|
2� 17� 19�8
<br /> DEED �F TRUST
<br /> �Continued} Page 3
<br /> reasonably necessary to protec�and preserve the Pr�perty.
<br /> TAXES AND LtENS. The f�llowing pro�isions relating �o the taxes and liens an the Prope�ty are part of�his Deed o�
<br /> Trust:
<br /> Paymen#. Trusfor shall pay when due �and in a!I e�ents prior to del�nquency}a!I faxes, special#axes, assessments,
<br /> charges �includ'[ng water and sewer}, fines and impasi�ians le�ied against or on accoun# of the Property, and shali
<br /> pay wh�n due al� claims for work done on or for services rende�ed or material furnished to the Praper�y. Trustor
<br /> shall maintain the P�operty free of ail liens ha�ing priority o�er or equa[�o the�nterest o�Lender under#his Deed of
<br /> T�-ust, excep� for the lien of taxes and assessments no� due, except for the Existing lndebtedness referred to
<br /> be��w, and exc�pt as ath�rw[se pro��ded in this ❑eed of Trus�.
<br /> Right ta Contest. Trustor may withhold payment of any tax, assessm�nt, or c1aEm in connec#ion with a goad �aith
<br /> d�spute o�er the obligation to pay, so long as Lender's interes#�n #he Property �s no�jeopardized. 1f a lien arises or
<br /> is filed as a result of nonpayment, Trustor shail w�thin fifteen ('[�} days after the lisn arises or, if a lien is fil�d,
<br /> wi�hin fifteen �1�} days after Trustor has notice of the f�ing, secure the discharge of the I�en, or if�eques�ed by
<br /> Lender, depos3t with Lender cash or a suffic�ent corpora#e surety bond or other secur�ty satisfac�ory to Lender En an
<br /> amount suff�c�ent t� discharge the lien plus any costs and attorneys' fees, or other charges that cauld accrue as a
<br /> �esu�t o�a foreelosure or sale under the lien. ln any contest, Trustor sha�l defend itseif and Lender and shal�satisfy
<br /> any advers�judgment before enforGement aga€ns�the Property. Trustor shafl name Lender as an add�tional ob�igee
<br /> under any surety bond furnished in the contes#proceedings.
<br /> E��dence of Paym�nt, Trustor sha�l upon demand�urnish to Lender satisfacto�y evidence of payment of the taxes
<br /> o�assessmen�s and shal� author�ze the appropriate gove�nmenfa� official to deli��r to Lender a�any time a written
<br /> sta�ement of ths�axes and assessments against the Property.
<br /> Noti�e o�Construction, Trustor sha!! notify Lender at least f€fteen ��5} days be�ore any work is commenced, any
<br /> services are furnished, o�any materials a�e suppiied ta the Property, if any m�chanic's lien, materialmen`s�ien, or
<br /> othe� lien could be asserted on aecaunt of the work, services, or materials. Trustor w��i upvn request o�Lender
<br /> furnish to Lender advance assurances satisfactory to Lender that Trustor can and wil� pay the cvst of such
<br /> impro��ments.
<br /> PRaPERTY DANiAGE INSURANCE. The follvwing pro�isions r�lating to �nsuring th� Prope�ty are a part of th�s Deed af
<br /> T�-ust.
<br /> Maintenance of Insurance. Trustar shall procure and maintain palicies of fire insurance w�th standard extended
<br /> co�erage end�rsemenfs on a replacement basis for�he fu�l �nsurable �alue co�ering all lmpravements on the Real
<br /> Prope�ty in an amount suffcient tv avoid app�ication of any coinsurance ciause, and v+rith a sfandard mo�tgagee
<br /> clause in fa�or v�Lender,tagether w�th such other hazard and I�abiiity�nsurance as Lender may reasonabiy require.
<br /> Po�icies shall �e written in form, amaunts, cov�rages and basis reasanably acceptabie to Lender and issued by a
<br /> company or companies reason�bly accep#able to Lender. Trustor, upon request of Lend�r, will deliver to Lender
<br /> from t�me to#ime the policies or certifica�es af insurance in �orm sat�sfac�ory to Lender, including s�ipula�ions that
<br /> co�erages wi11 nof be cance�led or d�minish�d ►rvithou# at least ten ��a} days prior written notice to Lender. Each
<br /> insurance palicy a[so shall �nclude an endorsement providing thafi co�erage in fa�or of Lender w�l! not be impaired
<br /> in any way by any ac�, om�ssian or defaui�of Trustor or any other person. 5hould the Real Proper#y be�ocated in
<br /> an area designated by the Administrator of�he Federal Eme�gency Managemen�Agency as a special fload ha�ard
<br /> area, Trustor agrees �Q vbtain and maintain Federal F�ood Insurance, if a�a�lab�e, for the maximum amount of
<br /> Trus�or's credi�line and �he full unpaid pr�ncipal ba�anc�vf any prior liens on the property secur�ng the loan, up to �
<br /> the maximum palicy iimits s�f under the Natianal Fload Insurance Program, or as othenn�ise requ�red by Lender, and
<br /> to maintain such �nsuran�e for�he term o�the loan.
<br /> Application of Prviceeds. Trustor shall prompfly no#i�y Lender of any lass or damage to the Proper�y. Lender may
<br /> make praof of loss if Trustor fails to do so w[th�n fifteen [�5} days of the casualty. Wllhether or not Lender's
<br /> secur'tty is impaired, Lender may, at Lender`s election, recei�e and �etain the p�oceeds of any insuran�e and app�y
<br /> the proceeds to fhe reduc�ion of�he �ndebtedness, payment of any lien affec�ing �he Property, or the restora#ion
<br /> and repair of the P�aperty. If Lende�elec#s to appiy#he proceeds to restoration and repair, Trustor shal! repa�r or
<br /> rep�ac� the dama�ed or destroyed Impro�ements in a manner satisfa�tory to Lender. Lender sha11, upon
<br /> sa#isfactory proa� of such expenditure, pay or �e�mburse Trusfor from #he praceeds for the reasonab�e cvs� of
<br /> repair or r�stvrativn if Trustar is no� in de€au�t under this Deed af Trust. Any proceeds which have not been
<br /> disbursed w��hin 18� days after their receipt and which Lender has no� committed #o the repair or restoration of
<br /> the Prope�ty shal[ be used first�v pay any amount owing to Lender under this Deed a�Trusf, then to pay accrued
<br /> interest, and the �ema�nder, if any, shall be applied to the principal balance o�the lndebtedness. If Lender halds
<br /> any proceeds after payment in full af �he �nde�tedness, such praceeds sha11 be paid �o Trustor as Trustor's
<br /> interests may appear.
<br /> Campliance with Existing Indebtedness. During #h� period �n which any Existing Indebtedness described below �s
<br /> in eff�ct, comp(iance wi�h the insurance pro�isions cantained in the ins�rument e��dencing such Existing
<br /> Indebtedness shal! constitu�e compliance with #he �nsurance pro�isions under this Deed a� Trust, to �he �xtent
<br /> compliance with the terms vf th�s Deed of Trust wou�d e�nstitute a dupl�cation of insurance requ�rement. If any
<br /> prviceeds from the insurance become payabfe on lvss, the provisions in this Deed of Trusf far di�ision of p�oceeds
<br /> shall apply vniy ta that partion vf the proceeds not payab�e tfl the holder of the Existing Indebtedness.
<br />
|