|
2� 17� 1979
<br /> DEED �F TRUST
<br /> 4�ontinued� Page 3
<br /> reasonahly a�ceptable to Lender. Trustor, upon request af Lender, will deli�er �o Lender fr�m time to time the
<br /> pvlicies or �er�if�cat�s of �nsurance in �orm satisfactory ta Lender, �ncluding s�ipulatians tha� co�erages will nat be
<br /> cancelled or dimin€shed without at leas�thirty �30} days prior wri��en notice�o Lender. Each insurance policy a€s�
<br /> shall incfuds an endorsement pro�iding �hat co�erage in�a�a�❑f Lender wi�l nv�be impaired in any way by any act,
<br /> omissivn or default af Trustor or any ather p�rson. 5houid the Rea[ Property be located in an area designated by
<br /> the Adminis�ratvr o�the Federa� Emergency Management Ag�ncy as a special flood hazard area, Trustor agrees t�
<br /> obtain and maintain Federal F�ood lnsurance, if a�ailable, for the �ull unpaid principaf baiance vf the Ivan and any
<br /> prior �iens on the property securing the Ioan, up ta �he maximum poiicy �imits s�t under th� National Ffaod
<br /> insurance Program, o�as otherwise required by Lender, and t�maintain such insurance�or the�erm o��the loan.
<br /> Appl�cativn of Pro�eeds. T�usto� shall promptly no�ify Lender �f any loss or damage t❑ the Property. Lender may
<br /> mak� proof of �oss if Trustor �ails to do so within �ifte�n {15� days o� the �asua�ty. Vllhe�her ar no� Lende�'s
<br /> security is impaired, Lender may, a� Lender's election, recei�e and retain the pro�eeds o�r any insuran�e and apply
<br /> the proceeds #� the reduction ❑f �he lndebtedness, payment of any Eien a�fecting the Proper#y, or the rest�ration
<br /> and repai� af th� Property. I� Lender elecfis to apply the prviceeds to restvra�ion and r�pair, Trustor shall repair vr
<br /> replace the damaged or des�royed lmpro�ements in a manner satis#ac�ory to Lender. Lender shalf, upan
<br /> satisfa�tory pr�af ❑f such expenditure, pay �r reimburse Trustor #�om the proceeds far the reasvnable c�st of
<br /> repair vr restoratian if Trust�r is not in de�faul� under this Deed ❑f Trust. Any proceeds wh�ch ha�e not been
<br /> disbursed wi#hin 18� days after �heir re�eipt and which Lender has not committed to the repair or restoration a�
<br /> the Proper�y shal� be used first to pay any amount owing to Lender under this Deed of Trus�, th�n #o pay accrued
<br /> Enter�st, and the remainder, i� any, sha�l �� applied ta the principal baiance of the Indebtedness. I� Lender holds
<br /> any pro�eeds a��er payment in full v� the Indebt�dness, such proceeds shall b� paid to Trustor as Trustor's
<br /> interests may appear.
<br /> Trustar`s Report vn Insurance. Upan request of Lender, howe�er nvt more than on�e a year, Trus�ar sha[� furnish
<br /> ta Lender a �epvrt on each existing policy of insurance showing: 4�� the name of the insurer; ��y the risks
<br /> insured; 433 the amount of the palicy; �4� the property insured, �he then curren� rep�acemen�t �a�ue of such
<br /> proper�y, and �he manner vf determining that�alue; and �5� the expiratian date of the po(icy. Trustor shall, upvn
<br /> reques�of Lender, ha�e an indep�nden�appraiser sa�isfactory ta Lender determine�he cash�alue rep[acement cost
<br /> o�the Property.
<br /> TAX AND �NSURANCE RESERVES. 5ubjeGt to any limi�a�ions and �ansistent with any requirements set by applicable
<br /> law, Lender may requ�re Trus�or �o main�ain w€th Lender �eser�es for payment o# annual �axes, assessmen�s, and
<br /> insurance premiums, which reser�es shall be �reated by an initial deposit and subsequent monthly payments, or
<br /> paymen�ts at such ather inter�a� as payments under the Note may �e due, of a sum estimated by Lender to be sufficient
<br /> to pay fihe tv�al annual taxes, assessm�nts, and insuranc� pr�miums L�nder reasonably an�i�ipates tv be paid from
<br /> these r�ser�es. The reser�e funds shall be held by Lend�r as a general deposit�rom Trustor, which Lender may satisfy
<br /> by payment of the taxes, assessments, and insurance premiums required to be paid by Trustar as they becvme due.
<br /> Lender shal! have the right to draw upon the reser�e �unds to pay suGh i�ems, and Lender shal� nvt be required �o
<br /> determine �h� �a�idi�y ar accuracy of any i�em k�e�ore paying it. Nathing in the ❑eed of Trust shall be ��nstrued as
<br /> requiring Lender to ad�ance o�her monies for su�h purposes, and L�nder shal� nat incur any liability for anyth�ng it may
<br /> do ar omit to dv with r�spe�t to the reser�e account. Subject to any lim�tations set by app�icable law, if the reser�e
<br /> funds disclose a shortage or de#i�iency, Trustor shall pay such shortage o� defici�ncy as required by Lender. A�f
<br /> amounts in�he reser�e account are hereby pledged to �urthe�secure the fndebtedness, and Lend�r is h�reby authorized
<br /> �o withdraw and apply such amounts vn the Indebtedn�ss upvn the occurren�e of an E�ent of fl��ault. Lender shall na�
<br /> be required to pay any int�r�st ar earnings �n the reser�e �unds unless required by law or agreed fia by Lender tn
<br /> writing. Lender do�s nat hold the reser�e #unds in trust #or Trus�or, and Lender is n�t Trustor's agent for payment of
<br /> the taxes and assessments �equired t� be paid by T�usta�.
<br /> LENDER`5 E�CPENDITURES. lf any action or proce�d�ng �s commenced tha� would mat�rially a��ec� Lender's interes� in
<br /> the P�operty vr if Trus�tor fails to comply with any pro�isian af this Deed af Trust vr any Related Dv�uments, including
<br /> but not fimit�d tv Trusto�'s failure �o discharge v� pay when due any amounts Trustor is required ta dis�harge or pay
<br /> under�his ❑eed of Trust or any Related Documents, Lender on Trus�or's behalf may �but shall na� be otaliga�ed to� take
<br /> any a�tion that Lender deems apprvpriate, including but not limi'�ed ta discharging �r paying all taxes, liens, secur��y
<br /> in�erests, encumbrances and other claims, at any time �evied or placed on the Prop�rty and paying a!I cos�s fior insu�ing,
<br /> maintaining and preser�ing the Property. All such expenditures incurred or paid by Lender for such purposes wiil then
<br /> bear interest at the ra�e �harged under the Nv�e from the da�e incu��ed or paid by Lender�o the date ofi repayment by
<br /> Trustor. All such expenses will t�ecame a part of �he lndeb�edn�ss and, at Lend�r's op'�ion, wii! tA� be payable on
<br /> d�mand; �By be added to the balance of the Note and be appartioned among and b� payahle with any installment
<br /> payments �o become due during �ither {1} �he term o� any applicabie insurance policy; or {2j the rema�ning term ofi
<br /> the Note; or 4�} be treated as a hafiflan payment whi�h will #�e due and payabl� a�the Not�'s ma�urity. The Deed v�
<br /> Trust alsv w€fl secure paymen� ❑� these amvunts. 5uch right shall be in addition �v all oth�r rights and remedies to
<br /> wh�ch Lender may be entitled upon Defaul�.
<br /> VIIARRANTY; DEFENSE�F TITLE. The following pro�isions r�lating�o ovvnership v#�he Pr�p�rty are a part af�his Deed
<br /> ❑f Trus#:
<br /> Tit�e. Trustor warrants that: 4a} Trustor halds govd and marketab�e �itie �f record �o the Property in �ee simpie,
<br /> �ree and clear �� all liens and encumbrances o�her than those s�t forth in the Real Proper�y description or �n any
<br /> ti�le insurance poiicy, title repart, or final title opinian �ssued in fa�or o#, and accepted by, Lend�r in �annection
<br /> with this �eed o�Trus�, and �#�3 Trus�or has the full right, power, and authflrity to ex�cute and de{i�er�his Deed o#
<br /> Trust to Lender.
<br /> Defense of Title. Subje�t ta the exGeption in the paragraph a�o�e, Trustar warrants and will �ore�er defend the
<br /> �itle �o the Property against the lawful cEaims of all persons. �n the e�ent any action or proceed�ng is commenced
<br /> that questions Trustor's�it�� or the int�r�st of Trus�ee or Lender under this Deed vf Trust, Trustor shall defend the
<br /> acti�n at Trustor's exp�nse. Trustor may be the nominal party in such prviceeding, but Lender sha�� be �ntitled �v
<br /> par�tic�pa�e in th� praceeding and to �e represented in the proceeding by �ounsel of Lender's own chvice, and
<br /> Trustor will de���er, or cause tv be deli�ered, �o Lender such instruments as Lender may request�rom �ime t� time
<br /> to p�rmit such parti�ipafiion.
<br /> Compliance With Laws. Trus�or warran�s �hat the Proper�y and Trustor's use o� the Property camplies w�th all
<br /> existing app�ica�le laws, ordinanGes, and regulatians af go�ernmentai authorities.
<br /> SurreiWal v# Representatians and V1larranties. All repr�s�ntations, warran�ies, and agreements made by Trusto� in
<br /> this Deed of Trus�shall sur�i�e the execu�ian and deli�ery of this ❑eed vf Trust, shall be cvntinuing in nature, and
<br /> shal! remain �n�ull force and effe�t until such�ime as Trus�or's Ind�btedness shal� be paid in full.
<br /> CDNDEMNAT��N, The fvllawing prv�isions relating ta condemna�ion proceed�ngs are a part af this Deed of Trust:
<br /> Prv�eedings. I� any praceeding in condemna�ion is filed, Trustor shall promp�ly noti�y Lender in writing, and
<br /> Trustar shall promptly take such steps as may be necessary t❑ defend the ac�ion and vbtain the av+ra�d. Trustor
<br /> may k�e the nominal party in such proceeding, but Lender shall be entit�ed to participate �n the proce�ding and to be
<br /> represented in the proceeding by counsel af its own �hoice, and Trustor will deli�er �r cause to be deli�ered t❑
<br /> Lender such instrumen�s and documentation as may be requested by Lender fr�m time to time to permit such
<br /> par#icipation.
<br /> ,::
<br /> �t
<br /> �
<br />
|