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2� 17��897
<br /> DEED �F TRUST
<br /> ��antinued� Page 3
<br /> Ma�ntenan�e ofi Insurance. Trustor shall prvcure and maintain policies vf fire insurancs with standard extended
<br /> c��erage sndorsements on a repiacement basis for the full insurahle �alue co�ering all Impro�ements on the Real
<br /> Praperty in an amvunt sufficient tv a�vid application of any coinsurance clause, and with a standard mortgagee
<br /> clause in fa��r of Lender. Trus#or shall alsa pracure and maintain comprehensi��general liabiiity insurance in su�.h
<br /> co�erage amounts as Lender may requsst with Trustee end Lender being named as additional insureds in such
<br /> liability insurance policies. Additionally, Trustor shall meintain such other insurance, including but not �'rmited to
<br /> hazard. business in#erruptian. and hoiler insuran�e, es Lender may re�sonably r�quire. Policies shall be written in
<br /> form, amounts, co�grages and basis reasonably a�ceptable ta Lender and issued by a company or �ompanies
<br /> r�asonably ac�eptable to Lender. Trust�r. upon request of Lender, will deli�er to Lender from time to time the
<br /> policies or certificates of insuran�e in�arm satisfactory to Lender, inciuding stipulatians that co�e�ages wil� not be
<br /> �ancellsd or diminished withou#at least thirty �3�f days privr written notice ta Lender. Each insurance pvlicy also
<br /> shali include an endors�ment pro�iding tha#co�erage in fa�or vf Lender will na#be impaired in any way by any act,
<br /> omission or default of Trustor or any other person. Should the Re�l Proper#y be located in an area designated by
<br /> the Administretor of the Federal Emergsncy Management Agency �s a special flood hazsrd area, Trustvr agrees ta
<br /> abtain and maintain Federaf Flovd Insurance, if a�ailable, for the futl unpaid prinCipaf bafance of the loan and any
<br /> prior liens on the property securing the loan, up ta the maximum policy limits sst under the Nativnal Flovd
<br /> Insurance Program� or as otherwise requtred by Lender, and to maintain such insurance for the term of the loan.
<br /> Appli�ation of Procaeds. Trustar shall prvmptly noti#y Lender af any fass or damage ta the Property, Lender may
<br /> make prvof �f f�ss if Trustor f�ils tv do so within fifteen t 15f days of the casualty. Whether ar not Lender's
<br /> se�urity is impeired, Lender rnay, at Lender's election, recei�e and retain the proceeds a�any insurance and apply
<br /> th� proceeds #o #he reduction of the Indehtedness, payment vf any lien affecting the Property, ar the restvration
<br /> and repair of the Property. !f Lender e�ects to apply #he proceeds ta restora�ivn and repair, Trustor shall repair or
<br /> replaG� the damaged ar destroyed Impro�ements in a manner satisfactory �❑ Lender. Lender shafl, upon
<br /> satisfactory provf of such expenditure. pay or �eimhurse Trustor fram the proceeds fvr the reasvnable cos# of
<br /> repair ❑r restoration if Trustor is nnt in defauit under this Deed of Trust. Any prvicesds whi�h ha�e n�t been
<br /> dishursed within i 80 days after their receipt and which Lender has not committed to the repair or restvration af
<br /> the Property shall hs used f�rst to pay any amount owing to Lender und�r this Deed af Trust, then to pay accrued
<br /> inter�st. and th� remainder, if any. shall be appl�ed to the principal balance of the Indebtedness. If Lender holds
<br /> any proc�sds after payment in full v# the Indehtedness, such proceeds shall be paid to Trustor as Trustar's
<br /> interests may appear.
<br /> Trusto�'s Repart on#nsurenca. Upvn request of Lender. howe�er not more than once a ye�r, T�ustor shalt #urnish
<br /> to Lender a report on each existing policy of insurance showing: �'!y the name vf the insurer; �2} the risks
<br /> insured; {3y the amount ❑f the poli�y; 44y the property insured, the #hen current replacement �alue of such
<br /> property, and the manner of determining that�alue; and {5y the expiration date of the palicy. Trustor shafl, upon
<br /> request of Lender, ha�e an independent appraiser satisfectory to Lender determine the cash�alue replacement cost
<br /> of the Rraperty.
<br /> TAX AN� INSURANCE RESERVES. 5ubject to any limitations and consistent with any requirements set by applicable
<br /> law, Lender may require Trustor tv mainta�n with Lender reser�es for payment of annua! taxes, assessments, and
<br /> insurance premiums, which reser�es shall be created by an in�tial d�posit and subsequent monthly payments, or
<br /> peyments at such other inter�al as paymsnts under#he Note may be due, o�a sum sstimated by Lender ta be sufficient
<br /> #a pay the total annual taxes, assessments. and insurance premiums Lender reasonahly anti�ipa#es ta be paid from
<br /> thes� reser�es. The reser�e funds shail be held by Lender as e general depasit from Trustor, which Lender may satis�y
<br /> hy payment of the taxes, assessments, and insurance premiums required to be paid by Trustvr as they become du�.
<br /> Lender shall ha�e the right to draw upon tMe reser�e funds to pay such items, and Lender s�all not bs requirsd to
<br /> det�rmine #he �alidity ❑r accura�y of any item hefore paying it. NothEng in the C]eed of Trust shall be cvnstrued es
<br /> requiring Lender to ad�ance other monies for such purposes, and Lender shall not incur any Liability for anything it may
<br /> d� or omit t� d� with respect to the reser�e account. Subject tv any limitatians set by applEc�bie law, if the reser�e
<br /> funds discfose a shortage or dsficiency, Trust�r shali pay such shortage or deficiency as required by Lender. All
<br /> amounts in the reser�e acGount are hereby pledged to furth�r securs the Indebtedness, and Lender is hereby authorized
<br /> to withdraw and apply such amounts an the Indehtedness upvn the occurrence�f an E�ent of Default. Lender sh�i�not
<br /> be required tv pay any interest or earnings on the reserve funds unless requfred by law or agreed ta by Lender in
<br /> writing. Lender does nvt hald the reser�e funds in trust for Trustor. and Lender is not Trustor's agent far payment of
<br /> the taxes and assessments required to he paid by Trustor.
<br /> LENDE#�'S EXPEN�ITURES. If any a�tion or proceeding is cammenced that would materially a#fect Lender's interest in
<br /> the Property ar if Trustor fails to cvmply with any pro�isi4n of this ❑eed of Trust or any Related Documents, including
<br /> but not �imited to Trustor's failure to discharge or pay when due any amounts Trust�r is required to discharge or pay
<br /> under this Deed �f Trust o�any Related Documents, Lender on Trustor's hehalf may �but shail not be obligated toy take
<br /> any action that Lend�r deems apprvpriate, including hut not limited tv discharging or paying a!l taxes, liens, security
<br /> interests,encumbrances and other claims, at any time le�ied or placed on the Property and paying all costs for insu�ing,
<br /> mainta�ning and preser�ing the Prvperty. All such expsnditures incurred v� paid by Lender for such purposes will then
<br /> b�ar interest a##he rate charged under#he Note from #he date incurred ar paid by Lender ta the date of repayment by
<br /> Trustor. All su�h expenses wil� hecome a part of the Indebtedness and, at Lender's option� wi�l �Af be payable vn
<br /> demand; �By he added �o the balance of th� Note and be appvrtivned among and be payabl� with any installm�nt
<br /> payments to become due during either �'I� the term �f any applic�ble insurance policy; or ��y the rem�ining term of
<br /> the Nate; vr ��� be treated as a bal�oon payment which will be du� and payable at the Note's maturity. The Deed af
<br /> Trust alsa will secure payment of thes� amounts. 5uch right shai! b� in addition to all other rights and remedies to
<br /> which Lender may be entitled upon Defauit.
<br /> WARRANTY;DEFENSE�F TITLE. Th�fvllowing pro�isions rela�#ing to ownership�f the Property ar�a part of this Desd
<br /> o�Trust:
<br /> Ti#le. Trustar warrants that: �a� Trustor hvlds good end marketahl� titis o# record ta the Property in fee simpie,
<br /> free and clear �rt all �iens and encumbrances other th�n those set farth in the Real Praper#y descriptian Qr in any
<br /> title insurance policy, title report, or #in�l title apinivn issued in ta�or of. and accepted by. Lender in connection
<br /> with this Deed vf Trust. and tbf Trustor has the full right, powsr, and authority#o execute and deli►►er this Deed of
<br /> Trust to Lender.
<br /> Defense af Title. Subject to the exGept�on in the pa�agraph abo�e, Trustor warrants and will fore�er defend the
<br /> title to the Property against the lawful �laims of af! persons. In the e►►ent any action or proceeding is cammenced
<br /> that questions Trustvr's title❑r the interest vf Trustee or Lender under this ❑eed��Trus#,Trustvr shalf defend the
<br /> actian at Trustvr's expense. Trustor may be #he nomin�l party in such prviceeding, hut Lender shall he en#itled t❑
<br /> participate in the proceeding and to he represented in the proceeding by counsel of Lender's own chvice, and
<br /> Trustor will de�i�er, or cause to b�deli�ered, ta Lender such instruments as Lende� may request from time ta time
<br /> t�permit such pa�ticipation.
<br /> Complience With Laws. Trustor warrants that the Praperty and Trustor's use of the Property compiies with all
<br /> existing appl+cable laws, vrdinances, and reyulations of gv�ernmenta!authorities.
<br /> Sur►►i�al of Represarrtations and Warranties. Ali represen#atians. warran#ies. and �greements mads by Trustor in
<br /> this Deed af Trust shall sur�i�e#he execu�ivn and deiive�y❑f#his Deed of Trust, shail be continuing in nature. and
<br /> shall remain in full force and effect until such timg as Trustor's Indebt�dness shall he paid in full.
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