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<br /> , 04-23-1998 DEED OF TRUST � Page 3
<br /> • Loan No 705954 (Continued) 98-- ��i��;3
<br /> and sewer), fines and impositions levied against or on account of the Properiy, and shall pay when due all claims for wo�lc done on or for
<br /> services rendered or material furnished to the Property. Trustor shall maintain the Property free of all liens having prioriiy over or equal to the
<br /> interest of Lender under this Deed of Trust,except for the lien of taxes and assessments not due,except for the existing indebtedness referred
<br /> to below,and except as otherwise provided in this Deed of Trust.
<br /> Rlyht To Contest. Trustor may withhold payment of any tax,assessment,or claim in connection with a good faith dispute over the obligation
<br /> to pay,so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment,Trustor shall within
<br /> fifteen(15)days after the lien arises or,if a lien is flled,within fifteen(15)days aiter Trustor has notice of the filing,secure the discherge of the
<br /> lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other securiiy satisfactory to Lender in an
<br /> amount sufficient to discharge the lien plus any costs and attorneys'fees or other charges that could accrue as a resutt of a foreclosure or sale
<br /> under the lien. In any contest,Trustor shall defend itself and Lender and shall satisy any adverse judgment before enforcement against the
<br /> Property. Trustor shall name Lender as an additionai obligee under any surety bond furnished in the contest proceedings.
<br /> Evidence of Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall
<br /> authorize the appropriate governmental official to deliver to Lender at any tlme a written statement of the taxes and assessments against the
<br /> Property.
<br /> Notice of ConstruCtlon. Trustor shall notity Lender at least fifteen(15)days before any work is commenced,any services are furnished,or any
<br /> materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the worlc,
<br /> services,or materials. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Trustor can and will
<br /> pay the cost of such improvements.
<br /> PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust.
<br /> Malntenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a
<br /> replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any
<br /> coinsurance clause,and with a standard mortgagee clause in favor of Lender,together with such other hazard and liability fnsurance as Lender
<br /> may reasonably require. Policies shali be written in form, amoun�, coverages and basis reasonably acceptable to Lender and issued by a
<br /> company or companies reasonably acceptable to Lender. Trustor,upon request of Lender,will deliver to Lender irom tlme to time the policies
<br /> or certificates of insurance in form satisfactory to Lender, including stipula6ons that coverages will not be cancelled or diminished wfthout at
<br /> least ten(10)days'prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of
<br /> Lender will not be impaired in any way by any act,omission or default of Trustor or any other person. Should the Real Property at any time
<br /> become located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazerd area,Trustor
<br /> agrees to obtain and maintain Federal Flood Insurance for the full unpaid principal balance of the loan, up to the maximum policy limits set
<br /> under the National Flood Insurance Program,or as otherwise required by Lender,and to maintain such insurance for the term of the loan.
<br /> Applkatlon 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 fiRsen(15)days of the casualty. Whether or not Lender's security is impaired,Lender may,at its election,rec:eive and retain
<br /> the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness,payment ot any lien affecBng 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 /> damaged or destroyed Improvements in a manner satisfectory 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 restoraHon 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,N
<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 beneflt of,and pass to,the purchaser of the Property covered 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 /> Compliance with bcistin�Indebtedness. During the period in which any Existing Indebtedness described below is in effect,compliance with
<br /> the insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compifance 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 insurance
<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 po�ion of the proceeds not payable to the holder of the Existing Indebtedness.
<br /> DCPENDITURES 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 proceeding is commenced that would materially affect Lender's interests in the
<br /> Property, Lender on Trusto�'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 repayment by
<br /> Trustw. All such expenses,at Lender's option,wili (a)be payable on demand, (b)be added to the balance of the Note and be apportioned among
<br /> and be payeble with any instaliment payments to become due during either (i)the term of any applicable insurance policy or (ii)the rema(ning term
<br /> of the Note, or (c) be treated as a balloon payment which will be due and payable at the Note's maturiry. This Deed of Trust also will secure
<br /> payment of these amounts. The righis provided for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be
<br /> entitled on axount of the default. Any such action by Lender shall not be conshued as curing the default so as to bar Lender from any remedy that
<br /> it otherwise would have had.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust.
<br /> Title. Trustor waRants that: (a)Trustor holds good end marketable tiNe of record to the Property in fee simpie,free and clear of all liens and
<br /> encumbrances other than those set forth in the Real Property description or in tha Existing Indebtedness section below or in any title lnsurance
<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 tide to the Property against the
<br /> lawful 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 chace, and
<br /> Trustw will deliver,or cause to be delivered,to Lender such instruments as Lender may request from time to time to permit such participation.
<br /> Compllancc 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 INDEBTEDNESS. The following provisions concerning existlng indebtedness (the"Existing Indebtedness'� are a part of this Deed of
<br /> Trust.
<br /> Existin�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 F�dsHng 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 /> Default. If the payment of any instaliment of principal or any interest on the Existing 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.
<br /> No Modiflcation. Trustor shall not enter into any agreement with the holder of any mortgage,deed of trust,or other security egreement which
<br /> has prioriiy over this Deed of Trust by which that agreement is modified,amended, extended, or renewed without the prior written consent of
<br /> Lender. Trustor shall neither request nor accept any future advanc�s under any such security egreement without the prior written consent of
<br /> Lender.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust.
<br /> ApplkMion of Net Proceeds. If alt or any part of the Property is condemned by eminent domain proceedings or by any proceeding or
<br /> purchase in lieu of condemnaHon,Lender may at its election require that all or any po�ion of the net proceeds of the award be applied to the
<br /> Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the awerd after payment of all reasonable
<br /> cosis,expenses,and attorneys'fees incurred by Trustee or Lender in connection with the condemnation.
<br /> Proceedin�s. If any proceedirp in condemnaii�p�i�filled,Trusla�s�MM�q prompdy notify Le�der in writing,and Trustor shall prompdy take such
<br /> steps as may be necessary to defend the ac�on and obtain the awanl. Trustor may be M�e nominal party in such praQeeding,but Lender shall
<br /> be entiBed to paficipate in the proceeding and to be represented in the proceeding by counsei of its.own choice,�nd Trustor will deliver or
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