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DEC -26 -01 WED 08:30 PM FAX: PAGE 6
<br />DEED OF TRUST
<br />Loan No: 19196 (Continued) 200113522 Pam 2
<br />Nuisance, Waste. Trustor shall not cause, conduct or permit any ulsance nor commit, permit, or suffer any stripping of or waste on or to the
<br />Property or any portion of the Properly. Without limiting the generality of the foregoing, Trustor will not remove, or grant to any other party
<br />the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written
<br />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 least equal value.
<br />attend to Lender's interests andtorinspect thee Real and
<br />for purposes Trustor's compliance with the terms and conditions aof ttimes i eed
<br />Of Trust.
<br />Compliance with Governmental Requirements. Trustor 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 1s Trustor has Lender
<br />Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property jeopardized.
<br />may require Trusfor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest.
<br />Duty to Protect. Trusfor agrees neither to abandon or 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 ft
<br />Properly.
<br />TAXES AND LIENS. The following provisions relating to the lazes and liens on the Property are part of this Dead of Trust:
<br />Payment. Trustor shah 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 liens having priority over or equal to the
<br />interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as otherwise provided In this
<br />Deed otTrust. .
<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 es Lender's interest in the Property is not jeopardized. Its lien arises or is filed as a result of nonpayment, Trustor shall within
<br />fifteen (15) days aflerthe lion arises or, if a lien is riled, within filleen (15) days after Tiruslor has notice of the firing, secure the discharge of the
<br />fifteen
<br />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 amue as a result of a foreclosure or
<br />sale under the lien, in any contest, Trustor shall defend Itself, and Lender and shall satisfy any adverse judgment before enforcement against
<br />the Property. TrUSlor 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 shall notify Lender at least fifteen (1 5) days before any work is commenced, any services are furnished, theed, or
<br />any materials are supplied to the Properly, if any mechanic's lien, materialmen's lien, or other lien 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 endorsements On
<br />a fair value basis for the`full 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 mortgagee clause in favor of Lender, 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 reasonably acceptable to Lender. Trustor; 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 cancelled or diminished
<br />without at least ten (10) 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. Should the Real
<br />Property be.localed 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, if available, within 45 days after notice is given by Lender that the Property Is
<br />located in a special flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan,
<br />up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such
<br />insurance for the term of the 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
<br />Trustor fails to do so within fifteen (15) days of the casualty. whether or not Lenders security is impaired, Lender may, at Lender's election,
<br />receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting
<br />the Property. or the restoration and repair of the Property. It 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 shall, 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 Trust. Any proceeds which have not been disbursed within i8o 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, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment
<br />in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's 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 />LENDER'S EXPEND17URES. If Trustor fails (A) to keep the Properly free of all taxes, liens, security interests, encumbrances, and other claims,
<br />(B) to provide any required insurance on the Property, or (C) to make repairs to the Property then Lender may do so. If any action or
<br />proceeding is commenced that would materially affect Lender's interests in the Property, then Lender on Trustor's behalf may, but is not required
<br />to, take any action that Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such
<br />purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the dale of repayment by Trustor.
<br />All such expenses will become a part of the Indebtedness and, at Lender:s.option, will (A) be payable on demand; (B) be added to the balance
<br />M the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any
<br />applicable insurance policy; of (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the
<br />Note's maturity: The Dead 01 Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to
<br />any other rights or any remedies to which Lender maybe entitled on account of any default. Any such action by Lender shall not be construed as
<br />curing the default so as to bar Lender from any remedy that It otherwise would have had.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Properly 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 an liens and
<br />encumbrances other than those set forth in the Real Property description or in any title Insurance policy, title report, or final title opinion
<br />issued in favor of, and accepted by, Lender In connection with this Deed of Trust, and (b) Trustor has the full right, power, and authority to
<br />execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Ttuslor warrants and will forever defend the title to the Property against
<br />the lawful. claims' of all persons. In the event any action or proceeding is commenced that questions Truslor's bile 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,
<br />but Lender shall'be enticed to participate in the proceeding and to be represented In the proceeding by counsel of Lender's Own cho109, and
<br />Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from lime to time to permit such
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