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2� 1 ��5777
<br /> DEED �F TRUST
<br /> �Cor�tinued� Page 3
<br /> form, amaunts, ca�erages and basis reasvnably acc�ptable to Lender and issued by a company ar companies
<br /> reasvna�ly accepta�le to Lender. Trustor, upvn reques� ❑f Lender, will deli�er to Lender fr�m time to time the
<br /> polici�s or certificates �f insurance in fvrm satis#actory to Lender, including stipulations that co�erages will not be
<br /> cancelled or diminished without at least thirty t3flf days prior written notice to Lender. Each insurance policy afso
<br /> shall include an end�rsement pro�iding that co��rage in fa�or vf Lender will not be impaired in any way by any act,
<br /> omission �r default of Trustor or any other person. Should the Real Property be located in an area designated by
<br /> the Administrator�f the Federal Emergency Management Agency as a special ffoad hazard area, Trust�r agrees t❑
<br /> abtain and maintain Fed�ral Ffavd Insurance, +f a�ailable, for the full unpaid principal halan�e af the loan and any
<br /> prior liens on the property securing the loan, up tn the maximum policy limits set under the National Flood
<br /> Insurance Program, or as atherwise required hy Lender, and t� maintain such insurance far the term �f the loan.
<br /> Application of Praceeds. Trustor shai� promptly notify Lender ❑f any loss ❑r damage to the Property. Lender may
<br /> make pr�of of 1�ss if Trustvr fails to dv so within fifteen (15y days af the �asualty. Whether or n�t L�nder's
<br /> security is impaired, Lender may, at Lender's electivn, recei�e and retain the pro�eeds of any insuran�e and apply
<br /> the proceeds #o the redu�tion of the Indebtedness, payment of any lien aff��ting the Pr�perty, ❑r the r�storation
<br /> and repair ❑f the Property. If Lender el�cts tv apply the prviceeds to restoration and repair, Trustor shall repair or
<br /> replace the damaged or destroyed Impro��ments in a manner satisfactory to Lender. L�nder shall, upon
<br /> satisfactary proof of such exp�nditure, pay vr reimburse Trustor fram the proceeds far the reasvnable �ost flf
<br /> repair or restoration if Trustor is nat in defauft under this Deed o# Trust. Any prviceeds which ha�e not been
<br /> disbursed within 1$� days after their re�eipt and whi�h Lender has nvt committed ta #he r�pair ar r�storatian of
<br /> the Property shall be used first to pay any amount vwing t❑ Lender under this Deed af Trust, then to pay accrued
<br /> interest, and the remainder, if any, shall be applied to th� principal halance of the fndebtedness. If Lender holds
<br /> any pro�eeds after payment in full of the Ind�btedness, su�h praceeds shall be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> Trustor's Report vn �nsurance. Upon request of Lender, h�we�er not more than on�e a year, Trustor shall furnish
<br /> t� L�nder a repart ❑n each �xisting �vlicy ❑f insurance sh�w�ng: �1� the name of the insurer; �2� the risks
<br /> insur�d; �3y the amount af the poli�y; �4� the praperty insured, the then curr�nt replacement �alue o# such
<br /> pr�p�rty, and the manner❑f determining that �alue; and �5y the expiration date ❑f the poli�y, Trustor shall, upon
<br /> request❑�Lender, ha�e an independent appra+ser satisfa�tory to Lender determine the cash �alue replacement cost
<br /> of the Property.
<br /> TAX AND INS�RANCE RESERVES. 5ubject t� any limi�ations and cansistent with any requirements se� by applicable
<br /> law, Lender may require Trustar t❑ maintain with Lender reser�es for payment of annual taxes, assessments, and
<br /> insuran�e premiums, which reser�es shall be created by an initial deposit and subsequent monthly paym�nts, ❑r
<br /> payments a�such other inter�al as payments und�r the Note may be due, �f a sum estimated by Lender to be sufficient
<br /> to pay the total annual taxes, assessments, and insurance premiums Lender r�asonably anticipates to be paid frvm
<br /> these reser�es. The reser�e funds shall be held by L�nder as a general deposit #rom Trustor, which Lender may satisfy
<br /> by payment ❑f the taxes, assessments, and insuranc� premiums required to be paid by Trustor as they become due.
<br /> Lender shall ha�e the right to draw upon the reser�e �unds to pay such items, and Lender sha�€ nat be required to
<br /> determine the �alidity or accuracy af any item before paying it. Nothing �n the �e�d of Trust shall be construed as
<br /> requiring Lender to ad�ance other monies for su�h purpases, and Lender sha�� not incu� any liability for anything it may
<br /> do �r omit ta do with r�spect t❑ the reser�e account. Sub�ect t� any limitations set by appli�able law, if the reser�e
<br /> funds disclos� a shortage or deficien�y, Trustar shall pay such sh�rtage or deficiency as required by Lender. All
<br /> amvunts in the reser�e ac�ount are hereby pl�dged to further securs the Ind�btedness, and Lender is hereby autharized
<br /> to withdraw and app�y su�h amaunts on the Indeb�edness upon th�occurren��a#an E�ent of Defaul�. Lender shall nat
<br /> be required to pay any interest or earnings vn the reser�e funds unless required by law �r agreed t❑ by Lender in
<br /> writing. Lender dves not hold the reser�e funds in trust f4r Trustor, and Lend�r is nat Trustor's agent for payment of
<br /> the taxes and assessments required t❑ be paid hy Trustar.
<br /> LENC]ER'S EXPENDITURES. If any action or proceeding is commenc�d that wauld materially affect Lender's inter�st in
<br /> the Prvperty or if Trustor fails to cvmply with any pra�isi�n of this D��d of Trust �r any Related Documents, including
<br /> but nvt limited to Trustor's failure to discharge or pay when due any amounts Trustor is required to discharge or pay
<br /> under #his Deed of Trust or any Related Documents, Lender on Trustar's behalf may �but shafl not be obligated to] take
<br /> any actian that Lender deems apprvpriate, including but not limited tv discharging or paying all taxes, liens, security
<br /> interests, encumbrances and other claims, at any time le�ied or placed on the Pr�p�rty and pay+ng all �vsts for insuring,
<br /> maintaining and preser�ing the Property. All such expenditures incurred or paid �y Lender f�r such purposes will then
<br /> t�ear int�r�st at the rate charged under the Note from the date incurred ar paid by Lender t� the date of repayment by
<br /> Trustvr. AI! such expenses will became a part of the Indebtedness and, at L�nder's vption, will �Af be payable on
<br /> demand; �By be added to the balance of the Note and be appartioned among and be payahie ►rvith any instaflment
<br /> payments to became due during either �1} the term ❑f any appli�able insuranc� p�licy; �r {�y the remaining term vf
<br /> the Nvte; or �Cf be treated as a ballvon payment rrvhich wii! be due and payable at the Nate's maturity. The ❑�ed vf
<br /> Trust alsv wil� s�cure payment of these amvunts. Such right shall be in additi�n to all other rights and remedies t❑
<br /> which Lender may b�entitied upon ❑efault.
<br /> WARRANTY: DEFENSE DF TITLE. The following pro�isians rekating t❑ ownership of the Prop�rty are a part of this Deed
<br /> ❑f Trust:
<br /> Ti#le. Trustor warrants that: �a� Trustor halds good and marketahle title vf �ecard ta the Property in fee simple,
<br /> free and clear af all liens and encumbrances ��her than �h�5� 5@t �D�th in the Real Property description or in any
<br /> tit�e �nsuran�e poli�y, titl� rep�rt, ar final title opini�n issued in favor �#, and accepted by, Lender in connectivn
<br /> with this Deed af Trust, and �b} Trustor has the full right, power, and authority t�exe�ute and deli�er this Deed of
<br /> Trust tv Lender.
<br /> De#�nss of Title. 5ubject t❑ the ex�ept�an in the paragraph abo�e, Trustar warrants and will fore��r defend the
<br /> title to the Prope�ty against the lawful ctaims of all persans. In the e�ent any activn or proceeding is commenced
<br /> that questians T�ustor's title ar the interest❑#Trustee or Lender under this Deed of Trust, Trustar shall de�end the
<br /> action at Trustor's expens�. Trustor may be the nominal party in such prviceeding, but Lender shall be entitled to
<br /> participate in the pro�eeding and to be represented in the proceeding by counsel ❑f Lender's own chaice, and
<br /> Trustar wi�l deli�er, or cause ta be de�i�ered, to Lender such instruments as Lender may request from time #o time
<br /> to permit such participation.
<br /> Campliance With Laws, Trustor warranis that the Property and Trustor's use ❑f the Property camplies with all
<br /> existing app�icabl� �aws, ❑rdinan�es, and regulations of go�ernmental authorities.
<br /> 5ur�i�al vf Representatians and Warranties. A�I repres�ntatians, warranties, and agreements made by Trustor in
<br /> this Deed o�Trust sha�l sur�i�e the �xecution and deli��ry of this Deed of Trust, shall be cantinuing �n nature, and
<br /> shall remain in full f�rce and effect un#il such time as Trustor's Indebtedness shall be paid in full.
<br /> C�NDEMNATIQN. The fafl�wing prv�isivns relating to condemnation proce�dings are a part of this Deed of Trust:
<br /> Proceedings. If any proceeding in condemnatian is filed, Trustor shai� promptly notify Lender in writing, and
<br /> Trustor shall promptly take such steps as may be necessary to d�fend the a�tian and obtain the award. Trustor
<br /> may �e the nominal party �n su�h praceeding, but Lender shall be entitl�d to participate in the proceeding and to be
<br /> represented in the pr�cesding by counsel of its ❑wn �hoi�e, and Trust�r will deli�er vr cause to be deli��red to
<br /> Lender such instruments and dacumentatian as may be requested by Lender from time ta time to permit such
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