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2� 17��77�
<br /> � .
<br /> DEED �F TRUST
<br /> �C�ntinued� Page 3
<br /> PRDPEATY �AIIAAGE INSURAN�E. The follvwing pravisivns relating to insuring the Prvper#y are a part of this Deed af
<br /> Trust.
<br /> M�intenance o# Insur�n�e. Trustar shail prvcure and ma�ntain policies ofi fire insurance with standard extended
<br /> co�erage endorsements on a replaeernent hasis for the ful� insurabl� �alue co��ring all Impro�ements an the Real
<br /> Praperty in an amaunt suffii�ient to avoid applicatian of any coinsuran�e clause, and with a standard mortgagee
<br /> clauss in fa�or of Lender. Trustvr shall also prvcure and maintain comprehensi�e genera�liability insurance in such
<br /> co�erage amounts as Lender may request with Trustee and Lende� being named as additivnal insureds in such
<br /> liability insuran�e policies. Add�tivnally, Trustor shall maintain such vth�r insuranc�, including but nat lim�ted tv
<br /> hazard, business interruption, and hoiler insurance, as Lender rnay reasonably �equire. Policies shall be written in
<br /> fvrm, arnounts, �o►►erages and basis reasvnably acc�ptable t❑ Lender and issusd by a company vr �ampanies
<br /> reasonably ecceptable t❑ Lender. Trustor. upvn request of Lender, will deli�er t� Lender from time tv tirne the
<br /> po�icies vr certiticates at insurance in tarrr� satis�actory t� �ender, including stipulations �hat co�erag�s will not b�
<br /> �ancelled �r diminished without at least thirty t3�y days prtor written nati�e to Lender. Each insurance policy aiso
<br /> sha!!include an endarsement pra�iding that�a�eraye in fa�vr of Lender wi�l nvt be impai�-ed in any way by any act,
<br /> vmission or default vf Trustor or �ny ather person. Should the Real Property he Iocated in an area designated hy
<br /> the Administrator ofi#he Federaf Emergency Management Agency as a special f�aod hazard area, Trustor agrees to
<br /> vbtain and rnaintain Federal Flo�d Insurance, i# a�ailable, for the full unpaid principal balance vf the loan and any
<br /> prior liens on the property securing the Ioan, up ta the rnaximurn policy limits set under the Natianal F�ovd
<br /> Insurance Program, ❑r as vtherwiss required by Lender, and t❑ maintain such insurance for the term of the laan.
<br /> Appli�ation of Praceeds. Trustor shall promptly notify Lender of any loss or damage t❑ the Property. Lender may
<br /> rnake proof vf Ivss i# Trustor fails t❑ dv so within fifteen (15� days of the casualty. Whether or not Lender's
<br /> security is irnpaired, Lender may. at Lender's electivn, recei�e and retain the pr�ceeds vf any insurance and appiy
<br /> the pro�eeds to the reduction of ihe Indebtednsss, payment of any lien a'ffecting the Prvperty, or the restvration
<br /> and repair ofi t�e Praperty. I# Lender elects to apply the praceeds t❑ restoratian and repair, Trustor sha�l repair or
<br /> repiace the darnaged or destroyed Improvements in a manner satisfactary to Lender. Lender shall, upQn
<br /> satis#actory proof of such expenditure. pay or reimburse Trustor from the prviceeds f�r the reasanabls cvst of
<br /> repair or restoration if Trustor is not �n defaul� under this ❑eed o� Trust. Any proc��ds which ha�e nat been
<br /> disbursed within 1 S� days after their receipt and which Lend�r has nat committed to the repair or restorativn of
<br /> the P�operty shall be used first to pay any amvunt ❑wing to Lender under this Deed of Trust, then tv pay accrued
<br /> interest, and the rernainder, if any, shall he applied t❑ the principal balanc� of the Indebtedness. if Lender holds
<br /> any proceeds afiter payment in full ofi the Indehtedness. such pro�eeds shall be paid tv Trustvr as Trustor's
<br /> in#erests may appear.
<br /> Trustor's Repvrt on Insurance. lJpon request of Lender� howe�er not rnore than on�e a year, Trustor shall furnish
<br /> ta Lender a repvrt on �a�h existing poli�y of insurance showing: �1 y the narne ofi the insurer; �2f the risks
<br /> insured; �3f the amount of the palicy; �4) the prvperty insured, the then �urrent replac�ment �alue af su�h
<br /> property, and the manner of determin�ng that�alue; and [5� the expiratian date of the policy. Trustar shall, upon �
<br /> r�quest of Lender, ha�e an independent appraiser satisfactary to L�nder determine the�ash�alue replacement cast �
<br /> af the Property.
<br /> TAX AND INSURANCE RESERVES. Subje�t t❑ any limitations and �onsistent with any requirements set by applicable
<br /> law, Lender may require Trustor t� mafntain with Lender reser�es far payment of annual tax�s� assessments, and
<br /> insurance pr�m+ums, which reser�es shall be created by an initial deposit and subsequent monthly paym�nts, or �
<br /> payments at su�h�ther inter�al as payments under the Nvte rnay be due, of a sum estimated by Lender to be sufrticient �
<br /> to pay Ehe total annual tax�s, assessments, and insurance premiums Lender reasanably anticipates to be paid fram
<br /> these reser�es. The reser�e funds shal� b�held �y Lender as a general depvsit frorn Trustor. whi�h L�nder may satisfy
<br /> by payment of the taxes, assessments, and insurance premiums required to be paid by Trustor as they become due.
<br /> Lender shall ha�e the right t� draw upon the rese��e funds to pay such items, and Lender shall not be required to �
<br /> determine the validity vr a�curacy of any �tem before paying it. Nothing in the Deed of Trust shall be cvnstrued as
<br /> re uirin Lender tv ad�anc��ther manies for such purposes, and Lender shall no#incur any liability far anything +t may �
<br /> q 9
<br /> do or�mit to do with respect to �he reser�e ac�ount. 5ubject t� any lirnitations set hy appli�able law. if the reser�e
<br /> funds dis�lase a shortage ❑r deficienG�, Trus#or shall pay su�h shvrtage ar deficiency as required by Lende�. All
<br /> amounts in the reser�e account are hereby pledged to further secure the Indebtedness, and Lender is hereby autharized �
<br /> to withdraw and apply such amounts on the Indebtedness upon the ve�urrence af an E�ent❑f Dsfauit. Lender shall not
<br /> he required #❑ pay any interest or earnings on the reser�e funds unless r�quired by law ar ag�eed to by Lender in
<br /> writing. Lender does not ho�d the reser�e funds in trust for Trusior, and Lender is nvt Trusto�'s agent for payment flf
<br /> the taxes and assessments r�quired to be paid by Trustor.
<br /> LEN�ER'S ExPEN�ITURES. If any action or proc�eding is cornrnenced that would materia�ly affect Lende�'s interest in
<br /> the Property ❑r if Trustor fails to cnmply with any prv�is�an vf th�s Deed o�Trust vr any Related Documents, including
<br /> but nvt limited to Trustor's failure to dis�harge or pay when due any amvunts Trustor is required to dis�harge or pay
<br /> under this Deed n#Trust vr any Related Documents, Lender on T�ustor's behalf may �but shall not he obligated tor take
<br /> any a�tian that Lender deems apprnpriate, including k�ut not timited to discharging or paying all taxes, liens. security
<br /> interests,encumbrances and o#her claims, at any time le�ied or pla�ed on the Property and paying all costs for insuring,
<br /> maintaining and preserving the Prapert�. All such expenditures incurred or paid by Lender far su�h purpases will then
<br /> kaear inter�st at the rate charged under the Note #rom the date incurred ❑r paid by L�nder #o the date af r�payment hy
<br /> Trustvr. Alf such expenses wi�l be��rne a part of the Indebtedness and, at Lender's vption, will {Ay he payable on
<br /> demand: tB� be added to the balance of the Note and he appartioned amvng and be payable w�th any insta��ment
<br /> payments tv heGome due during either �1 f the term of any applicable insurance po#icy; or �2� the remaining term of
<br /> the N�te; ar �Cf be treated as a ba�iovn payment which will t�e du� and payahle at the Note's maturity. The aeed af '
<br /> Trust alsv will secure paym�nt ❑f these amvunts. Such r�ght shall be in addition t❑ a�! other rights and remedies to
<br /> which Lender may be entitled upon Default.
<br /> WARRANTY;DEFENSE�F TITLE. The follow'rng prv�isions relating t❑❑wnership ofi the Prvperty are a part of this ❑eed
<br /> of Trust:
<br /> Titla. Trustor warrants that: {af Trustor holds good and ma�ketable t�tle of recvrd ta the Property in fee sirnple,
<br /> free and clear of all liens and enGumbrances other than those set farth in the Real Property descrip�ian or in any
<br /> title insurance policy, title repart, or final #itle opinion issued in fa�or of, and accepted by, Lender in connectivn
<br /> with this❑eed of Trust,and �bf TrustQr has the full right, power, and autharity#o execute and deli�er this De�d of
<br /> Trust tv Lender.
<br /> Defense of Title. Subject ta the exc�ption in the paragraph aho�e, Trustor warrants and will fore�er d�fend the
<br /> title to the Property against the lawful claims vf all persons. �n the e�ent any activn or proceeding is cornrnenced
<br /> that questivns Trustor's title or the interest of Trustee or Lender under this De�d v#Trust. Trust�r shall d��end the
<br /> action at Trustor's expense. Trusto� may be#he nominal party in su�h proceed�ng, but Lend�r shall be ent�tled to
<br /> participate in the proc�eding and to be r�presen�ed in the proceeding by �ounse! of Lender's vwn �hvice, and
<br /> Trustor w�11 deli�er, vr cause#o be dsli�ered, to Ler�der such instrumsnts as Lender rnay rsquest from time tv time
<br /> to perrnit su�h participatian.
<br /> �ompiiance YVith Laws. Trustvr warrants that the Prvperty and Trusior's uss of the Property camplFes with all
<br /> existing applicable laws.ardinances,and regulativns of gv�ernm�ntal authorities.
<br /> Sur�i�al of Reprasen#a#ions and Werrenties. All representativns, warranties, and agreements made by Trustor in
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