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DEED OF TRUST
<br />(Continued) 200007614 Page 2
<br />federal, state, and local laws, regulations and ordinances, including without Imitation all Environmental Laws. Trustor authorizes Lender and
<br />its agents to enter upon the Property to make such inspections and tests, at Trustor's expense, as Lender may deem appropriate to
<br />determine compliance of the Property with this section of the Deed of Trust. Any inspections or tests made by Lender shall be for Lander's
<br />purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Trustor or to any other person. The
<br />representations and warranties contained herein are based on Trustor's due diligence M investigating the Property for Hazardous
<br />Substances. Trustor hereby (1) releases and waives any future claims against Lender for Indemnity or contribution in the event Trustor
<br />becomes liable for cleanup or other costs under any such laws; and (2) agrees to Indemnify and hold harmless Lender against any and all
<br />claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or Indirectly sustain or suffer resulting from a breach
<br />of this section of the Deed of Trust or as a consequence of any use, generation, manufacture, storage, disposal. release or threatened
<br />release occurring prior to Trustor's ownership or interest in the Property, whether or not the same was or should have been known to Trustor.
<br />The provisions of this section of the Deed of Trust, including the obligation to indemnify, shall survive the payment of the Indebtedness and
<br />the satisfaction and reconveyanoe of the Ion of this Deed of Trust and shall not be affected by Lender's acquisition of any interest in the
<br />Property, whether by foreclosure or otherwise.
<br />Nuisance, Waste. Trustor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to
<br />the Property or any portion of the Property. Without limiting the generality of the foregoing, Trustor will not remove, or grant to any other
<br />party the right to remove, any timber, minerals (Including of and gas), coal, clay, scoria, sol, gravel or rock products without Lender's prior
<br />written consent.
<br />Removal of Improvements. Trustor shall not demolish or remove any Improvements from the Real Property without Lender's prior written
<br />consent. As a condition to the removal of any Improvements, Lender may require Trustor to make arrangements satisfactory to Lender to
<br />replace such Improvements with Improvements of at hest equal value.
<br />Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to
<br />attend to Lender's interests and to inspect the Real Property for purposes of Trustor's compliance with the terms and conditions of this Deed
<br />Of Trust.
<br />Compliance with Governmental Requirements. Traitor shall promptly comply with all laws, ordinances, and regulations, now or hereafter
<br />In effect, of all governmental authorities applicable to the use or occupancy of the Property. Trustor may contest in good faith any such law,
<br />ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Trustor has notified
<br />Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's Interests in the Property are not jeopardized. Lender
<br />may require Trustor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest.
<br />Duty to Protect. Trustor agrees neither to abandon nor leave unattended the Property. Trustor shall do all other acts, in addition to those
<br />acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the
<br />Property.
<br />TAXES AND LIENS. The following provisions relating to the taxes and lens 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, 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 lens having priority over or equal to the
<br />Interest of Lender under this Deed of Trust, except for the Ion of taxes and assessments not due, except for the Existing Indebtedness
<br />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 obligation
<br />to pay, so long as Lender's interest in the Property Is not jeopardized. If a Non arises or is filed as a result of nonpayment, Trustor shall within
<br />Often (15) days after the Non arises or, ff a Non Is flied, within fifteen (15) days after Trustor has notice of the filing, secure the discharge of the
<br />Non, or it requested by Lender, deposit with Lender cash or a suffldent corporate surety bond or other security satisfactory to Lender in an
<br />amount sufficient to discharge the Non plus any casts and attorneys' fees, or other charges that could accrue as a result of a foreclosure or
<br />sale under the Non. In any contest, Trustor shall defend hseif and Lender and shall satisfy any adverse judgment before enforcement against
<br />the Property. Trustor shall name Lender as an additional obligee under any surety bond furnished 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 />authorize 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 Construction. Trustor shag notify Lender at least fifteen (15) days before any work Is commenced, any services are furnished, or
<br />any materials are supplied to the Property, if any mechanic's Non, materialmen's Men, or other Non could be asserted on account of the work,
<br />services, or materials. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Trustor can and
<br />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 endorsen»nts on
<br />a fair value basis for the hug insurable value covering all Improvements on the Real Property In an amount sufficient to avoid application of
<br />any coinsurance clause, and with a standard mcrtgagee clause In favor of L ender, together with such other hazard and liability Insurance as
<br />Lender may reasonably require. Policies shall be written In form, amounts, coverages and basis reasonably acceptable to Lender and issued
<br />by a company or companies reasons* acceptable to Lender. Trustor, upon request of Lender, will dsMirer to Lender from time to time the
<br />policies or oert miss of insurance in form satisfactory to Lender, Including stipulations that overages will not be cancelled or diminished
<br />without at least thirty (30) days prior written notice to Lender. Each Insurance policy also shall 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. The Real Property
<br />Is or will be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area.
<br />Trustor agrees to obtain and maintain Federal Flood Insurance, It available, for the full unpaid principal balance of the loan and any prior
<br />Kern on the property securing the loan, up to the maximum policy limits sot under the National Flood Insurance Program, or as otherwise
<br />required by tender, and to maintain such Insurance for the term of the loan.
<br />Application of Proceeds. Trustor shag promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss It
<br />Trustor falls to do so within fifteen (15) days of the casualty. Whether or not Lender's sepui¢ty is Muir, ,,Lender may, at Lender's election,
<br />recceive and retain the proceeds of any insurance and apply the proceeds to the reduafth it fb in reel, payment of any Non affecting
<br />the Property, or the restoration and repair of the Property. N Lender elects to apply the proceeds to restoration and repair, Trustor shall
<br />repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shah, upon satisfactory proof of such
<br />expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration If Trustor is not in default under this
<br />Deed of Trot. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the
<br />repair or restoration of the Property shall 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, shah be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment
<br />In full of the Indebtedness, such proceeds shelf be paid to Trustor as Trustors interests may appear.
<br />Unexpired Insurance at Sale. Any unexpired insurance shall Inure to the benefit of, and pass to, the purchaser of the Property covered by
<br />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 such
<br />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 provision under this Deed of Trust, to the extent compliance with the terms of this Deed of Trust would constitute a duplication of
<br />insurance requirement. If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust for division of
<br />proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />LENDER'S EXPENDITUI ES. If Trustor falls (A) to keep the Property free of all taxes, hens, security Interests, encumbrances, and other claims,
<br />(8) to provide any requred insurance on the Property, (C) to make repaks to the Property or to comply with any obligation to maintain Existing
<br />Indebtedness In good standing as required below, then Lender may do so. It any action or proceeding is commenced that would materially &Ned
<br />Lenders Interests in the Property, then lender on Trustors behalf may, but Is not required to, take any action that Lender begevss to be
<br />appropriate to protect Lenders Interests. AN expenses incurred or paid by Lender for such purposes will then bear Interest at the rate charged
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