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2� 17� 1574
<br /> DEED C3F TRUST
<br /> 4�ontinued� Pa9e 3
<br /> palicies or certi�icates of insurance �n fvrm satisfactory tv Lender, including stipulatians that co�erag�s will not he
<br /> cancelled or d�minished without a� least th�rty �3D� days p�io�wri�ten nvtice to Lender. Each insurance poli�y also
<br /> shaif include an endarsement pro�iding that co�erage in fa�or of Lender will nat be impa�red in any way by any act,
<br /> omission or de�auit of Trustor vr any other persvn. 5hau(d the Real Property be IvGated in an area designa�ed by
<br /> the Administratar af the Federa! Emergency Nfanagement Agen�y as a special flood ha�ard area, Trustar agrees to
<br /> ob�ta�n and maintain Federaf F�vod Insurance, if a�ailab[e, far the �ull unpaid principal balance af the I�an and any
<br /> prior liens on the property securing the laan, up to the maximum pa�icy limi�s set under the Nati�nal Flood
<br /> Insurance Pragram, or as oth�rwis�required by Lender, and to main�ain such insurance far the term ❑f the lvan.
<br /> Applicatian v#Pro�seds. Trustor shall prampt�y notify Lender vf any loss or damage to the Prvperty. Lender may
<br /> make proof of loss if Trus�or fai�s tv do sa with�n fifteen 415f days of the casual�y. Vllhsther or nat Lender`s
<br /> security is impaired, Lender may, at Lender's electivn, recei�e and retain the praceeds of any insurance and apply
<br /> the proceeds �o the reduction o� the [ndebtedness, payment of any lien affecting the Prop�rty, vr the resta�ation
<br /> and repair vf�he Proper�y. If Lender elects to apply �he prviceeds to restoration and repair, Trustor sha�l repair vr
<br /> replace the damaged or destroyed Imp�o��ments in a manner sa�isfa�tory ta Lender. Lender shail, upon
<br /> sa�isfacto�y proo� of such exp�ndi�ure, pay or reimburse Trustor �rom the proceeds �or th� reas�nabfe cast of
<br /> repair vr res�oratiQn if Trust�r is nat in defauit under this Deed of Trust. Any proceeds wh+ch ha�e not been
<br /> disbursed within �8� days aft�r the�r receipt and whi�h Lender has no� �omrr�itted to �he repai� vr restvration o#
<br /> the Property shall be used �irst�a pay any amount owing to Lender under this Deed af Trus#, then to pay accrued
<br /> interest, and the remainder, ifi any, shall be applied tv the principal balance o� the Inde#��edness. l# Lender holds
<br /> any pro�eeds after payment in ful� o� the Indebtedness, such praceeds shall �e paid to Trustor as Trustar's
<br /> int�res�s may appear.
<br /> Trus�or's Report vn �nsurance. Up�n request of Lender, hvwe�er n�t more than once a year, Trustor shall �urnish
<br /> ta Lender a rspart an ea�h existing pviicy of insurance showing: {1} fihe name of the insurer; �2} th� risks
<br /> insured; �3} �he amount of the policy; �4y the proper�y insured, the then cu�rent replacement �alue of such
<br /> proper'ty, and �he manner vf determining that�alue, and �5� #he expiration date af the palicy. Trustor shall, upon
<br /> reques�af Lender, ha�e an independent appraiser satis�ac�vey to Lender de�ermine the cash�alue replacement cvst
<br /> o#the Proper�y.
<br /> TAX AND INSURAN�E RESERVES. Subject to any lim�tations and consistent with any requiremen#s set by applicable
<br /> law, Lender may require Trus�or to maintain with Lender reser�es for paymen� af annual taxes, assessments, and
<br /> insurance premiums, which reser�es sha�l be created by an initial depvsit and subsequen� mon�thly payments, vr
<br /> payments at such othe� inter�al as paymen�s under�h� No�e may be due, of a sum estimat�d by Lende�to be su�ficien�
<br /> �❑ pay �he �otal annua� taxes, assessments, and insurance prem�ums Lender reasonably antic�pates �o b� pa�d #rom
<br /> �hese reser�es. The r�ser�e funds shall be held by Lender as a gene�al deposit from Trus�or, which Lender may satisfy
<br /> by payment �f the taxes, assessments, and insurance premiums required tv be paid by Trustor as they be��me due.
<br /> Lender shall ha�e th� right �� draw upon the reser�e funds to pay such items, and Lender shall not be required tv
<br /> de�erm�ne the �alidity or accuracy ❑f any item befvre paying it. Na�hing in th� �eed vf Trust shall be construed as
<br /> requiring Lender to ad�ance �the�monies f�r su�h purpases, and �ender shall not incur any liability for anything i� may
<br /> do o� omi� to do with respe�t to �he reser�e account. 5uhject to any limitations set by applicable law, i� the reser�e
<br /> funds disclose a shortage or deficiency, T�us�vr sha�� pay such shortag� ar defi�iency as required t�y Lender. A�[
<br /> amaunfis in th� reser�� a�count are her�by pledged to furth�r secure the Indeb�edness, and Lender is h�reby au'thor���d
<br /> to withdraw and apply such amounts on the �ndehtedness upon th�occurrence of an E�enfi❑#Default. Lender sha�l nat
<br /> be required to pay any inte�es� ar earnings on th� reser�e �unds unless required k�y law or agreed ta by Lender in
<br /> writing. Lender does not hold �he reser�e #unds in trust for Trustor, and Lender is nafi T�us�or's agent �o� payment �f
<br /> the taxes and assessments required ta t�e paid by Trustor.
<br /> LENDER`S E�iPEND�TURES. If any act�on or proce�ding is commenced �hat would rr�ateria��y a#fec� Lender's interest in
<br /> the Praperty or i�Trustor fails to �omp�y w�th any pro�isivn of this Deed o�Trust or any Related Do�uments, incfuding
<br /> but not €imited to Trustor's failure to discharge or pay when due any amvunts Trustor is required �o discharge ar pay
<br /> under�his ❑eed of Trust or any Related Documents, Lender on Trustvr's behalf may {but shall not be obligated toy take
<br /> any action that Lender deems appropriate, including but not fimited t❑ discharging or paying ali tax�s, liens, secur�ty
<br /> interes�s, encumbrances and other c�aims, at any time le�ied ar placed on the Property and paying all cvsts far insuring,
<br /> main�aining and preser�ing �he Prop�rty. Ali such expenditures incurred or paid by Lender for such purposes will then
<br /> bear interest at the rate charged under�he Note from �he date incurred ar pa�d t�y Lender tv the date of repaymen� by
<br /> Trus�vr. All such expenses wil[ become a part o� the Indebtedness and, at Lende�'s ap�ion, will �A� be payab�e on
<br /> demand; �B} be added tv the balance of the Nvte and be appo�tioned am�ng and be payable with any installmen�
<br /> payments to #ae�ome due during either �1 y the term of any appli�a�le insurance poiicy; or �2� the remaining term of
<br /> the Not�; or �C� be trea�ed as a ballovn paym�nt which will be due and payable at the Note's maturi�y. The Deed of
<br /> Trust afso wili secure payment o� these amounts. 5uch right shal! be in add�tion to all oth�r righ�s and r�m�dies to
<br /> which Lender may be�nti�led upon Default.
<br /> WARRANTY; DEFENSE❑F TITLE. The follvwing prv�isions relating to ownership o#the Property are a part of this Deed
<br /> af Trust:
<br /> Ti#fe. Trustar warrants that: 4a� Trustor hoids gvad and marke�able tit�e of record to �he Properfiy in fee simple,
<br /> �r�e and clear ❑f all liens and encumbrances other than thos� set forth �n the Real P�operty description or in any
<br /> tit�e insurance policy, tit�e repar�, vr final title vpinion issued in fa�or of, and accepted by, Lender in cvnnection
<br /> with this Deed of Trust, and 4b� Trustor has the full right, power, and authority�o execute and deli�er this Deed of
<br /> T�ust to Lender.
<br /> D�fense of Title. Subject to the �xception in �he paragraph abv�e, T�ustor warrants and will fvre�er d�fend �he
<br /> title to the Proper�y against the lawfiu� ciaims of all persons. {n the e��nt any action or prviceeding is commenced
<br /> �hat questions Trustor's�itle or the �nterest o�Trustee ❑r L�ndsr under�his Deed of Trust, Trus�or shall defend the
<br /> action at Trustar's expense. Trus�or may b� the nom�nal party in such proce�ding, but Lender shafl be enti�led to
<br /> partic�pate in the praceeding and to be represented in �he prviceeding by caunsel of Lend�r's awn �hvice, and
<br /> Trusto� will de{i�er, or cause to b� deli�ered, tv Lender such instruments as Lender may re�u�s�from time t❑ time
<br /> to permit su�h part�cipatian.
<br /> Compliance With Laws. Trustor warrants that the Prvperty and Trustor's use af the Prop�rty complies with all
<br /> existing applicable laws, ord�nances, and reguiativns vf go�ernmental authorities.
<br /> 5ur�ir►al af Representa�ions and Vllarrant�es. Ali representat�ons, warranties, and agreements made by Trustor in
<br /> this Deed of Trust shall sur�i�e the execution and de�i�ery of this Deed of Trust, sha�l be continuing in nature, and
<br /> shafl r�main in fu�!�orce and���e�t un�il such time as Trus�ar's Ind�btedness sha!! be paid in full.
<br /> CQNDEMNATIDN. The�o�lowing pro�isions relatin�to ��ndemnation proce�dings are a part af this Deed o�Trust:
<br /> Prv�eed�ngs. lf any proceeding in candemnation is fiied, Trusto� shall promptly notify Lender in wr��ing, and
<br /> Trustor sha[f promp�ly �ake such steps as may be ne�essary to defiend �he ac�ion and obta�n the award. Trustor
<br /> may be�h� naminal party in such praceeding, but Lender shall be enti��ed to par�icipate in the proceed�ng and to b�
<br /> represented in the proceeding by cvunsei o� its own chai�e, and Trust�r w�ll deli��r �r cause to be deli�ered �o
<br /> Lender such instruments and dvcumentation as may be reques�ed by Lender firom time tv �ime to pe�mit such
<br /> participation.
<br /> Applicativn ofi Ne# Proce�ds, ff all or any part of fihe Property is Gondemned hy eminent domain proceed�ngs ❑r by
<br /> ��
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