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_ 0�-2T-2000 .:� �; ; °; : �; i� ;► '„� DEED OF TRUST �i�����'7��' Page 3
<br /> (Continued)
<br /> Evidence of Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the texes or assessments and shall
<br /> authorize the appropriate governmental official to deliver to Lender at any Hme a written statement of the taxes and assessments against the
<br /> Property.
<br /> Notice of Construction. Trusto�shall notify Lender at least fifteen(15)days before any work is commenced,any servic�s are furnished,or any
<br /> materials are supplied to the Property, If any mechanic's lien, materialmen's lien, or other Ifen could be asserted on account of the work,
<br /> senrices,or materials. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Trustor cen and wfll
<br /> pay the cost of such improvements.
<br /> PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property ere a part of this Deed of Trust.
<br /> Maintenance of Insurance. Trustor shall prxure and maintain policfes of flre 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 applicatlon of any
<br /> coinsurance clause,and with a standard mortgagee ciause in favor of Lender. Trustor shall also prxure and maintain comprehensive general
<br /> liabiliiy insurance in such coverage amounts as Lender may request with trustee and Lender being named as additional insureds in such liabiliry
<br /> insurance policies. Additionally, Trustor shall maintain such other insurance, including but not limited to hezard, business interruption, and
<br /> boiler insurance,as Lender may reasonably require. Policies shall be written in form,amounis,coverages and basis reasonably acceptable to
<br /> Lender and issued by a company or companies reasonably acceptable to Lender. Trustor,upon request of Lender,will deliver to Lender from
<br /> time to rime the policfes or cefiflcates of insurance in form satisfactory to Lender,including stipulations that coverages witl not be cancelled or
<br /> diminished without at least ten(10)days'p�ior written notice to Lender. Each insurance policy also shali include an endorsement providing that
<br /> coverage in favor of Lender will not be impaired in any way by any act, omission or default of Trustor or any other person. Should the Real
<br /> Property at any time become located in an area designated by the Directar of the Federal Emergency Management Agency as a special flood
<br /> hazard area,Trustor agrees to obtain and maintain Federal Flood Insurance for the full unpaid principal balance of the loan and any prior liens
<br /> on the property securing the loan,up to the maximum policy limits set under the National Flood Insurance Program,or as otherwise required by
<br /> Lender,and to maintein such insurance for the term of the loan.
<br /> Application ot Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if Trustor
<br /> faiis to do so within fifteen(15)days of the casualty. Whether or not Lender's securiry 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 saNsfactory 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 defauit 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 restoratlon 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 p�incipal balance of the Indebtedness. If Lender holds any prxeeds after payment in full of the Indebtedness,such
<br /> proceeds shall be paid to Trustor as Trustor's interests may appear.
<br /> Unexpirod Insurance 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 /> Trustor's Repo�t on Insurance. Upon request of Lender,however not more than once a year,Trustor shall furnish to Lender a report on each
<br /> existing policy of insurence showing: (a)the name of the insurer; (b)the risks insured; (c)the amount of the policy; (d)the property insured,
<br /> the then current replacement value of such property, and the manner of determining that value; and (e) the expiration date of the policy.
<br /> Trustor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the
<br /> Property.
<br /> D(PENDITI�iES BY LENDER. If Trustor fails to comply with any provision of this Deed of Trust,or if any action or prxeeding 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 thet 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 installment 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 righis provided for fn this paragraph shall be in addition to any other�ights 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 othervvise 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 /> TIUe. Trustor warcants that: (a)Trustor holds good and marketabie 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,tifle report,or final title opinfon 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 Tltle. Subject to the excepHon 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 /> T�ustor will deliver,or cause to be delivered,to Lender such instruments as Lender may request from time to tlme to permit such participetion.
<br /> Complience With Lews. 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 /> CONDEMNATION. The following provisions relating to condemnation proceedings sre 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 prxeeding 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 /> indebtedness 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 /> Proceedinys. 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 proc�eding,but Lender shall
<br /> be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own chofce,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 governmentat taxes,
<br /> fees and charges are a part of this Deed of Trust:
<br /> Current Taxes,Fees and Cher�es. 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. Trusto�shall reimburse Lender for all
<br /> tsxes, as described below, together with all expenses incurred in recording, perfecting or contlnuinp this Deed of Trust, including without
<br /> IimitaHon all taxes,fees,documentary stamps,and other charges for recording or registering this Deed of Trust.
<br /> Taxes. The following shall constitute taxes to which this section applies: (a)a specific tex 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 speciflc tax on Trustor which Trustor is authorized or required to deduct from
<br /> payments on the Indebtedness secured by this type of Deed of Trust; (c)a tax 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 /> Subaequent 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 /> same effect as an Event of Default(as deflned 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 setisfactory to Lender.
<br /> SECURITY AGREEMENT;FINANCING STATEMENTS. The following provisions relating to this Deed of Trust as a security agreement are a part of
<br /> this Deed of Trust.
<br /> Securiiy Apreement. This instrument shall constitute a security agresment to the extent any of the Property constitutes fixtures or other
<br /> personal property, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to
<br /> time.
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