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2� 1 ��5931
<br /> DEED �F TRUST
<br /> ��orlt�nued� Page 3
<br /> hazard, business interruption, and boiler insurance, as Lender may reasonably require. Polic��s shall be wri��en in
<br /> �form, amounts, co�erages and hasis reasonably acceptable �o Lsnder and issued by a company or companies
<br /> reasonably acceptabie t❑ Lender. Trustor, upon request of Lender, will deli��r t❑ Lender from time ta time the
<br /> palicies or c�rtificates of insurancs �n form satisfactory to Lend�r, inGluding stipuiations that �a�erages will not be
<br /> cancelled or diminished without afi least th�rty �3Qy days prior written no�ice to Lender. Ea�h insurance policy also
<br /> shall include an endorsement pra�iding that co�erage �n fa�or❑� Lender will nat be impaired in any way hy any act,
<br /> omission or default of Trustar ar any other person. Shauld the Real Prvperty be locat�d in an area designat�d by
<br /> the Admin�stra�or a�the Federal Emergency Management Ag�ncy as a spe�iaf �lood ha�ard area, Trustor agrees to
<br /> o�tain and maintain Federal Ffvad Insurance, €f a�ailable, �or the full unpaid principal �a�an�e of the Ivan and any
<br /> privr liens ❑n the praperty securing the Ioan, up �to the maximum policy limits set under the Na�ional Flood
<br /> �nsurance Program, ar as otherwise r�quired by Lend�r, and to ma�ntain such insurance�ar the term o#the loan.
<br /> Applicat�on vf Proceeds. Trustor shall promp�ly not�fy Lender af any lvss or damage �o the Property. Lend�r may
<br /> make p�oof of loss if Trustor fails to da sa wi�hin fifteen 415} days �f the �asualty. Whether �� n�� Lender's
<br /> security is �mpa�red, Lender may, at L�nder`s election, recei�e and re�ain �he prviceeds ❑f any insurance and apply
<br /> the p�oceeds to the reduction of the Indebtedness, payment of any lien a�fecting the Prop�rty, or �he restoration
<br /> and repair of the Property. If Lender elects ta apply the praceeds �� restoration and repair, Trustvr shall repair or
<br /> �eplace the damaged or destroyed Impro�ements �n a manner satisfiactory to Lender. L�nder shalf, upon
<br /> satis�ac�ory proof of su�h �xpenditure, pay or reimburse Trustor frvm �he proc�eds fvr the reasanable cos� af
<br /> repa�r or restoration if Trus�or is not in d�fault under this Deed ❑f Trust. Any proceeds which ha�e not been
<br /> disk�ursed within �8� days after their receipt and which Lender has nat �ommi�ted to the repair or restoration of
<br /> th� Property shall he used �irs�to pay any amount owing to Lender under this Deed of Trust, �hen t� pay accrued
<br /> inte�est, and the rema�nder, if any, shall be applied �o the principal ba�an�e of the Indeb�edness. {f Lender holds
<br /> any pra�eeds af�er payment in full of the lndeb�edness, su�h praceeds shall be paid t� Trustor as Trustor's
<br /> interests may appea�.
<br /> Trus�ar's Repvrt an insurance. Up�n request of Lender, howe�er not more �han once a year, Trusta� shall furnish
<br /> to Lender a r�port an each exis�ing poiicy of insurance showing: ��y the name of the insurer; �2y �he r�sks
<br /> insured; 43y th� amount of th� po(�cy; �4� the property insured, the then �urr�nt ��placement �alue o� such
<br /> property, and the manner of de�ermining that�alue; and �5� the expiration date ❑f the poli�y. Trustor shall, upon
<br /> request of Lender, ha�e an indep�ndent appra�se�satisfacto�y to Lender determine the cash�a[u� replacement cos�
<br /> ❑�the Pr�perty.
<br /> TAX AND INSURANCE RESERVES. Sub�ect ta any limita�tons and c�nsistent with any requir�ments set hy appli�ab�e
<br /> law, Lender may �equire Trusto� �o main�ain with Lender reser�es for payment o� annual �axes, assessments, and
<br /> insurance p�emiums, whi�h r�ser�es shall he creat�d by an ini�ia� deposit and subsequent mvnthly payments, �r
<br /> payments at such ather in�er�al as payments under the Note may be due, of a sum es�imated by Lender to be suf�icien�
<br /> to pay the total annual �axes, assessments, and insuran�e premiums Lendsr reasonably anti�ipates ta be paid #rvm
<br /> th�se reser�es. The reser�e funds sha�� be held hy Lender as a general deposit fram Trustor, which Lender may satis�y
<br /> by payment of the taxes, assessm�nts, and �nsurance premiums required �o be paid by Trustor as they be�ome du�.
<br /> Lender shall ha�e the right to dravv upon �h� reser�e funds to pay such items, and Lender sha�1 not be required to
<br /> det�rm�ne the �alidi�y or ac�uracy o� any i�em before paying it. Noth�ng in �he Deed of Trust shall be construed as
<br /> requiring Lender t❑ ad�ance o�h�r monies for such purposes, and Lender shall not �n�ur any liability for anything it may
<br /> do ar omit ta do with respect to the reser�e account. Suhjec� to any limitations se� by applicable law, if �he r�ser�e
<br /> funds disc�ose a shortage or de�iciency, Trus�or sha�� pay such shortage or deficiency as required hy Lender. All
<br /> amounts in the res�r�e ac�ount are hereby pledged to further secure the Ind�btedness, and Lender is h�reby aufiharized
<br /> �a wi�hdraw and apply such amounts an the Indebtedness up�n the occurrence of an E�ent of Defauit. Lender shall not
<br /> be required to pay any int�rEst ar ea�nings on the reser�e funds unless required by law ❑r agreed to �y Lender in
<br /> wri�ing. Lender does not h�ld the reser�e funds in trust far Trustor, and Lender is n�t Trustor's agent for paymen� of
<br /> the�axes and assessments required to be paid by Trustar.
<br /> LENDER'S EXPENDITURES. lf any activn or proceeding is commenced that wvuld ma�erially aff�ct Lender's interest in
<br /> the Proper�ty or if Trust�r fails to comply with any pr��is�on ❑f this Deed a#Trust ❑� any Related Documents, in�luding
<br /> but not fimited to Trus�or�5 #ailur� to discharge or pay when due any amounts Trustor is r�quired t❑ d�scharge or pay
<br /> under�his Deed of Trust or any Rela�ed ❑ocuments, Lender on Trustor's behal� may �but sha11 no� be ot�liga�ed to} take
<br /> any action tha� Lender deems appropriate, in�luding hut not limited to discharging ❑r pay�ng all taxes, liens, s�curity
<br /> interests, encumbrances and other claims, at any time le�ied or p�aCed on the Property and paying a�� cos�s for insuring,
<br /> mainta�ning and preser�ing the Pr�perty. All such expenditures incurred ar paid by L�nder fvr such purposes will then
<br /> bear interes� at the rate charged under the Note from the date in�urred or paid by Lender�o the date of repayment by
<br /> Trustar. All su�h expenses will become a par� �f the lndebtedness and, at Lender's optian, wil� �Ay be payable an
<br /> demand; �B� be added to the baian�e of the Nate and be appor�ioned among and �e payab�� with any installment
<br /> payments ta hecome due during either �1 y the term of any applicable insuran�e po�icy; or �2� the remaining �erm a�
<br /> the Nvte; ar �C� be treated as a balloan payment which will be due and payable at the No#e's ma�urity. The ❑eed of
<br /> Trust als❑ w�il se�ure payment �f these amounts. Such righ� shali be in addition t❑ all other rights and rem�dies to
<br /> which Lender may be entitled upon Defau�t.
<br /> VIIARRANTY; DEFENSE❑F TITLE. The following pra��sions relating to ownership vf�he Property are a part vf th�s ❑�ed
<br /> o#Trust:
<br /> Title. Trustor vuarrants tha�: �ay Trustor holds good and marketable titfe ❑f record �fl the Prop�rty in fee simple,
<br /> free and clear of all liens and encuml�rances other than those set f�rth in the Real Proper�y descrip�ion ar in any
<br /> title insurance policy, tit�e report, ar final title opinion issued in fa�or o�, and accepted by, Lender in cannec�ion
<br /> w�th this Deed of Trust, and �bj Trustar has the full right, pawer, and authari�y to execu�e and deli�er this Deed vf
<br /> Trust to Lender.
<br /> Defense of Title. Subjecr �to th� excep�ion in the paragraph abo�e, Trustor warrants and wil[ �ore�er de�end the
<br /> title to the Property against the lawful claims o#all pers�ns. In the e�ent any acti�n ar proceeding is c�mmenced
<br /> that questions Trustor's title or the interest o�Trustee ❑r Lender under�his Deed ❑f Trust, Trust�r shall defend the
<br /> act�on a�Trustor's expense. Trustor may be �he nominal party in such pro�eeding, but Lender shall �e entitled to
<br /> pa�ti�ipate in the pro��eding and ta be �epresented in the proceeding by Gounset of Lender's ❑wn choice, and
<br /> Trustor will deli�er, �r cause t� be deli�ered, to Lender such ins�ruments as Lender may request�rom �ime ta time
<br /> to permit such parti�ipativn.
<br /> Compliance With Laws. Trustor warran�s that the Pr�perty and Trustor's use of the Prvperty complies with all
<br /> existing app�icable laws, ordinances, and regulations of ga�ernmen�al authorities.
<br /> Sur�iva� of Representations and Warran�ies. A!1 representativns, warrant�es, and agr�ements made by Trustor in
<br /> this Deed a�Trust sha�1 sur�i�e the execution and deli�ery af this De�d ❑�Trus�, sha�! be Gontinuing in nature, and
<br /> shall remain in full force and effect until su�h time as Trus�tor's Indeb�edness shall be paid in full.
<br /> C�NDEMNATl�N. The foflowing pro�isions relating ta condemnation praceedings are a part of this Deed of Trust:
<br /> Pro�eed�ngs. !f any proceeding in condemnat�on is filed, Trus�or shall pramp�ly noti#y Lender in wri�ing, and
<br /> Trustor shall promp�ly take such steps as may be necessary �fl defend the action and obtain th� award. Trustvr
<br /> may �e�he nominal pa�ty in such proceeding, but Lender shal� he en�i�l�d to par�i�ipate in the proceeding and to be
<br /> represented in �he proceeding by counsel �f its own choice, and Trust�r will deli��r ar cause to be deli�ered to
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