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DEED OF TRUST
<br />(Continued)
<br />Trust
<br />Maintenance of insurance. Truster shall procure and maintain policies of fire insurance with standard extended
<br />coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real
<br />Property in en amount sufficient to avoid application of any coinsurance dause, and with a standard mortgagee
<br />clause in favor of Lender. Truster shall also procure and maintain comprehensive general 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 />hazard, business interruption, and boiler Insurance, as Lender may reasonably require, Policies shaft be written In
<br />form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies
<br />reasonably acceptable to Lender. Truster, upon request of Lender, will deliver to Lender from time to time the
<br />policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be
<br />cancelled or diminished without at least tan (10) days prior written notice to Lender. Each insurance policy also
<br />shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act,
<br />omission or default of Truster or any other person. Should the Real Property be located in an area designated by
<br />the Administrator of the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to
<br />obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal balance of the loan and any
<br />prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood
<br />Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan.
<br />Application of Proceeds. Truster shall promptly notify Lender of any loss or damage to the Property. Lender may
<br />make proof of loss If Trustor falls to do so within fifteen (15) days of the casualty. Whether or not Lender
<br />security is impaired, Lender may, at Lenders election, receive and retain the proceeds of any Insurance and apply
<br />the proceeds to the reduction of the indebtedness, payment of any lien affecting the Property, or the restoration
<br />and repair of the Properly. If Lender elects to apply the proceeds to restoration and repair, Truster shall repair or
<br />replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Truster from the proceeds for the reasonable cost of
<br />repair or restoration If Truster is not in default under this Deed of Trust Any proceeds which have not been
<br />disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of
<br />the Property shag 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, shall 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 be paid to Trustor as Trustor's
<br />interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish
<br />to Lender a report on each existing policy of insurance showing: (1) the name of the insurer, (2) the risks
<br />insured; (3) the amount of the policy; (4) the property insured, the than current replacement value of such
<br />property, and the manner of determining that value; and (5) the expiration date of the policy. Truster shall, upon
<br />request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost
<br />of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding Is commenced that would materially affect Lender's interest in
<br />the Property or If Truster falls to comply with any provision of this Deed of Trust or any Related Documents, including
<br />but not limited to Trusters failure to discharge or pay when due any amounts Trustor is required to discharge or pay
<br />under this Deed of Trust or any Related Documents, Lender on Trustor's behalf may (but shall not be obligated to) take
<br />any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, lens, security
<br />interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for Insuring,
<br />maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will than
<br />bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by
<br />Trustor. Aft such expenses will become a pert of the Indebtedness and, at Lenders option, will (A) be payable on
<br />demand; (B) be added to the balance of the Note and be apportioned among and be payable wIth any installment
<br />payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of
<br />the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Deed of
<br />Trust also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to
<br />which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed
<br />of Trust:
<br />Title. Truster warrants that: (a) Truster holds good and marketable title of record to the Property in fee simple,
<br />free and dear of all liens and encumbrances other than those set forth in the Real Property description or in any
<br />title insurance policy, title report, or final title opinion issued in favor of, and accepted by. Lender in connection
<br />with this Deed of Trust, and (b) Truster has the full right, power, and authority to execute and delver this Deed of
<br />Trust to Lender.
<br />Defense of Title. Subject to the exception In the paragraph above, Truster warrants and will forever defend the
<br />title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced
<br />that questions Trusters title or the tntere.st of Trustee or Lender under this Deed of Trust, Truster shall defend the
<br />action at Trusters expense. Trustor may be the nominal party In such proceeding, but Lender shall be entitled to
<br />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
<br />to permit such participation.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all
<br />existing applicable laws, ordinances, and regulations of governmental authorities.
<br />Survival of Representations and Warranties. NI representations, warranties, and agreements made by Truster in
<br />this Deed of Trust shall survive the execution and delivery of this Deed of Trust, shalt be continuing in nature, and
<br />shall remain in full force and effect until such time as Trustor's indebtedness shell be paid In full.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust: -
<br />Proceedings. If any proceeding in condemnation is filed, Truster shall promptly notify Lender in writing, and
<br />Truster shall promptly take such steps es may be necessary to defend the action and obtain the award. Truster
<br />may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be
<br />represented In the proceeding by counsel of its own choice, and Trustor will deliver or cause to be delivered to
<br />Lender such instruments and documentation as may be requested by Lender from time to time to permit such
<br />participation.
<br />Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by
<br />any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the
<br />net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net
<br />proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees
<br />incurred by Trustee or Lender in connection with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br />to governmental taxes, fees and charges are a part of this Deed of Trust:
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