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2� 1 ���� 1 �
<br /> DEED �F TRUST
<br /> ���nt�nu�d} Pa�e 3
<br /> TA�ES AND LIENS. The following provisians �elating ta the �axes and liens on �he P�op�rty are part of this Deed of
<br /> Trust:
<br /> Paymen�. Trustor shall pay wh�n du� �and in all even�s prior to delinquency}afl taxes, specia[taxes, assessments,
<br /> charges �including water and sewer}, fines and impositions le�ied against or on accoun� of fhe Prop�r�y, and shal�
<br /> pay when due all claims for work done on or fo�services rendered ar material furnished �o the Proper�y. Trustor
<br /> shal� mainta�n the Property free af alf fi�ns having prior�ty a�er or equa�to the interest Qf L�nder under this Deed of
<br /> Trust, except for �he �ien of �axes and assessments no� due and except as othenivise pro�ided in this Deed o�
<br /> Trust,
<br /> Right tv Contes�. Trustor may wi�hhold payment af any tax, assessment, or claim in connection with a good faith
<br /> dispu�e o�er the abliga�ion �o pay, so long as Lender's �n�erest in the Property is na�jeopardized. If a lien arises or
<br /> �s filed as a result of nonpayment, Trustor shal� with�n fifteen �'�5} days after the lien arises or, if a lien is filed,
<br /> w��hin fift�en �'15} days aft�r Trus�ar has notice o�the filing, secure the discharge of the lien, �r if requested by
<br /> Lender, deposit with Lender cash or a su�ficient corpora�e surety bond or other security s�tisfactory to Lender in an
<br /> amount sufficien�to discharge�he lien p�us any cvsts and at�orneys' �ees, or�th�r cha�ges�ha�cou�d accrue as a
<br /> result of a foreclosur�or sale under�he lien. In any contest, Trustor shal[defend i�self and Lender and shal[satisfy
<br /> any adverse judgment befare en�orc�ment aga�nst the Proper�y. Trus�or shall nam�Lender as an addit�ona!obligee
<br /> under any surety bond furn�shed �n the con�est proceedings.
<br /> Evidence of Payment, Trustor sha�l upon demand furnish to Lend��sa�isfactory evidence of payment of�he taxes
<br /> or assessments and shal� authvrize the appropriafe go�ernmental offic�al to deliver to Lende�at any time a wr�tten
<br /> statemenf of the taxes and assessments agains�the Praper�y.
<br /> Notice of Construction. Trustor shall noti�y Lender at feas�fifteen �'�5} days befare any wo�k is cammenced, any
<br /> services are furnished, v�any materials are suppl�ed ta the Proper�y, i�F any mechanic's lien, ma�erialmen`s fien, or
<br /> other I�en coufd be asser�ed on account of the work, ser-vices, or ma�erials. T�usfior will upon requsst of Lender
<br /> furnish to Lender ad�ance assuran�es satis�actory t� Lender tha� Trus�or can and will pay the cos# of such
<br /> impro�ements.
<br /> PRQPERTY DAMAGE lNSURANCE. The �ollowing pro�isions re[a�ing fio �nsuring the PrQperty a�e a part of th�s Deed of
<br /> Trust.
<br /> 11J1aintenance of Insurance� Trus�or shafl procure and maintain palieies of fir� insurance wi�h standard extended
<br /> coverage endorsements on a replacement basis for the ful� insurable �afue co�ering a11 Impro�ements on the Real
<br /> Prope�ty in an amaunt sufficien� #o a�oid app�ication af any coinsurartce �lause, and with a s�andard mortgagee
<br /> clause �n fa�or of Lender, toge�her with such other hazard and liab�lity insurance as Lender may reasonably require.
<br /> Pol�cies sha[I b� written in �orm, amounts, ca�erages and basis reasonab�y acceptable to Lender and �ssued by a
<br /> company or compan�es reasonably acceptable ta Lende�. Trustor, upon request of Lender, will deli��r tv Lender
<br /> from �ime to��me �he p�licies ar certificates of insuranc� in �arm sat�sfactory ta Lender, including s�ipulafions�hat
<br /> co�erages wilf no� be cancelled o�-diminished wi�hout a� least ten �1�} days pri�r writ�en notice to Lender. Each
<br /> insurance poficy also sha[1 include an endorsement pro�iding that coverage �n fa�or of Lender will not be impaired
<br /> in any way by any act, omission or defau�t of Trustar or any o�het�person. 5hou�d �he Rea! Property be located in
<br /> an area designa�ed by the Administra�ar of the F�deral Emergency Managemen�Agency as a special flood hazard
<br /> area, Trustor agrees to obtain and maintain F�d�ral Flood lnsurance, if a�ailable, for the maximum amount of
<br /> Trust�r's credi��ine and �he fu11 unpaid principal balance of any prior liens on th� praperty securing the loan, up�o
<br /> the maximum p�[icy limi�s set under�he Na�ional F�ood Insurance Pragram, or as o�herwise required by Lender, and
<br /> �o maintain such insurance�or�he�erm af�he�oan.
<br /> Applica�ian af Proceeds. Trus�or shafl prompt€y notify Lender of any loss or damage�o the Property. Lender may
<br /> make p�-oaf of loss �f Trus#or fails �o do so within ffteen ��15} days of �he casualty. Whether or not Lend�r's
<br /> security is impaired, Lender may, at Lender's elec�ion, recei�e and retain the proceeds o�any insurance and apply
<br /> the proceeds t� �he reduction of the Indebtedness, payment of any lien affec#ing the Proper�y, or the restoration
<br /> and repair af the Proper�y. if Lender e[e��s to apply the proceeds to res�oration and repair, Trustar shall repair or
<br /> rep[a�e the damaged ar destroyed Improvements in a manner satis�actory ta Lender. Lender sha[1, up�n
<br /> satisfactory proof v�' such expenditure, pay or reimburse Trustor f�-om the �roceeds �'or the reasonab�e cost o�f
<br /> repair o� restoration �� T�-us�ar is not �n defau�t under this Deed of Trus�. Any p�aceeds which have nat been
<br /> d�sbursed within 'l8� days �fter their receipt and which Lend�r has nvt commi�fed �o the �epair or res�oration Qf �
<br /> the Praper�y shall be used first#o pay any amaunt owing to Lender under this Deed o#Trust, then to pay accrued
<br /> interest, and the remainder, if any, shall be applied to the principal baian�e vf�he Indebtedness. If Lender holds
<br /> any proceeds after payment in fu�l of �he Indehtedr�ess, such praceeds shal� be pa�d to Trustor as T�ustor's
<br /> inferests may appear.
<br /> LENDER'S EXPENDITURES. !f Trusfor fails �A} to keep #he Property �ree af alf taxes, liens, secu��ty in�erests,
<br /> encumbrances, and other claims, �B} �o prov�de any required insurance on th� Proper�y, or ��} �a make repairs to the
<br /> Praperty then Lender may do so. I� any aCtifln or proceeding is commenced �hat would materially affe�t Lender's
<br /> interests �n the Property, then Lender on Trustor's behalf may, but is not required �o, take any action that Lender
<br /> �elieves to be approp�ia�� to protec�Lender's inte�ests. All expenses incurred or paid by Lender�'or such purposes wil[
<br /> then bear interest at the ra�e charged under the Credit Agreement from the da�e incurred or paid by Lende�to the da#e
<br /> of repayment by Trustar. A�! such expenses wEl! become a part of the �ndebtedness and, at Lender's option, wi�l �A}
<br /> be paya��e on demand; tg) be add�d to the balance vf �he Credit Agreemen� and be apportioned among and be
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