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• �04-17-1998 DEED OF TRUST � 99-+1�3�15 Page 3
<br /> Loan No 702951 (Continued)
<br /> 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 10 Lender satisfactory evidence of payment of the taxes or assessments and shall
<br /> authorize the appropriate governmental official to deliver to Lender a1 any time a written statement of the taxes and assessments against the
<br /> Property.
<br /> Notice of Constructlon. Trustor shall notiry Lender at least fifteen(15)days before any work is commenced,any senrices are furnished,or any
<br /> materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asse�ted on accouni of the worlc,
<br /> services,or materials. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Trustor can and will
<br /> pay the cost of such improvements.
<br /> PROPERTY DAMAGE INSIffiANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust.
<br /> Maintenance of Insur�riCe. Trustor shall prxure and maintain policies of fire insurance with standard extended coverage endorsements on a
<br /> replacement basis for the full insurable value covering all Improvemenis on the Reai Property in an amount sufficient to avoid apptication of any
<br /> coinsurance clause,and with a standard mortgagee clause in favor of Lender,together with such other hazard and liability insurance as Lender
<br /> may reasonably require. Policies shaN be written in fwm, amounts, coverages and basis reasonebly acceptable to Lender and issued by a
<br /> company or companies reasonabty acxeptable to Lender. Trustor,upon request of Lend�,will deliver to Lender from time to time the policies
<br /> or certificates of insurance in form satisfactory to Lender, inctuding stipulations that coverages will not be cencelled or diminished without at
<br /> least ten(10)days'prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of
<br /> Lender will not be impaired in any way by any act, omission or default of Trustor or any other person. Should the Real Property at any time
<br /> i become located M an erea dde�nated by the Director of the Federal Emergency Mana�ernent Aflency as a special flood hazard area.Trustor
<br /> agrees to obtafn and maintain Federal Flood Insurance tor the fuH unpaid principal balance of the 1oan, up to the meuimum pol(cy limits set
<br /> under the National Flood Insurance Program,or as otherwise required by Lender,and to maintain such insurance for the ierm of ihe loan.
<br /> Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if Trustor
<br /> fails to do so within fifteen(15)days of the casualty. Whether or not lender's security is impaired,Lender may,at its election,receive and retain
<br /> the proceeds of any insurance and appiy the proceeds to the reduction of the Indebtedness,payment of any lien aHecting the Properly,or the
<br /> restoration and repair of the Property. if Lender elects to apply the proceeds to restoration and repair, Trustw shall repair or replace the
<br /> damaged or deshoyed Improvements in e manner satisfactory to Lender. Lender shalt, upon satisfactory proof of such expenditure, pay or
<br /> reimburse Trustor hom the proceeds for the reasonable cost of repair or restoration if Trustor is not in default under this Deed of Trust. Any
<br /> proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of
<br /> the Property shall be used first to pay any amount owing to Lender under this Deed of Trust,then to pay accrued interest,and the remainder,if
<br /> any,shall be applied io ihe principal balanCe of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness,such
<br /> proceeds shall be paid to Trustor as Trustor's interests may appear.
<br /> Unexpired Insurance et Sale. Any unexpired insurance shall inure to the benefit of,and pass to,the purchaser of the Property covered by this
<br /> 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 Property.
<br /> Compilance with Euisting Indebtedness. During the period in which any Existing Indebtedness described below is in effect,compliance with
<br /> the insurance provisions contained in tha instrument evidencing such Existing Indebtedness shall constitute compliance with 1he insurance
<br /> provisions under this Deed of Trust, to the extent compliance with the terms of thls Deed of T�ust would constitute a duplication of insurance
<br /> requirement. If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust for division of proc�eds shall
<br /> apply only to that portion of the proceeds not payable to the holder ot the Existing Indebtedness.
<br /> EXPENDITURES BY LENDER. If Trustor fails to comply with any provision of this Deed of Trust, including any obligation to maintain Existing
<br /> Indebtedness in good standing as required below,or if any action or proceeding is commenced that would materially affect Lender's interesis in the
<br /> Property, Lender on Trustor's behalf may, but shall not be required to, take any action that Lender deems appropriate. Any amount that Lender
<br /> expends in so dang will bear interest at the rate provided for in the Note from the date incurred or paid by lender to the date of repayment by
<br /> Trustor. All such expenses,at Lender's option,wili (a)be payable on demand, (b)be added to the balance of the Note and be apportioned among
<br /> and be payable with any installment payments to become due duri�g either (i)the term of any applicable insur�nce policy or (ii)the remaininy term
<br /> of the Note, or (c) be treated as a balloon payment which will be due and payable at the Note's maturity. This Deed of Trust also will secure
<br /> I payment of these smounts. The rights provided for in this paragraph shaq be in add'titlon to any other rights or any remedies to which Lender may be
<br /> entit�ed on account of the defauit. Any such action by Lender shall nof be construed as curing the default so as to bar Lender from any remedy that
<br /> it otherwise would have had.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust.
<br /> Title. Trustor warrants that: (a)Trustor holds good and marketable title of record to the Property in fee simple,free and clear of all liens and
<br /> encumbrances other than those set forth in ihe Reai Property description or in the ExisNng Indebtedness section below or in any title insurance
<br /> policy,title report,or final title opinion issued in favor of,and accepted by,Lender in connection with this Deed of Trust,and (b)Trustor has the
<br /> full right,power,and suthoriiy to execute and deliver this Deed of Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph above,Trustor warrants and will forever defend the title to the Property against the
<br /> lawful claims of all persons. In the event any action or procseding is commenced that questions Trustor's title or the interest of Trustee or
<br /> Lender under this Deed of Trust,Trustor shall defend the action at Trustor's expense. Trustor may be the nominal party in such proceeding,but
<br /> Lender shall be entitled to 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 to permit such participation.
<br /> Compliance Wlth L.ews. Trustor waRants that the Property and Trustors use of the Property complies with all existing applicable laws,
<br /> ordinances,and regulations of governmental suthorities.
<br /> IXISTING INDEBTEDNESS. The following provisions concerning existing indebtedness (the "Existing Indebtedness") are a part of this D�d of
<br /> Trust.
<br /> f thi f Tr t rin the Indebtedness ma be seconda and inferior to an existin lien. Trustor ex ressl
<br /> Existin Llen. The lien o s Deed o us secu ry g p Y
<br /> D 9 Y
<br /> covenants and agrees to pay,or see to the payment of,the Existing Indebtedness and to prevent any default on such indebtedness,any default
<br /> under the instruments evidencing such indebtedness,or any default under any security documents for such indebtedness.
<br /> Default. If the payment of any installment of principal or any interest on the Existing Indebtedness is not made within the time required by the
<br /> note evidencing such indebtedness, or should a default occur under the instrument securing such indebtedness and not be cured during any
<br /> applicable grace period therein,then,at the option of Lender,the Indebtedness secured by this Deed of Trust shall become immediately due
<br /> and payable,and this Deed of Trust shall be in default.
<br /> No Modification. Trustor shall not enter into any agreement with the holder of any mortgage,dsed of trust,or other security agreement which
<br /> has priority over this Deed of Trust by which that agreement is modified,amended, extended,or renewed without the prior written consent of
<br /> Lender. Trustor shall neither request nor accept any future advances under any such security agreement without the prior written consent of
<br /> Lender.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a pa�t of this Deed of Trust.
<br /> Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or
<br /> purchase in lieu of condemnation,Lender may at its election require that all or any portion of the net proceeds of the award be applied to the
<br /> Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all reasonable
<br /> costs,e�cpenses,and attorneys'feas incurred by Trustee or Lender in connection with the condemnation.
<br /> Proceedings. If any proceeding in condemnation is filed,Trustor shall promptly notify Lender in writing,and Trustor shall promptly take such
<br /> steps as may be necessary to defend the action and obtain the award. Trustor may be the nominal party in such proceeding,but Lender shall
<br /> be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Trustor will deliver or
<br /> cause to be delivered to Lender such instruments as may be requested by it from iime to time to permit such participation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes,
<br />, fees and charges are a part of this Deed of Trust:
<br /> CU�rent T�IXes,Fees and Char�es. Upon request by Lender,Trustor shall execute such documents in addition to this Deed ot Trust and take
<br /> whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Trustor shall reimburse Lender for all
<br /> ta�ces, as described below, together with all expenses incurred in recording, perfecting or continuing this Deed of Trust, including without
<br /> limitation all texes,fees,documeniary stamps,and other charges for recording or registering this Deed of Trust.
<br /> Taxes. The following shall constitute taxes to which this section applies: (a)a specific tax upon this type of Deed of Trust or upon all or any
<br /> part of the Indebledness secured by this Deed of Trust; (b)a specific tax on Trustor which Trustor is aT7lt�ori=ed or required to deduct from
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