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2� 1 ��79�2
<br /> DEED �F TRUST
<br /> � ���ntinued� Page 3
<br /> hazard, k�us+ness interruption, and �vilsr insurance, as Lender may reasonably require. Policies sha!! be written in
<br /> fvrm� amounts. cv�erages and basis reasonably acceptable to Lender and issued by a company or cvmpaniss
<br /> reasanably acceptable tv Lender. Trustor, upvn request of Lender, wiil deli�er to Lender frvm time #v time the
<br /> policies or certi#icates of insurance in fvrm satisf�ctory t❑ Lender, including stipu�at�ons that co�erages will nvt be
<br /> can�elled or diminished withaut at ieast thirty �34y days prior written natice to Lender. Eech insurance policy also
<br /> shall include an end�rsement pro�iding that co�erage in fa�or of Lende�will not be imp�ired in any way by any act,
<br /> nmissivn �r d�fault �f Trustor❑r any other person, 5hould the Real Praperty be Iocated in an area designated by
<br /> the Administrator o#the Federal Emergen�y Management Ag�ncy as a special flood hezard ares, Trustor agrees to
<br /> ob#ain and maintain Federal Fload Insurance, if a�ailable, for the full unpaid principal balan�e of the Ioan �nd any
<br /> prior liens on the property securing the foan, up tv the maximum poli�y limits set under the National Flovd
<br /> Insurance Pragram, ar as vtherwise required by Lender, and to maintain such insurance for the term of the Ioan.
<br /> Applicativn of P�ocaeds, Trustvr shall prvmptly notify Lender of any Ivss or damege�o the Propsrty. Lender may
<br /> make prvvf vf Ioss if Trustor fails to da so within fifteen t 15y days vf the casual#y. Whether or nvt Lender's
<br /> s�curi�y �s impa�red. Lender may. at Lende�'s el�ctian, recei�e and retain the proceeds of any insurance and app�y
<br /> the proceeds to the reductivn o#the indebtedness, payment af any lien affecting the Praperty, or the restvration
<br /> and repair of the Property. If Lender elects to apply the pra�eeds tv restaration and repair, Trustar shal� repair or
<br /> replace the damaged or destroyed Impro�ements in � manner satisfactory to Lender. Lendsr shall� upvn
<br /> satisfactory proof of such expenditure, pay or raimburse Trus#or from the prac�eds far the reasonable cost of
<br /> repair or restoration if Trus�or is not in default under this ❑eed of Trust. Any proceeds which ha�e nvt been
<br /> dist�ursed within 18D days after their receipt end which Lender has not committed #o the repair ar restoration vf
<br /> the Property shall be used first to pay any amount�wing to Lgnder under this Deed of Trust. then to pay accru�d
<br /> interes#. and the remainder. if any, shali be applied #o the principal balance af #he Indebtedness. !f Lender holds
<br /> any pr�ceeds after payment in full ❑f the Indebtedness, such pr�ceeds shal� be paid tv T�LJSt�f 85 Trustor's
<br /> interests may appear.
<br /> Trustor's #�aport on Insurance. Upvn request o# Lender, howe►►er not more than vnce a year, Trustor shafl furnish
<br /> to Lender a report ❑n each existing pvlicy of insurance showing: {1 f the name of the insurer; t2f the risks
<br /> insured; �3� the amount of the pvlicy; �4y the prvperty insured, the th�n current replacement �alue vf such
<br /> property, and the manner af determining that�alue; and �5� the expiration date of the pol�cy. Trustor shall, upon
<br /> request of Lender. ha�e an independent apprais�r satisfactory tv Lender d�termine the cash�alue replacement cost
<br /> a�the Prv�erty.
<br /> TAX AND fNSURANCE RESERVES. Subject tv any �imitations and cvnsistent with any requ�rements set by applica�le
<br /> law, Lender may require Trustor to maintain w�th Lender reser�es for payment of �nnual taxes, assessments. and
<br /> insurance premiums, which reser�es shall be created by an initial deposit and subsequent mon#hly payments, ar
<br /> paym�nts at such other�nter�al as payments under the Notg may be dug, of a sum�stimated hy Lender to be sufficient
<br /> to pay th� total annual taxes, assessments� and insurance premiums Lender reasonehly anticipates tv be paid fram
<br /> these reser�es. The reser�e funds shall he held by Lendsr as a genera!deposit from Trustvr, wh�ch Lender may satisfy
<br /> by payment vf the taxes, assessments. and insurance premiums required to be paid by Trustor as they became due.
<br /> Lend�r shal� ha�e the right to d�aw upan the reser�e funds to pay such i#ems, and Lender shali not he required ta
<br /> determine the �afidity or accuracjl of any item #�efore paying it. Nothing in the Deed af Trust shell he construed as
<br /> requiring Lender to ad�ance vther monies for such purposes. and Lender shaii not incur any liebility for anything it may
<br /> do or omit to do with resp�ct to the reser�e accoun�. Subject to any limitations set by applicable �aw. if the reser��
<br /> funds discfos� a shortage or dsficiency, Trustar shall pay su�h shortage or defEciency as required hy Lend�r. All
<br /> amounts in th�reser�e accaunt are hereby piedg�d tv further secure the Indeb�edness, and Lender is here�y author�zed
<br /> to w�thdraw and apply such amounts on the lndebtedness upon the accurrence of an E�ent of�efault. Lender shall nvt
<br /> he required to pay any interest or earnings on the reser►►� funds unless required by law or agreed to by Lender in
<br /> writing. Lender dves not hald the reser�e funds in trust #or Trustor, and Lender is not Trustor's agent far payment of
<br /> the tax�s and assessments required to be paid by Trustor.
<br /> LENDER'S EXPEN��TURES. If any action vr proceeding is commenced #hat would ma#erially affect Lender's interest 'rn
<br /> the Proper#y or if Trustor fails #o campiy with any prv�'rsi�n af this ❑eed of Trust vr any Re�sted Do�uments, incfuding
<br /> but not �imited to Trustvr's #ailure t� discharge or pay when due any �mounts Trustor is requifed to disch�rge or pay
<br /> under this Deed flf Trust or any Reieted Documents. Lend�r on Trustor's behalf may �hut shall not be ok�ligated taf takg
<br /> any a�tion that Lender deems apprapriate, including but not limited to discharging or paying all taxes, liens, security
<br /> interests,encumbrances and❑ther�laims. at any tim�le�ied or placed an the Property end p�ying ei!costs fo�insuring,
<br /> maintaining and preser�ing �h� Property. Alf such expenditures incurred or paid by Lender for such purpvses will then
<br /> hear interest at the rate charged under the Note fram the date incur�ed �r paid by Lender to the date ❑f rep�yment hy
<br /> Trustor. A�I such expenses wiil become a part of the Indebtedness and, at Lender's vptivn, will (Ay he payable on
<br /> demand; �Bf b� added to the balance v# the Note and be ap�ortioned among and be payable with any installment
<br /> payments to be�ome due during either �1 f th� term of any applicable insurance po�icy; vr {Zj th� remaining term �f
<br /> the Note: ar tCy be treatgd as a balloon payment whEch will he due and payable at the Note`s maturity. The Deed of
<br /> Trust alsv wfll secure payment of these amounts. Such right shall be in addition t❑ ali other rights and remedies to
<br /> which Lender may he entitled up�n Default.
<br /> 1NAR#�ANTY; DEFENSE DF TITLE. Ths following pra�isions relating to ownership of the Propsrty are a part of this Deed
<br /> af Trust:
<br /> . Title. Trustor warrants that: �ay Trustar holds good and marketable title of record to #he Property in fee simple,
<br /> free and �lear af a�l �iens and encumbrances other than those se# forth 'rn the Real Property description or in any
<br /> title insurance po�icy, title report, or final titlg opinion issued in fa�or of, and accepted by, Lender in connectian
<br /> with this Deed o#Trust, and �b�Trustor has the�ull right, power, and authority to execu�e and deli�er this Deed of
<br /> Trust to Lender.
<br /> �e#ense of Title. Sub�e�t to the exceptivn in the paragraph abo�e, Trustor warrants and wil� fore�er defend the
<br /> title to the Pro�erty against the lawful claims ot all persans. In the e�ent any action or proceeding is commenced
<br /> tha�questions Trustvr's title or#he interest of Trustee or Lender under this D�ed of Trust� Trustor shafl defend�he
<br /> a�#ion at Trustor's expense. Trustor mey be the nominal party in such proceeding, but Lender shall bg entitled �to
<br /> participate �n the p�oceeding and tv be represent�d in the proceeding t�y counsel of Lender`s own choice, and
<br /> Trustor wil!deli�er, �r cause to he deli►►ered, to Lender such�nstruments as Lender may request�rvm time to tim�
<br /> to permit su�h participation.
<br /> Compfience Wrth L�ws. Trustor warrants that th� Praperty and Trustar's use of #he Prvperty complies w�th all
<br /> existing applicahle laws, ordinances, and regulations❑f go�ernment�!authorities.
<br /> Sur�i�al of Representetians and Warranties. All representativns. warranties, and agreements mad� by Trustor in
<br /> this ❑eed of Trust shall sur�i�e ths execution and dgfivery of this Deed of Trust, shall he �ontinuing in nature, and
<br /> shal�remain in�ul�fvrce and effect until such time as Trustor's lndebtedness shall he paid in full,
<br /> C�N�ENINATI�N. The folfowing pro�isivns relating to condemnation procsedings a�e a part of this ❑eed of T�ust:
<br /> Proceedings. If any pr�ceeding in condemnation is filed, Trustor sha!! pramptly notify Lender in wr�ting, and
<br /> Trustor shall promptly take su�h st�ps as may be nec�ssary to d�fend the action and ohtain the award. Trustor
<br /> may be the nominai par�y in such prviceeding, but Lender shall be entitlsd tv p�rticip�te in the prn�eeding�nd to be
<br /> rep�esented in the proceedin+g by counsel vf its vwn choice. and Trustor will deli�er or caus� to be deli�ered to
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