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- ._08•�3�=1999 DEED OF TRUST Page 3
<br /> Loan No 1004365 (Continued) 9 9 10 8 8 9 3
<br /> under the lien. In any contest,Trustor shall 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 o(Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the taues or assessments and shall
<br /> suthorize the appropriate governmental o�cial to detiver to Lender at any time a written statement of the taxes and assessments against the
<br /> Property.
<br /> Notice ot Construction. Trustor shall notify 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 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 will
<br /> 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 shali 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 favor of Lender,together with such other hazard and liability insurance as Lender
<br /> may reasonably require. Policies shalt be written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a
<br /> company or companies reasonably acceptable to Lender. Trustor, upon request of Lender,will deliver to Lender from time to time the policies
<br /> or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled 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 Truslor or any other person. Shouid the Real Property at any time
<br /> become located in an area designated by the Director of the Federal Emergency Management Agency as a speciat flood hazard area,Trustor
<br /> agrees to obtain and maintain Federal Flood Insurance for the full unpaid principal balance of the loan and any prior liens on the property
<br /> securing the loan, up to the maximum policy limits set under the National Flood Insurance Program,or as otherwise required by Lender,and to
<br /> maintain such 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 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 apply the proceeds to the reduction of the Indebtedness,payment of any lien affecting the Property, or the
<br /> restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the
<br /> damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or
<br /> reimburse Trustor from 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 to the 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 at 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 /> Compliance with Exlsting Indebtedness. During the period in which any Existing Indebtedness described below is in effect,compliance with
<br /> the insurance provisions contained in the instrument evidencing such Existing Indebtedness shaii constitute compliance with the insurance
<br /> provisions under this Deed of Trust, to ihe extent compliance with the terms of this Deed of Trust would constitute a dupfication of insurance
<br /> requirement. If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust for division of proceeds shall
<br /> apply only to that portion of the proceeds not payable to the holder of 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 materialiy affect Lender's interests 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 doirtg will bear interest ai !ne raie provided for in tF� Note fro7r tha date inc�rred or p.aid by L�r..Car to tha da!e af repayment by
<br /> Trustor. All such expenses,at Lender's option,will (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 during either (i)fhe term of any applicable insurance policy or (ii)the remaining 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 /> payment of these amounts. The righis provided for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be
<br /> entitled on account of the default. Any such action by Lender shall not 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 Properfy in fee simple,free and ciear of all liens and
<br /> encumbrances other than those set forth in the Real Property description or in the Existing 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 authority 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 wiil forever defend the title to the Property against the
<br /> lawful claims of all persons. In the event any action or proceeding is commenced that questions Trustor's titie 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 entitied 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 Wiih Laws. Truslor 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 /> D(ISTING INDEBTEDNESS. The following provisions concerning existing indebtedness (the "Existing Indebtedness") are a part of this Deed of
<br /> Trust.
<br /> Existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an existing lien. Trustor expressly
<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 insiallment of principal or any inlerest on the Existing Indeotedness is not made within the time required by the
<br /> note evidencing such indebiedness, 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,deed 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 /> �ender. 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 Properiy is condemned by eminent domain proceedings or by any proceeding or
<br /> purchase in lieu of condemnation,Lender may at iis 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 1he Property. The net proceeds of the award shall mean the award after payment of all reasonable
<br /> cosis,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 the award. Trustor may be the nominal pa►ty in such proceeding,but Lender shall
<br /> be entitled to participate in the proceeding and io 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 time to time to permit such participation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTFiORITIES. The foliowing provisions relsting to govarnmental toxes,
<br /> fees and charges are a part of this Deed of Trust:
<br /> Current 7axes,Fees and Charges. Upon request by Lender,Trustor shall execute such documents in addition to this Deed of Trust and take
<br /> whatever othec aCtion is requested by Lender to perfect and continue Lender's lien on fhe Real Properfy. 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 charges for recording or registering this Deed of Trust.
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