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2� 17�2�59
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<br /> l3EED �F TRLJST
<br /> tCantinued� Page 3
<br /> �ancelled ar diminished w�thout at ieast thirty �3�) days prior written notice to Lender. Each in�urance poli�y als❑
<br /> shail include an endorsement pro�iding that�overage in fava�❑f Lendec wi11 nvt be impaired in any way by any act,
<br /> omission or default of Trustor or any other person. 5hvuid the Real Prvperty be located in an erea designated by
<br /> the Administratar o#the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to
<br /> ob�ain and maintain Federal F�ood Insurance, if a�aitab�e, far the full unpaid pr�ncipal balance ofi the Iven and.any
<br /> privr fiens on the property securing the loan, up ta the maximum palicy limi#s set under the Nationa! Flood
<br /> fnsurance Program, vr as atherw+se rsquired by L�nder,and to maintain such insuran�e fof the term af the lvan.
<br /> Application of Pra�eeds. Trustor shall pr�mptly natify Lender of any Ioss or damage to the Property. Lender may
<br /> make praof of Ioss if Trusto� fails to da so withFn fift�en �15� days �f the casualty. Vllhether vr not Lender's
<br /> security is impaired. Lender rnay, at Lende�'s elect�on. recei�e and retain the prviceeds a#any insurance and apply
<br /> the p�oceeds ta th� reduction of the Indebtedness, payment of any lien affsct�ng the Praperty, or the restaration
<br /> and repai�of the Prap�rty, If Lender elects to apply the proceeds to restorativn and repair, Trustor shall repair or
<br /> repta�e the damaged or destrayed Impro�ements in a manner satisfa�tory to Lender. Lsnder shall, upon
<br /> satisfaGtory prvvf of such expenditure, pay or reim�urse Trustor from the prviceeds for the reasonahle cvst of
<br /> repair or restorativn i# Trustar is not in default under this Deed of Trust. Any procegds which ha�e not been
<br /> disbursed within '�S� days after their receipt and which Lender has not cvrnmitted to the repair os� restoration of
<br /> the Prvp�rty shall !�e used f�rst tv pay any amaunt awing t❑ Lender under this ❑eed of Trust, #hen to pay ac�rued
<br /> interest, and the remainder, if any. shall be applied ta the prin�ipal balance of the Indebtedness. If Lender ha�ds
<br /> any proceeds a�[#er payment in full ❑f the Indeb�edness, such prnceeds shal� be paid to Trustor as Trustar's
<br /> interests may appear.
<br /> Trustor's Repvrt on Insurance. Upnn request ofi Lender, hawe�er not mvre#han vnce a year,Trustar shall furnish
<br /> to Lender a report on each existing po�i�y of insurance shvwing; �"�} the narne v� the insurer; ��y the risks
<br /> insured; t3y the arnount of #he p�iicy; R4� the property insured, the then cu�rent replacernent �alu� of such
<br /> properiy, and the manner of determining that value; and {5} the expsrativn date af the policy. Trustvr shall, upon
<br /> request of Lender� ha�e an independent appraiser satisfactory to Lend�r de#errnine ihe cash�alue rep�acement�os#
<br /> af the Praperty.
<br /> TAX AND lNSURANCE RESERVE5. Subject to any limitations and consistent with any requirements set by applicab�e
<br /> law, Lender may require Trustor t� maintain with Lender res�r�es for payment of annua� taxes, assessments, and
<br /> insuranc� premiums, which reser�es shall be created hy an initial deposit and suhsequen� mvnthly paymen�s, vr
<br /> payments�t such other inter�al as payments under the Not�rnay he due, of a sum es�imated by Lender to be sufficient
<br /> to pay the �ata� annu�� tax�s, assessments, and insurance premiums Lender reasonably anticipates to be paid from
<br /> thess reser�es. The reser�s funds sha11 he held by Lender as a general depasit from Trustvr, which Lender may satisfy
<br /> by paymen# o� the taxes� assessments. and insurance premiurns required tv be paid by Trustar as they become due,
<br /> �.ender shall ha�e the right t� draw upon the reser�e funds t❑ pay such it�ms, and Lender shall nvt be required to
<br /> determine the �a�idity or accuracy of any item before paying it. No#hing �n the Deed vf Trust shall be c�nstrued as
<br /> requiring Lender ta ad�ance ather mvnies#or su�h purp�ses, and Lender shall not in�ur any liability for anything i#may
<br /> d❑ or omit to da with respect tv �he reser�e accvunt. Subject to any limitations set by appli�abte law, i�the reser�e �
<br /> funds (�15C�OS� a shartage vr deficiency, Trustor shatt pay such shortage or d�ficien�y as requ�red hy Lender. AI!
<br /> arnounts in the reser►►e accvunt are hereby pledged tv further secure the Indebtedness,and Lendsr is h�reby authorized �
<br /> to wFthdraw and app�y such amaunts on the Endehtedness upon the occurrencg vf an E�ent❑f❑e#aul#. Lender shall nat
<br /> be required ta pay any interest ar earnings on the reserve funds unless required by �aw or agreed t❑ by Lend�r in
<br /> w��ting. Lender does not hold the reser�e �unds in trus#fvr Trustar, and Lender is nat Trustvr's agent for payment of
<br /> the taxes anti assessments required ta be paid hy Trustvr.
<br /> LENDER'S EXPEIVDiTURES, I�any actian vr proceeding is commenced that wauld materialiy affect Lend�r's interest in
<br /> the Property or i�Trustvr#ails ta cvmply with any prvvisivn of this Deed of Trust vr any Related ❑ocuments, including
<br /> �ut not iim�ted to Trustar's faiiure t❑ discharge or pay when due any amounts T�rustor is �equired t❑ discharge ❑r pay
<br /> under this De�d of Trust or any Ralated Docum�nts, Lender❑n Trustor's behalf rnay �but shell nvt be ob�igated to� take
<br /> any action that Lender deems �ppropriate. �ncfuding hut not limited to discharging ar paying a�l taxes, liens, security
<br /> in�erests,encumbrances and vther cEaims� at any tim�fer►ied or placed on�he Property and paying all casts fvr insuring.
<br /> � ma�ntaining and p�eser�ing the Property. All such expenditures incurred or paid �y Lsnder for such purpvses wi11 then
<br /> bear �nterest at the rate charged under the Note from the date incurred or pafd by Lender to the da�e af repayment by '
<br /> Trustar. All such expenses will hecome a part of the Indebtedness and� at Lend�r's aption, will (A� he payable on �
<br /> demand; �B� be added �v th� �alanc� v# the Notg and be appvrtioned among and be payahle with any instaflment �
<br /> payments to b�came due during �ither �1� the�erm of any applicable insurance pv�icy; or {2} the remaining term of �
<br /> the Note; or �C� be treated as a ballvon payment whi�h will be due and payable at#he Note`s maturity. The Deed o�F '
<br /> T�ust a�so v►riil secure payment of these amvunts. 5uch right shall be in addition to a!I other rights and remedies to
<br /> which Lender may be entitled upan❑sfault.
<br /> WARRANTY;DEFENSE�F TITLE, The follaw'rng pro�isi�ns relating tv vwnership of the Praper#y are a part❑f this Deed E
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<br /> of Trust:
<br /> Tit�e. Trustor warrant� that: taf Trustor holds good and marketable title of record to th� P�operty in #�e simple,
<br /> fre� and clear of all liens and �ncumbrances other than those se�forth in the Real Prvperty description vr in any �
<br /> title insucance palicy, title report, or f':na� title apini�n issued in fa�vr Q�, and accep#ed by, Lender in conne�#ian
<br /> with this Deed of Trust�and �b�Trustvr has the full right. power� and authority to execute and deli�er tFais Deed o#
<br /> Trust to Lender.
<br /> Defense vf Title. 5ub�ect to the exception in the paragraph aba�e, Trustor warrants and will fare�er defend the
<br /> title to the Praperty agasnst#he lawful claims of al! persons. In the e�ent any action❑r prviceeding is commenced
<br /> that questians Trustor's#itle or�he interes#af Trustee vr Lender under this Deed of Trust,Trust�r sha!!defend the `
<br /> action at Trustar's expense. Trustar may be the nominal party in such proceeding, but Lender shall be en#itled to
<br /> partic�pats in the praceeding and to be represented in the proceeding �by caunsel of Lender's ❑wn chvice, and ;
<br /> Trustar wi�1 delivsr. or cause to be deli�ered,to Lender such instrumen�s as Lender may request'from time to tirne :
<br /> ta permiC such parti�ipatian. '
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<br /> Compliance Vllith Laws. Trustvr warrants that the Property and Trustvr's use of the Pr�perty complies with a�!
<br /> exist�ng applicah�e laws,ordinances, and regulatians�f go�ernmental authvrities.
<br /> Sur�i�al of Represent�tions and Werranties. AF� representatians, warranties, and agreements made by Trustvr in
<br /> this De�d of Trust shall sur�i�e the exe�ution and deli�ery af this �eed of Trust, shall be continuing in nature, and
<br /> shafl rernain in fu�l force and effec�until such tirne as Trustor's Indebtedness shall he paid+n full.
<br /> C�NI]ENlNATf�3N. The fal�awing pra�isions re�ating to condernnativn prviceedings are a part vrt this Deed vf Trust: �
<br /> Proceedings, !f any proceeding in condemnattvn is filed� Trustvr shaf! pramptly notify Lender in writ�ng, and ;
<br /> Trustor shall promp#ly take such steps as may be necessary ta defend the actian and alatain the award. Trusta� F
<br /> may�e the nominal party in such prviceeding, but Lender shail be entitf�d to participa�te in the pro�eeding and#o he
<br /> represen�ed in the proceeding by cvunse! of its awn �haice, and Trustor will deli�er �r cause to be deli��red ta
<br /> Lender such instruments and docurnen�ation as may be requested by Lender from time to time ta permit such
<br /> participativn.
<br /> Apptication��IVet Proceeds. If all or any part�f the Praperty is �vndemned by eminent dornain proceedings vr by
<br /> any proceeding or purchas� in�ieu of candemnation, L�nder may at tts election require that a#f or any porti�n vf the
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