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2� 17� 1594
<br /> aEE� oF TRusT
<br /> Loan No: 1 D'I 3�3155 tContinued� Page 4
<br /> hazard, busin�ss interruptivn, and b�i�er insurance, as Lender may reasonably r�quire. Palicies shall be written in
<br /> form, amounts, �a�erages and basis reasonably acc�ptahle t❑ Lender and issued by a �vmpany or c�mpanies
<br /> reasvnahly acceptab�e ta Lender. Trustor, upon reques� of Lender, will deli�er to Lender from time to time the
<br /> poiicies or certificates of insuranGe in f�rm satistactory to Lender, including stipulativns that ca�erages will not be
<br /> cancelled ❑r diminished without at least �en �1�� days prior written n�tice to Lender. Each insurance policy aiso
<br /> sha�� includ� an endarsement providing that co�erage �n fa�or of Lender w�l! nat be impaired in any way hy any act,
<br /> amissivn ar default of Trustor ar any other persan. Shau�d the Reai Property be located in an area designated by
<br /> the Administratar of th� F�deral Emergency Management Agency as a special f�aod hazard area, Trustor agrees ta
<br /> abtain and maintain Federal Flood Insuran�e, if a�ailable, for the tull unpaid principa! balance of the loan and any
<br /> priar liens on the property securing the �oan, up to �he maximum policy limits set under the Nati�nal Flood
<br /> insurance Pragram, ar as otherwise required by Lender, and to maintain such insurance fvr the t�rm ❑f the laan.
<br /> Applicatian of Proce�ds. Trustar shall promptly nati�y Lender �f any loss ar damage to �he Prap�rty. Lender may
<br /> make prvof af loss if Tru�tor fails ta do so ►nrithin fifteen �1 5� days af the casualty. Wh�ther or not Lender's
<br /> security is impaired, L�nder may, at Lender's election, re�ei�e and retain the proceeds o# any insurance and appfy
<br /> th� proceeds t❑ the reduction of the lnd�btedness, payment of any lien af��cting the Property, or the restoration
<br /> and repair o# the Property. If Lender elects t❑ apply the proceeds to restarat�on and repair, Trustor shall repair or
<br /> replac� the damaged ❑r destroyed Impra�emen�s in a manner satisfactory ta Lender. Lend�r shall, upon
<br /> satisfa�tory provf af such expenditure, pay ❑r reimburse Trustar from the proceeds for the r�asanable cost of
<br /> repair or restoration if Trustor Es na� in default under this �eed ❑� Trust. Any proceeds which ha�e n�t been
<br /> disbursed within 18D days atter th�ir receipt and which Lender has no� �ommitted to the repair or restoration of
<br /> the Property sha�l be used first to pay any amount owing to Lender under this ❑eed �� Trust, then to pay accrued
<br /> interest, and the remaind�r, if any, shall be applied to the principai balance of the Indebtedness. If Lender holds
<br /> any praceeds after payment in fuft of the lndebtedness, such proceeds shall be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> Campliance with Existing �ndebtedness. During the period in which any Existing lndeb�edness described below is
<br /> in effect, compliance with the insurance pro�isions contained in the instrument e�idencing such Existing
<br /> Indebtedness shall c�nstitute campliance with the insurance pro�isians under th�s Deed �f Trust, to the extent
<br /> compliance with the terms of th�s ❑eed of Trust wauid constitute a duplicatian of insurance requirement. If any
<br /> proceeds from the insurance become payable on loss, the pra�isi�ns in this Deed of Trust ft�r di�isian of proceeds
<br /> shall apply only ta that porti�n�f the proceeds nat payable ta the holder of the Existing Indebtedness.
<br /> Trustvr's Report vn Insuran�e. Upon request vf Lender, howe�er not more than ance a year, Trustor shali furnish
<br /> to Lender a report ❑n ea�h existing p�licy ❑f insurance showing: t1] the name of the insurer; �2� the risks
<br /> insured; �3} the amount �f the palicy; �4y the praperty insured, the then current replacement �alue af such
<br /> pr�perty, and the manner ❑f d�termining that�a�ue; and �5� the expiratian date of the policy. Trus�or shall, upan
<br /> request vf Lender, ha�e an independent apprais�r satistaCtory to Lender determin� the cash �alue repfacem�nt cost
<br /> vf the P rop�rty.
<br /> LENDER'S EXPENDITURES. I# any acti�n or proceeding is commenced that would materiaily affect Lend�r's interest in
<br /> th� Praperty or �� Trustor fails to comp�y with any pro�ision of this Deed ❑� Trust ❑r any Related Do�uments, including
<br /> but not limited to Trustar's failure ta c�mply w�th any obligation to maintain Existing Indebtedness fn good standing as
<br /> required belaw, vr to discharge ar pay wh�n due any amounts Trustar is required to discharge or pay under this Deed of
<br /> Trust ar any Related Dacuments, Lender on Trustar's beha�f may �but shall nat be ob�igated to� �ake any actiQn that
<br /> Lender deems appropriate, including bu� not limited to discharging or paying a�l taxes, Eiens, security interests,
<br /> encumbrances and other claims, at any time le�ied or pla�ed on the Property and payin� all �osts far insuring,
<br /> maintaining and preserving the Property. Ail such expenditu�es incurred or paid by Lender �ar such purposes wil� then
<br /> bear interest at the rate charged under the Note frvm the date in�urred ❑r paid by Lender to the date �# repayment �y
<br /> Trustar. Ail such expense� wi�l become a part af th� indebtedness and, at Lender's aption, wili �Ay he payahfe nn
<br /> demand; tB� be added to the ba3ance at �he Note and be appartianed among and be payat�le with any instal�ment
<br /> payments to became due during either t 17 the term of any applicable insurance palicy; �r ��� th� remaining t�rm of
<br /> the Nate; or {C} be treated as a balloon payment which will be due and payable at the Note's matu�ity. The Deed of
<br /> T�ust aisa will secure payment of these amaunts. Such right shall be in addition to alf ❑ther rights and remedies t❑
<br /> which Lender may he entitied upvn Default.
<br /> VIIARRANTY: DEFENSE aF T1TLE. The following pro�isions relating to awnership af the Property are a part of this Deed
<br /> �f Trust:
<br /> Ti#le. Trustar warrants that: �a� Tfustvr h�lds good and marketabke tit�� af �ecard to the Property in fee simple,
<br /> free and clear of all liens and �ncumbrances ❑ther than those set forth in th� Real Property description ❑r in the
<br /> Existing indebtedness sect€on t�elvw or in any title insuran�� pali�y, ti�le report, ar finai title flpinion issued in fa�or
<br /> o�, and a�cepted by, Lender in conne�tivn with this Deed of Trust, and tb� Trustar has the fuii right, power, and
<br /> au�ht�rity to execute and deli��r this ❑eed ❑f Trust t❑ Lender.
<br /> Defense vf Titte. 5ubject ta the exception in the paragraph abo��, Trustvr warrants and will fore�er defend the
<br /> title t❑ the Property against the iaw#ul claims of all persons. In th� e�ent any action or proceeding is c�mmenced
<br /> that questians Trustor's tit�e ❑r the interest❑#Trustee ❑r Lende� under this Qeed of Trust, Trustar shall defend the
<br /> action at Trustar's expense. Trustvr may be the nominal party in such proceeding, bu# Lender shall be entitled to
<br /> parti�ipate in the proce�ding and to be represented in �he praceeding by c�unsel ❑f Lender's own choice, and
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