br /> to permit such participation.
<br /> �omplian�e Wi�h Laws. Trustor warrants that �he Property and Trustor's us� o� the Property compli�s with all
<br /> existing app��cable laws, ordinances, and r��ulations of go�ernmenta[ authori�ies.
<br /> 5ur�iWal of Representations and Vllarranties. All representations, warranties, and agreements made by Trustor in
<br /> this ❑eed o�Trust shail sur�i�e the executi�n and deli��ry o#this I�eed vf Trust, shall be c�ntinuing in nature, and
<br /> shal� remain in full f�rce and ����ct until su�h time as Trustar's Indebt�dness shal! be paid in ful�.
<br /> �aNDEMNATi�N. The following pro�isions relating�ko condemnation proceedings ar� a part vfi�his ��ed o�Trust:
<br /> Proceedings. If any proceeding in cond�mnati�n is filed, Trus�or sha�l promptly notify Lender in writ�ng, and
<br /> Trustor shall promptly �ake su�h steps as may be necessary to def�nd the acti�n and oh�ain the award. Trustar
<br /> may be�he nominal parfiy in such praceeding, hu� Lender sha�l be entitled�a participate in the proceeding and to be
<br /> represen�ed in the proceeding by counsel of �ts own Ghoice, and Trusto� will deli�er or cause to he deli�ered tv
<br /> Lender such �nstruments and documen�ation as may be requested by Lender from time �o time ta permit such
<br /> partic�pation.
<br /> Application vf Net Prv�eeds. �f ali a� any part o��he Praper�ty is �ondemned by eminent damain proceedings or by
<br /> b.
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