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2� 17�2�88
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<br /> DEED �F TRL��T
<br /> ���ntinu�d} Pags 3
<br /> cancellgd or d�minished without at least thirty �3�� days privr written notice to Lender. Each insu�ance poli�y also
<br /> shall in�lude an endarsement pro�iding that co�erage in faWar af Lender wil�not he impaired in any way by any act,
<br /> omissian ar default of Trustor or any other person. Should the Real Prvperty be located in an area designated by
<br /> the Administrator❑f the Federal Em�rgency Management Agency as a special��ond hazard area� Trustar agrees to
<br /> obtain and mainta;n Federal Flvad Insurance, if a�ailahle, far the full unpaid principal balance of the loan and any
<br /> prior �iens on the property securing the fvan, up ta the maxirnum policy Itmits set under the National Fload
<br /> Insuran�e Prvgram, or as otherw�se requ�red hy Lender, and to maintain su�h insurance for the t�rm of the I�an.
<br /> Appfication nf Proceeds. Trustor shail pramptly notify L�nder❑f any Ivss or damage�o the Property. Lender may
<br /> mek� p�oa# v� Ioss if Trustor fa�ls to d❑ sa v+rithfn titteen ��5y days vf the Gasua��y. 1Nhexfier or n�t Lender's
<br /> secu�ity is impeired. Lender may, at Lender's election, recei�e and re#ain th� praGe�ds o�any insurance and app#y
<br /> the pra��eds t❑ the redu�tian of th� Indebtedness, payment�� any lien affecting the Praperty, ar the restaration
<br /> �nd repair❑f the Prop�r�Cy. If L�nd�r elects to apply the praceeds to restoratian and repai�, Trustvr shall repair or
<br /> rep[a�e the damaged vr d�stroyed lmpro��rnents in a manner satisfactory #a Lender. Lender shall, upon
<br /> s�t�sfactory p�vnf ❑f su�h expend�ture, pay or rermhurse Trustar f�vm the prviceeds fvr the reasonahle cost of
<br /> repair or restvration if Trustor is nvt in default under this Deed vfi Trust. Any proc��ds wh�ch ha�e nvt been
<br /> disbursed within �8� days after their receipt and which Lender has nvt �ommitted tv the repair ❑r restorativn ❑f
<br /> the P��perty sha[� be used first to pay any amaunt vwing ta Lender under this ❑eed of Trust, t�en to pay ac�rued
<br /> interest, and the remainder. i� any, shall be applied #o the principal balance of the lndebtedness. !f Lender holds
<br /> any prviceeds aftgr payment in full of the Indebtedness, such proceeds shall he paid to Trustar as Trustor's
<br /> interests may appear.
<br /> Trustnr's Repart an tnsur�nce. Upon request v#Lender, howe�er not more than once a year� T�us�vr shall furnish
<br /> ta Lender a report an each existing palicy of insurance shaw�ng: t1 y the name �fi the insurer; ��y the risks
<br /> insur�d; �3y the �mount vf the palicy; �4) the prvperty �nsured, the then �urrent rep[acement �alue of such
<br /> praperty, and the manner of determining that�a�ue; and �5y #he expiratian dat�ot#he pa��cy. Trustor s�al�, upon
<br /> request af Lender, ha�e an independent appraiser satisfactory to Lender determine the cash�alu�r�placement cost
<br /> af the Property.
<br /> TA]C AND INSURANCE RESERVES, Subject to any limitations and cvnsistent with any requirements se� hy applicabie
<br /> law, Lender may require Trustor ta mainta+n wi#h Lender resgr�es fvr payment ❑f annual taxes, assessments, and
<br /> insurance premiums, which reser�es shall be creeted by an initial deposit and subsequent monthly payments, vr
<br /> payments at such othsr interva!as payments under the Not�may be due, vf a sum estimeted by Lender to be suf#ici�nt
<br /> xv pay �he total annua� taxes, assessments, and insuran�e premiums Lender reasonably anticipates t❑ be paid fram
<br /> these�eser�es. The reserve fur�ds sha11 be held by Lender as a gener�l deposit from Trustor� which Lende�may satisfy
<br /> by payment ❑� the taxes� assessrnents, and in�urance premi�ms required to be paid by Trustar as they became due.
<br /> Lender shatl ha�e the �tght t� draw upan the reserve funds to pay such �t�ma, and Lender shall not be required to
<br /> determine th� �alidity or ac�uracy of any item hefvre paying i#. Nothing in the Deed o� Trust shall be construed as
<br /> requiring Lender ta ad�an�e ather monies fvr such purposes� and Lender shall not incur any liability for anything it may
<br /> dv or ❑mit�o do with respect to the reser�e account. 5ubject tv any �imitatians set by app��Gable Saw, if the reser�e
<br /> funds disc�ose a shvrtage or defi�ien�y, Trustor shall pay such shortage ar defici�ncy as required by Lender. All
<br /> amounts�n the rese��a accaun�are here�y p��dged t� turther se�ure the Indehtedness, a�d Lender is hereby authflrized
<br /> to withdraw and apply such amounts vn the lndebtedness upon the accurrence of an E�en�of❑e�ault. Lender shall n�t
<br /> be required to pay any interes# ❑r earnings on th� reser�e �unds unless required by iaw or agreed to by Lender in
<br /> writing. Lender does nflt hoid the reser�e funds in trust#ar Trustvr, and Lender is not Trustor's agent fvr payment of
<br /> the taxes and assessments requ�red t❑ be paid by Trustor.
<br /> LENOER'S EXPEND�TURES. If any action or proceeding is commenced that vuauld materially af#ect Lender's interest in
<br /> the Property or if Trustar�ails t❑ cvmply with any pro�isivn o#this De�d of Trust ar any Related ❑ocuments. including
<br /> but nvt iirnited tv Trustor's faiiure tv discharge or pay when due any amounts Trustor is required t❑ discha�ge or pay
<br /> under this Deed af Trust or any Related Documents. Lender on Trustor's behalf may �but shall not be obligated toj take
<br /> any aetion that Lender deems apprapriate, inc�uding but not limEted to discharging ❑r paying all taxes. �iens. security
<br /> interests, �ncumbranc�s and oth�r�lairns, at any time levied❑r placed Qn the Property�nd paying a!I costs fvr insuring,
<br /> maintaining and preser�ing the Prnperty. All such expenditures incurred �r paid by Lender foc such purposes wi�l then
<br /> bear interest at the rate charged under the Not� fram the date incurred or paid by Lender to the date vf repayment hy '
<br /> Trustvr. All such expenses wi�f become a part ❑f the lndgbtedness and, at Lender's option, will �Af tae peyable an
<br /> demand; �By be added to the bafa�nce ❑f the Nate and be appvrtioned emong and be payahle with any insta��ment
<br /> payments to hecvme du�during either {�f the term vt any ap�licable insurance policy; or {2� the��maining term��
<br /> the Note; �r �C� he treated as a balloon �ayment which ►n►ill be due and payahle at the Note's maturEty. The �eed o#
<br /> Trust alsa will secure payment of these amounts. 5uch right shall be in addi�i�n ta all ather rights and remedies tv
<br /> which Lender mey be entitled upon D�fault.
<br /> WARRANTY;DEFENSE qF TITLE. The foll�wing prv�is�ans relating to ownership of the Property are a part af this Deed
<br /> o#Trust:
<br /> Titie. Trustvr warcants that: �ay Trustvr holds gvod and marketsble tit�e af record tv the Praperty in fee 9imple,
<br /> free and c�ear of all iiens and encum�ran�es ather than those set �orth in the Real Prvperty description or in any
<br /> title insurance policy, title repvrt, or final title apinion issued in fa�or ❑f, and aGcepted by, Lender �n cannection
<br /> with th�s Deed af Trust.and �by Trustor has the full right, pow�r� and authari�y#a execute and deli�er this Deed of
<br /> T�ust ta Lend�r. �
<br /> DefensB of Titlg. Subject tv th� exception in the par�graph aho�e, Trustor warran#s and will fore�er defend the
<br /> ti�le tv the Praperty against the lawful claims ❑f al! persons. In the e�ent any a�tion❑r prviceeding is commenced
<br /> that questians Trustor's title ar the interest of Trustee❑r Lender under this Deed of Trus�, Trustor shai!defend the
<br /> act{on at Trustar`s expense. �rustor ma� be the nomina� p�rty in su�h prflceeding, but Lender shall be en#it�ed to
<br /> pa�ti�ipate in the prviceeding and to be repres�nted in the proceeding�by c�unsel of Lender's own choice, and
<br /> Trustor wi�� deli�er, ❑r cause ta be deli�ered. t❑ Lender such instruments as Lender may �equest from #ime to time
<br /> ta permit such parti�ipet�on.
<br /> Cvmplianc� ►Nith Laws. Trustar warrants that #he Praperty and Trustvr's use of the Praperty c�mplies with all
<br /> existing applicab�e laws,ordinanc�s, and regulati�ns o#gvWernmen�tal authvrities.
<br /> 5ur�i�al of Representations and Warranties. AEi representations, warranties, and agreernents rnade by Trus#or in
<br /> this ❑eed of Trust shall sur�i�e the executi�n and defi��ry❑f this Deed of Trust, shall be continuing in nature, and
<br /> shall remain in full�orce and e#fect until su�h time as Trustor's lndebtedness shall be paid�n fulf.
<br /> C�NDEMNATIDN. The following pro�isions relatin�ta cvndemnation proceedings are a part af this❑eed af�'rust:
<br /> Proceedings. If any proceeding in condemnation is fi�ed� Trustor shall pramptly natify Lender in writing, and
<br /> Trustvr shall promptly take such steps as may he necessary to defend th� actian and vbtain the award. Trustvr
<br /> may be the norninal party in su�h prac�eding, but Lender she�!he entitled to partiCipate in the proceed�ng and to ba
<br /> represented in the proceeding by cauns�l of its own choice, and Trustor will deli►rer vr �ause t� be delivered #a
<br /> Lender such instrumen#s and dvcumentativn as may be requested by Lender from time tv time tio permit su�h
<br /> participation.
<br /> Application of Net Praceeds. If afl or any part of the Property is condemned by eminent doma�n prvice�dings or by
<br /> any proceeding oc purchase in lieu af�ondernnation, Lender may at its e�ectian require that all or any portion of the
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