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<br /> i0-08=1998 DEED aF TRUST QQ Page 3
<br /> Loan No 000101 (Continued) �./�7" ��a��a �
<br /> lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an
<br /> amount sufficient to discharge the lien plus any costs and attorneys'fees or other charges that could accrue as a result of a foreclosure or sale
<br /> under the lien. In any contest,Trustor shalt defend itself and Lender and shall satisfy any adverse judgment before enforcement against the
<br /> Property. Trustor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings.
<br /> Evldence of Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall
<br /> suthorize 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 shall notify Lender at least fifteen(1b)days before any work is commenced,any services are furnished,or any
<br /> materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work,
<br /> services,or materials and the cost exceeds$5,000.00. Trustor will upon.request of Lender furnish to Lender advance assurances satisfactory to
<br /> Lender that Trustor can and 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 /> Mafntenance of Insurance. Trustor shall procure and maintain,policies of fire insurance with standard extended coverage endorsements on a
<br /> replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any
<br /> coinsurance clause,and with a standard mortgagee clause in f8vor of Lender. Trustor shall also procure and maintain comprehensive general
<br /> liability insurance in such coverage amounts as Lender may request with trustee and Lender being named as additional insureds in such liability
<br /> insurance policies. Additionally, Trustor shall maintain such other insurance, including but not limited to hazard, business interruption, and
<br /> boiler insurance,as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to
<br /> Lender and issued by a company or companies reasonably acceptable to Lender. Trustor, upon request of Lender,will deliver to Lender from
<br /> time to time the policies or certificates of irtsnranee in formsati toJ,pr��,Includ�c�; � 1 ; r s ' ncelled or
<br /> diminished without at least thirty(30) days'prior written noN eTtder."�acl�ifisui`�iii�
<br /> that coverage in favor of Lender will not be impaired in any way by any act,omission or default of Trustor or any other person. Should the Real
<br /> Property at any time become located in an area designated by the Director of the Federal Emergency Management Agency as a special flood
<br /> hazard area,Trustor agrees to obtain and maintain Federal Flood Insurance for the full unpaid principal balance of the loan, up to the maximum
<br /> policy limits set under the National Flood Insurance Program,or as otherwise required by Lender,and to maintain such insurance for the term of
<br /> the loan.
<br /> Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property if the estimated cost of repair or
<br /> replacement exceeds$1,000.00. Lender may make proof of Iqss ifTrustor fails to do so within fifteen(15)days of the casualty. Whether or not
<br /> Lender's security is impaired, Lender may, at its election, receive and retain the proceeds of any insurance and apply the proceeds to the
<br /> reduction of the Indebtedness,payment of any lien affecting the Property,or the restoration and repair of the Property. If Lender elects to apply
<br /> the proceeds to restoration and repair, Trustor shall repair;or replace the damaged or destroyed Improvements in a manner satisfactory to
<br /> Lender. Lender shall, upon satisfactory proof of such expenditure,pay.or reimburse Trustor from the proceeds for the reasonable cost of repair
<br /> or restoration if Trustor is not in default under this Deed of;Trust.;�,Any,proceeds which have not been disbursed within 180 days after their
<br /> receipt and which Lender has not committed to the repair or resforation of the Property shall be used first to pay any amount owing to Lender
<br /> under this Deed of Trust,then to pay accrued interest,and the remainder,if any,shall be applied to the principal balance of the Indebtedness.
<br /> If Lender holds any proceeds after payment in full of the'liidebtedhess, such proceeds shall be paid to Trustor as Trustor's interests may
<br /> appear.
<br /> Unexpired Insurance at Sale. Any unexpirad insuranc�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 /> Trustor's Report on Insurance. Upon request of Lender, however not more than once a year,Trustor shall furnish to Lender a report on each
<br /> existing policy of insurance showing: (a)the name of the insurer;.(b)the risks insured; (c)the amount of the policy; (d)the property insured,
<br /> the then current replacement value of such property, and fhe manner of determining that value; and (e) the expiration date of the policy.
<br /> Trustor shall, upon request of Lender, have an independent apprai�er satisfactory to Lender determine the cash value replacement cost of the
<br /> Property.
<br /> EXPENDITURES BY LENDER. If Trustor fails to comply with any provision of this Deed of Trust, or if any action or proceeding is commenced that
<br /> would materially affect Lender's interests in the Property, Lender on Trustor's behalf may, but shall not be required to,take any action that Lender
<br /> deems appropriate. Any amount that Lender expends in so doing will bear interest at the rate provided for in the Note from the date incurred or paid
<br /> by Lender to the date of repayment by Trustor. All sueh expen�;a4 Lender's opiion,wiN (a)be payable vn demand, (b)be added to the balance
<br /> of the Note and be appo�tioned among and be pay�ble'Wvith any installment payments to become due during either (i)the term of any applicable
<br /> insurance policy or (ii)the remaining term of the Note,or (c)be treated as a balloon payment which will be due and payable at the Note's maturity.
<br /> This Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shafi be in addition to any other rights or any
<br /> remedies to which Lender may be entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to
<br /> bar Lender from any remedy that it otherwise would have had. ,
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relaling 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 the Real Property de5cription or in any title insurance policy,title report,or final title opinion issued in
<br /> favor of,and accepted by,Lender in connection with this Dee.d of Trust,and (b)Trustor has the full right,power,and authority to execute and
<br /> deliver this Deed of Trust to Lender. _ ,
<br /> Defense of Title. Subject to the exception in the paragraph±aboye,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 pr,o,ceeding is commenced that questions Trustor's title or the interest of Trustee or
<br /> Lender under this Deed of Trust,Trustor shall defend#he action at,7rustor'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 /> Compilance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable laws,
<br /> ordinances,and regulations of governmental authorities..
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust.
<br /> Appltcation 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,expenses,and attorneys'fees 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 thg award. Trustor may be the nominal party in such proceeding,but Lender shall
<br /> be entitled to participate in the proceeding and to be represenYed in the proceeding by counsel of its own choice, and Trustor will deliver or
<br /> cause!o be delivered to Lender such instruments as may be requested by it from time 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 /> Current Taxes,Fees and Charges. Upon request by Lender,Trustor shall execute such documents in addition to this Deed of 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 /> taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Deed of Trust, including without
<br /> limitation all taxes,fees,documentary stamps,and other chargesforrecording or registering this Deed of Trust.
<br /> Taxes. The following shall constitute taxes to which this`sectipn aPplies: (a)a specific tax upon this type of Deed of Trust or upon all or any
<br /> part of the Indebtedness secured by this Deed of Trust; (b)a sqecific tax on Trustor which Trustor is authorized or required to deduct from
<br /> payments on the Indebtedness secured by this type of Deed of Trusf; (c)a tax on this type of Deed of Trust chargeable against the Lender or
<br /> the holder of the Note; and (d) a specific tax on all or,:any portion;of the Indebtedness or on payments of principal and interest made by
<br /> Trustor.
<br /> Subsequent Taxes. If any tax to which this section applies is`enacted subsequent to the date of this Deed of Trust,this event shall have the
<br /> same effect as an Event of DefauR(as defined below),and iender`may exercise any or all of its available remedies for an Event of Default as
<br /> provided below unless Trustor either (a)pays the tax before it�becomes delinquent, or (b)contests the tax as provided above in the Taxes and
<br /> Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender.
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