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DEED OF TRUST ti O A� O 2!��
<br />(Continued) Page 3
<br />Paymerrt. Trustor shall pay when due Iand in all events prior to delinquencyl all taxes, special taxes, assessments,
<br />charges tincluding water end sewer), fines and impositions levied against or on account of the Property, and shall
<br />pay when due all claims for work done on or for services rendered or material furnished to the Property. Trustor
<br />shall maintain the Property free of all liens having priority over or equal to the interest of Lender under this Deed of
<br />Tn�st, except for the lien of taxes and assessments not due, except for the Existing Indebtedness referrad to
<br />below, and except as otherwise provided in this Deed of Trust.
<br />Right to Contest. Trustor may withhold payment of any tax, assessment, or cleim in connection with a good faith
<br />dispute over the obligation to pay, so long es Lender's interest in the Property is not jeopardized. If a lien arises or
<br />is filed as e result of nonpayment, Trustor shall within fifteen (15) days affer the lien arises or, if a lien is filed,
<br />within fifteen 115) days efter Trusto� has notice of the filing, secure the discharge of the lien, 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 ettorneys' fees, or other charges that could accrue as e
<br />result of a foreclosure or sale under the lien. In any contest, Trustor shall defend itself end Lender and shall satisfy
<br />any adverse judgment before enforcement egainst the Property. Trustor shall name Lender as an edditional obligee
<br />under any surety bond furnished in the contest proceedings.
<br />Evidence of Paymerrt. Trustor shall upon demend furnish to Lendar satisfactory evidence of payment of the taxes
<br />or assessments and shall authorize the appropr(ate governmental official to deliver to Lender at any time a written
<br />statement of the texes and assessments against the Property.
<br />Notice of Construction, Trustor shalf notify Lender at least fifteen (75) days befora any work is commenced, any
<br />services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's Ilen, or
<br />other lien could be assereed on account of the work, services, or materials. Trustor will upon request of Lender
<br />furnish to Lender advance assurences satisfactory to Lender that Trustor can and will pay the cost of such
<br />improvements.
<br />PROPERTY DAMAGE IWSURANCE. The following provisions relating to insuring the Property are a part of this Deed of
<br />Trust.
<br />Maintenance of Insurence. Trustor shall procure and maintain policies of fire insurance with stendard extended
<br />coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real
<br />Property in an amount sufficient to avoid application of any coinsurance clause, and with e standard mortgagee
<br />clause in favor of Lender. Trustor shell elso procure and maintain comprehensive generel liability insurance in such
<br />coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in such
<br />liability insurance policies. Additionally, Trustor shall maintain such other insurance, including but not limited to
<br />hezard, business interruption, and boiler insurance, as Lender may reasonabiy require. Policies shail be written in
<br />form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies
<br />reasonabiy acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the
<br />policies or certificates of insurence in form satisfactory to Lender, including stipulations that coverages will not be
<br />cancelled or diminished without et least thirty (30) days prior written notica to Lender. Each insurance policy also
<br />shall include an endorsement providing that coverege 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 Properry be located in an area designated by
<br />the Director of the Federal Emergency Management Agency as a special ftood hazard area, Trustor agrees to obtain
<br />and mairrtain Federal Flood Insurance, if available, for the full unpaid principal balance of the loan and any prfor
<br />liens on the property securing the loan, up to the maximum policy limits set under the National Flood insurance
<br />Program, or es otherwise required by Lender, and to maintain such insurance for the term of the loan.
<br />Appifcation of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lendar may
<br />make proof of loss if Trustor fails to do so within fifteen {15) days of the casualty. Whether or not Lender's
<br />security is impaired, Lender may, at Lender's election, recelve and retain the proceeds ot any insurance and appiy
<br />the procseds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration
<br />and repair of the Proparty. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or
<br />replace ihe 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 />repair or restoration if Trustor is not in default under this Deed of Trust. Any proceeds which have not been
<br />disbursed within 180 days after their receipt end 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
<br />interest, and the remainder, if any, shalt be applied to the principal balance of the Indebtedness. If Lender holds
<br />any proceeds after payment in full of the Indebtedness, such proceeds shall ba paid to Trusior as Trustor's
<br />interests may appear.
<br />CompUance whh Existing Indebtedness. During the psriod in uvhich any Existing Indebtedness described below is
<br />in effect, compfiance with the insurance provisions contained in the instrument evidencing such Existing
<br />Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trust, to the extent
<br />compliance with the terms of this Dead of Trust would constitute e duplication of insurence requiremerrt. If any
<br />proceeds from the insurance become payable on loss, the provlsions in this Deed of Trust for division of proceeds
<br />shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Tr�stor shall fumish
<br />to Lender a report on each existing policy of insurance showing: (1) the name of the insurer; (Z) the risks
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