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07-72-1999 � 9 9 �0,7 e� DEED OF TRUST Page 4�
<br /> Loan No 764424 ,� _ ��i,2 (Continued)
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<br /> policy limits se�f under the Nationai Flood Insurance Program,or as otherwise required by Lender,and to maintain such insurance for the term of
<br /> the loan.
<br /> Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if Trustor
<br /> fails to do so within fiReen(15)days of the casualty. Whether or not Lender's security is impaired,Lender may,at its election,receive and retain
<br /> the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness,payment of any lien affecting the Property, or the
<br />' �restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the
<br /> tiamaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or
<br /> "reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if Trustor is not in default under this Deed of Trust. Any
<br /> proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of
<br /> the Property shall be used first to pay any amount owing to Lender under this Deed of Trust,then to pay accrued interest,and the remainder,if
<br /> any,shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness,such
<br /> proceeds shall be paid to Trustor as Trustor's interests may appear.
<br /> Unexpired Insurance at Sale. Any unexpired insurance shall inure to the benefit of,and pass to,the purchaser of the Property coverec�by this
<br /> Deed of Trust at any trustee's sale or other sale held under the provisions of this Deed of Trust,or at any foreclosure sale of such Property.
<br /> Compltance with bcisting Indebtedness. During the period in which any E�dsting Indebtedness described below is in effect,compliance with
<br /> the insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the insurance
<br /> provisions under this Deed of Trust,to the extent compliance with the terms of this Deed of Trust would constitute a duplication of inaurance
<br /> requirement. If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust for division of proceeds shall
<br /> apply only to that portion of the proceQds not payable to the holder of the Existing Indebtedness.
<br /> Trustor's Report on l:�su�anr�. Upar.:er,uest of�en�er,however not me�re than once a ye�r,Trustor shall furnish to Lender a report on each
<br /> existing policy of insurance showing: (a)the name of the insurer; (b)the risks insured; (c)the amount of the policy; (d)the property insured,
<br /> the then current replacement value of such property, and the manner of determining that value; and (e) the expiration date of the policy.
<br /> Trustor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the
<br /> Property.
<br /> TAX AND INSURANCE RESERVES. Subject to any limitations set by applicable Iaw,Lender may require Trustor to maintain with Lender reserves
<br /> for payment of annual taxes,assessments,and insurance premiums,which reserves shall be created by advance payment or monthly payments of a
<br /> sum estimated by Lender to be sufficient to produce amounts at least equal to the taxes, assessments, and insurance premiums to be paid. The
<br /> reserve funds shall be held by Lender as a general deposit from Trustor, which Lender may satisfy by payment of the taxes, assessments, and
<br /> insurance premiums required to be paid by Trustor as they become due. Lender shall have the right to draw upon the reserve funds to pay such
<br /> items, and Lender shail not be required to determine the validity or accuracy of any item before paying it. Nothing in the Deed of Trust shall be
<br /> construed as requiring Lender to advance other monies for such purposes,and Lender shall not incur any liability for anything it may do or omit to
<br /> do with respect to the reserve account. Subject to any limitations set by applicable law,if the reserve funds disclose a shortage or deficiency,Trustor
<br /> shall pay such shortage or deficiency as required by Lender. All amounts in the reserve account are hereby pledged to further secure the
<br /> Indebtedness, and Lender is hereby suthorized to withdraw and apply such amounts on the Indebtedness upon the occurrence of an Event of
<br /> Default. Lender shall not be required to pay any interest or earnings on the reserve funds unless required by law pr agreed to by Lender in writing.
<br /> Lender does not hold the reserve funds in trust for Trustor,and Lender is not Trustor's agent for payment of the taxes and assessments required to
<br /> be paid by Trustor.
<br /> IXPENDITURES BY LENDER. If Trustor fails to comply with any provision of this Deed of Trust, including any obligation to maintain Existing
<br /> Indebtedness in good standing as required below,or if any action or prxeeding is commenced that would materially affect Lender's interests in the
<br /> Property, Lender on Trustor's behalf may, but shall not be required to, take any action that Lender deems appropriate. Any amount that Lender
<br /> expends in so doing will bear interest at the rate provided for in the Note from the date incurred or paid by Lender to the date of repayr�ent by
<br /> Trustor. All such expenses,at Lender's option,will (a)be payable on demand, (b)be added to the balance of the Note and be apportioned.among
<br /> and be payable with any installment payments to become due during either (i)the term of any applicable insurance policy or (ii)the remaining term
<br /> of the Note, or (c) be treated as a balloon payment which will be due and payable at the Note's maturity. This Deed of Trust also will secure
<br /> payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be
<br /> entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remHdy that
<br /> it oth�ewise would have had.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relating to owne[ship of the Property are a part of this Deed of Trust.
<br /> -.. Title. 7rustor warrants tha#: (a)Trustor holds good and marketable title of record to the Property in fee simple,free and clear of all liens and
<br /> encumbrances other than those set forth in the Real Property description or in the Existing Indebtedness section,below or in any title insurance
<br /> policy,title report,or final title opinion issued in favor of,and accepted by,Lender in connection with this Deed of Trust,and (b)Trustor has the
<br /> full right,power,and authority to execute and deliver this Deed of Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph above,Trustor warrants and will forever defend the title to the Property against the
<br /> Iawful claims of all persons. In the event any action or proceeding is commenced that questions Trustor's title or the interest of Trustee or
<br /> Lender under this Deed of Trust,Trustor shall defend the action at Trustor's expense. Trustor may be the nominal party in such proceeding,but
<br /> Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and
<br /> Trustor wili deliver,or cause to be delivered,to Lender such instruments as Lender may request from time to time to permit such participation.
<br /> Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable laws,
<br /> ordinances,and regulations of governmental authorities.
<br /> DCISTING INDEB7EDNESS. The following provisions concerning existing indebtedness (the "Existing Indebtedness") are a pa�t of this Deed of
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<br /> Existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an existing lien. Trustor expressly
<br /> covenants and agrees to pay,or see to the payment of,the Existing Indebtedness and to prevent any default on such indebtedness,any default
<br /> under the instruments evidencing such indebtedness,or any default under any security documents for such indebtedness.
<br /> ,.,pefault. If the payment of any installment of principal or any interest on the Exisfing Indebtedness is not made within the time required by the
<br /> note evidencing such indebtedness,or should a default occur under the instrument securing such indebtedness and not be cured during any
<br /> applicable grace period therein,then,at the option of Lender,the Indebtedness secured by this Deed of Trust shall become immediately due
<br /> and payable,and this Deed of Trust shall be in default. - •i
<br /> No Modificatlon. Trustor shall not enter into any agreement with the holder of any mortgage,deed of trust,or other security agreement which
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