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2� 1 ����77
<br /> vEEa o� T�usT
<br /> �C�rlt�nued� Page �
<br /> hazard, business interrup�ion, and boiler �nsurance, as Lender may reasonably require. Policies shall b� wri��en in
<br /> form, amounts, co�erages and basis reasonably acceptable to Lender and issued by a company ar campanies
<br /> reasonably acceptable to Lender. Trusto�, upvn request of Lender, will deli�er t� Lender �r�m �ime t� �ime the
<br /> policies or certi#icates of insurance in form satis�actory to Lender, �nclud�ng stipulat�ons tha# cv�erages w�ll not be
<br /> cance[�ed or diminished wi�hout at least thirty �34� days privr wr�tten n�tice to Lender. Each insurance pvlicy also
<br /> shall include an endorsemen�pro�iding that ca�erage in fa�or a�Lender will not be impaired in any way by any act,
<br /> �mission or defaul� ❑f Trus�or o� any other person. Should the Real Praperty be located in an area designated by
<br /> the Adminis#ratvr of the Federa! Emergency Management Ag�ncy as a special flood hazard ar�a, Trustor agrees t❑
<br /> vb�ain and maintain Federal F�aod fnsurance, if a�ailabie, within 45 days after natice is gi�en hy Lendsr that �Che
<br /> Prope�ty is kocated in a special��ood hazard area, fo�the full unpaid prin�ipal balance vfi the loan and any prior liens
<br /> on the proper�y securing�he loan, up to the maximum policy Cimits set under the Natianal Flood Insurance Program,
<br /> ar as ofiherwise required �y Lender, and to maintain such insuran�e for the term of the lvan.
<br /> App�icatian �f Praceeds. Trustor shall promp�ly not�#y Lender of any 1�ss or damage to the Property. Lender may
<br /> make provf ❑f loss if Trustvr fails �o da so within #i#teen �15} days o� the casualty. Whether or n�t Lender's
<br /> secur�ty �s impaired, Lender may, a� Lender's election, recei�e and retain �he proceeds of any insurance and apply
<br /> the pro�eeds ta �he reduc�ion of the lndeb�edness, payment ❑� any lien a��ecting the Prvperty, ar �he restvration
<br /> and repair of the Property, lf Lender elects to apply the proceeds to restvration and �epair, Trustor shall repair or
<br /> replace the damaged or destroyed Impro�ements in a manner sa�tisfa�t�ry tv Lender. Lender sha��, upon
<br /> sa�isfactory proo� of such expenditure, pay or reimt��rse Trustor fram th� proceeds for the reasonable cast of
<br /> repair or restoration i� Trustor is nvt in default unde� this Deed of Trust. Any praceeds which ha�e not been
<br /> disk�ursed within 180 days after their rece�pt and which Lender has not committed to the repair or restorat�on af
<br /> the Property shall k�e used first ta pay any amount owing to L�nder under this Deed o�Trust, �hen to pay a�crued
<br /> interest, and the remainder, i� any, shal� be applied to �he principal baLance of the Indebtedn�ss. �fi Lender hvlds
<br /> any proceeds af#er payment in €ull v� the Inde�t�dness, such proceeds shall be paid to Trustor as Trustor's
<br /> inte�es�s may appear.
<br /> Trustor's Report on Insurance. Upon reques� of Lender, ho►rv��er not more than ance a year, Trustor shal� furnish
<br /> tv L�nder a report on each existing palicy of insurance showing: ��y the name o# the insurer; �2} the risks
<br /> insured; �33 �he amount a� the policy; �4y the property insured, the then current replacement �alue of such
<br /> proper�y, and the manner o�determining tha��a�ue, and �5y the expiration date of the policy. Trus�or shali, upan
<br /> request o�F Lender, ha�e an �ndependent appraiser satisfactory to Lender determine the cash�alue replacemen�cost
<br /> o#the Pr�per�y.
<br /> TAX AND INSURANCE RESERVES. Subject t� any limitations and consisten� with any requiremen�s set by applica�le
<br /> �aw, Lend�r may require Trus�or to main�ain with Lender reser�es for payment of annuaf taxes, assessmen�ts, and
<br /> insuran�e premiums, which reserves shall be crea�ed by an ini�tia� deposit and suhsequent m�nth�y payments, or
<br /> payments at such ❑ther inter�al as payments under the Note may be due, of a sum es�imated by Lender ta be su��icien�
<br /> ta pay the �vtal annual taxes, assessments, and insurance premiums Lender reasvnahfy an�icipates �o be paid from
<br /> these reser�es. The reser�e�unds shall be held by Lender as a g�neral deposit from Trustor, which Lender may satisfy
<br /> by paymen� ❑� the taxes, ass�ssmen�s, and insurance premiums required t❑ be paid by Trustor as they become due.
<br /> Lend�� shall ha�e �he righ� �o dravu upon the reser�e funds to pay such items, and Lender shail not be required to
<br /> determine the �alidity ar accuracy vf any item be�o�e paying it. Nothing in �he ❑eed of Trust shall be cans�rued as
<br /> requiring Lender to ad�an�e other monies for such purposes, and Lender shall nat incur any tiab�lity for anything it may
<br /> do ar omit ta da with respect to �he reser�e account. 5ubject �o any fimita�ions set by app�icable law, if the reser�e
<br /> funds disGlose a shartage or deficien�y, Trustor shall pay such shortag� or defic�en�y as required by Lender. All
<br /> amounts in the reser�e accaunt are h�reby pledged to�urther secure the lndebtedness, and Lender is hereby au�thQrized
<br /> to withdraw and apply such amounts on the lndebtedness upon�he��currence��an E�ent�#Default. Lender shall not
<br /> be required to pay any interes� or earnings vn the reser�e funds unless �equired by iaw o� agreed �❑ �y Lender in
<br /> writing. Lender does not hald the �eser�e funds in �rust for Trustor, and Lender is no�Trustar's agent �ar payment �f
<br /> the taxes and assessments �equired to be paid hy Trustor.
<br /> LENDER'S EXPENDtTllRES. �f any a��ion or proceeding is commen�ed that wvuld mat�rially affect Lender's int�res� in
<br /> the Proper�y ❑r i�Trustor fails ta comply w�th any pro�ision of this Deed of Trus�or any Re�a�ed Dacumen#s, including
<br /> bu� not limited �a Trustor's �ailure to dis�harge ar pay when due any am�unts Trustor is required ta discharge or pay
<br /> under this Deed of Trust or any R�lated Documents, Lender on Trustor's behai�may �but shall not be obligated to} take
<br /> any action that Lender deems apprvpria�e, �ncluding but no� limited �o discharging vr paying all taxes, liens, security
<br /> in�erests, encumbrances and vther claims, at any tim� le�ied or p�aced vn the Property and paying all cos�s for insuring,
<br /> mainta�ning and preser�ing the Property. All su�h expenditures incurred �r paid by Lender for such purpos�s will �hen
<br /> bear �nterest at �he rat� charged under the Note from the date €ncurred or paid by Lender �o the date of repayment by
<br /> Trustor. Alf such expenses wiil become a par� ❑� �he Indebtedness and, at Lender's option, wi�i �A� be payable on
<br /> demand; {g} be added to the balanc� �f the Note and be apportioned among and be payab�e with any installment
<br /> payments to �e�ome due du�ing either �1} th� term of any applicable insurance pol��y; or 4�} the remaining term o#
<br /> the Note; or �Cy �e treated as a balloon payment whiCh will be due and payable at the Note's ma�urity. The ❑e�d of
<br /> Trust also will secure paymen� of these am�unts. 5uch right shafl b� �n addition ta all othe� �ights and remedies to
<br /> which Lender may be entitl�d upon ❑��aul�.
<br /> WARRANTY; DEFENSE�F TITLE, The#ollawing pro�isions relating to ownership of the Property are a part o�this Deed
<br /> o�Trust:
<br /> Title. Trustor warrants tha�: �a� Trus�or holds gvod and marketabfe ti�le of record to the Prvperty in �ee simple,
<br /> �ree and �lear of all l�ens and encumbran�es other �than those set �orth in the Real Praperty description or in any
<br /> ti�le insurance policy, title repart, or fina� titl� opinion issued in �a�or of, and a�cep�ed by, Lender in �vnnection
<br /> with this D��d of Trust, and �bf Trus�or has the full right, power, and authority ta execute and defi��r this Deed of
<br /> Trust t❑ Lender.
<br /> De�ense vf Title. Suhject �o the exceptian in �he paragraph abo�e, Trustor warrants and will fore�er defend the
<br /> title �o �he Property agains�the lawful �ka�ms of all pe�sons. ln �he e�en� any action ar prvCeeding is cvmmenced
<br /> that ques�ions Trust�r's ti�le or�he in�erest o�Trustee or Lender under this De�d vf Trust, Trustor shal� defend �he
<br /> a�tion at Trustor's expense. Trustor may be the nominal par�y in such pro�eeding, but Lender shall b� en�itled �o
<br /> par�icipate in �he prac�eding and �o be �epresented in �he prviceeding by counsel of L�nder's own choice, and
<br /> Trust�r will deliv�r, ar cause�o be deli�ered, to Lend�r such ins�ruments as Lender may re�uest from time to time
<br /> to permit such participation.
<br /> Cvmpiiance Vllith Laws. Trus�or warrants �hat the Property and Trusta�'s use of the Property complies with all
<br /> existing applicahle laws, ordinances, and regulations of go��rnmental aufihorities.
<br /> Sur�i�al of Represen#a�ions and Warranties. All represen�ations, warranties, and agreements made by Trust�r in
<br /> this Deed o#Trus�shall sur�i�e �he execution and de�ivery of th�s Deed of Trust, shal� be cvn�inuing �n nature, and
<br /> shall remain in full�or�e and effect until such�ime as Trustor's Indebtedness shall be paid in full.
<br /> C�NDEMNATI�N. The�o�lowing pro�isions relating�v condemna�ion praceedings are a par�t o�this Deed o#Trus�:
<br /> Proceedings. Ifi any proce�ding in ��ndemna�ion is #iled, Trustor shall promptly not�fy Lender in writing, and
<br /> Trustor sha�� promptly take such steps as may be n�c�ssary ta de#end the act��n and obtain the award. Trustar
<br /> may be�he nominaf party in such proceeding, bu�L�nder shall be en�itled�o participate in the pra�eeding and to be
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