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01-�3-2000 DEED OF TRUST Page 3
<br /> .Loan I�o 1074897 (Continued) 2 U U � � U 5 0 0
<br /> Payment. Trustor shall pay when due (and in all events prior to delinquency)all taxes, special taxes, assessments,charges (including water :
<br /> and sewer), fines and impositions levied against or on account of the Property, and shall pay when due all claims for work done on or for :
<br /> services rendered or material furnished to the Property. Trustor shall maintain the Property free of all liens having priority over or equal to the
<br /> interest of Lender under this Deed of Trust,except for the lien of taxes and assessments not due and except as otherwise provided in this Deed
<br /> of Trust.
<br /> Right 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 /> fitteen (15)days after the lien arises or, if a lien is filed,within fifteen(15)days after Trustor has notice of the filing,secure the discharge of the
<br /> lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an :
<br /> amount suificient to discharge the lien plus any costs and attomeys'fees or other charges that could accrue as a result of a foreclosure or sale
<br /> under the lien. In any contest,Trustor shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against the
<br /> Property. Trustor shall name Lender as an additional obligee under any surety bond fumished 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 /> suthorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the
<br /> Property.
<br /> Notice of Constructlon. Trustor shall notify 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 work, :
<br /> servic�s,or materials. Trustor will upon request of Lender fumish to Lender advance assurances satisfactory to Lender that Trustor can and wi0 :
<br /> pay the cost of such improvements.
<br /> PROPERTY DAMAGE INSURANCE. The following provisions relaHng to insuring the Property are a part of this Deed of Trust :
<br /> Maintenance 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 insurance as Lender :
<br /> may reasonably require. Policies shall be written in form, amounts, 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 from time to time the policies :
<br /> or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without 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 hazard area,Trustor :
<br /> agrees to obtain and maintain Federal Flood Insurance for the full unpaid principal balance of the loan and any prior liens on the property
<br /> securing the loan, up to the maximum policy limits set under the National Flood Insurance Program,or as otherwise required by Lender,and to :
<br /> maintain such insurance for the term of the loan.
<br /> Application of Proceeds. Trustor shall promptly notiy Lender of any loss or damage to the Property. Lender may make proof of loss if Trustor
<br /> fails to do so within fifteen(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 /> damaged 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 InsuronCe at Sale. Any unexpired insurance shall inure to the benefit 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 /> IXPENDITURES BY LENDER. If Trustor fails to comply with any provision of this Deed of Trust, or if any action or proceeding is commenced that :
<br /> would materially affect Lender's interests in the Property, Lender on Trustor's behalf may,but shall not be required to,take any action that Lender
<br /> deems appropriate. Any amount that Lender expends in so doing will bear interest at the rate provided for in the Note from the date incurred or paid :
<br /> by Lender to the date of repayment by Trustor. All such expenses,at Lender's option,will (a)be payable on demand, (b)be added to the balance :
<br /> of the Note and be apportioned among and be payable with any instaliment payments to become due during either (i)the term of any applicable :
<br /> insurance policy or (ii)the remaining term of the Note,or (c)be treated as a balloon payment which will be due and payable at the Note's maturity. :
<br /> This Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any
<br /> remedies to which Lender may be entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to
<br /> bar Lender from any remedy that 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 warrants that: (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 any title insurance policy,title report,or final title opinion issued in :
<br /> favor of,and accepted by,Lender in connection with this Deed of Trust,and (b)Trustor has the full right,power,and authority to execute and
<br /> 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 /> 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 choice, and :
<br /> Trustor will 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 Trusto�'s use of the Property complies with all existing applicable Iaws, :
<br /> ordinances,and regulations of governmental authorities.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust.
<br /> Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or
<br /> purchase in lieu of condemnation,Lender may at its election require that all or any portion of the net proceeds of the award be applied to the
<br /> Indebledness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all reasonable
<br /> costs,expenses,and attorneys'fees incurred by Trustee or Lender in connection with the condemnation.
<br /> Proceedings. If any proceeding in condemnation is filed,Trustor shall promptly notify Lender in writing,and Trustor shall promptly take such :
<br /> steps as may be necessary to defend the action and obtain the award. Trustor may be the nominal party in such proceeding,but Lender shall
<br /> be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Trustor will deliver or :
<br /> cause to be delivered to Lender such instruments as may be requested by it from time to time to permit such participation. :
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to govemmental taxes,
<br /> fees and charges are a part of this Deed of Trust:
<br /> Cwrrent Taxes,Fees and Charyes. Upon request by Lender,Trustor shall execute such documents in addition to this Deed of Trust and take
<br /> whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Trustor shall reimburse Lender for all
<br /> taxes, as described below, together with all expenses incuRed in recording, perfecting or continuing this Deed of Trust, including without
<br /> �imitation all te�ces,fees,documentary stamps,and other charges for recording or registering this Deed of Trust :
<br /> T{uces. The following shall constitute taxes to which this section applies: (a)a specific tax upon this type of Deed of Trust or upon all or any
<br /> part of the Indebtedness secured by this Deed of Trust; (b)a specific tax on Trustor which Trustor is suthorized or required to deduct from :
<br /> payments on the Indebtedness secured by this type of Deed of Trust; (c)a ta�c on this type of Deed of Trust chargeable against the Lender or
<br /> the holder of the Note; and (d) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by :
<br /> Trustor.
<br /> Suqsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Deed of Trust,this event shall have the
<br /> sarrie effect as an Event of Default(as defined below),and Lender may exercise any or all of its available remedies for an Event of Default as
<br /> provided below unless Trustor either (a)pays the tax before it becomes delinquent,or (b)contests the tax as provided above in the Taxes and
<br /> Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender.
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