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2� 1 ��� 1 �9
<br /> vEEv oF T�usT
<br /> �C�ntinued� Page 3
<br /> form, amounts, co�erages and basis reasvnably acceptable ta L�nder and issued by a company or �ompanies
<br /> reasonably acce�table to Lender. Trustor, upan request of Lender� will deli�er to Lendsr from time to time the
<br /> pvli�ies or certificates ❑f insurance in form satisfactvey ta Lender, including stipulativns tha�t co�erages will not be
<br /> cancslled or diminished w�th�ut at I�as�thirty �3�� days priar written notice to Lender. Ea�h insurance policy ��sv
<br /> shall include an endo�sement pro�iding that co�erage in fa�or of Lender will nat be impaired in any w�y by any act,
<br /> omission ar default vf Trustor or any other persfln. Should the Real Property he Iocated in an area designated by
<br /> the Administrator vf the Federai Emergency Managsment Agency as a special flofld hazard area, Trustor agrees to
<br /> obtain and maintain Federal Flood Insurance, if a�ailabie. far the full unpaid principal balance of the Ivan and any
<br /> prior liens an the property securing the Ioan. up to the maximum policy limits set under the Nat+anal Flond
<br /> Insurance Program, or as otherwise required hy Lender, and tv maintain such insuran�e#or the term❑f the loan.
<br /> Applica#ivn af Pro�eads. Trustor shall pr�mptly notify Lender of any ioss vr damage to the Property. Lender may
<br /> make proof of Ioss if Trustor tai�s to da so within fifteen t'!5� days of the �asualty. Whether or not Lender's
<br /> security is impaired. Lender may. at Lender's elec�i�n, recei�e and r�ta+n the proceeds of any insurance and apply
<br /> the praceeds ta the reductinn of the �ndebtedness, payment ❑f any lien a##ecting the Property, ar the restoration
<br /> and repair of the Prvperty. If Lender elects to apply the pro�eeds t� restoration and repair, Trustor shall rep�ir or
<br /> replace the damaged or destroyed Impr��ements in a manner sat�sfactory tv Lender. Lender shall� upon
<br /> satisfactory proof of such expenditure, pay or reimburse Trustor frvm the proceeds for #he reasonabls cvst of
<br /> r�pair or restoratian if Trustvr is nvt in defauft under this Deed af Trus#. Any praceeds which ha�e not be�n
<br /> disbursed within 18Q days after the�r re�eipt and which Lender has nat committed to the repair or restoration ❑f
<br /> the Praperty shal� he used first to pay any amount owing ta Lender under this Deed of Trust, th�n to pay accrued
<br /> interest, and the remainder, if any, shall be applied ta the principal balance of the Ind�l�tedness. If Lender holds
<br /> any pracegds after payment in fulf of the Indebtedness, such proceeds shall be paid #o Trus�or as Trustvr's
<br /> interests may appear.
<br /> Trustvr's Report on lnsurance. Upon request of Lender. hvwe�er not more than once a year. Trustor shall furnish
<br /> to Lsnder a report on each existing policy of insurance shvwing: �1 y the name of the insurer; ��f the risks
<br /> insured; t3y the amount af the policy; �4y the property insurQd, the then current replacement �alue of such
<br /> property. and the manner❑f determining that�aiue; and t5� the expiratian date of the po�icy. Trustor shall. up�n
<br /> request of Lender. ha�e an fndependent appraiser satisfactory tv Lender determine the�ash�afue r�placement cost
<br /> v�the Property.
<br /> TAX ANa �NSLJRANCE RESERVES. Subject tv any �imitations and �onsistent with any requiremen�s set by applicahle
<br /> I�w, Lender may require Trustor to maintain with Lender reser�es #ar payment vf annual taxes, �ssessments, and
<br /> insurance premiums, whi�h reser�es shalf he �reat�d by an initial deposit and subsequent monthly payments. ar
<br /> payments at su�h othsr inter�al as payments under the Nvte may be dus, o#a sum estimated by Lender tv be sufficient
<br /> to pay the total annual taxes, assessments. and insurance premiums Lender reasonably antiCipates ta be paid from
<br /> thess reser�es. The reser�e funds shall be he�d by Lender as a general deposit frvm Trustvr, which Lender may satisfy
<br /> � by payment of the taxes� assessments, and insurance premiums required to be paid hy Trustor as #hey hecame due.
<br /> Lender shall have the right t❑ draw upon the reser�e #unds to pay such items. and Lender shall not be required to
<br /> determine the �alidity or accura�y af any item before paying it. Nothing �n the Deed of Trust shali he construed as
<br /> requiring Lender to ad�ance other mvnies fnr such purpvses, and Lsnder shall nflt in�ur any liabiiity for anything it may
<br /> do of vmit to do wi#h respect to the reser�e account. Subject ta any limitations set by app�icable law, i� the r�ser�e
<br /> funds disclose a shartag� or deficiency. Trustor shal� pay such shortage or deficiency as required hy Lender. AEI
<br /> amounts in the reser�e accvunt are hereby p�edged�o further secure the Indebtedn�ss. and Lender is here#�y authoriz�d
<br /> to withdraw and apply such amvunts vn the Indebt�dness upon the occurrence❑f an E�ent of Default. Lender shall not
<br /> be required to pay any inter�st or earnings on the reser�e funds unless required by law or agreed tv by Lender in
<br /> writ�ng. Lender does nat hvld the reser�e funds in trust for Trustor, and Lender is n�t Trustor's agent for payment of
<br /> the taxes and assessmen#s required ta be paid by Trustor.
<br /> LENaER'S EXPENDITURES. If any action or proceeding is comm�nced that would materially affect Lender's interest �n
<br /> the Property or if Trustor fails to comply with any pro�isivn of this Deed o�Trust ar any Related Do�uments� including
<br /> but not limited to Trustor's failure to discharge or pay when due any amounts Trustor is required to discharge or pay
<br /> under this �eed of Trust or any Related Documents, Lend�r on Trustor's behalf may �but shall not be❑h�igated toy take
<br /> any action that Lender deems appropriate, including but not �imited to dis�harging ar paying al! taxes, liens. security
<br /> interests, en�umbrances and❑ther c�aims, at any time fe�ied ar pla�ed on the Property and paying all costs for insuring,
<br /> maintaining and preser�ing the Property. Alf such expend�tures incurr�d or paid hy Lender for such purposes wilf then
<br /> bear interest at�he rate charged under the Note fram the date �ncurred or paid by Lender#o the date of repayment by
<br /> Trustvr. All such expens�s will become a part of the lndebtedness and. at Lender's option. will �Af be payable on
<br /> demand; tBf be added to the balance vf the Note and be appartivned among and be payable with any installment
<br /> paymen#s tv bec�me due during eith�r {1} the term of any applicable insurance policy; ❑r t�f the remainin� term of
<br /> the Nvte; vr tC� be treated as a loallvon payment whi�h wil� be due and payable at the Note's maturity. The Deed of
<br /> Trust aiso will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to
<br /> which Lender may be entitled upon�efaul�.
<br /> WARRANTY: aEFENSE�F T�TLE. The fol�owing pro�isions relating to ownership of the Property are a part of th'rs Deed
<br /> o#Trust:
<br /> Tit�e. Trust�r warrants that: �a� Trustar holds good and ma�ketable title of record to the Praperty in fee simpie,
<br /> free and clear o� all liens and encumbrances other than those set forth tn the Real Pr�perty desc�iption ❑r in any
<br /> title insurance p�licy. title report, ar final titls opinion issued in fa�or of. and a�cepted by. Lender in connection
<br /> with this Deed❑#Trust. and �hf Trustor has the fuli right. power. and authority to execute and deli�er this ❑e�d of
<br /> Trust to Lender.
<br /> �gfense vf Ti#le. Subject ta the exCeption in the paragraph aha��� Trustor warran#s and will fore�er defend the
<br /> tit�e #o the Praperty agains#the lawful claims of al! persons. In the e►►ent any activn or proceeding is commen�ed
<br /> that questivns Trustor's title or the interest vf Trustee ar Lender under this Deed of Trust. Trustor shall defend the
<br /> action at Trustvr's expense. Trustvr may be the nominal party in such proceeding, but Len�ler shall be entitled to
<br /> part�cipate in the proceeding and to be represented in the proceeding t�y cvunsel of Lende�'s own chaice, and
<br /> Trustor will deli�er, or cause to be d�li�ered, ta Lender such instruments as Lender may request from time ta time
<br /> to permit such participation.
<br /> Comp�iance Vllith L�ws. Trustor warrants that the Prvperty and Trustor's use of #h� Prvperty complies with all
<br /> existing applicable laws,ordinances, and regula#ions af go�ernmental authorities.
<br /> 5ur���al of Representativns and Warranties. All representativns, warranties, and agr�ements made by Trustvr in
<br /> this Deed of Trust shali sur�i�e the executivn and deli�ery of this Beed of Trust, shali be continuing in nature, and
<br /> shall remain in full f�rce and effect until such time as Trustor's fndebtedness shal�be paid in full.
<br /> C�NDEIIANATIQN. The following pro�isions relating to candemnation proceedings are a part of this Deed of Trust:
<br /> Proceedings. If any proc�eding in condemnation is filed, Trustor shall pramptly notify Lend�r in writing, and
<br /> Trustor shall promptly take such steps as may he nscessary to defend the action and vbtain the award. Trustar
<br /> may bs the nomina�party in such prace�ding, but Lender shafl be entit�ed to participate in the proceeding and to be
<br /> represented in the proceeding hy counsel vf its vwn choic�, and Trustor will deli�er or cause to be deli�ered to
<br /> Lender such instruments and documentation as may be requested by Lsnder from time tv time to permit su�h
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