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2� 17� 1592
<br /> DEED �F TRUST
<br /> �Continued� Page 3
<br /> farm, amounts, �v�erages and basis reasvnab�y acc�ptable �o Lender and issued #�y a company or companies
<br /> reasonably acceptabf� �o Lender. Trustor, upon request of Lender, will deli�er to Lender frvm time to time th�
<br /> paficies vr cer�i#icates a� insurance in form satisfactory to Lender, including stipulatians that coverages will not b�
<br /> cancelled or diminished withvut at [east�hirty �3D} days priar written nvtice to Lender. Each insurance policy also
<br /> sha!! include an endarsement pro�iding that co�erag� in�a�or of Lender will nvt be impaired in any way by any act,
<br /> omission or de�aul� o� Trustor or any other person. Shauld the Rea! Property be f�cated in an area designat�d by
<br /> the Administrator of�he Federal Emergency Management Agency as a special flvvd hazard area, Trusto� agr�es to
<br /> obtain and maintain Federa� Flood [nsurance, if a�ailable, �or the �ull unpaid prinG�pal balance of�he [van and any
<br /> _ prior liens on the property securing the Ivan, up to the max�mum pvlicy �imits set under the National Ffood
<br /> Insu�ance Program, or as otherwise required by Lender, and t❑ maintain such insurance fvr the term v#the �van.
<br /> Application of Prviceeds. Trustar shall promptly noti�y Lender of any [ass or damage t� the Property. Lender may
<br /> make prov� of loss i� Trus�or fai�s to do so within fi��een �15� days ❑f the casua�ty. V1lhether ❑r not Lender's
<br /> securi�y is impaired, Lender may, at Lender's election, recei�e and retain the p�o�e�ds ofi any insurance and apply
<br /> �he proceeds to �he redu��ivn of the Indebtedness, payment ❑f any lien affecting the Property, �r the restoration
<br /> and repair o�the Property. �f Lender elec�s to apply the proceeds to res�oration and repair, Trust�r shall repair ar
<br /> rep�ace the damaged or des�royed Impro�ements in a manner satisfactory to Lender. Lend�r shalf, upon
<br /> sat�s�a�tory proof of such expend�ture, pay or reimhurse Trusfior from the pro�eeds fvr the reasonable cvst of
<br /> repair �r restvra�ion if Trustar is not in default under �his Deed o� Trust. Any proceeds which ha�e not be�n
<br /> d�sbursed w�thin �8� days after their receipt and which Lender has not �ommi#ted fiv the repa�r vr res�orativn af
<br /> the Property shall b� used �irst to pay any am�unt a►►ving to L�nder under this Deed of Trust, then t❑ pay accrued
<br /> interes�, and the remainder, if any, shall be applied t❑ the principal balance o� the lndebtedness. �� Lender hofds
<br /> any pro�eeds after paym�nt in full �f the Indebtedness, su�h praceeds shalf be paid tv Trustar as Trustor's
<br /> interes�s may appear.
<br /> Trustar's Report vn Insurance. Upon request ❑f Lende�-, hvwe�er nvt mvre than once a year, Trustor shall furnish
<br /> �o Lender a report on ea�h existing policy of insuranc� show�ng: ��} the name �� the insurer; t2y the risks
<br /> insured; �3� the amoun� of #he pvlicy; �4j the prvperty insured, �he then curren� replacemgn� �alue af such
<br /> praperty, and the manner of determining tha�t�alue; and ��} the expira�ion dat� o��he po[icy. Trustor sha{�, upon
<br /> request�f Lender, ha�e an independent appraiser satisfactvey to Lender det�rmine the�ash�alue repla��ment cos�
<br /> of the Pr�perty,
<br /> TAX AND INSURANCE RESERVES. Sub�ect to any limitations and consistent with any requirements set by applicable
<br /> law, Lender may r�quire Trustor to maEntain with Lenc�er reser�es far paymen� vf annua� taxes, assessments, and
<br /> insurance premiums, whi�h reser�es shafl be created �y an initial depas�t and subs�quen� monthly payments, or
<br /> payments a�such other inter�al as paym�nts under the Note may he due, a�a sum estimated by Lender tv be suff�cient
<br /> to pay th� total annual taxes, assessments, and insurance premiums Lender reasanably anti�ipates to be paid �rom
<br /> these reser�es. The reser�e�unds shall be held by Lender as a genera! deposit�rom Trus�or, wh�ch Lender may satisfy
<br /> by payment v� the taxes, assessments, and �nsurance premiums required t❑ be paid by Trustar as they becomre due.
<br /> Lender shall ha�e th� righ� �o draw upon the reser�e funds to pay su�h items, and Lender shall not be required to
<br /> determine the �alidity or accuracy vf any it�m befvre pay�ng it. Nathing �n the Deed v� Trust shall be �vns�rued as
<br /> requiring Lender to ad�ance vthe� monies f�r such purposes, and Lender shalf nvt incur any liability for anything it may
<br /> do or amit fio do with respect t❑ the reser�e account. Subject �o any �imitations set by app�icable law, i� �he reser�e
<br /> funds disc�ase a shor�age or defi�iency, Trustor shall pay such shortag� or deficiency as required by Lender. Ali
<br /> amounts in the reser�e accoun� are here�y pledged ta further seGure the indebtedness, and L�nder is h�reby authorized
<br /> to withdraw and apply such amvun�ks❑n the Indebtedness upon the vccurrence of an E�ent of Default. Lender sha�{ not
<br /> be required to pay any inte�est or earnings �n the reser�e funds unless required by law or agreed to by Lender in
<br /> wri�ing. Lend�r does not hald the reser�e funds �n trust �or Trustar, and Lender is nvt Trustor's agent far payment af
<br /> the taxes and assessments required to be paid by Trustor.
<br /> LENDER'S EXF�ENDITURES. If any activn or proce�ding is commenced that wvufd materially affect Lender's interes� in
<br /> �he Property or �f Trustvr fails �a comply with any prv�isivn v��his Deed of Trust or any Relat�d Documents, inc�uding
<br /> but not limited to Trustor's �aiEur� to discharge or pay when du� any amoun�s Trustvr is required tv dis�harge or pay
<br /> under�his ❑eed of Trust or any f�ela�ed Documents, Lender on Trus�or's beha�f may 4but shall not he obl�gated to} take
<br /> any a�tivn tha� Lend�r deems appropria�e, �nc�ud�ng but no� [�mited �a discharging vr paying all taxes, �iens, security
<br /> interests, encumbrances and ather claims, at any time le�ied�r placed on the Praperty and paying all costs#or�nsuring,
<br /> maintaining and preser�ing th� Property. All such expenditures incurred �r paid hy Lender for such purposes rrvill then
<br /> �ear interes� at the rate charged under�he No�e from the date incurred v� pa�d hy Lender to �he date of repayment by
<br /> Trustor. All such expenses w�ll become a par� of the Indeb�edness and, at Lender's vp�ian, will 4Ay be payable on
<br /> demand; ��} b� added ta the balance o# the Note and be apportioned among and be payable with any insta[�ment
<br /> payments to become due during e�ther ��} the term af any appl�cabl� insurance p�licy; vr �2� the �emaining term vf
<br /> the Nv�e; or �C} be treated as a balloon payment which will be due and payable at the Note's maturi�y. The Deed of
<br /> Trust also will secure paymen� a� these amoun�s. Such right shali he in additivn to all other r�ghts and remedies to
<br /> which Lender may be entitled upvn ❑e�aul�.
<br /> WARRANTY; DEFENSE DF TITLE. The following prv��sions re[ating tv ownership a�the Property are a par�vf this Deed
<br /> o�Trust:
<br /> Title. Trustor warran�s that: �a� Trustor holds good and marketable title of re�vrd to the P�operty in fee simple,
<br /> free and clear of a11 liens and encumbrances ❑ther than th�se se� forth in the R�al Property description vr in any
<br /> title insurance policy, �itle report, flr final title vpinion issued in fa�ar of, and accepted by, Lender in �onnection
<br /> with this Deed��Trust, and �b} Trustor has the full right, power, and authvr�ty to execu�� and deli�er this Deed af
<br /> Trust ta �ende�.
<br /> Defense o�Tit�e. Sub�ect to the ex�eption in the paragraph abo�e, Trustor warrants and w�li forever de�end �he
<br /> title to the Property against the lawful claims o�al� persvns. In the e�ent any action or proc�eding is c�mmenced
<br /> �that questions Trustor's tit[e or the interest❑f Trustee ar Lender under this De�d ❑�Trust, T�ustvr shall defend#he
<br /> action at Trustor's expense. Trustor may be �he naminal party in such pr��eeding, but Lend�r shall he �ntitied to
<br /> par�ic�pat� in the proceeding and to be repres�n�ed in the proceeding by counsel of Lender's own chaice, and
<br /> Trustor wi1� deliver, o� cause fio b� deli�ered, t� Lender such instruments as Lender may request#rom time ta time
<br /> �n permit such participation.
<br /> Compl�ance With Laws. Trustar warrants �that the Property and Trustor's use o� �he Property comp[ies with all
<br /> exis�ing applicable laws, ordinances, and regulations o�go�ernmental au�horities.
<br /> Sur�iWai of Representations and Warranties. A�� representations, warranties, and agreements made by Trustor in
<br /> �his Deed a�Trust shaf� sur�i�e the ex�cution and deii��ry af this Deed ❑f Trust, shall �e con�inuing in nature, and
<br /> shall rema�n in�ull fvrce and effect until such�ime as Trust�r's Indebtedness sha�E k�e paid in fulf.
<br /> G�NDEMNATI�N. The fo�l�wing pro�isians relating t� cvndemnation pr�ceedings are a pa�t of this Deed o#Trust:
<br /> Proceedings, l�f any proceeding in condemnation is filed, Trustor shail promp��y noti�y Lender in wr��ing, and
<br /> Trustor sha!! promptly take suCh steps as may �re ne�essary to de�end the activn and v#��ain the award. Trustvr
<br /> may be�he nam�nal party in su�h pro���ding, but Lender shall be en�itled to parti�ipate �n the pro�eeding and to �e
<br /> represented in the prv�eeding by counse! of its vwn �hoice, and Trustvr wil� deli�er ar cause to be deli�ered to
<br /> Lender such �nstruments and documentation as may be requested by Lender �rom �time to time to p�rmit su�h
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