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2� 17� 1771 <br /> DEE� �F TRUST <br /> �Continued� Pa�e 3 <br /> ser�ices ar� furnished, or any materials are supplied to the Property, if any mechanic`s lien, materialmen's lien, or <br /> other lien �ould be asserted on account of the work, ser�icss, or ma#erials. Trustor wi!! upan request ❑f Lender <br /> furnish tv Lender ad�ance assurances satisfa�tary tv Lender that Trustor can and will pa�y the cost o# such <br /> �mpro��ments. <br /> PR�PERTY DAMAGE INSURANCE. The foilowing pro�isivns relating ta insuring the Property are a part o#this ❑e�d of <br /> Trust. <br /> Ma�ntenance of insur�nce. Trusto�r shall procure and maintain policies vf fire insurance with standard ex#ended <br /> ca�erage endorsem�nts on a repfacement hasis for the fuli insurable �a�ue co�ering a�� lmpro�ements on the Real <br /> Property in an amvunt sufficient ta a�oid appf�cation of any coinsurance clause, and with a standard mo�gagee <br /> clause in fa�ar of Lender. Trustor shall also pro�ur� and maintain cvmprehensi�e general liability insurance in such <br /> c��er�ge amounts as Lender may request wi�h Trus#ee and Lender heing named as additional insureds in such <br /> liability insurance policies. Addi#ionally, Trust�r shall maintain su�h other insurance, in�luding but not limited to <br /> hazard, business in�erruptian, and baEler insurance, as Lender may re�sonably require. Poiicies shall �e written �n <br /> form, amounts, cv�erages and hasis reasonably acceptable to Lender and issued by a company vr companies <br /> reas�nably acc�ptahle �v Lender. Trustar, upvn request of Lender, will deli�sr to Lender from time to t�me the <br /> pali�ies or c�rtificates of insurance in form satis#actory to Lender, including stipulativns #hat ca�erages will not be <br /> cancelled or diminished withvut at least thirty {3�f days prior w�itten notice ta Lendsr, Each insurance pvlicy also <br /> sha!!include an endorsement pro�iding that co�erage in fa�or of Lender wifl not be impaired in any way by any a�t. <br /> omission or default❑f Trustor�r any ❑ther person. 5hould the Rsal Property be located in an area designated by <br /> the Administra�vr of the Federal Emergency Management Ag�ncy as a special #lood hazard area, Trustor agrees to <br /> ❑btain and ma�ntain Federal Flovd InsuranCe. if a�ailable. #or the fu�l unpaid principal balance vf the loan and any <br /> prior liens on the property secu�ing the foan, up ta the maximum pvlicy limi#s set under the Nationa� Flood <br /> Insurance Prvgram. or as oth�rwise required by Lender� and t❑ maintain such insurance for the term of the I�an. <br /> Applica#ion of Prv�eeds. Trustor shafl prvmptly natify Lender o�any ioss or damage tv the Property. Lender may <br /> make praof of lass i# Trustar fails to do so within fifteen �15y days vf the casualty. Whether vr not Lender's <br /> security is impaired, Lender may, at Lender's eiection, recsi�e and retain the proceeds of any insurance and apply <br /> the proceQds to the reduction �f #he Indebtedness, payment o# any lien affecting �h� Property, or the restorativn <br /> and repair�f the Property. If Lender slects to apply the proceeds tv restoration and repair, Trustor shalf repair or <br /> replace the damaged or destroyed Impro�ements in a manner satisfactory tv Lender. Lender shall, upon <br /> satis#a�tnry proof of su�h expendi#ure, pay ❑� reim#�urs� Trustof fram the proceeds for the reasonahle cost ❑# <br /> repair vr restoration if Trustor is not in default under this Deed of Trust. Any proceeds whi�h ha�e not been <br /> disbursed w�thin �8� days after their receipt and which Lender has no� cvmmitted ta the repair or restorativn �f <br /> the Proper#y shall be used firs#to pay any amount owing to L�nder under this Deed vf Trust, then to pay a�crued <br /> interest, and the remainder, i# any, shafl be appfied to #he principal balanc� �f the IndebtednQss. If Lender holds <br /> any pr�ceeds after payment in full of the Indebtedness, such prviceeds shall be paid tv Trustor as Trust�r's <br /> in�erests may appear. <br /> Trustor's Report an Insurence. Upon request af Lender, howe�er not m�re than once a year, Trustor shall furnish <br /> to Lender a report on each existing �olicy vf insurance showing: t1 i the name of the insurer; �2y the risks <br /> insured; �3� �he amount �f the policy; t4y the property insured, the then current replacement ►►alue of such <br /> property, and the manner of determining that�afus; and �5f the expira#ian date of the policy. Trustor shall, upon <br /> request o�Lender. ha�e an independent appraiser satisfactory to Lender determine the�ash�alue r�placement cvst <br /> o#the Property. <br /> TAX AND INSURANCE RESERVES. Subject to any limitations and consist�nt with any requirements set by applicable <br /> law, Lender may require Trustor to maintain with Lender reser�ss #vr payment vf annual taxes, assessmen#s, and <br /> insurance premiums, whi�h reser�es shall be created by an initial depvs�t and subsequent monthly payments, or <br /> payments at such other in�er�al as payments under the Note may be due, of a sum estimated by Lender to be sufficient <br /> to pay the tatal annual taxes, assessments. and insurance premiums Lender reasonably anticipat�s to be paid from <br /> these reser�es. The reser�e funds shaEl be held by Lender as a general depvsit frvm Trustor, which Lender may satisfy <br /> by payment vf the taxes, assessments. and insurance premiums required �v be pa+d by Trustor as they be�ome due. <br /> Lender shall ha�e the right to draw upon the reser�e funds tv pay such items, and Lender shafl not be required tv <br /> determine the �alidity or accura�y of any item before pay�ng it. Nothing in the aeed vf Trust shal� be construed as <br /> requiring Lender to ad�ance oth�r mvnies for such purpvses� and Lender shall not incur any fiability for any�hing it may <br /> dv �r ❑mit to dv with respect to the reser�e account. 5ubj�ct �a any limitations set by applicable law, if the r�ser�e <br /> �unds disclose a shortags �r deficiency. Trustvr shall pay such shortage ar deficiency as required hy Lender. Ail <br /> amounts in the reser�e account are hereby pledged to furth�r secure the Indebtedness� and Lender is hereby authorized <br /> to withdraw and apply such amaunts on the Indebtedness upvn the ocCurr�nce vf an E��nt o#Default. Lender shall nvt <br /> be required to pay any interest or earnings on the reser�e funds unless required by law or agrsed to by Lender in <br /> writing. Lender does not hold the reser�e funds in trust for Trustor, and Lender is not Trustar's agent for payment af <br /> the tax�s and assessments requir�d to be paid by Trustor, <br /> LENDER'S EXPENDITURES. !f any action or proceeding is commenced that wauld materially affect Lender's interest in <br /> the Proper#y or i#Trust�r fails tv comply with any pro�isivn af this Deed of Trust ar any Related Documents, including <br /> but not limited to Trustar's faifure to discharge or pay when due any amounts Trustor is requir�d to discharge �r pay <br /> under this Deed of Trust ar any Related Dacuments, Lender on Trustor's behalf may {�ut shall not be obligated to� take <br /> any action that Lender deems appr�priate, including but not iim�ted to discharging or paying a�l taxes, liens, security <br /> interests, en�umb�ances and other claims, at any time le�ied or placed on the Property and paying ail costs for insuring, <br /> maintaining and preser�ing the Property. All such expenditures incurrsd or paid by Lender for such purposes will then <br /> bear interest at the rate charged under the Note from the dat� �ncurred ❑r paid by Lender tn the date oi r�payment by <br /> Trustor. All such expenses wil! becvme a part of the Indebtsdness and, at Lender's optivn. wifl �A� be payable on <br /> demand; tBy he added to the balance of the Note and be appor�ioned among and be payable with any installment <br /> payments tv becvme due dur'rng either �1� the term of any appiicable insurance pa�icy; or �2� the remaining term of <br /> the Nvte; o� �Cf be treated as a ballvon payment which will be due and payable at the Note's maturity. The aeed vf <br /> Trust also wi�� secur� payment vf th�se amounts. Such right shall be in addition to ail other rights and remedies to <br /> which Lender may be entitled upan Default. <br /> WARRANTY:DEFENSE QF T�TLE. The following pro�isions relating to ownership of the Property are a part of this Deed <br /> �f Trust: <br /> Titte. Trustor warrants that: �aj Trust�r holds gavd and marketable title of record to the Property in fee simple, <br /> free and clear of all liens and en�umhrances other than those set fvrth in the Real Property description vr in any <br /> title insurance po�icy, title report. or final title opinivn issued in fa�or of, and accepted by, Lender in connection <br /> with this Deed of Trust. and �b� Trustor has the full right, power, and autharity to execute and deli�sr th�s ❑eed of <br /> Trust to Lender. <br /> Defense of Title. Subject ta the exception fn the paragraph abo�e, Trustor warrants and will fore�er defend the <br /> title to the Pr�perty against the lawful �laims of all persons. In the e�ent any actian or pro�e�ding is commen�ed <br /> that questions Trustor's title or the interest af Trustee or Lender under this ❑eed❑f Trust, Trustor shall defend the <br /> action at Trustor's expense. Trustor may he the nomina�l party in su�h prviceeding. bu# Lend�r shall be entitled to <br /> participate in �he proceeding and tv he represented in the proceeding hy counsel of Lender's ❑wn ch�ice, and <br /> Trustor will deli�er, or cause to be defi�ered, to Lender such instruments as Lender may requ�st from tims to time <br />