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2� 17�2391
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<br /> DEED �F TRUST
<br /> ��ontinued} Page 3
<br /> �o�erage amounts as Lende� may request with Trustee and Lender being named as add�tianal insureds in su�h
<br /> liability insurance pvlicies. Addi�ivnally, Trustar shall maintain such v#her insurance, inc�uding but not limited t❑
<br /> haaard, business interrupti�n, and boiler insurance, as Le�der may reasonably requirs. Pvlicies shall be written in
<br /> form, amounts� co►►erages and bas�s reasonably acceptable to Lender and issued by a company ❑r cvrnpanies
<br /> reasvnably ac�epteble to Lender. Trustor, upvn request v� Lender, will deli�er to Lender from time ta time the
<br /> pvlicies vr certificates of insurance in form satisfactvey tv Lender, including stipuiations that ca�erages will nat�e
<br /> cancelled or diminished without at least thirty t3Uy days prior written nvtice ta Lender. Each insuran�e pvlicy alsv
<br /> shall inc�ude an endorsement providing tha#co�erage in#a�vr of Lender will not be impaired in any way by any a�t,
<br /> amissivn ❑r default of Trustar or any ather person. 5hould the Real Property k�e lacated in an area designated by
<br /> th�Administrat�r af the Federal Emergency Management Agency as a special flood hazard area, Trustar agrees t❑
<br /> ohtain and maintain Federal Flood fnsuranGe, if a�ailable� #or �he full unpaid prin�ipal balance of the laan and any
<br /> priar liens on the property securing the laan, up to the maximum policy iimits set under the Na#ional Flood
<br /> Insuran�e Prvgram, or as otherwise required by Lende�, and to maintain su�h insurance fvr the term of the loan.
<br /> Applicetion of Proceeds. Trustor shall pr�mptly notify Lender vf any loss or dama�ge to the Propsrty. Lender may
<br /> make prao# vf Ioss if Trustvr �ails to dv so within fifteen �15f days of the casualty. Whether or nvt Lender's
<br /> security is rmpaired, L�nder may, a#L�nder's ele�ti�n, re�ei�e and retain the proceeds af any snsurance and apply
<br /> the pro�eeds ta the �eductian of the Indehtedness. payment vf any lien a�fecting the Property� or the restaration
<br /> and repair af the Property. If Lender elects tv apply the proc�eds ta restoration and repair, Trustor shall repair or
<br /> replace the damaged or destrvyed Impr�a�ements in a manne� satisfactory t❑ Lender. Lender shall, up�n
<br /> sat�sfactory prvvf v# su�h expenditure, pay or reimhurse Trustor from the pro�eeds for th� reasvnabls cost ❑f
<br /> repair ar restoratiQn �f Trustvr is nvt in default under this Deed ❑fi Trust. Any prv�eeds which ha�e nvt been
<br /> disbursed with�n 18� days after their recsipt and which Lender has nat committed #v the r�pair or restoration of
<br /> the Property shall be used first t� pay any arnvunt awing tv Lender under this Deed vf Trust, then Yv pay accrued
<br /> in�erest, and the rerna�nder, if any, shall be appl�ed to the principal bala�ce ❑f ihe Indebtedr�ess. If Lender holds
<br /> any proceeds after payment in #ull a� the lndehtedness, such pro�eeds shall be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> Trustor's Report an Insurance. Upon request vf Lender, hvwe►►er not more#han on�e a year, Trustor shall furnish
<br /> to Lender a report an each existing policy of insurance showfing: �1) the name of the insurer; 42� the risks
<br /> insured; {3� the amvunt vf #he pviicy; �4y the pr�perty +nsured, the then current replacement �aiue vf such
<br /> property, and the manner❑f determining�hat�alue: and �5) the expiration date of the pvlicy. Trustor shall, upon
<br /> request of Lender, ha�e an independent appraiser satisfactory to Lender determine the �ash�alue repla�ement�ost
<br /> vf the Property.
<br /> TA]C AN� INSURANCE RESERVES. 5ubject t❑ any limitations and consistent with any requ��ements set by applicable
<br /> law, Lender rnay require Trusto� ta maintain with Lender reser�es �or payrnent ❑f annual taxes, assessments, and
<br /> insurence premiums, which reser�es shall be created hy an initiai deposit and subsequent rnonthly payments, or
<br /> payments at such o#her inter�al as payments under the Note may be due,af a sum estimated hy Lender tv be suf#i�ient
<br /> t❑ �ay the tvtal annua� taxes. assessments, and insurance premiums Lender reasonahly anticipates to be paid from
<br /> these reser�es. The reser�e funds shall be held by Lender as a general deposit from Trustor, which Lender may satisfy
<br /> by psyrt�ent af t�e taxes, assessments, and insuran�e pr�miums required to be paid by Trustor as they becorrre �lue.
<br /> Lende� shall ha�e the right to draw upan the reserve funds t❑ pay such items� and Lender sha�l not be required to
<br /> d�termine the �alidity Qr accuracy of any item before paying it. Nothing in the ❑e�d of Trust shall be cvnstrued as
<br /> requiring Lender to advance other monies for such purposes, and Lender shall not in�ur any liah#lity for anything it may
<br /> do ❑r omit t� do with respect to the reser�e account. Suhject to any limitations set by app!}cable lav►r, if the reser�e
<br /> funds disclose a shvr�age o�- deficien�y, Trustvr sha11 pay such shortag� ❑r de�iciency as required by Lender. All
<br /> amounts in the reser�e account are hereby pfedged to further secure the Indebtedness, and Lender is hereby authorized
<br /> to withdraw and apply such amvunts an the Indebtedness upon the o�currence of an E�ent of Defaul�. Lender shall n�t
<br /> be required to pay any interest or earnings ❑n the reserWe tunds unless requtred hy law or agregd to by Lender in
<br /> writing. Lender does nat hold the reser►re funds �n trust for Trustor, and Lender is not Trustor's �gent for payment of
<br /> th�taxes and assessrnents required tv b�paid by Trustvr.
<br /> LENDEi�'� EXPEN�ITLIRES. !f any action or pro�eeding is comrnenced that would materially affect Lender's interest in
<br /> the Property or if Trustor fails to cvmp�y with any pro�isivn of this ❑eed vf Trust ar any Related Dacuments, inciuding
<br /> but nat limited to Trustvr`s failure ta discharge ar pay when due any amounts Trustvr is required t❑ discharge or pay
<br /> under this Deed of Trust or any Related Documents, Lender on Trustor's hehalf may �but shall not be ohligated ta} take
<br /> any ection that Lender deems apprapriate, including but not I�mited tv discharging or paying af! taxes, liens, se�urity
<br /> interests,encumbrances and other claims, at any time#e�ied ar placed vn the Property and paying all costs for insuring,
<br /> maintaining and preser►►ing the Prvperty. All such expenditures incurred ar paid hy Lender for such purposes will then
<br /> bear interest at the rate charged under#he Nnte fr�m the date incurred or paid �y Lender to the date of repaym�nt by
<br /> Trustor. A11 such expenses will becorne a part of the Indebtedn�ss and, at Lsnder's ❑ptian, will �A� he payable �n
<br /> demand; �6f be added to the balance vf the Note and b� app�rtivn�d arnang and k�e payable with any installment
<br /> p�yments to b�com� due during ei�her �1 j th�term of any applicabl� insurance policy; or �Zy the remaining term of
<br /> ths Note; ❑r �C� be treated as a balloon payment which will be due and payabf� at the Nvte's maturity. The Deed ❑f
<br /> Trust also will secure payment of ihese amounts. 5u�h right shal� be in addit+on to a1i other rights and remedies tv :
<br /> whi�h Lender may be entitl�d upon D�#au1t. �
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<br /> WARRANTY; DEFENSE�F TITLE. The fvllowing prv�isivns relat+ng tv ownership of#he Pr�perty are a part❑f this Deed �
<br /> of Trust:
<br /> Title. Trustor warrants that: �a� Trustor halds goad and marketabl� title of rec�rd ta the Property in fee simple,
<br /> free and clear a# all liens and encumbrances vther than thase set forth in the Real Property description ar in any
<br /> t�t1e insurance policy, title report, ar final title ❑pinivn issued in fa�or vfi, and a�cepted by, Lender in connectian �
<br /> with#his Deed❑#Trust, and �b�Trustor has#he fuli right, power, and au�hority to exe�ute and deli�er this Deed oi �
<br /> Trus#to Lender. �
<br /> Qefense of Title. 5ubject tv the exception in the paragraph abo�e� Trustor warrants and will fo�e�er defend the
<br /> title ta the Property against the �awful claims af all persons. �n the e�ent any action ❑r proceeding is comrnen�ed
<br /> that questions Trustor's#itle ar the inter�st vf Trustee or Lender under this Deed af Trust, Trustor shall defend the
<br /> action at Trustar's exp�nse. Trustor may be the nominal party in such proceeding, but Lender sha�l be entitled to �
<br /> participate in the pro�eeding and to be represented in the pro�eeding by �ounsel of Lender`s own choice, and f
<br /> Trustar will deli�er, or cause tv be dgli►►ered, t� Lender such instruments as Lender may request#rom time t❑time �
<br /> to perrnit such participa�ion. �
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<br /> Complian�e Vlrith Laws. Trustar warrants that the Property and Trustor's use af the Property complies with all `
<br /> exi�t�ng applicable laws, ordinan�es. and regulations af go�ernmental auth�r�ties. ;
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<br /> Sur�i�al of Representations and Warranties. All representatians, warranties, and agreements made by Trustar in '
<br /> this Deed of Trus#shal!sur�i�e the execution and deli�ery of this Deed of Trust, sha#�be continuing in nature, and '
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<br /> shall remain in full farce and effect unti!such t�me as 8orrvw�r's Indebtedness shall be paid in ful�. I
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<br /> CONDENINATE�IV. The following prv�isions relating to�ondemnation proce�dings are a paft vf this Deed of Trust: �
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<br /> Pro�eeding�. If any proceeding in �ondemnativn is filed, Trustor shall pramptly notify L�nder in writing, and f
<br /> Trustor shall promptly take su�h steps a� may be necessary tn defend th� a�tion and �btain the award. Trustvr ;
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