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2� 17�2878
<br /> vEEv �F TRusT
<br /> �Continu�d� Page 3
<br /> c[ause �n fa�or of Lsnder. Trustor shall alsv pra�ure and maintain �omprehensi�e general lia�ility insurance in such
<br /> c��erage amvunts as Lender may request with Trustee and Lender being named as addit�onal insureds in such
<br /> liabi�ity insuran�e policies. Add�tionally, Trustor shal[ maintain such other insurance, including but nat iimited to
<br /> ha�ard, k�us�ness inte�rup�i�n, and b�iler insurance, as Lender may reasonably require. Policies shall be wr�tten in
<br /> farm, amoun�s, co�erage� and basis reasvnably accepfiable to L�nder and issued by a company or companies
<br /> reasonably acceptable to Lender. Trustor, upvn request of Lender, will deli�er �to Lender from time to time the
<br /> poiicies or cer�ifiicates of �nsurance in f�rm satisfactory to Lender, inc�uding sfiipulativns that ca�erages vuiil not b�
<br /> can�elled or dim�nished withaut a� least thirty �30y days privr written notice t❑ Lender. Each insurance policy alsa
<br /> shall include an endvrsement pro�iding that co�erage in fa�vr af Lender will not be impair�d in any way hy any act,
<br /> omissi�n vr default of Trusta� ar any �ther person. Should the Reai Prvperty be loca#ed in an area des�gnated by
<br /> the Administratar of the Federal Emergency Management A�ency as a specia! flovd hazard area, Trustor agrees to
<br /> abtain and maintain Federa� Flood lnsurance, i� a�ailable, f�r �he �ull unpaid principal balance of the loan and any
<br /> prior liens ❑n �h� property securing the ioan, up to the maximum policy limits set under the Na�ianal F�ood
<br /> Insurance Program, ar as otherwise required by Lender, and to main�ain such insuran�e�or the term o�the loan.
<br /> Application nf Prv�eeds. Trustor shal� prampt�y nv�ify Lender o� any �oss ❑r damage t� the Property. �ender may
<br /> make proof of loss if Trustor fai�s tfl dv s❑ within fifteen �153 days of the casuafty. Whether ❑r not Lender's
<br /> se�urity is impaired, Lender may, at Lender's el�ction, recei�e and retain the pro�eeds of any insurance and apply
<br /> the prviceeds to �he reduction of the �ndebtedness, payment af any li�n affecting the Prvperty, or the restaration
<br /> and repair of the Prop�rty. If Lender ele�ts to apply the proceeds �o restora�ivn and repair, Trustvr shalk r�pair or
<br /> replace th� damaged or destr�yed Impro�emen�s in a manner satis�actory ta Lender, Lender shall, upan
<br /> satisfactvey proof of such expenditure, pay or reimburse Trus�or fram the prac��ds for the reasonable cost of
<br /> repair or restvra�ion i� Trustor is nat �n d��ault under �h�s D�ed v� T�us�. Any praceeds which have not heen
<br /> dist�ursed within �$� days after their rec�ipt and wh�ch Lender has not cvmmitted ta �he repair vr restoration of
<br /> the Property shall be used firsr to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br /> interest, and �he remainder, �� any, shall he applied to the principa! balan�e o� the lndebtedness. If L�nder halds
<br /> any proceeds a�ter payment in �ull a� the Indebtedness, su�h proceeds shall be paid to Trustvr as T�ustor's
<br /> interests may appear.
<br /> Trustvr's Repor#on lnsurance. Upvn request of Lender, howe�er no� mare than once a year, Trustar shall �urnish
<br /> to Lender a repor� on each existin� policy o� insurance shvwing: ��y �he name o� the insurer; {�� �he �isks
<br /> �nsured; 43f the am�unt of the palicy; {4} the property insured, the then curr�nt replacement �alue �f such
<br /> property, and the manner of determining that�alue; and �5} the expirat�on date o�the policy. Trustor shall, upon
<br /> request�f Lender, ha�e an �ndependent appraiser satis�actvey to L�nder determEne the cash�alu� replacemen��vst
<br /> a#�h� Property.
<br /> TAX AN[7 lNSURAN�E RESERVES. Subject t❑ any limitations and consis�ent with any requir�men�s set by applicabfe
<br /> law, Lender may require Trustor to maintain with Lender reser�es for payment o�f �nnual taxes, assessments, and
<br /> insurance pr�miums, wh�ch reser�es shall �e �r�ated by an initial deposit and subsequent monthfy payments, or
<br /> payments a�such o�her inter�al as payments under the Nate may be due, o�a sum estimated by Lender to he sufif�cient
<br /> tv pay the total annual taxes, assessments, and insurance premiums Lender reasonably ant�cipates to t�� paid �rom
<br /> these reser�es. Th� reser�e funds shall b� held hy Lender as a genera� deposit from Trustor, which Lender may satis�y
<br /> by payment of the �axes, assessments, and insurance premiums r�quired to be paid by Trustar as they becvme due.
<br /> Lend�r shal� ha�e the right to draw upan the reser�e �unds tv pay such items, and Lender shall nat be required to
<br /> determine �he �alidity or accura�y o� any item b�fore paying it. Nathing in the Deed ❑� Trust sha�l �e �vnstrued as
<br /> requiring Lender to ad�ance ather monies for such purpases, and Lender shal! nat in�ur any �iability �or any�hing �t rnay
<br /> do or omit �v do with respect �o th� �eser�e accaunt. Subject tv any limitat�ons set by appli�ab[e law, if the reser�e
<br /> funds disclose a sh�rtage or deficiency, Trustor shall pay su�h shor�tage or deficiency as r�quired �y I�ender. Alt
<br /> amounts in the reser�e accoun�t are hereby pledged to#urther se�ure the Indeb�edness, and Lender is hereby a�thorized
<br /> to withdraw and apply such amounts vn�he Indeb�edness upvn the occurrence of an E�en�vf�e�ault. Lend�r shall not
<br /> be required �o pay any in�erest or earnings on the res���e �unds unless required by law or agreed to by Lender in
<br /> wrifi�ng. Lender does not hold �he reser�� funds in trust �or Trustor, and Lender is no�Trustor's a�ent for payment o�
<br /> the taxes and assessmen�s required�o be paid by Trusto�.
<br /> LENDER'S EXPENDITl�RES. I� any action or proceed�ng is commen�ed that would ma��ria�iy affec� Lende�`s interest in
<br /> th� Prope�ty or i�Trus�vr�aiis to compfy with any pro�ision of�h�s Deed vf Trust or any Refated Documen�s, incLuding
<br /> bu� nvt I�mi�ed to Trustor's failure to discharge or pay when due any am�unts Trustor is required �o discharge or pay
<br /> under this Deed o#Trust or any Re�ated Dacuments, Lender an Trustor's hehalf may {but shall not be obligated tv} take
<br /> any activn that Lender deems appropriate, in�luding but not limi�ed t� discharging or paying a�f taxes, liens, security
<br /> interests, encumbrances and other claims, at any�ime le�ied❑r pla�ed on the Prap�rty and pay�ng all casts for insuring,
<br /> maintaining and preser�ing the P�oper�y. A�! such exp�nditures incurred or paid by Lender fvr su�h purposes will then
<br /> �ear in�er�st at the rate charg�d under the Note from the date incurred or paid by Lender to the date a� repayment by
<br /> T�ustvr. Afl su�h expenses wi1� become a par� of th� Indeb�edness and, at Lender's option, wi�l �Ay be payable on
<br /> demand; 4B� be added to the balance o� the Note and be apportioned among and be payahle with any installment
<br /> paymen�ks ta be�ame due during either �13 the term of any app�i�able insurance policy; ar {2� the r�maining term o�
<br /> the Nvte; ❑r ��j be treated as a ba[foon payment which will be due and payable at the Note's maturity. The Deed ❑f
<br /> Trust a�so will secure paym�n� of these amounts. 5uch right shall be in addition ta a�l ofiher rights and r�medies to
<br /> which Lender may be entitled upan De�aul�.
<br /> V1IARRANTY: ❑EFENSE❑F TITLE. The follow�ng pro�isions relating to ownership a�F the Property are a part�f this Deed
<br /> of Trust:
<br /> Title. Trus�or warran�s that: 4a� Trustvr halds good and marketable title of record to the Property in fee simple,
<br /> free and clear af all liens and encumbrances other than those set �orth in th� Real Prop�rty descript�on vr in any
<br /> title insurance pvl�cy, �itle repor�, or f�na� ti�le opinion issued in �a�or of, and accep'ted by, Lender in connectian
<br /> wi�h this aeed of Trust, and �b� Trustor has the fuil right, pnwer, and au'thority to execute and delive�this Deed of
<br /> Trust to Lender.
<br /> De#ense af Title. Subject to �he �xception in the paragraph aba�e, Trustor warrants and will fare�er defend the
<br /> ti�le �o the Property against the lawfu! claims of a!I persons. In the e�ent any action or prviceeding is c�mmen�ed
<br /> that questions Trus�or's t�tle�r the interest of Trustee�r Lender under this Deed of Trust, Trustar shall de�fend�he
<br /> action at Trustor's expense. Trustar may be �h� nominal party in such proceeding, but Lender shal� be entitied t❑
<br /> part�cipa�e in �hs proc��d�ng and ta be represented in the praceeding by counse[ of Lender's own choice, and
<br /> Trustar wil[ d��i�er, or cause�o �e de�i�ered, to Lender such ins�ruments as Lender may request�rom time to time
<br /> to p�rmi�such par�icipativn.
<br /> Compliance With Laws. Trustor warrants that the Proper�y and Trust�r's use of the P�-vperty complies with all
<br /> existing app[icahle laws, ordinances, and regulat��ns af go�ernmen�al author�ties.
<br /> Sur�irral vf Representat�ons and Warran�ies. AI! representations, warranties, and agr�emen�s made by Trustor in
<br /> this ❑eed of Trust shal[ sur�i�e the execution and deli�ery of this Deed Qf T�ust, shalf he continuing �n na�ure, and
<br /> shall remain in full farce and effect unti� such tim� as Trustor's Indeb�edness shall be paid in full.
<br /> CDN�EMNAT[�N. The follow�ng pro�isions relating t� cvndemnativn pra�eed�ngs are a part ot this Deed o�Trust:
<br /> Proceedings. I� any pro�eeding �n condemnation is filed, Trustor shall promptly noti�y Lender in writing, and
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