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Loan No: Eldred224
<br />202205427
<br />DEED OF TRUST
<br />'Continued) Page 3
<br />TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Deed of
<br />Trust:
<br />Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments,
<br />charges (including water and sewer), fines and impositions levied against or on account of the Property, and shall
<br />pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor
<br />shall maintain the Property free of all liens having priority over or equal to the interest of Lender under this Deed of
<br />Trust, except for the lien of taxes and assessments not due, except as otherwise provided in this Deed of Trust.
<br />Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith
<br />dispute over the obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or
<br />is filed as a result of nonpayment, Grantor shall within fifteen (15) days after the lien arises or, if a lien is filed,
<br />within fifteen (15) days after Grantor has notice of the filing, secure the discharge of the lien, or if requested by
<br />Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in
<br />an amount sufficient to discharge the lien plus any costs and reasonable attorneys' fees, or other charges that could
<br />accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and
<br />shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as an
<br />additional obligee under any surety bond furnished in the contest proceedings.
<br />Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes
<br />or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written
<br />statement of the taxes and assessments against the Property.
<br />Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any
<br />services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or
<br />other lien could be asserted on account of the work, services, or materials. Grantor will upon request of Lender
<br />furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such
<br />improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this
<br />Deed of Trust.
<br />Maintenance of Insurance. Grantor 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 an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee
<br />clause in favor of Lender, together with such other hazard and liability insurance as Lender may reasonably
<br />require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and
<br />issued by a company or companies reasonably acceptable to Lender. Grantor, upon request of Lender, will deliver
<br />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
<br />Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will
<br />not be impaired in any way by any act, omission or default of Grantor or any other person. Should the Real
<br />Property be located in an area designated by the Director of the Federal Emergency Management Agency as a
<br />special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance, if available, within 45
<br />days after notice is given by Lender that the Property is located in a special flood hazard area, for the maximum
<br />amount of Grantor's credit line and the full unpaid principal balance of any prior liens on the property securing the
<br />loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by
<br />Lender, and to maintain such insurance for the term of the loan.
<br />Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property. Lender
<br />may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's
<br />security is impaired, Lender may, at Lender's 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 and
<br />repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace
<br />the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof
<br />of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if
<br />Grantor is not in default under this Deed of Trust Any proceeds which have not been disbursed within 180 days
<br />after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first
<br />to pay any amount owing to Lender under this Deed of Trust, then to pay accrued interest, and the remainder, if any,
<br />shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of
<br />the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear.
<br />LENDER'S EXPENDITURES. If Grantor fails (A) to keep the Property free of all taxes, liens, security interests,
<br />encumbrances, and other claims, (B) to provide any required insurance on the Property; or (C) to make repairs to the
<br />Property then Lender may do so. If any action or proceeding is commenced that would materially affect Lender's
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