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2� 17� 1382
<br /> DEED �F TRLJST
<br /> ��antinued� Pags 3
<br /> clause in fa�or of Lender. Trustar shall also pro�ure and maintain comprehensi�e general fiahili�y insurance in such
<br /> co�erags amounts as Lend�r may request with Trustee and Lender being named as additional insureds in such
<br /> liability insurance polici�s. Additionally, Trustor shall maintain such other insurance, including but nat limited to
<br /> hazard, business interruptian. and boiler insurance, as L�nder may reasonably requir�. Poiicies shal� be written in
<br /> form, amaunts, co�erages and basis reasonably acceptable to Lender and issued by a company or companies
<br /> reasonably acceptahle to Lender. Trus�or, upon request of Lender, will de�i�er to Lender frvm time to time the
<br /> policies ar certificates vf insurance �n f��m satisfac#ory to Lend�r. including stipulativns that co�erages wifi not he
<br /> cancelled or dimin�shed withaut at least thirty �3Qf days prior written nvtice to Lender. Ea�h insurance policy als�
<br /> shall include an endors�ment pro�iding that ca►►erage in#a�vr of Lender will not be impaired in any way by any act,
<br /> �mission or default of Trustvr vr any other persan. Should the Rea! Property be locatsd in an area d�signated hy
<br /> the Administrator of the Federal Emergency Management Agency as a speciai fiood hazard area, Trustor agrees ta
<br /> ohtain and maintain Federal Flood Insurance, if a�ai�able. for the full unpaid principal balance ❑f the loan and any
<br /> prior Itens vn the property securing the loan, up to the maximum policy limits set under the National Flovd
<br /> Insurance Program, vr as otherwise required by Lender, and ta maintain such insurance for the term vf the Ioan.
<br /> Application of Proceeds. Trustor shali prvmptly nvtify Lender of any Ivss or damage to the Property. Lender may
<br /> make proof af loss if Trustar fails #o do so within #ifteen �15j days of the casualty. Whether �r not Lender's
<br /> security is impaired, Lender may, at Lender's elect�on. recei�e and retain the proceeds ❑f any insurance and app�y
<br /> the proceeds to the reduction o#the lndebtedness. payment of any lien affecting the Property, ❑r the restvra#ion
<br /> and repa�r of the Property. If Lender elects to apply the prviceeds to restora#ion and repair, Trustor shall repair ar
<br /> replace the damaged or destrayed lmpro�ements in a manner satisfactory to Lender. Lender shall. upon
<br /> satisfactory provf of such sxpenditure. pay or reimburse Trustor #rom the proceeds for the r�asonable cvst �f
<br /> repair ar restoration if Trustor is nvt in defauft under thf5 Deed of Trust. Any proceeds which ha�e not been
<br /> disbursed within 1 S� days afte� their receipt and whi�h Lender has not committed to the r�pair or restorativn of
<br /> the Property shall he used first to pay any amouni owing to Lender under this Deed of Trust, then ta pay accrued
<br /> interest, and th� remaind�r, if any, shal� be applied ta the principal halan�e of the Indebtedness. If Lender holds
<br /> any proceeds aft�r payment �n #u!I ❑f the Indebtedness, su�h proceeds shal! be paid tfl Trustor as Trustor's
<br /> interests may appear.
<br /> Trustor's Report on Insuren�e. lJpon request of Lender, hawe�er not mvre th�n once a year, Trustar shal! furnish
<br /> tv Lender a report on each existing pvli�y of insurance showing: t1 f the name of the insurer; �Zy the risks
<br /> insured; �3y the amaunt of the policy; {4� the property insured, the then Gurrent replacement ►►alue vf such
<br /> property, and the manner of det�rmining #hat�alue; and t5� th�expiration date o�the palicy. Trustor shall, upan
<br /> request of L�nder, ha�e an independent appraiser satisfactory to Lender det�rmine ths cash�alue replacement cost
<br /> of the Praperty.
<br /> TAX AND INSURAN�E RESERVES. Sut�ject t� any limitations and consistent with any requ+rements s�t by applicahle
<br /> law, Lender may requir� Trustor to maintain with Lender reser�es for payment of annua! taxes, assessments, and
<br /> insurance premiums, which reser�es shal� he cr�atgd by an initial deposi# and subsequent monthly payments, or
<br /> payments at such other inter�al as payments under the Nate may he due, of a sum estimated by Lender to be sufficisnt
<br /> to pay ths total annual taxes, asssssments� and insuran�e premiums Lender rB85Dn8hly anti�ipates to be paid #rom
<br /> these reser�es. The reser�e funds sha�f be held by Lender as a general depvsit from Trustar, which Lender may satisfy
<br /> by payment vf the #axes, assessments, and insurenc� premiums required to be paid by Trustar as they b�cvme due.
<br /> Lender shali ha�e the right tv draw upvn the reser�e funds to pay such items, and Lender shall not be required to
<br /> determine the �alidity or accuracy vf any �tem before paying �t. Nothing �n the Deed of Trust shall he �onstrued as
<br /> requiring Lender to ad�ance vther monies for such purposes. and Lender shall not incur any liahility for anything it may
<br /> do ar omit to dv with respe�t ta the reser�e account. Subje�t to any fimitations s�t by applicahle law. if the reser�e
<br /> funds disclase a shortage or deficien�y, Trustor shall pay such shvrtage vr deficiency as required by Lender. All
<br /> amounts in the reser�e a�count are herehy pledged to further secure the Indebtedness, and Lender is he�eby authvrized
<br /> to withdraw and apply such amounts an#he Ind�b#edness upon the occurrence of an E�ent of❑efault. Lgnder shall not
<br /> be required tv pay any interest or earnings �n the reserve funds unless required by iaw or agreed to by L�nder in
<br /> writing. Lsnder does n�t haid ths reser�e funds in trust fvr Trustor, and Lender is nvt Trustor's agent for payment of
<br /> the taxes and assessments required to be paid by Trustor.
<br /> LEN�ER'S EXPENDITURES. If any actian or praceeding is commencsd that woufd materially aff�ct Lender's interest in
<br /> the Property or i#Trustor fa��s to �ompiy with any prv�isian of this Deed of Trust or any Related Documents. including
<br /> hut nat �imited tv Trustor's failure to discha�ge or pay when due any amounts Trust�r is required to discharge or pay
<br /> under this Deed o#Trust or any Related Documen#s, Lsnder on Trustor's behalf may tbut shal! n�t be obligeted to1 take
<br /> any action that Lend�r deems apprapriate, including but not limited tv discharging or paying all #axes, liens, security
<br /> interests, encumbrances and vther claims, at any time le�ied or pla�ed vn the Property and paying all costs fvr insuring,
<br /> maintaining and preser�ing the Prvperty. A!� such expenditures incurred or pa�d by Lender fvr such purposes wil! then
<br /> hear interest at the rate charg�d under ths Note fram the date incurred ❑r paid hy Lender to the date of repayment by
<br /> Trust�r. A�I such expenses will become a part of the Indebtedness and, at Lender's vption, wilf tA� be payable an
<br /> demand; �6f be added to the balance af the Nvte and be apportioned among and be peyab�e with any installment
<br /> payments to become due durEng ei#her �1 f th� term of any appiicahle insurance pol+cy; or ��j the remaining term o�
<br /> the Note; or �Cy �e #reated as a balloon payment which will he du� and payab�e at the Note's maturity. The ❑�ed vf
<br /> Trust also will secur� paymen� of these amounts. Such right shall be in addition to all ❑ther rights and remedies t❑
<br /> which Lendgr may be�ntitled up�n Defau�t.
<br /> VIIARRANTY; C]EFENSE�F TITLE. The fo���wing pro�fsivns relating to ownership of the Property are a part of this Deed
<br /> ❑f Trust:
<br /> Ti#le. Trust�r warrants that: �a� Trustor hvlds govd and marketab�e title af record to the Prvperty in fee simple, ;
<br /> f�ee and clear of all liens and encumbrances other than #hvse set forth in the Real Property des�ription or in any �
<br /> ;
<br /> titfe insurance policy, title repart, ❑r fina! title ❑pinion issued in fa�or of, and accepted by, Lender in conne�tian ;
<br /> with this Deed af Trust, and tbf Trustor has the full right, power, and authority to�xecute and de�i�er this Desd of �
<br /> Trust to Lender. !
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<br /> Defense of Title. Subject tv the �xcepti�n �n the paragraph abv�e, Trustor warrants and will fore�er defend the
<br /> �itle to the Property against the �awful �laims of all pers�ns. In the e►►ent any actian or proceeding is commenced
<br /> that questinns Trustar's title or the interest of Trustee or Lender under this ❑e�d af Trust, Trustor shall defend the
<br /> a�#ion at Trustar's expense. Trustor may be #he nom�na� party in such proceeding, but Lender shaii be entitl�d to
<br /> parti�ipate in the proceeding and to bs represented in the proceeding by caunsel of Lender's own choice, and
<br /> Trustor will del��er, vr cause tv be deli�ered, to Lender such instruments as L�nder may request from time to time
<br /> tv permit such participativn. ;
<br /> Compiiance With Laws. Trustor warrants that the Property and Trustar's use of th� Property camplies with all
<br /> exist+ng appliGahle laws, ❑rdinances, and regulations of gv�ernmental authorities,
<br /> 5ur�i�a! of Representations and Warranties. Ail r�presentativns, warranties, and agreements made by Trustor in �
<br /> this Deed �f Trus�shall sur�i�e the executi�n and deli�ery of this D�ed ❑f Trust, shall be con#inuing in nature, and
<br /> shall remain in#ull farce and sffe�t until such time as Trustor's�ndebtedness shall be paid in full.
<br /> C�NOEIVINATI�N. The fo�fowing prv�isions re�ating to cvndemnativn p�viceedings are a part vf this Deed of Trust:
<br /> Proceedings. If any pro�eeding in condemnativn is filed, Trustor shall promptly noti#y Lender in writing, and
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