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2� 17� 1 � 17
<br /> DEED �F TRUST
<br /> tC�ntinuedj Pa�e 3
<br /> reasonably a�ceptable t� Lender. Trustar, upon request af Lender, w�ll deii►►er to Lend�r from time ta time the
<br /> policies or certi#icates ❑f insurance in farm satis#a�tory to L�nder, including stipulations that c��er�ges will not be
<br /> cancelled ar diminished withau�a�least thirty �3�� days prior written notice t❑ L�nder. Each insu�ance policy a�sv
<br /> shall include an endvrsement pro�iding that co�erage in fa�or of Lender will not b�impaired in any way by any act,
<br /> ❑missivn or default of Trust�r or any other person. Should the Reaf Property be located in an area designated by
<br /> the Administrator of the Federal Emergency Management Agency as a special flvod haza�d area, Trustar agrees tv
<br /> ❑btain and maintain Federal Flvod Insurance, i� a�ailahle. for the full unpaid principal baian�e ❑f the Inan and any
<br /> privr liens vn ths proper#y securing the Ioan, up to the maximum pvli�y limits set under the Natianal F1ood
<br /> Insurance Program, o�as oih�rwise required hy Lender, and t❑ maintain such insurance for the term vf the loan.
<br /> Application vf Proceeds. Trust�r shal� promptly notify Lender of any lass or damage to the Praperty. Lender may
<br /> make proof of Ivss if Trustor fai�s to do so within #ifteen �15y days of the casualty. Whether vr nv# Lender's
<br /> security is impaired, Lender may, at Lender's election, recei►►e and retain the proceeds o#any insurance and apply
<br /> the proceeds ta the reductian of the �ndehtedness, payment of any lien affe�ting the Praperty, or the restorativn
<br /> and repair of the Praperty. I� Lender elects to apply the proceeds to restvratian and repair� Trustor shaff r�pair ar
<br /> replace the damaged or destroyed Impro►►ements in a manner satisfactory #o Lender. Lender shall, upvn
<br /> satisfactory proaf of such expenditure. pay or reimburse Trustvr f�om the proceeds for the r�asonable cost of
<br /> repair or restvrativn i� T�ustor is not �n de#ault under this Deed flf Trust. Any pro�eeds which ha�e not b�sn
<br /> disbursed within �$� days after the+r re�eipt and which Lender has nvt �vmmitted to the repair or restvrativn of
<br /> the Property shall be used f�rst to pay any amvunt owing to Lender under this Deed vf Trust, then to pay accru�d
<br /> interest, and the remainder, if any, shali be appli�d tv the principal balance of the lndebtsdness. If Lender holds
<br /> any proceeds after payment in full of the Indebtedness. such pro�eeds shall be paid ta Trustor as Trustar's
<br /> interests may app�ar.
<br /> Trustor's Report on Insurance. Upon �equest of Lend�r. howe�er not mvre than once a year, Trustor shall furnish
<br /> tv Lender a report on each existing policy of insurance showing: {i y the name of the insurer; �2f the risks
<br /> insured; �3y the amount af the p�ficy; �4y the property insured. the then current replacement �alue o� such
<br /> praperty, and the manner of determining that�a�ue; and �5} the expiration date vf the policy. Trustvr shall. upon
<br /> reques�of Lender, ha�e an independent appraiser satisfactory ta Lender determine the cash�a�ue replacement cvst
<br /> o#the Property.
<br /> TAX AND INSURANCE RESERVES. Subject to any limitations and consistent with any requirgments set by �pplicahle
<br /> law, Lender may require Trustor to maintain with Lender reser�es for payment o# annual taxes. assessments, and
<br /> insurance premiums, which reser�es shal! he created by an initial deposit and subsequsnt monthly payments, or
<br /> payments at such❑ther inter�al as payments under#he Note may be due� of a sum est�mated by Lender to be suff�cient
<br /> to pay the total annual taxes, assessments, and insurance premiums Lsnder reasanably ant��ipates ta be paid #rom
<br /> these reser�es. The reser�e funds shall be held by Lender as a general deposit from T�ustor, whi�h Lender may satisfy ,
<br /> by payment of the taxes. assessments, and insurance premiums required tv be paid by Trus�or as they becvme due.
<br /> Lender shall ha�� the righ# to draw upan the reser�e funds to pay su�h items. and Lender shall not be required ta
<br /> de�ermine the �alidity or accuracy of any item he#ore paying it. Nothing in the Dged of Trust shali be construed as
<br /> requiring Lender to ad�anc�ather monies #or such purposes, and Lender shall not incur any liability for anything it may
<br /> dv or omit ta do with respect t� the reser�e account. Subject tv any limitations se# hy applicable law, if the reser�e
<br /> funds dis�lose a shortage �r d�ficiency, Trustor shall pay such shortage or deficien�y as required by Lender, All
<br /> amounts in the reser�e accoun#are hereby pledged to�urther secure the Indebtedness, and Lender is hereby authorized
<br /> t❑withdraw and apply such amounts vn the Indebtedness upon the vccurrence of an E�ent of Defauit. Lender shall nvt
<br /> be required tv pay any interest or earnings on the res�r�e funds unless required by �aw vr agreed to by Lsnder in
<br /> writing. Lend�r does not hoid the res�r�e funds in trust fvr Trustar, �nd Lender is not Trustor's agent fvr payment�f
<br /> the taxes and assessments required ta b�paid by Trustar.
<br /> LENDER'S EXPENDITURES. If any actinn vr prviceeding is cammenced that would materially affec#Lender's interest in
<br /> the Praperty or if Trus#or fails to comply with any pro�isivn o#this ❑eed vf Trust or any Related Dvcuments. including
<br /> but not limited to Trustor's faiiur� to discharge ar pay when due any amounts Trus#vr is required to discharge or pay
<br /> under this D�ed of Trust vr any Related Documents. Lendgr an Trustor's behalf may �but shall no#be ohligated toy take
<br /> any action that Lender deems appropriate, including but not limited ta discharging nr paying all taxes� liens, se�urity
<br /> interests. encumbrances and other claims, at any time le�ied or placed on the Property and paying ali costs fvr insuring�
<br /> maintaining and pres�r�ing the Property. All su�h expenditures incurr�d vr paid by Lender for such purpvses will then
<br /> bear interest at the rate �harged under the Note from the date incurred vr paid by Lender to the date af repayment by
<br /> T�ustor. A!i such expenses wil! becvm� a p�rt of th� Indebtedness and, at Lender's option, will �Ay be payable on
<br /> demand; tBy be added to the balance of the Note and be apportioned amang and bg payable with any installment
<br /> payments to beCome due during either �1 y the term of any applicable insurance poli�y; or �2� the rem�ining term of
<br /> the Nvte; or �Cy be treated as a hallvon payment which w�l� be due and payahle at the Note's matur�ty. The Deed of
<br /> Trust also will secure payment ❑f #hese amounts. Such right sha�1 he �n addition to al� ather rights and remedFes to
<br /> which Lender may be en#it�ed upon Default.
<br /> WARRANTY; DEFENSE�F TITLE, The following pro�isions re�ating ta❑wnership of the Property are a part❑f this❑eed
<br /> of Trust:
<br /> Trtle. Trustor warrants that: �a� Trustvr holds good and marketahle title o� r�cord to the Property in fe� simple,
<br /> free and clear o# ai1 liens and encumbrances o#her than those sst fvrth in the Real Prvperty des�ription or in any
<br /> title insurance pvli�y, �itle report, or final title opinEan issued in fa�or of. and accepted by. Lender in connec#ion
<br /> with this Deed o�Trust, and �b]Trusivr has the fulf right� power. and authority to execut�and deli�er this Deed of
<br /> Trust to Lender.
<br /> �efense of Titls. Subje�t ta the exception in the paragraph aba�e, Trustor warrants and will fvre�er defend the
<br /> title to the Property against the lawful cleims of al� persans. In the e�ent any action or praceeding is commenced
<br /> that questions Trus�or's title or th� interest of Trustee vr Lender under this Deed of Trust� Trustor sha�l defend the
<br /> ac�ion at Trustor's expense. Trustar may be the naminal party in such proceed�ng, but Lender shall �e entitled to
<br /> par�icipate in the proceeding and to be represented in the praceedin� by counsel vf Len�ier's own chvice, and
<br /> Trustvr will deli�er. or caus�to be deli�ersd, to Lender such instruments as Lender may request from time to time
<br /> to permi#such participation.
<br /> Compliance With Laws. Trustor warrants that the Praperty and Trustor's use of the Property �omplies with all
<br /> exis#ing applicable�aws, ord�nances, and regulations of go�ernmsn#al authoritiss.
<br /> Sur�i�al af Representa#ians and W�rranties. All repr�sentations, warranties, and agreements made by Trustor in
<br /> this Deed ❑f Trust shall sur�i�e the execution and deli�ery�f this Deed of Trust, shall be cantinuing in nature, and
<br /> shal! remain in full force and effe�t until such time as Trus#or's Indebtedness shail be paid in full.
<br /> C�NDEMNATIDN. The following pro�isions rglating to candemnativn proceedings a�e a part of this Deed of Trust:
<br /> Proceedings. If any proceeding in candemnation is filed, Trustor shal! promptly notify Lender in writing+ and
<br /> Trustor shai� promptly #ake such steps as may be necessary to defend the action and obtain the award. Trusta�
<br /> may be the nvminal party in su�h pro�eeding, but Lender shall be�ntitled ta participat� in the prviceeding and to be
<br /> represented in the proceeding by �vunse! of its own �hoice, and Trustor will deli�er or cause to be deli�ered to
<br /> Lender such instruments and documentation as may be requested by Lender �rom time to time to permit such
<br /> parti�ipation.
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