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2� 17���43
<br /> DEED �F TRUST
<br /> �Corltirlu�d} Page 3
<br /> po[icies or certifica�es af insuran�e in form satisfa�tory to Lender, inc�uding stipu�atians that ca�erages wilf not be
<br /> can�elled or diminished without at I�ast thirty �30y days privr written nv�ice to L�nder. Each insuranGe pvficy also
<br /> shall include an endors�ment pro�iding tha�co�erage in fa�or of L�nder will not be impaired in any way by any ac�,
<br /> omissian or de�aul� vf Trustor or any other person. Shauld the R�a� Property be �oca�ed in an area designat�d by
<br /> th� Administrator of�he Federal Emerg�ncy Management Agency as a special f�aod ha�ard area, T�us�vr agrees t❑
<br /> obfiain and ma�ntain Fede�al Fl�od �nsurance, �f a�ailable, �or the fuli unpaid principal balanc� a�the loan and any
<br /> prior liens on the pr�perty securing the �oan, up to the maximum policy �imits set under �he Nationa[ Fload
<br /> Insuran�e P�ogram, or as otherwis� required by Lender, and t❑ maintain such insuran�e far the t�rm of�he faan.
<br /> Applicat�vn af Prviceeds. Trustor sha11 promp�ly notify Lender of any �vss or damage t❑ the Property. Lend�r may
<br /> make proo� af Ivss if Trus�or fa��s to do so w�thin fif�een �15} days of the casualty. VIlh�ther ar nat Lender`s
<br /> securi�y is impaired, Lender may, at Lender's elect�an, recei�e and re�ain th� proceeds ❑f any insurance and apply
<br /> the proceeds �o the reduction ot the Indebtedness, payment o� any lien affecting �he Property, vr the restoration
<br /> and repair v�the Proper�y. I� Lendsr elects to apply the proceeds �o restaration and repair, Trustvr shal! repair or
<br /> replace the damaged or destroyed Impro�emen�s in a manner sat�sfactary to Lend��. Lender shall, upon
<br /> sa�isfacto�y proa� of su�h expenditure, pay or reimburse Trus�or from the prviceeds for the reasonable cost vf
<br /> repai� or res�oratian �f Trustor is not in defiault under this Deed of Trust. Any prviceeds which ha�e not been
<br /> disbursed within 184 days after �h�ir re��ipt and which Lender has not committed t� the repair or res�aration o�
<br /> the P�vperty sha1� be used first to pay any amount vwing t❑ Lender under this D�ed of Trust, then t❑ pay accru�d
<br /> interest, and the remaind�r, if any, shail �e applied to the principaf balance of th� lndebtedness. I� Lender holds
<br /> any proceeds after payment in fu�! of the Indek�tedness, su�h proce�ds shall b� paid to Trustvr as Trustor's
<br /> interes�s may app�ar.
<br /> Trus�or's Repor�on lnsurance. Upon r�quest o� Lender, h�we�er nat more than once a yea�, Trus�or sha�� furnish
<br /> �o Lender a report on each ex�sting policy of insuran�e showing: {1� #he name ❑f the insu�er; �2y the risks
<br /> insured; {3� �he am�un� ❑f fihe pvlicy; 44� the property insured, �he then current replacement �a[ue of such
<br /> property, and �he manner vfi determining that�aiue; and {5� the expiration date af�he p�Iicy. Trustor shall, upvn
<br /> request o�Lender, ha�e an independen�appra�ser sa�isfa�tory t❑ Lender determ�ne the cash�a�ue replacement cost
<br /> of the Property.
<br /> TAX AND lNSURANCE RESERVES. Subject to any limitations and consistent v►rith any requirements se�t by applicable
<br /> law, Lender may re�uire Trustor ta maintain with Lender reser�es �or paymenfi of annual �axes, assessments, and
<br /> insurance premiums, which reser�es shall b� �rea�ed by an initial deposit and subsequent mon#hly payments, or
<br /> payments at suCh other inter�ai as payments under the Nate may �e due, of a sum estimated by Lend�r to be suf�icient
<br /> ta pay the �otal annual taxes, assessm�nts, and insu�ance premiums Lender reasonab�y anticipates to be paid frvm
<br /> these reser�es. The reser�e funds shal[ be held by Lende�as a genera� deposi��rom Trustor, u+rhich Lender may satis#y
<br /> by payment o� the taxes, assessments, and insurance premiums required to he paid by Trustor as they be�ome due.
<br /> Lender shall ha�e �he right t❑ draw upon the reser�e �unds tv pay such i�ems, and Lsnder shall no� be required to
<br /> d�termine the �alidity or accuraCy o� any item be�or� paying it. Nothing in the Deed of Trust shall be construed as
<br /> requiring Lender�v ad�ance o�her mvnies fvr such purposes, and Lender shal[ not incur any �iabi�ity fvr anything it may
<br /> do or vmit to do with respe�t ta the reser�e account. 5ubject to any limitafiions set by applicable law, i� the reserve
<br /> funds disclas� a shartage ar de#iciency, Trustor shall pay such shortag� or de#i�iency as required hy Lender, A{�
<br /> amounts in the reser�e account are herehy pl�dged to �urthe�s�cur�the Indebtedness, and Lender is here�y auth�rized
<br /> �o w�thdraw and apply such amoun�s on the lndebtedness upon the occurrence of an E�ent of D�fault. Lender shall no�k
<br /> �e required to pay any interest �r earnings on the reser�e �unds unless required by faw or agr�ed t❑ by Lender in
<br /> wr�ting. Lender does nvt hold �he reser�e funds in trus� for Trustor, and Lender is not �rustor's agent �or paym�nt of
<br /> the taxes and assessments required to be paid by Trustar.
<br /> LENDER'S EXPENDITURES. if any action or pr�ceeding is comm�nced tha� would materially a���ct L�nder's interes� in
<br /> the Property or if Trustor fails t� cflmply with any pro�ision of�h�s Deed ❑f Trust ar any Rekated Dvcuments, including
<br /> but not limited ta Trustar's �faifure tv discharge or pay on►hen due any amounts Trustar is required t❑ discharge or pay
<br /> under this Deed o�Trus�or any Rela�ed Dacumen�s, Lender vn Trus�or's behalf may �but shall not be oh��gated �oy take
<br /> any actian that Lender deems appropr�ate, in�luding but not limi�ed to discharging or paying all taxes, liens, security
<br /> inte�ests, encumb�ances and other claims, at any time le�ied or placed vn the Prop�rty and paying a!I costs for insuring,
<br /> mainta�ning and preser�ing the Property. All such expenditures incu�red or paid by Lender for such purposes wil! then
<br /> bear �nterest at the rafe cha�-ged under the Nv�e fram the date incurred or paid by Lender�o the date vf repayment by
<br /> Trustar. A[[ such expenses will become a part of �he lndebtedness and, at Lender's option, will �A� b� payable ❑n
<br /> demand; 4g� be added to the balance �f the Note and be apportioned amang and be payab�e wi�h any installment
<br /> payments to becom� due during �ither �'�� the term vf any app��cah�e insurance policy; or 4�} the remaining term of
<br /> th� Note; or �C� be �r�ated as a ba!loon payment whi�h will be due and payab�� at the Note's maturity. The Deed nf
<br /> Trus� als� will secure payment v� these amvunts. 5uch right shall he in addition to all ather rights and �emedies to
<br /> which Lender may t�e entitled upon Defaul�.
<br /> VIIARRANTY; DEFEIVSE�F TITLE. The fallowing prv�isions relat�ng tv ownersh�p o�the Property are a par�o�this Deed
<br /> of Trust:
<br /> Ti�le. Trustor warrants that: �a� Trustor holds gvvd and marketable tit[e vf record to the Property in fee simple,
<br /> �ree and clear a� a�� liens and encumbrances vther �han those set forth in the Real Property descript�on or in any
<br /> ti�le insurance po�icy, title �epvr�, or finaf tit�e opinivn issued in fa�or of, and accepted by, Lender in conn�c�ion
<br /> ►nrith this Deed of Trust, and {b� Trustor has the full right, pvwer, and authori�y�v execute and deli�er this Deed of
<br /> Trust to Lender.
<br /> Defense o� T�tt�. Subjec� to �he exception in �he paragraph abo�e, Trustvr warran#s and v►rill farever defend the
<br /> titie ta the Praperty against the lawful claims of all persans. ln the e�ent any action or pro�eeding is commenced
<br /> that questions Trus�vr's�it�e or the interest of Trustee ❑r Lender under�his Deed of Trust, Trustor shall defsnd the
<br /> a�tian at Trustar's expens�. Trus�or may be the nominal party in such proceeding, but Lender sha[� be enti�ied to
<br /> part�cipa�e in �he proceeding and to be represen�ed in �he proceeding by �ounsel of Lender's own �hv�ce, and
<br /> Trustar will de�€�er, or cause to be de[iv�red, to L�nder such instruments as Lender may reques�from time�o�ime
<br /> to pe�mit such participation.
<br /> Gompliance With Laws. Trustor warrants that �he Prop�rty and Trustor's use of the P�vper�y cvmplies with all
<br /> existing appficatale laws, ardinanc�s, and regulations o�ga�ernmental authvrities.
<br /> 5urvi�al vf Representations and �illarranties, All repr�sentations, warrant�es, and agreements made �y Trustor €n
<br /> this Deed vf Trust shall su��i�e�he execu�ion and deli��ry vf�his Deed of Trust, shall t�e continuing in nature, and
<br /> sha�i remain in full fiorce and efifect until such time as Trustor's Indebtedness shall be paid in full.
<br /> C�NDEMNATIDN. The following pro�isians reiating to candemnatian pro�eed�ngs are a part o�this Deed v�Trus�:
<br /> Pro�eedings. !� any proc��ding in candemna�ion is fi[�d, Trus�or sha�! pramp�ly notify Lender in writing, and
<br /> Trustor shall pramptly take such s�eps as may be necessary tv defend the action and obtain the award. Trus�or
<br /> may be the nominal party in such proceeding, bu�Lende�shal! b�en�i�led ta par�icipat� in the praceeding and to be
<br /> represented in �he proceeding by counse[ af �ts �wn choic�, and Trustor wiil deli�er vr cause �o be deli�ersd �o
<br /> Lender such instrumen�s and documen�ation as may be requested by Lender �rvm time to time to p�rmit such
<br /> parti�ipation. .
<br /> Application of Net Praceeds, l�all or any part a�the Prvperty is candemned by eminen�dvmain proceedings or by
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