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2� 1 ���495
<br /> DEED �F TF�UST
<br /> �Continued� Page 3
<br /> form, amounts, co�erages and bas�s reas�nahly acceptable to Lender and issued by a company or companies
<br /> reasonably a�ceptable to Lender. Trustar, upon request ❑f Lender, wi�l deli�er ta Lender from time to time the
<br /> policies or certificates of insurance in form satis�actory t� Lender, �n�iud�ng s�ipulations that co�erages will nat he
<br /> cancelled or diminished w�thout at least thirty {3�} days pr�or wri��en n��tice �o L�nder. Each �nsurance po�icy also
<br /> shall include an endorsement pro�id�ng tha�co�erage in fa�or of Lender will not be impaired in any way by any act,
<br /> omission ar defau�t of Trustor or any other person. Should the Real Proper�y be I�cated in an area designated by
<br /> the Adminis�ratar of�he Federal Emergency Management Agency as a special flaad ha�ard area, Trustor agrees ta
<br /> �b�ain and maintain Federal Fload �nsurance, if a�ailabl�, for the full unpaid prin�ipal balance af the loan and any
<br /> prior liens on �he property secur�ng th� Ivan, up to �he maximum policy limits se� under the National Fl�od
<br /> Insurance Program, or as atherwise required by Lender, and to maintain such insu�ance f�r the term of the loan.
<br /> Appli�ation of Praceeds. Trustor shall promptly no€ify Lender of any Iflss or damage to th� Proper�y, Lender may
<br /> make p�oof of �oss if Trustor fa��s to do so within fifteen �15� days of the casualty. Vllhether �r nat Lender's
<br /> se�urity is impai�ed, Lender may, at Lender's ef�c�ion, r�ceive and retain th� proceeds of any insurance and apply
<br /> the proceeds ta the reduction of th� lndebtedness, payment ❑f any lien affecting the Prop�rty, or the restorati�n
<br /> and repair of the Property. �f L�nder elects to apply the proceeds tv restoration and repair, Trustor sha�l repair or
<br /> replace the damaged or destroyed Impra�emen�s in a manner satisfact�ry to Lender. Lender shall, up�n
<br /> sa�isfactory proaf of su�h expenditure, pay or reimburse Trustor from the proceeds for �he reasona�ie cos�t o�
<br /> repa�r or �estoration i� Trustor is no� in de�ault under this Deed o� Trus�. Any proceeds which ha�e no� been
<br /> disk�ursed within �8� days a�te� their receipt and wh€ch Lender has nv� comm�tted �o the repair or restora�ion o�
<br /> the Property shall be used �irst�o pay any amount ow�ng to Lender under th�s Deed of Trust, then to pay accrued
<br /> �nter�st, and the remainder, i� any, shall b� applied to the prin�ipai #�alance �� the Ind�btedness. I� Lender ho�ds
<br /> any pra�eeds after payment in full af th� Indebtedness, such prviceeds shall be paid �o Trustar as Trustor's
<br /> �nterests may appear.
<br /> Trustvr's Report on lnsurance. Upon reques� of Lender, however na� mvre than onc� a year, Trustor shall furnish
<br /> to Lender a report an each exis�ing p�iicy of insurance showing: ��y the name o� the insure�; ��� the risks
<br /> insured; {3� �he amount o� the policy; �4y the property insured, the then current replacement �alu� a� such
<br /> p�aperty, and �he manner o�de�ermin�ng that�alue; and {5� the expirat€on da�e �f the policy. Trustor shail, upvn
<br /> request o�Lender, ha�e an independ�nt appraiser satisfactory to Lend�r determine�he cash�afue replacement cost
<br /> of the Proper�y.
<br /> TAX AND INSURANCE RESERVES. Subject tv any limita�ions and consistent with any requirements set �y applicable
<br /> law, Lender may require Trustor t� main�ain with Lender reser�es for payment o� annual taxes, assessments, and
<br /> insurance premiums, which reser�es shall be crea�ed by an initia! deposi� and subsequ�nt monthly payments, or
<br /> payments a�such other inter�al as payments under the Note may be due, of a sum estimated by Lender�o b� su�ficient
<br /> to pay the �ota! annual taxes, assessments, and insuranGe premiums Lender reasonably anti�ipates �❑ be paid from
<br /> these reser�es. The reser�e funds shall �e h�ld by Lender as a general depasit from Trustar, which Lender may satisfy
<br /> by paymen� o# the taxes, assessmen�s, and insurance premiums required �� be paid by Trus�or as they be�ome due.
<br /> Lend�r shall ha�e the right to draw upon the r�ser�e funds to pay such �tems, and Lender shall not be required to
<br /> determine th� �alidity or accuracy of any item be�ore paying �t. Nothing in the Deed o# Trust sha11 be canstrued as
<br /> requ��ing Lender€❑ ad�an�e ather monies for such purpases, and Lender shall no€ incur any liability for anything it may
<br /> dv o� omi� to do with respect to the reser�e a��ount. 5ubj�ct to any lim�tatians s�t hy appli�able law, if the reser�e
<br /> #unds disclase a shortage a� deficiency, Trustor shall pay su�h shortage or deficiency as requ�red by Lender. All
<br /> amounts in�he reser�e account are hereby pledged to�urth�r secure the �ndeb�edness, and Lender �s her�by au�horiz�d
<br /> �fl wi�hdraw and apply such amounts on the lndehtedness upon the�ccu�rence of an E�ent o� ❑efaul�. Lender shall not
<br /> be required to pay any interest ❑r earnings on the reser�e funds un�ess �equ�red by �aw or agreed ta by Lender in
<br /> wri�ing. Lender does nat hold the reser�e tunds in trust for Trustor, and Lender is no� Trustor's ag�nt for payment a#
<br /> the taxes and assessments required to be paid by Trust�r.
<br /> LENI]ER'S EXPENDITURES. If any action or proceeding is cvmmenced that wauld mat�ria�ly affect Lender's interest in
<br /> the Pr�psr�y or if Trustor fails �❑ �omply w�th any pro�ision of this �eed of Trust ar any Rela�ed Dacuments, including
<br /> but nat limited ta Trustor's �ailure to discharge or pay when due any amounts Trus�or is required �o discharge or pay
<br /> unds�this Deed of Trust or any Related Da�uments, Lender an Trustor's behal� may �k�ut shall not �e obliga�ed tv3 tak�
<br /> any actian that Lender deems appropriate, including �ut not limited �❑ discharging or paying all taxes, liens, securi�y
<br /> interests, encumbrances and other claims, at any�ime le�ied or placed on the Property and paying all costs for insuring,
<br /> main�aining and preser�ing the Property. All such expend�tures incurred ar paid by Lender for such purpns�s will th�n
<br /> bear interest a� �he ra�e charged under �he Note from the date incurred ar paid by Lender to the dat� of repayment �y
<br /> Trustvr. All su�h expenses will �ecome a part of the Indebtedness and, a� Lender's aption, will �A� be payable on
<br /> demand; {Sy be added to the balan�e of the No�e and �e appo�tioned among and he payable with any installment
<br /> paym�nts to t�e�ome due during either �1} the �erm of any appl�cable insurance policy; o� ��y th� remaining term of
<br /> the Note; or tC3 be tr�ated as a ballovn paymen� which will be due and payable a�the Note`s ma�urity. The Deed of
<br /> Trust also wi�i secure payment of �hes� amvunts. Such right shall be in additian t� af� flther rights and rem�dies �o
<br /> which Lender may �e enti�led upon Defau�t.
<br /> V1IARRANTY; DEFENSE�F T1TLE. Th��ollowing pro�isions relating to ownership af the Praperty are a part o�this Deed
<br /> o�Trust:
<br /> Title. Trus�or warrants �hat: �a� Trustor holds good and marke�abie �itle afi record to the Property in fee simple,
<br /> free and clear of all li�ns and encumbrances ather �han those set �orth in the Real Property d�scription or in any
<br /> ti�le insurance policy, tit�� report, or final tit�e apinion issued in fa�or a#, and accepted by, Lender in canne��ion
<br /> wi�h th�s Deed of Trust, and 4by Trustar has the full right, power, and authority ta execu�e and deli�er th�s ❑eed o�
<br /> Trust to Lender.
<br /> De#ense vf Title. Subject to �he ex�ep�ion in the paragraph abo�e, Trus�or warrants and w�li fore�er de�end the
<br /> title ta the Property against the lawful claims �f all persons. ln the e��nt any act�an or prQc�eding is cammenced
<br /> tha�questions Trus�or's title or the infierest o�Trustee or Lender under�his Deed o�Trust, Trustor shal[ defend the
<br /> ac�ion at Trustor's expense. Trustor may be �he nominal party �n such proceeding, bu� Lender shall k�e entitled to
<br /> par�icipate �n the prviceeding and �fl be represented in �he proceeding by counsel of Lender`s �wn choice, and
<br /> Trustar will d�i��er, ❑r cause�o be deli�ered, to Lender such ins€rum�nts as Lender may request from time to time
<br /> to permit such participation.
<br /> Compliance With La►rvs. Trus�Cor warran�s that the Prope�ty and Trustor�5 use o� th� Prop�rty compli�s wi�h all
<br /> exis�ing applicab�� laws, ordinances, and regulat�ons of g��ernmental authorities.
<br /> Sur�i�a� vf Representations and Warranties. A11 representations, warranties, and agr�ements made by T�ustar in
<br /> this Deed of Trust shall sur�i�e the execution and delivery o#this Deed a�Trust, shall be continuing in nature, and
<br /> shall remain in full force and eff�ct until such time as Trustor's Ind�btedness shall b� paid in fuf�.
<br /> C�NDEMNATfDN. The fvllowing pro�is�ons relating�o cvndemnativn pro���dings ar� a part of this ❑eed vfi Trust:
<br /> Proceedings. �� any pra�eeding in condemnation is filed, Trustvr shall promptly notify L�nd�r in ►rvriting, and
<br /> Trustor shall promptly take such steps as may be necessary to d�fend the actian and obtain the award. Trus�or
<br /> may b�the nom�nal par�y in such proceeding, but Lender sha�� be entitled to participate in�he proceeding and to be
<br /> represented in the proceeding by counsel af its ❑wn chvic�, and Trustor will deli��r or cause to be deli�ered to
<br /> Lender such inst�umen-�s and do�umenta�ion as may be requested by Lender from time �a time t❑ permit such
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