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2� 17� 1755
<br /> DEED C3F TRUST
<br /> ��or7tinued} Page 3
<br /> �vrm, amounts, cv�erages and basis �easonably ac�eptable t❑ Lender and issued by a company or Campanies
<br /> reasonably acc�ptable �o Lender. Trustor, upon request af Lend�r, will deli��r tv Lender from t�me to �im� the
<br /> pol'€cies or c�rti#i�ates af insurance in form satis�acfiv�-y to Lender, including stipulativns that �a�erages wi{! nvt be
<br /> canc�lled or diminished without at �east�hirty �3�} days priar writt�n notice �to L�nder. Each insuran�e policy a�so
<br /> shall include an endorsemen�pro��ding that co�erag� �n fa�or of L�nder will not b� impaired in any way by any act,
<br /> vmission or de�ault o�Trustor vr any vther persvn. Shvuld the Real Proper�y b� ivcated in an a��a designated by
<br /> the Administratar of the Federal Emergen�y Managemen�Ag�ncy as a special f�a�d ha�ard area, Trustor agre�s to
<br /> vbtain and maintain Federal Flaod insurance, if a�ailable, for th� fuli unpaid principa� balance of the loan and any
<br /> prior liens an the property securing the fvan, up to the maximum policy limits set under the Nationa! Flood
<br /> InsuranGe Program, or as otherwise required by Lender, and tv maintain su�h insurance for the term of�he loan.
<br /> Appli�ativn af Proceeds. Trustor shall prompt[y notifiy Lender o�any �oss or damage to the Proper�y. Lender may
<br /> make proo� of Ivss i� Trustor fails tv do so within fifteen 4�5� days of the casual�y. Whether vr not Lender's
<br /> sscurity is impaired, Lender may, at Lender's electivr�, recei�e and retain the praceeds o�any insurance and apply
<br /> the proceeds �o the reduction of �he lnde�fiedness, payment vf any lien a�fe�ting the Property, or the res�vra€ion
<br /> and repair of�he Property. If Lender ele�ts to apply the proceeds to restora�ion and repair, Trustor shall repair vr
<br /> replace the damaged �r destrvyed lmprfl�ements in a mann�r satis�actory to Lender. Lender shall, upon
<br /> satis�actory proo� of such expenditure, pay �r refm�urse Trustor f�om the proceeds fvr the reasonable cost ❑f
<br /> r�pair or restoration ifi Trustor is not in default under this Deed of Trus�. Any proc�eeds which ha�� nat b�en
<br /> dis�ursed with�n �80 days af�er #heir receipt and which Lender has not committed to the r�pair or res�ora#ion of
<br /> the Property shall be used firs�to pay any amaunfi ❑wing to Lender under this Deed of Trust, then to pay a�crued
<br /> interest, and the remainder, if any, shall be app�ied to �he principa! balan�e of the Indebtedness. If Lender hQlds
<br /> any prv�e�ds af�er paymen� in full of the �nd�btedness, su�h proceeds shal! be paid to Trustar as T�ustar's
<br /> interests may appear.
<br /> Trustar's Report on Insurance. Upon request o� Lender, howe�er no� mare �han once a year, Trustor shall furnish
<br /> t❑ Lender a report on each existing poli�y ot insurance showing: �'�� the name of the insurer; 4�� the risks
<br /> insured; �3� th� amount of �he poli�y; 44} the prvpe�ty insured, th� then curr�nt replac�ment �afue of such
<br /> property, and the manner v�determining �khat�alue; and {5� �he expiratian da�e of the policy. Trustor shall, upon
<br /> request vf Lende�, ha�e an independ�nt appraiser satisfactory�o Lender de�ermine the cash value �eplacement cost
<br /> o�the Property.
<br /> TA�C AND lNSURANCE RESERVES. Sub}ec� to any limita�ions and Gonsis�ent with any requirements set by applicable
<br /> law, Lender may require Trus�ar to main�ain with Lsnder reser�es �or payment o# annual taxes, assessmsnts, and
<br /> insu�ance premiums, which reser�es shall b� crea�ed by an initia� deposit and suhsequent monthly payments, or
<br /> paymen�s a�such other inter�al as payments under the Note may be due, af a sum es�ima�ed by L�nder ta b� su��Ficient
<br /> to pay the tvtal annual taxes, assessments, and �nsurance prem�ums Lender reasvnably anticipates to be paid fram
<br /> these rese��es. The reserve�unds shall be held by Lender as a general deposi�fram Trustar, which Lender may sa'�isfy
<br /> by payment of the �axes, assessments, and insurance premiums required t❑ be paid by Trus�or as they become du�.
<br /> Lender shall ha�e the right to draw upon the reser�e �unds tv pay such items, and Lender shall not be requ�red to
<br /> dete�mine �he �alidi�y or accuracy of any item t�e�ore paying it. Nathing in the Deed flf Trust shall be construed as
<br /> requiring Lender tv ad�ance o�her monies for such purpvses, and L�nder shall not incur any liability for anything it may
<br /> do or omit to do with respect to the reserve accflun�. Subject ta any limitat�ons set by applicable law, i� the reser�e
<br /> funds dis�fose a shortage or d��ic�ency, Trustor shall pay such shortag� ar deficien�y as �equired by Lender. Al[
<br /> amvunts in the �eser�e a�count a�e hereby piedged ta further se�ure the [ndebtedness, and Lender is hereby au�horized
<br /> to wi�hdraw and app�y su�h amounts on th� Indeb�edness upon th�occurrence of an Event of Default, Lender shall not
<br /> be required to pay any int��est or earn�ngs �n the reser�e �unds unfess required by law or agre�d to k�y Lender in
<br /> writing. �,ender daes nvt hold �he reserve �unds in trust fvr Trust�r, and Lender is nvt Trust�r's agent for payment of
<br /> the taxes and assessments required to be paid by Trustor.
<br /> LENDER`S EXPENDITURES. If any action or proceeding is commenced that would ma�erially affec� Lender's interest in
<br /> the Property or if Trustor fails �o �vmply with any pro�ision vf�his �eed o�Trust or any Related Dacuments, including
<br /> but not limited t❑ Trus�vr's failure tv discharge or pay when due any amounts Trustor is required to discharge or pay
<br /> under this Deed o�T�us�or any Related nocuments, Lend�r on Trus�or's �ehalf may 4hut shall not be abiigated toy tak�
<br /> any activn �hat Lender deems appropriate, in�luding but not limit�d fio discharging or paying a!� taxes, liens, secur�ty
<br /> in�erests, encumbrances and ❑ther�laims, a�any time I��ied vr placed on�he Property and paying all cas�s for insuring,
<br /> maintaining and preser�ing the Praperty. All such expenditures incu��ed ar pa�d by Lender for such purposes uvifl then
<br /> bea� interest afi the rate charged under�he Nots �rom the dat� incurred or paid by Lender to the date af repayment t�y .
<br /> T�ustvr. A11 such expenses wifl become a part af fihe lnd�btedness and, at Lender's vption, will {Aj be payable on
<br /> demand; {B� be added fio the halan�e o� �he Note and be appor�ioned amvng and be payable w�th any ins�allment
<br /> payments tv become due dur�ng ei�her �1� th� �erm o� any applicable insurance policy; or t�� the remaining term o�
<br /> the Not�; or �C� b� treated as a ballaan payment which will be due and payable at�he Nvte's maturity. The Deed o�
<br /> Trust a�so will se�ure payment v# these amoun�s. 5uch right shall be in addi�ion to all �ther righ�s and remedi�s to
<br /> which Lender may be�nti�led upvn Defauft.
<br /> WARRANTY; DEFENSE QF TlTLE. The�oilowing pro�isions �elating to�wnership of#he Property are a par�ofi this Deed
<br /> of Trust:
<br /> Title. Trustor warrants tha�: �ay Trustar ho[ds good and marketab�e ti�le flf record to the Property in #e� simp�e,
<br /> free and clear of a!i liens and �ncumbrances othe� �han those set #or�h in the Real Property des�ription or in any
<br /> title insurance policy, ti�le report, ar final tit�e opinion issued in #a�vr af, and accep�ed by, Lender in c�nn�ction
<br /> with�his CJeed vf Trus�, and �b� Trustor has the full right, power, and authority ta execut� and deli�er this Deed of
<br /> Trust to Lender.
<br /> Defense nf Ti#le. Subje�t to the exception in the parag�aph abo�e, Trustvr warran�s and wil� fvre�er defend the
<br /> title to �he Property against the lawful cfaims ofi all persons. In the e�ent any action or pro�eed�ng is commenced
<br /> �ha�questivns Trustor`s title ar�he inter�st o�Trus�ee or Lender under this Deed o�Trust, Trustor shall de�end the
<br /> ac�ion at Trus�ar's expense. Trustor may be the nominal party in such pro�eeding, but Lende� shall he entitled t❑
<br /> participate in the proceeding and tv �e repr�sented in th� p�o�eeding by cvunsel of Lende�'s own choi�e, and
<br /> Trustar will deli�er, vr caus� to be deli��r�d, tv Lender such instruments as L�nder may request from time to time
<br /> to permit such pa�ticipation.
<br /> Compliance Vllith Laws. Trus�or warrants that the Praper�y and Trustor`s use of the Property complies with alf
<br /> ex�sting app�i�ahie laws, ardinances, and regulations of go�ernmental autharities.
<br /> Survi�al of Repr�sentativns and Warran#ies. AI[ representa�ions, warran�ies, and agreements made by Trustor in
<br /> this Deed of Trus�sha[[ sur�i�e the execu�ion and deli�ery of�his Deed ❑#Trust, shall be �ontinuing in nature, and
<br /> sha�l remain in�ull forc� and �f�f�ct until such�ime as Trustvr's �ndebtedness sha�l be paid in fu[[.
<br /> CUNDEMNATIQN. The foll�w�ng pro�isions rela�ing�o condemnation prQceedings are a part❑f�his De�d❑�Trus�;
<br /> Prv�eedings, l� any proceeding in cvndemnation is filed, Trustvr shal� promp#[y noti�y Lender in wri�ing, and
<br /> Trusto� shall promp�ly take such steps as may be necessary tv de�end the action and obtain the award. Trus�tor
<br /> may be the nominal party in such proce�ding, but Lender shall be entitled to participate in the prviceeding and to be
<br /> represen�ed in the prviceeding by �aunsel o# its own choi�e, and Trustor will deli�er ar cause to be de�i�ered #o
<br /> Lender such instrumen�s and do�umentation as may be reques�ed by Lender from time to time to permi� such
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