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<br />DEED UF TRUST
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<br />reasonably accaptable to Lender. Trustor, upon request afi Lerroder, will deliver to Lander fram time to tims the
<br />poGciss or certificates af insuranas in fio►m satisfactory to Lender, 1ncluding stipul�dons tltiat coverages wiN nat be
<br />aancelled or diminished without at least thirty (30} days Arior written notice to Lender. Each insursnce policy aiso
<br />shali inciuda an endorsement providing that cavarage +n fiavor of Lender wili not be impaired in any way by any act,
<br />amission or defauit of 7rustor or any other person. Should the Reai Praperty be located in an area des[gnated bY
<br />the Dt�ector of the Federal Emergency Managemeni Agency as a special flood hazard area, Trustor agrees to obtain
<br />and maintain Federat Flood Insu�ance, if available, within 4S days after notica is given by Lender that tF�e ?ropeny
<br />is located in a special flood hazard area, for the full unpaid princip�l balance of the loa� and any priar liens on the
<br />property securing the loan, up to the maximum policy Eimits set under the 1Jationat Fload Insurance Pragram, or as
<br />otherwise required by Lersder, and to maintain suCh insurance for the term of the lasn.
<br />Appl7qtion of Pro�eeds. Trustor shal( promptty noxify Lender of any Ioss or damage to the Property. Lender may
<br />make proaf of loss if Tnistor faiis ta do so within fiftesn t75) days of the casualty. Whether ar not lender's
<br />security is ic►tpaired, tender may, at Lender's eleetlon, receive and retain the praceeds of any insuranee arxi apply
<br />the proceeds to the reduction af the Indebtedness, payment of any lisn affecong the Property, or ihe restoration
<br />and repair of the Aroperty. If L.ender etects ta appty the proceeds to restpration and repair, 7rustor shall repair ar
<br />replace Uie damaged or destroyed Improvements in a manner satisfactory to Lende�. Lende� shall, upon
<br />saUSfactory proof of such expenditure, pay or reimburse Trustor ftom the proceeds for the reasonable cost of
<br />repair or restoratian if Trustor is not in default under this Deed of Trust. Any proeeeds which have not 6een
<br />disburssd within 180 days afCer their receipt and which Lsnder has not committed to ihe repair or restoration of
<br />the Property shall be used first to pay any amou�t ov+ring to Lender under this Deed of TruSt, then to pay accrued
<br />interest, and the remaindar, if any, shalt be applied to the principal balance of the indebtedness. If Lender hofds
<br />any pracaeds �fter payment in full of the Indebtedness, such proceeds shall be paid to Trustor as 7rustor's
<br />interests may appear.
<br />Trustor's Repart on tnsurance. Upon request of Lender, however nvt more than ance a year, Trustor shatl fumish
<br />to Lender a report on each existing pollcy of insurance showing: {11 the name of the insurer; i2) the risks
<br />insured; t3} ths amount of the policy; {41 the properiy insured, tfie then currertt replacement value of such
<br />prapeny, and the manner of determining tfiat value; and (51 thts expiration date of the policy. T�ustor sha!{, upon
<br />request of Lender, have an independent appraiser satistactory to Lender deterrttne the cash value replacement cost
<br />of tha Pioperty.
<br />7AX AND INSURANCE RESERVES. Subject to any limitations and consisiertit with any requirements set by appficable
<br />law, Lender rtay require Trustor to maintain with Lender reservas for payment of annuai taxes, assessments, and
<br />insuranca premiums, which reseroes shall be e�eated by an initial deposit and subsequent monthly payments, or
<br />payments at such other interval as payments under the Note may be due, of a sum esiimated by Lender to be su�oient
<br />to pay the total annual taxes, assessments, and insurance premiums Lender reasanably anvcipates to be paid from
<br />thase reserves. l'he raserve funds shall be held by Lender as a general depcsit ftom Trustor, which Lender may satisfy
<br />by payment of the taxes, assessments, and ir�surance premiums required to be paid by Trustor as they become due.
<br />I.ender shall have the right ta draw upon the reserve ivnds to pay such items, and L�nder shall rmt be required to
<br />determine the validity or accuraay af any item before paying it. Nothing in the Desd of Trust shall be corrsxrued as
<br />requiring L,ender to advance ntfier monies for such purposes, and Lender ahall not incur any liability for anything it may
<br />do or omit to da with respect to the resenre account. Subject to amr limitations set by appliaable law, if the reseroe
<br />funds disclose a shortage or deficiency, Tnu#ar shall pay such shortage ar deficisncy as required by Lender. All
<br />amounts in the reserve account are hereby ptedged ta further secure the lndebtedness, and Lender is hereby authorized
<br />to withdrawr and apply such amounts on the lndebtedness upon ths occurrenae of an Evant of Defauk. Lender shatl not
<br />be required to pay any interest or earnings on ihe reserve funds unless required by law or agread to by Lender in
<br />writing. Lendar does nat hold the teserve funds in trust for Trustor, and Lender is noY Trustor's agent far payment of
<br />the taxes and assessments required to be paid by'Crustor.
<br />LENDER'S EXPENDI'f'tJRES. If any action or praceeding is commenced that would materialty affect Lender's intetest in
<br />the Ptoperty or if 7rustor fails to comply with any provisian of this Desd of Trust or any Related Documents, inGluding
<br />but not limhed to Trusta�'s failure ta discharge or pay when due eny amounts Trustor is required to discharge or pay
<br />under this Deed of Trust or any Related documents, lendeu on Trustar's behalf may {but shall nat bo obfigatecf to} take
<br />any aetion that Lender deems appropriste, incfuding but not limited ta discharging or paying a11 taxes, liens, secur3ty
<br />interesis, encumbrances and otfier cl�ims, at any time levied ot placed on the Property and paying all aosts for lnsuring,
<br />mairrtaining and preservirtg ihe Pmperty. All such expenditures incurred ar paid by Lender for such purposes wUl then
<br />bear irrterest at the rate charged under the �lote from the date incurred or paid by I.ender to the data af repaymeni by
<br />Trustor. All such expenses wilt baoome a peR of the tndebtedness and, at Lendet's option, will tAF be payable on
<br />demand; (B) be arided to the balance of tho Note and be apportioned among and be payabte with any installment
<br />payments to become due during eitfier �1} the term of any applicabls insurance policy; or i2? the �emaining term of
<br />the tJote; or tCl be treatad as a ba[loon payment whieh wili be due and payable at the Note's maturity. Tha Daed of
<br />Trust also wi(1 secure payment of these amourrts. Such right shall be in addition to all other rights arsd remedies to
<br />which Lender may bs entttled upon Defeult.
<br />WARRAN7Y: Q�FENSE OF TITLE. The fol[owing provisions relating to ownership of the Aroperty are a part at �is Deed
<br />of 7rust:
<br />Title. Trustor warrants that: (a} Trustor holds good and marketable title af record co the Propercy in fee simple,
<br />free and clear of aIl liens and encumbrances other tha� those set forth in the Real Property description or in any
<br />title insuranae poliey, title report, or finat title opinion issued in favor of, and accepted by, Lender in connection
<br />with this Deed of Trust, and tb} Tnisxor has the full right, powsr, and authprity to execute and deliver this Deed of
<br />7rust to Lender.
<br />Defe�se af Title. Subjeet ta the exception in the paragraph abovo, Trustor warrants and will forever defertd the
<br />title to the Property against the tawful claims of ali persons. ln the event any action or groceeding is cammenced
<br />that que5tions Trustor's title ar the interest of Trustee or Lender under this Deed of Trust, Trustor shall defend ths
<br />action at Trustor's axpense. Tnrstor may be the nominat party in such proceedin9, but Lender shall be entiUed ta
<br />participate in the proceeding and to be represem:ed in the proceeding by counsel of Lender's own choice, and
<br />Trustor will deliver, or oause to be deliverarl, to Lender such insVuments as LQnder may request from time tu time
<br />to permit such participai3on.
<br />CompLance lflf'�th Larovs. T�usto� warracrts that 2he Property and 7rustor'S use of ttte Property camplies with atl
<br />existing applicable laws, atdinances, ar�d regulations of govemmentat authorities.
<br />5uru3val of Raprese�tions and Warra�tti�s. All representations, warrar�ties, and agreemertts made by Trustor in
<br />this beed of Ttust shall sunrive the exeaution and dalivery 4f this Deed of Trust, shall ba cantinuing in natura, and
<br />shap remain in full forc� and effecY until such time as Trusior's indebted�ess shall be paid 'en fup.
<br />COfVDEMIdAT10M. The fpltowing provisiorns retating to candemnation proceedings are a garC of this Deod of Trust:
<br />Proceedngs. If any pracee�dirtg in conde�tsnation is �iled, Trustqr shall promptly natify Lender in writing, and
<br />7rustor shall pramptly take such steps as may be necessary to defend [he action and obtain the award. 7rustor
<br />may be the nominal pariy in such proceeding, but lender shatl be e�titled to participate in the proceeding and to be
<br />repressnted in the proceedir►g by counsel of its own choiqe, and Trustor wip deliver or cause to be delivered ta
<br />Lender such instruments and documentation as may be requested by Lender from time to time ta permit such
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