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2� 1 ��4877
<br /> DEEC] OF TRUST
<br /> �Gontinuedj Page 3
<br /> poli�ies or Gertificates of insurance in fvrm sat+sfactory to Lender, including stEpulations that ca►�er�ges will not he
<br /> canc�l3ed or diminished without at I�ast thirty f 3�f days priar written na��ice to Lender. Each�nsurance policy afso
<br /> shal�include an�ndarsement pra�iding that co�erege in�a�or o�Lender wi��not he impa+red in any way hy�ny act,
<br /> omi�sian ar d�fault ❑f Trustar ar any vther persvn, 5hvuld the Reaf Property �e iocated in an erea design�ted by
<br /> the Administrat�r of th� Federai �mergen�y Management Agency as a special fiood haiard are�, Trustor agrees to
<br /> abtein and maintain F�d�r�l Flavd Insurance, tf auailable, fvr the full unpai� principal balance vf the lo�n and any
<br /> prior liens on the pr�perty securing the Ioan, up ta the m�ximum policy limits set under the Nativnal Flaad
<br /> insur�nce Prvgram, ar as otherwise required k�y L�nder, and tv maintain su�h insurance fo�the term of the lo�n.
<br /> Applica#ion vf Proceeds. Trustor shall prnmpt�y not�#y Lender o#any lass or demage to the Property. Lender may
<br /> mak� proof ❑f lass i# Trustnr fails ta dv so within fifteen {15y days of the casualtY, Wheth�r or not Lend�r's
<br /> se�urity is impair�d, Lender may, at Lend�r's eiection, recei�e end retain the p�viceeds of any insurance and apply
<br /> the proceeds to the reduGtion of th� Indehtedness� payment of any lisn affecting the Prop�rty, or the �estarativn
<br /> and repair of the Property. If Lender elects to apply the proceeds to restoratian and repair, Trustor shall repair or
<br /> repl�Ge the dam�ged or d�strayed �mpra�em�nts in a manner satisfactory t❑ L�nder. Lender sh�El, upon
<br /> satisfactory pr�vf of such expenditure, p�y or reimburse Trustor frvm the prace�ds fvr the �eason�hle CDSt of
<br /> rep�ir or restc�rati�n if Trus�Qr is nat in def�ult under this i]eed v# Trust. Any pr�ceeds which ha�e na�t b�en
<br /> disbursed w►�thin 18(] days af#er their reGeipt and whiGh Lsnder has nQt committed to the repair or restvr�tian of
<br /> th� Property sha�1 be used �irst t❑ pay any amount�wing tv Lender under this ❑esd vf Trust. then tv pay ac�rued
<br /> interest, and Che r�mainder, if any, shali be appfi��f to th� principal baianc� af ths Indebtedn�ss. If Lend�r holds
<br /> any proceeds af�ter payment in fuli af the Indebtedness� su�h praG�eds shell be peid to Trustor as Trustar's
<br /> inter�sts may appear.
<br /> Trustor;s Rgpart Qn insurance. Uppn rsquest af Lender, howe�er nat morg than ance a year. Trustor shall �urnish
<br /> to Lender a report an each existing poli�y vf insurance showing: {�� the n�rne vf the insurer; �Z� the risks
<br /> insurgd; �3f the amaunt of the po�icy; {�f the prop�erty insured, the th�n current rep48cement ►►alue of such
<br /> property� and the manner af determining that�a�ue; anc� t5f the expiration date af the pvlicy. Trustar sha�l, upon
<br /> request v#Lender, ha�e an independent�ppraiser satisfact�ry to Lender determins the cash�a�ue replacement cost
<br /> of the F�roperty.
<br /> TAX ANQ INS�VRANCE RESERVES. Sub�ect tv any limitations and cvnsist�n� with any requirements set by �pplicable
<br /> law, Lender may require Trustar ta maintain with Lender reser�es for p�yment o# annual taxes, assessments, and
<br /> insurance premiums, which res�rv�� shall be �re�ted by an initial deposit and subsequent monthfy payment�, ❑r
<br /> pa�ments �t su�h vther inter�al as payments under thg Nat�m�y be due, o�a sum�stimated h�►Lender t�he sufficient
<br /> t❑ pay �he total annual taxes, assessments, and insurance premiums Lender r��sonahly anticipates tn be paid fram
<br /> these reser�es, The reser�e funds shall be held by LQnd�r as a gen�ral depa�sit�rvm Trustor� whEch Lender may satisfy
<br /> by paym�nt of the taxes, BSsgSSments, and insuranc� premiums r�qu�red tQ b� paid hy Trustor as t�ey become due.
<br /> Lender shall h��� the right to draw upa�n the reserue funds to pay such items, and LendQr shall nvt b� required to
<br /> determine the �alidity or accur�cy af sny +tem befvre paying it. Nathing in the Deed of Trust shall be construed as
<br /> requiring Lender�o ad��nce oth�r marnies for such purposes, and Lender sh811 not incur any liah+lity for anythin�it may
<br /> da�r omit to do with ��spect to the reser�e �c�vunt. Subject to any limite#ions set by applicable law, if the reser�e
<br /> funds disclose a sho�ta9e or derticiency, Trus�ar sh�ll pay such shortage or defi�iency as required by Lender. Aff
<br /> amounts in the resenre account are here�y p�edged to fuxther secure the Indebtedness, and tender is herehy authorized
<br /> to w+thdr�w and apply such amounts an the Indebtedness upon the occurrence of an E�ent vf Default. Lender sh�lt not
<br /> b� requ�r�d tv pay any interest or earnings ❑n the reser�e funds unless r�quired by law or agreed to by Lender in
<br /> writing. L�nder dves nvt hold the reser�e funds in trust for Trustor, and Lend�r is not Tru�t�r's agent for payment af
<br /> the taxes and assessments required to b�paid by Trust�r.
<br /> LEfVDER'S E�CPENDiTURES. �f any activn or pra�eeding is Gommenc�d that would m�#erially affect Lender's int�rest in
<br /> the Pr�perty ar if TrustQr#a�ls to comply with any p�a�isivn vf#his ❑eed of Trust❑r any Related Qvcuments� including
<br /> but nnt limited ta Trustor's failure to discherg� or p�y when due any amvunts Trustar is r�quire� to disch�rge or pay
<br /> under this Deed of Trus#�r any Related ❑acuments, Lender vn Trustvr's behalf rnay �hut shell nvt be obligated tQf take
<br /> any action that Lender deem� app�rapriate� in�ludfng but not limited to disch�rging or pa�ing ��� ta�ss� liens. ��curity
<br /> interests, gncumbrances and other claims, at any time Is�ied or placed on the Property and paying all costs for insurin�,
<br /> maintaining and preser�ing the Property, Alf suGh expenditur�s incurred or paid by L�nder far such purpQses will then
<br /> bear inter�st at th� rate �harged under the Nate from the date incurred or paid by Lender to th� date of rep�yment by
<br /> Trustor. All such expenses will beGome a p�rt ❑f the Indebt�dness and, et Lender's �ptivn, will �Ay be peyable vn
<br /> demand; �B� be added to the balanGe of the Nate and be ap�rtioned �m�ng and �e payable with any inst�llmen�
<br /> payments to becvme due during �ither �1 y the term ❑f any applicable insurance pvli�y; Qr ��y the remaininy term o�
<br /> the Note; or �Cy be treated as a baflovn payment which will be du� and payable at the Nate's maturity. The C�eed of
<br /> Trust afsa w+ll secure pa�yment of th�se amvunts. 5uch right shafl �e in additivn to all a�ther rights and remedies to
<br /> vvhi�h Lender may be entitled upan Default,
<br /> WARRANTY;�EFENSE�F TITL�. The fo��awing pro�isians r�lating to awnership vf the PropertY ar�a part af this Deed
<br /> of Trust:
<br /> Title. Trustar warrants that: �ay Trustor holds gaod and marketable t��l� of r�card to the Rroperty in fee simpl�,
<br /> #re� and ��ear of ail fiens and en�umhrances other than those set forth in the Real Pr�perty descriptian ar in any
<br /> title insuran�e pvlicy, title report, c�r finsl title opinion issue� in fa�or t�#, and a�cept�d by, I�ender in connectian
<br /> with this Deed of Trust,and th� Trustor hes the ful!right, pvwer, and authority t�exe�ute and deli�er this ❑eed of
<br /> Trust ta Lender.
<br /> Defense af Titie. 5ubject tv the exceptian in the paiagraph aba�e, Trustar w�rrants and wil� fQre�er de�end the
<br /> titls ta the Property �gainst the �awful claims vf al! persvns. In the e�ent any acti�n or proGe�ding is cammenced
<br /> that questions Trustar's title ar the int�r�st o�Trustee vr Lender und�r this Deed of Trust, Trustvr sha1�de�end the
<br /> actian et Trustvr's �xpense. Trustv�r may be the nominef party in such pr��eeding, but Lender sh��l be ent+tled tc�
<br /> participate in the prviceeding and to be represented in the procseding �y Gnunsel of Lender's own chvice� and
<br /> Trust�r will d��i�er, �r�ause to be deli�ered, tQ l.ender such instruments as Lender may request from time to time
<br /> to permst such parti�ipati�n.
<br /> �omplianca W�th Laws. Trustor warrants that the Prap�rty and Trustor's use ❑f th� Praperty cvmplies w+th all
<br /> existing applicable laws, �rdin�rncss, and regu�ativns vf go�ernmentel authorities.
<br /> Sur��r►�� of Representation� and Warr�nti�s. All representations, warrantfes, and agreements made by Trustor in
<br /> this L�eed of Trust shall sur�i�e the executivn and defi�ery o�this Qeed af Trust, shall b� continuing in nature, and
<br /> shall remain in ful�farce and effect until such time as Trustar's indeh�edness shall be paid in fu�l.
<br /> C�N[]EMNATIaN. The fallowing prQ�isions relating to candemnation proCeedings ar��pa�t t�f#his C7eed of Trust:
<br /> �raceedings. If any proce�ding in �ondemnati�n is filed, Trustor s�all prornptly notify Lender in writing, and
<br /> Trustcar shall pramptly take such steps as may be neGessary tv defend the action and obtain the award. Trustor
<br /> may be the n�minal party in such proceeding, bux Lender shaH be entitled t�parti�ipate in the proceeding and ta�be
<br /> represented in th� proceeding hy c�unse� of its aw►n chvice� and Tru�tor will deli�er or cause to be c�eli�ered to
<br /> Lender such instruments and documentation as may be request�d by L�nd�r from time to time ta permit such
<br /> particip�tion.
<br /> Appl�cetitan vf Net Pra�veds. I�a�l ar any part❑f th� Property is�ondemned by emin�nt damain prv���dings or by
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