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DEED OF TRUST 2 0 0 0 O 1015 Page 3
<br /> IContinued)
<br /> TAXES AND LIENS. The fo�lowing provisions relating to the taxes and Iiens on the Property are part of this Deed of Trust:
<br /> Payment. Trustor shall pay when due (and in all events prior to delinquency) all taxes, speciai taxes, assessments, charges Iincluding
<br /> water and sewer►, fines and impositions levied against or on account of the Property, and shall pay when due all claims for work done
<br /> on or for services rendered or material furnished to the Property. Trustor shall maintain the Property free of all liens having priority
<br /> over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due, except for the
<br /> Existing Indebtedness referred to below, and except as otherwise provided in this Deed 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
<br /> obligation 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,
<br /> Trustor shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Trustor has notice of the
<br /> filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or
<br /> other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and permissible fees, or other charges
<br /> that could accrue as a result of a foreclosure or sale under the lien. In any contest, Trustor shall detend itself and Lender and shall
<br /> satisfy any adverse judgment before enforcement against the Property. Trustor shall name Lender as an additional obligee under any
<br /> surety bond furnished in the contest proceedings.
<br /> Evidence of Payment. Trustor shall upon demand furnish to Lehder satisfactory evidence of payment of the taxes or assessments and
<br /> shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments
<br /> against the Property.
<br /> Notice of Construction. Trustor shall notify Lender at least fifteen (151 days before any work is commenced, any services are
<br /> furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on
<br /> account of the work, services, or materials. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to
<br /> Lender that Trustor can and will 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 /> Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage
<br /> endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount
<br /> sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender, together with such
<br /> other hazard and liability insurance as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis
<br /> reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Trustor, upon request of
<br /> Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including
<br /> stipulations that coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each
<br /> insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any
<br /> act, omission or default of Trustor or any other person. Should the Real Property be located in an area designated by the Director of
<br /> the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to obtain and maintain Federal Flood
<br /> Insurance, if available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the
<br /> full unpaid principal balance of the loan and any prior liens on the property securing 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
<br /> loan.
<br /> Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss
<br /> if Trustor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at
<br /> Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness,
<br /> payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to
<br /> restoration and repair, Trustor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender.
<br /> Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repair
<br /> or restoration if Trustor is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after
<br /> their receipt and which Lender has not committed to the repair or restoration of the Property shall be used firsi to pay any amount
<br /> owing to Lender under this Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal
<br /> balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to
<br /> Trustor as Trustor's interests may appear.
<br /> Unexpired lnsurance at Sale. Any unexpired insurance shall inure to the benefit of, and pass to, the purchaser of the Property covered
<br /> by this 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
<br /> such Property.
<br /> Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is in effect, compliance
<br /> with the insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the
<br /> insurance provisions under this Deed of Trust, to the extent compliance with the terms of this Deed of Trust would constitute a
<br /> duplication of insurance requirement. If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust
<br /> for division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br /> LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other
<br /> claims (B) to provide any required insurance on the Property, (C) to make repairs to the Property or to comply with any obligation to
<br /> maintain Existing Indebtedness in good standing as required below, then Lender maydo so. If any action or proceeding is commenced that
<br /> would materially affect Lender's interests in the Property, then Lender on Trustor's behalf may, but is not required to, take any action that
<br /> Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will then bear
<br /> interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such
<br /> expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of
<br /> the Note and be apportioned among and be payable with any installment paymenis to become due during either (1) the term of any
<br /> applicable insurance policy; or (2) the remaining term of ihe Note; or (C) be treated as a balloon payment which will be due and payable
<br /> at the Note's maturity. The Property also will secure payment of these amounts. The rights provided for in this paragraph shall be in
<br /> addition to any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall
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