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DEED OFTRUST �o��O2�1��:
<br />(Continued) Page 3
<br />Payment. Trustor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, essessments,
<br />charges (including water and sewer), fines and impositions levied against or on account of the Property, and shall
<br />pay when due all claims fo� woik dona on or for services rendered or material furnished to the Property. Trustor
<br />shall maintein the Property free of all liens having priority over or equal to the interest of Lender under this Deed of
<br />Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this Deed of
<br />Trust.
<br />Right to Contest. Trustor may withhold peyment of any tax, assessment, or claim in connection with a good faith
<br />dispute over the obligation to pey, so long as Lender's interest in the Property is not jeoperdized. lf a lien arises or
<br />is filed as a result ot nonpayment, Trustor shell within fifteen (15! days after the lien arises or, if a lien is filed,
<br />within fifteen (15) days after Trustor has notice of the filing, secure the discharge ot the Ifen, or if requested by
<br />Lender, deposit with Lender cash or a sufficient corporate surety bond or other security 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
<br />reault of a foreclosure or sale under the tien. In any contest, Trustor shall defend itself and Lender and shall seUsfy
<br />any advsrse judgment before enforcement against the Property. Trustor shail name Lender as an additional obligee
<br />under any surety bond furnished in the contest proceedings.
<br />Evidence of Paymerrt, Trustor shail upon demand furnish to Lender satisfactory evidence of payment of the texes
<br />or assessments and shalt euthorize the approp�iate governmental official to deliver to Lender at any time a written
<br />stetement of the taxes and assessments against the Property.
<br />Notice of Construction. 7rustor shall notify Lender at least fifteen (15} days before any work is commenced, any
<br />services are furnished, or any materials are supplied to the Property, if any mechanfc's lien, materlalmen's lien, or
<br />other lien could be asserted on account of the work, services, or materials. Trustor will upon request of Lender
<br />furnish to Lender advance essurances setisfactory to Lender that Trustor can and will pay the cost of such
<br />improvements.
<br />PROPERTY DAMAQE IIYSURANCE. The following provisions relating to insuring the Properry are a part of this Deed of
<br />Trust.
<br />Malntenance of Insurance. Trustor shall procure and maintein policies of fire insurance with standard extended
<br />coverage endorsements on a replacement basis for ihe full insurable value covering all Improvements on the Real
<br />Properry in an amount sufficient to avoid application of any coinsurance clause, and with e standard mortgagee
<br />clause in favor of Lender. Trustor shall also procure and maintain comprehensive general liebility insurance in such
<br />coverage amounts as Lender mey request with Trustee and Lender being named as additionel insureds in such
<br />liability insurance policies. Additionalty, Trustor shall maintain such other insurance, including but not limited to
<br />hazard, business interruption, and boiler insurance, as Lender mey reasonably requira. Policies shell be written in
<br />form, amourrts, coverages and basis reasonably acceptable to Lender and issued by a company or companies
<br />reasonebly acceptable to Lendar. Trustor, upon request of Lender, will deliver to Lender from time to time the
<br />policies or certificates of insurance in form satlsfactory to Lender, including stipulations that coverages will not be
<br />cencelled or diminished without at least thirty i30) days prior written notice to Lender. Each insurance policy also
<br />shell include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act,
<br />omission or default of Trustor or any other person. Should the Real Property be {ocated in an area designated by
<br />the Director of the Federal Emergency Management Agency as a special flood hazard area, Truator agrees to obtafn
<br />and maintain Federal Flood Insurance, if available, for the full unpaid principai balance of the loan and any prior
<br />liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance
<br />Program, or as othenruise required by Lender, and to maintain such insurence for the term of the loan.
<br />Appflcation of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may
<br />make proof ot loss if Trustor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's
<br />security is impeired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply
<br />the proceeds to the reducdon of the Indebtedness, payment of any lien affecting the Properly. or the restoretion
<br />and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or
<br />replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br />repeir or restoretion if Trustor is not in defauit under this Dead of Trust. Any proceeds which have not been
<br />disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of
<br />the Praperty shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br />interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds
<br />any proceeds efter payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's
<br />interests may appear.
<br />Trustar's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall fumish
<br />to Lender a report on each existing policy of insurance showing: !1) the name of the insurer; (2► the risks
<br />insured; (3) the amount of the policy; (4) the property insured, the then current replacement value of such
<br />property, and the manner of determining that value; and (5) the expiration date of the policy. Trustor shall, upon
<br />request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commanced that would materially affect Lender's interest in
<br />the Property or if Trustor feils to comply with any provision ot this Deed of Trust or any Related Documents, including
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