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<br /> DEED C3F TRUST
<br /> 4�ontinued� Page 3
<br /> poli�ies or certifica�es vf insurance in form satisfactory tv Lender, �ncluding s�ipulations that co�erages w��l not be
<br /> canceiied or diminished uvithout at least thirty �3�y days prior w�i�ten notice �o Lender. Each insu�an�e policy also
<br /> shall include an endorsemen�pro�iding that co�erage in fa�or vf Lender will nvt be �mpaired in any way by any ac�,
<br /> �missi�n or de�ault of Trustvr or any other persan. Should the Real Property be located in an area designated by
<br /> the Administrator❑f the F�deral Emergen�y Managemen#Agency as a special fla�d hazard area, Trustar agre�s to
<br /> obtain and maintain Federal Flood �nsuran�e, if a�ailable, �for the fufl unpaid principal balance af the loan and any
<br /> pri�r fiens on the property se�uring the �oan, up to th� maximum pv�icy lim�#s set under the Natiana� Flood
<br /> Insurance Pragram, ar as v�herwise required t�y �ender, and tv maintain such insurance for the term of the loan.
<br /> Application of Proc��ds. Trustvr shall promptly nvtify Lender of any Ioss or damage to th� Prvper'�y. Lender rr��y
<br /> make proo� ❑f loss i� Trustor fai�s �a do so within �ifteen �15� days o� the �asualty. Whether or n�t Lender's
<br /> securi�y is impaired, Lender may, at Lend�r'� election, recei�e and retain the proceeds vf any insurance and apply
<br /> the proCeeds �o the reduction o# the indebtedness, paymen� of any lien affecting the Praperty, ❑r the res�oratian
<br /> and repair of the Proper�y. !f Lender efects to apply the proceeds to restoration and repair, Trustor shal� repair or
<br /> replace the damaged ❑r destrvyed lmpro�ements in a manner satisfactary to Lender. Lende� sha11, upon
<br /> satisfactory prvvf v� such expenditure, pay ar reimburs� Trust�r from the proceeds for €he reasanab�e cost of
<br /> repair or restoratian if Trustor is no�t in defaul� under this Deed of Trust. Any prv�e�ds which ha�e nvt b�en
<br /> disbursed within 18Q days a#�er their r�ceipt and which Lender has not ��mmi��ed to the repai� �r r�staration of
<br /> the Property shal� be used �irs�to pay any amount owing to L�nder under�this ❑eed of T�ust, then ta pay accrued
<br /> interest, and the remainder, if any, shall be app��ed to #he principal balance of the lndeb�edness. I# Lender halds
<br /> any prv��eds after payment in full of �he Indebtedness, su�h proc�eds shall be paid to Trustor as Trustor's
<br /> �nteres�s rr�ay appear.
<br /> Trustor's Report on Insurance. Upon request of Lender, howe�er not more than once a year, Trus�vr shal� furnish
<br /> �a Lender a report on each ex�s�ing palicy of insurance showing: �1� the name of �he insurer; 4�} the risks
<br /> insured; 43} the amount �f the policy; t4� �he prope��y insured, the then curren� rep[acem�n� �afue of such
<br /> praperty, and the manner of determining that�alue; and 45� the expiration dat� of�he policy. Trustor shall, upon
<br /> request v�Lender, ha�e an independent appraiser satis#actory�to Lender determ�ne�he cash�a�ue repiacement cos�
<br /> af the P�-operty.
<br /> TA� AND INSURANCE RESERIIES. Subjec� to any limi�ations and consistent with any requ�rerr�ents set hy applicable
<br /> law, Lender may r�quire T�ustor tv main�ain wEth Lender reser�es �or payment of annual taxes, assessments, and
<br /> insuranc� premiums, ►rvhich reser�es shall be created hy an initial d�posit and subsequent m�nth�y payments, or
<br /> payments a�t such a�her interval as payments under the Nvte may be du�, a�a sum estima�ed �� Lender to be suffi�ient
<br /> to pay �he tQta� annuai taxes, assessments, and insuran�e premiums Lender reasonably anticipa��s to be paid firom
<br /> �hese reser�es. The reser�e funds shall be held by Lender as a general deposit from Trustor, which Lender may satis�y
<br /> by payment vf the �ax�s, assessments, and €nsurance premiums r�quired to b� paid by Trus��r as �hey become due.
<br /> Lender shall ha�e the right to draw up�n the reserve #unds to pay such items, and Lender shal� not be required �o
<br /> de�ermine �he val�di�y or �ccuracy of any itern b�for� paying it. Nothing in the Deed o� Trus# sha11 be cvnstrued as
<br /> requir�ng Lend�r to ad�ance vther monies for such purposes, and Lender sha�l not in�ur any liabifity#vr anythinc� i� may
<br /> do or omi� tv do with respect t❑ the reser�e ac�vunt. Subj�ct to any limitations set by applica��e law, �� the reser�e
<br /> �unds disclos� a shartage or de�i�iency, T�ustor shall pay such shortage or deficiency as required by L�nder. All
<br /> arr�ounts in the reser�� accvun�t are here�y pi�dged to further secure�he Indebtedness, and L�nder is herehy auth�rized
<br /> to withdraw and app(y such amounts vn the l�dehtedness upon the occurrence Q�an E�ent of Defaul�, Lender shall not
<br /> b� required �o pay any interest �r earnings on �he rese��e �unds unless required by !aw or agreed to by Lender in
<br /> writing. Lender d��s no� hofd the reser�e �unds in trus� for Trustor, and Lend�r is not Trustor's agent �or payment ❑f
<br /> the taxes and assessments required to he paid by Trus�or.
<br /> LENOER'S EXPENDITURES. !f any action or prviceeding �s commenced �hat wauld mater�ally affect Lender's interest in
<br /> the Proper�y vr i#Trustor fails �ko camply w�th any pro��sivn af this Deed of Trust ❑r any Re�ated Documents, incl�ading
<br /> �ut not iimited to Trustar's fai�ure to discharge �r pay when due any amvunts Trustor is required �o discharge ❑r pay
<br /> under this ❑eed vf Trust❑r any Rela�ed Documents, Lender on Trustor's behal� may tbu�shal� no� be obligated ta� take
<br /> any action that Lender deems appropriat�, including but nat limited to discharging vr paying all taxes, iiens, secur�ty
<br /> interes#s, encumk�rance�and other claims, at any time 1e�ied or pfaced on th� Pr�per�y and paying a�l c�sts far insuring,
<br /> main�aining and pr�serving the Property. All su�h expenditures incurred or pa�d by Lender �or su�h purposes wil! then
<br /> bear �nte�est at the rate charged under ths Note �rvm �he date incurred �rr paid by Lender �o �the date af repayment by
<br /> Trustor. A�� such expenses wi�� becvme a part vf the lndebtedness and, a�t Lender's ap�ion, wil� �A} be payable on
<br /> demand; �B� be added tv the balance vfi the No�e and be apportioned among and be payable with any ins�allment
<br /> payments t� hecom� due dur�ng ei�kher 41} the �erm o� any applicabfe insurance pol�cy; or {�f the rema�nin� term o�
<br /> th� No�e; ❑� �C� be trea�ed as a balloon paymen� which will be due and payabl� at the Note's ma�urity. The Deed ��
<br /> Trust alsa will secure payment of �hese amounts. Such right shall be in additian tv all other rights and remedies to
<br /> which L�nder may be en�itled upon Default.
<br /> VIIARRANTY; DEFENSE QF TITLEe The�vll�wing pr��is�ons relat�ng ta ownership❑f�he Property are a par��f�his D�ed
<br /> af Trust;
<br /> Titl�. Trustor warrants tha�: �a} Trustvr ho[ds gaod and marketable �itle of record to the Praperty in fee s�mple,
<br /> #�ee and �[ear o# all liens and encumbran�es other than those set forth in �he Rea� Property descriptiora ar in any
<br /> �itle insurance policy, t�tle repvrt, or final title �pinion issu�d in fia�or ❑�, and ac�eptsd by, Lender in connection
<br /> with this []eed vf Trust, and �h} Trus�or has the full right, pov►rer, and authority ta execu�e and deli�er this Deed of
<br /> Trust to Lender.
<br /> Defense af Title. 5uhje�t to the except�an in the paragraph abo�e, Trustor warrants and w�ll �ore�er def�nd �he
<br /> �it1e tv the Property against�he lawful claims of all persans. In the e�ent any action vr praceeding is cvmmenced
<br /> �hat questions Trustor's title o�the interest v�Trustee or Lender under this ❑eed of Trust, Trustor shall d���nd the
<br /> action at Trus�or's expense. Trus�or may be #he narnina� par�y in such pra�eeding, bu� L�nd�r shall be enti�led t❑
<br /> par�icipat� in the prviceeding and to b� represent�d in �he proceeding by cvunsel of Lender's own �hvice, and
<br /> Trus�or wil� deli��r, ❑r caus� to be deli�ered, �❑ Lend�r such ins�ruments as Lender may request from �time to time
<br /> �o permi�sueh participa�ion. .
<br /> Cvmplian�e Vllith Laws. Trustor warranfis that the Proper�y and Trustor's us� at the Property complies with all
<br /> exis�ing appli�able €aws, ord�nances, and regulativns o�go�ernmental authorities.
<br /> Surrri�a� of Rep�resentations and Warranties. A11 repres�n�atians, warranties, and agreements made by Trustor in
<br /> �his ❑eed o�r Trust shall sur�i�� the execution and de[i�ery vf this Deed of Trust, shall be continuing in nature, and
<br /> shall remain in ful[�orce and e�f�ct until such time as Trustor's indebtedness shall be paid in�ull.
<br /> C�N�]EMNAT��N. The f�llowing pro�isions rela�ing�❑cond�mna�ian proceedings are a par�of this Deed o�T�ust:
<br /> Proceedings. [f any proceeding in condemnation is �iled, Trustor shall prompt�y notify Lend�r in writing, and
<br /> Trustor shall promptly take such steps as may be n�cessary �o d��end the action and �btain the award. Trustor
<br /> may be the norr��nal party in such proceeding, but Lend�r�hall b�entitled to participate in�h� �proceed�ng and to be
<br /> represented in #he proceeding by counse! v# its �wn chvice, and Trus�or w�fl del��er ❑r �ause �o be d�li�ered ta
<br /> Lender such instrumen�s and do�umentation as may he requested by Lender f�om time ta t�me to permi� such
<br /> participation.
<br /> Applicat�on of Net Prviceeds. I�ail or any part of�he Pr�p�rty is condemned by �minent domain pro�eedings or by
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