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2� 17�2358
<br /> �EEa oF -rRusT
<br /> ��ontinued� Pag� 3
<br /> Notice v� Constru�tion. Trustor shal[ nvtify L�nd�r a� least �i�teen ��5� days be�ore any work is commenced, any
<br /> ser�ices are furnished, �r any materials are supplied to the Proper�y, if any me�hanic's lien, materialmen's fien, ❑r
<br /> vther lien could be asser�ed on account o� �he work, ser�i�es, or materials. Trusto� will upan request ❑f Lender
<br /> �urnish �o Lender ad�ance assuran�es satisfactory ta Lender tha� Trustor can and will pay the cos�t o# such
<br /> �mpro�ements.
<br /> PR�PERTY DAMAGE INSURANGE. The foltowing pro��sians relat�ng to insu�ing the Praperty are a part of�his De�d of
<br /> Trust.
<br /> Maintenance o� Insurance, T�ustor shall procure and maintain pvlicies ❑� fire insurance with standard extended
<br /> co�erage endorsements on a replacement hasis fo� �the full insurable �a[ue ���ering alf lmpro�emen�s on �he Real
<br /> Property �n an amount sufficient to a�oid appliCatian ❑f any c�insurance clause, and with a standard mortgage�
<br /> clause in fa�vr af L�nder. Trustor sha�l also procur� and ma�ntain comprehensi�e general liability insurance in such
<br /> co�erage amounts as Lender may request with Trustee and Lender befng named as additionai insureds in such
<br /> l�abi�ity insurance polic�es. Add��ionally, Trustor shall mainta�n such other insurance, includrng bu� n�t �imi�ed ta
<br /> hazard, business interrup�tion, and bail�r insurance, as Lender may reasonably requi�e. Policies shall be written in
<br /> f�rm, amounts, c�v�rages and basis reasvnably acceptable t❑ Lender and issued by a company ar campanies
<br /> reasonably acceptal�l� to Lender. Trustor, upon request of Lender, wifl deli�er tv Lender �rom �ime to �ime the
<br /> policies or �er�ificates of insurance in form satisfiactflry to Lende�-, including stipulatians that c��erages will not be
<br /> �ancelled or diminished withou�at least thirty �30} days privr w��tten nvtice to Lender. EaCh insurance p�licy also
<br /> shall include an endorsement pro�iding tha�cv�erage in fa�ar af Lender will no�be impaired in any way by any a�'t,
<br /> omissivn or defau�t a#Trustor or any other person. 5hould the Real Pr�perty �e [ocated in an area designated by
<br /> th� Administrator o��he Federal Emergency IUlanagement Agency as a special flood hazard area, Trus#or agre�s to
<br /> obtain and maintain Federal F�aod lnsurance, if a�ai�able, for the full unpaid prin�ipal balance o� the laan and any
<br /> prior liens on th� property securing �he Ivan, up tv the maximum policy limits set under the National Flavd
<br /> Insurance Program, or as othervuise required by Lender, and to maintain such insurance for the term a�the lvan,
<br /> App���atian vf Proceeds. Trus�or shall prompt�y notify Lender❑f any Ioss vr damage to the Property. Lender may
<br /> make pr�of o� loss i� Trustor fa�ls �o do so wi�hin fifteen �15� days of �he casualty. Whe�her �r not Lender's
<br /> security is impaired, Lender may, at Lender's election, recei�e and retain the prflceeds a#any insurance and apply
<br /> the proceeds to the reduction Qf the indebtedness, payment of any lien affecting �he Prope�rty, or the restorat�on
<br /> and repair of the Property. If Lender ele�ts tv apply th� proc��ds t❑ restarativn and r�pa�r, Trustor shall repair flr
<br /> replace �he damaged or destroyed Impro�ements in a manner sa�isfactory tv Lender. Lender shall, upon
<br /> satis�actory provf of su�h expendi�ure, pay or re�m�u�se Trustar from the prvice�ds fo� the reasvnable cos� af
<br /> �epa�r or restoration i� Trustor is nvt in de�Fault und�r #his Deed of Trust. Any pr�ce�ds which ha�e not been
<br /> disbursed within 18� days after �heir receipt and whi�h Lend�r has not cammitted fio �he repair vr r�storation of
<br /> �he Property shalf be used fi�st to pay any amount owing t❑ Lender und�r this Deed of Trust, �hsn to pay accrued
<br /> interest, and the remainde�, if any, shall be applied to the principal balance vf the Indebtedness. if L�nder ha[ds
<br /> any proceeds a�ter paymen� in #ull o# the Indeh�edness, such praceeds shali be paid to Trust�r as Trustor's
<br /> inter�sts may appear.
<br /> Trustor's Report an lnsurance. lJpon request �f Lender, harrve�er nat more �han once a year, Trustor shall furnish
<br /> to Lender a report on ea�h ex�st�ng palicy vf insurance showing: t�} the name vf the insurer; {2� �the risks
<br /> insured; �3} the amount ❑fi the poli�y; t4} the prop�rty insured, �he then current �eplacement �alue o� such
<br /> property, and �he manner of determining that�alue; and �5� the expiratian date of th� policy. Trustor shafl, upon
<br /> request o�Lender, ha�e an independent apprais�r satis�actory to Lender determine the cash�a[ue replacement cost
<br /> a�the Pr�p�rty.
<br /> TAX AND �NSURANCE RESERVES. Subj��t to �ny limitations and cvnsistent with any requiremen�s set by applicable
<br /> iaw, Lender may require Trustor to maintain wi#h Lender reser�es for payment of annual taxes, assessments, and
<br /> insurance pr�miums, which r�ser�es shal! be created by an initial deposit and subs�quent monthly paymen�s, �r
<br /> payrr�en�s at such other inter�ai as payments under�he Nvte may be due, of a sum estima�ed by L�nder to be sufficient
<br /> ta pay �he total annual taxes, assessmen�s, and insurance premiums Lender reasonahly an#i�ipates t❑ be paid from
<br /> �h�se �ese��es. The reser�e funds shal� be held by Lender as a general deposit�rom Trusfior, which Lender may sat�sfy
<br /> by payment of �he taxes, assessm�nts, and insuran�e premiums required to be paid hy Trusto� as they become due.
<br /> Lender shall ha�e the r�ght �o draw upon the reser�� �unds �v pay such items, and Lender shall not be required to
<br /> determine the validity or accuracy of any �tem before paying it. Nothing in the Deed af Trust shall be canstrued as
<br /> requiring Lender to advance ather monies fior such purpvses, and Lender shall not incur any liability for any�hing it may
<br /> do or omi� #o do with respect ta the reser�� a�count. 5ubject ta any limitat�vns set by applicable iaw, if the reser�e
<br /> �unds disclose a sho�tage or defiiciency, Trus�vr shall pay such shvr�age or defiicien�y as r�quired by Lender. All
<br /> amounts in the reser�e account are hereby pledged ta fiur�her secure the Indebtedness, and Lender is hereby authvri�ed
<br /> to withdraw and appfy su�h amounts on the lndebtedness upon the o�currence of an Event of Default. Lender shall not
<br /> be required ta pay any in�erest vr �arnings on the reser�e #unds unless required hy law or agreed tv by Lender in
<br /> writing. Lender do�s not hold the reser�e �unds in trust far Trusto�, and Lend�r is not Trus�or's agen� for payrnent af
<br /> the tax�s and assessments required�o be paid by T�ustor.
<br /> LENDER`S EXPENDITURES. I�any action or proceeding is cammenced that wvuld materially a�fect Lender's in�eres�t in
<br /> the Property vr if Trustor�ails to comp[y wi�h any pro�ision a�this Deed o#Trust or any Fdelated �7ocuments, �ncluding
<br /> but nv� limited t❑ Trus�or's fiailure to discharge or pay v►rhen due any amaunts Trust�r is required #v discharge or pay
<br /> under�his Deed of Trust or any Relat�d ❑ocuments, Lender on Trus�or's behalf may 4but shall nQt b� ob[igated toy �ake
<br /> any action that Lender deems appropriate, includ�ng bu� not limited �o discharging or paying a[� taxes, [�e�s, security
<br /> interes�s, encumbrances and other Claims, at any time le�ied ar piaced an the Property and paying all costs�or insuring,
<br /> maintaining and preser�ing the Prvperty. A!1 such expenditures incurred ar paid by Lender f�r such purposes ►rvill then
<br /> bear int�rest at the rate charged und�r th� No�� firom �he date incur�ed or paid by Lender to the date ❑f repayment by
<br /> Trusfior. A[f su�h expenses wiil become a par� flf the lndeb#edness and, at Lender's ❑pt�vn, w�ll �A� be payable on
<br /> _ demand; �Bf be added to the balance o� the Note and be apportivned amang and be payahle wi�h any installment
<br /> paymen�s �o �ecome due during ei�her 413 the term ofi any applicable insurance policy; �r 42y th� remain�ng term o�
<br /> the Note; vr tC� be trea�ed as a k�alloon payment which will be due and payabie at�he No�e's maturity. The Deed flf
<br /> Trust also wili secur� payment af �hese amounts. Such right shali be in additian to al! other rights and remedies tv
<br /> which Lender may be enti�led upan Default.
<br /> 1NARRANTY; DEFENSE�F TITLE. The folfowing pro��sions relating to vwnership vf the Property are a part af this Deed
<br /> of Trust:
<br /> T�#!e. Trustor warrants that: 4a� Trustor holds good and marketable ti�le o� record �a the Prvperty in �ee simple,
<br /> free and clear o� all �iens and encumbrances ❑th�r than those se� #orth fn the Rea� Property descrip�ion or in any
<br /> �it�e insurance po[�cy, titl� r�po��, or final title opinion issued in fa�or o�, and accept�d by, Lender in connection
<br /> with this Deed of Trus�, and �h3 Trus�or has the fufl right, pvwer, and authority to execute and deliver this Deed af
<br /> Trust�o Lender.
<br /> Defense vf Ti�le. Subject to the exception in the para�raph ab��e, Trusto� warrants and will fore�er defend the
<br /> titl� to the Property against the lawful claims of all persons. In the e�en� any a�tion or proceeding is cvmmenced
<br /> that questians Trustar's title or�he in�erest of Trust�� or Lender under this D�ed af Trust, Trustor shall defend the
<br /> actian a�Trustvr`s expense. Trustvr rr�ay be the nom�nal party in such praceeding, but Lender shafl be enti#led �o
<br /> participate in the proceeding and tv �e represen�ed in #he pro�eeding by �aunsel af Lender's own chvice, and
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