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• 11=04-1999 DEED OF TRUST Page 3 �
<br /> Loan No (Continued) 9 9 i � Q $ � �
<br /> N(teen(15)days after the Iien arises or,if a tlen is filed,within fifteen(15)days after Trustor has notice of the filing,secure the discharqe of the i
<br /> Ilen, or H requested by Lender, deposit with Lender cash or a sufficient corporate surey bond or other securiiy satisfactory to Lender fn an
<br /> amount suificlent to discherpe the lien plus any costs and attorneys'fees or other charges that coutd accrue as a result of a foreclosure or sale
<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 additlonal obliyee under any surety bond furnished in the contest proceedings.
<br /> Evldence of Payment. Trustor shall upon demand furnish to Le�der sadsfactory evide�ce of payment of the taxes or assessments and shall
<br /> authorine the appropriate governmental oificial to deliver to Lender at any Ume a written statement of the taxes and assessments against the
<br /> Prope�ty.
<br /> Notice of Conshuctbn. Trustor shall notiiy Lender at least fiiteen(15)days before any work is commenced,any services are fumished,or any
<br /> msteriols are suppNed to the Property, R any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work,
<br /> services,or materiels. Trustor wiN upon request of Lender fumish to Lender advance assurances saUsfactory to Lender thaf Trustor-can and will
<br /> pay ifw c�t of such improvements.
<br /> PROPERTY DAMAGE INSURANCE. The following provisions relaNng to insuring the Property are a part of this Deed of Trust.
<br /> Mdntenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on an
<br /> actuai cash value basis for the full i�urable value cov�ing all Improvements on the Real Property in an amount sufficient to avad application of
<br /> any cdnsurance clause, and with a standard mortgagee clause in favor of Lender. Trustor shall also procure and malntain comprehensive
<br /> general liability insurance In such coverape amounis as Lender may request with trustes and Lender beinp narrwd as additlonal lnsureds in
<br /> such liability insurance pdicies. Additlonally, Tr�tor sha8 meintein such other insurance, including but not Amlted to hazerd, busir�ess
<br /> interrupHon, and boiler tnsurance, as Lender may reasonably requ(re. Palk�es shaN be written ir� form, amounts, coverayes and basis
<br /> reasonabty asoaptibis to t.�nder and issued by a company or compa�es r�sonably aoceptabie to Lender. Trustor, upon request of Lender,
<br /> will deliver to Lender irom time to time the policies or cer�ficates of insurance in form satisfactory to Lender, including stipuladons that
<br /> coverages will not be cancelled or diminished without at least ten(10)days'prior written notice to Lender. Each insurance policy also shall
<br /> include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act,omission or default of 7rustor or
<br /> any other person. Should the Resl Property at any tlme become located in an area designated by the Director of the Federal Emergency
<br /> Mana�ement Agency as a special Ilood hazard area,Trustor aprees to obtain and maintain Federal Flood Insurancs for the fuN unpaid principal
<br /> balance of the loan and any prior liens on the property secu�ing the loan, up to the meximum pdicy Umits set under the NaHonal Flood
<br /> tnsurance Program,or as otherwise required by Lender,and to maintain such insurance for the term of the loan.
<br /> Applicatbn of Proc�sda Trustor shaq promptly notly Lender of any loss or damage to the Properiy. Lender may make proof of loss ff Trustor
<br /> fails to do so wfthin 1Ntesn(15)days of the casualty. Whether or not Lender's securiy is impaired,Lender may,at its electlon,receive and retain
<br /> the proceeds of any insurance and apply the proceeds to the reductlon of the Indebtedness,payment of any lien affecting the Properly,or the
<br /> restoratlon and repair of the Prope►ty. If Lender elects to apply the proceeds to restoraHon and repair, Trustor shall repair or replace the
<br /> damaqed or destroyed Improvements i�a manner saUsfactory to Lender. l.�nder shall;,upon saasfactory proof of such expenditure, pay or
<br /> reimburse Trustor irom the proceeds for the reasonable cost of repair or restoratlon if Trustor is not in default under this Deed of Trust. Any
<br /> proceeds which have not been disbursed within 180 days after their rec�ipt and whkh Lender has not committed to the repair or restoraHon of
<br /> the Property shaA be used first to pay any amount owtng 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. 1f Lender hdds any proceeds atter payment in fuB oi the Indebtedness,such
<br /> proceeds shall be paid to Trustor as Trustor's interests may appear.
<br /> Une�ired Insurance at Sale. Any unexpired insurance shall inure to the benefit of,and pass to,the purchaser of the Property cov�ed by this
<br /> Deed of Tru,st at any trustee's sale or other sab held under the provisions of this Deed of Trust,or at any foredosure sale of such Property.
<br /> Trustor's Report on Insuronce. Upon request of Lender,however not more than once a year,Trustor shall furnish to Lender a report on each
<br /> exisdng policy of insurance showing: (a)the name of the insurer; (b)the risks insured; (c)the amount of the pdicy; (d)the property insured,
<br /> the then current replacement value of such property, and the manner ot determining that value; and (e) the axpiraHon date of the pol�y.
<br /> Trustor shall, upon request of Lender,have an independent eppraiser setisfactory to Lender determine the cash value replacement cost of the
<br /> Properiy.
<br /> D(PENDITURES BY LENDER. If Trusta fails to comply with any provision of this Deed of Trust,or if any acHon or proceeding fs commenced that
<br /> would materially affect Lender's interests in the Property, Lende�^on Trustors beheH may,but shaU not be required to,take any action thet Lender
<br /> deems approprtate. Any emount that Lender e�ends in so ddrq wiH bear interest at the rate provided for in the Note kom the date incurred or paid
<br /> by Lender to the date of repayn�t by Trustor. AN such eo�enses,�lender's optlon,wiq (a)b�payable on demand, (b)be added to the balance
<br /> of tFwl�f6s�nd brs apparMoned among and be payabk wNh ar�y instaNmer�t PaYme�is to become dw during eNhbr,{y!he M►m ot any appNcable
<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 amounis. The righls provided for in this paragraph shail be in additlon to any other rights w a�y
<br /> remedies 10 whkh Lender may be entitled on a�ount of the defauft. Any such acdon by Lender shall not be consM�ed as cu�ing the default so as to
<br /> bar Lender from any remedy that it otherwise would heve had.
<br /> WARRANTY;DEFENSE OF TITLE. The followfng provisions reletlng to ownership of the Propery are a part of this Deed of Trust.
<br /> Tftk. Trustor warranls thaf: (a)Trustor hdds good and marketable ii11e of record to the Property in fee simple,iree and clear of all liens and
<br /> encumbranc�s other than those set forth in the Real Property descriptlon or in any dde insurarxe pdicy,tide report,or flnal tltle opinion issued in
<br /> favor of,and axepted by,Lender in connection with this Deed of Trust,and (b)Trustor has the full right,power,and authority to execute and
<br /> deNver this Deed of Trust to Lender.
<br /> DeMnse of Title. SubJoct to the excepUon in the paragraph above,Trustor warrants and will forever defend the title to the Properiy ayainst the
<br /> law(ul dafms of aN perso�. In the avent any action a prxaedinp is commenced that quesHoru Trustor's title or the interest of Trustee or
<br /> Lendar under this Deed of Trust,Tn�stor shaN defend the action at Trustor's e�ense. Trustor may be the nominal party in such proceeding,bW
<br /> Lender shaN be entlHed to parHcipate in the proceedinp and to be represented in the proceeding by counsel o( Lender's own choice, and
<br /> Trustor wf�deliver,or cause to be deUvered,to Lender such inshumen(s as Lender may requast irom time to Hme b permit such parNcipation.
<br /> Compliance With Laws. Trustor werrants that the Property and Tn�stor's use of the Property compiies with all exis8ng applicable laws,
<br /> ordinances,and repulations of governmental authorities.
<br /> CONDEMNATION. The fdtowing provisions relatlr►�to condemnation proceedings are a part of thls Deed of Trust.
<br /> Appikatbn 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 el9ction require that eN or any portion of the net proc�eds of the award be applied to the
<br /> Indebtedness or the repeir or restoratlon of the Property.' The net proceeds of the award sheN mean the award afte�payment of all reasonable
<br /> cosis,expenses,and altorneys'fees incurced by Trustee or Lender in connecqon with the condemna8on.
<br /> Proceedin�s. If any proceediny in condemnation is filed,Trustor shall promptty no6fy Lender in wriHny,and Trustor shall prompdy take such
<br /> steps as may be necessary to defend the actlon and obtain the award. Trustor may be the nominel party in such proceeding,but Lender shaU j
<br /> be enfitled to pa�tidpate in the proceediny and to be represented in the proceeding by counsel of its own choice,and Trustor will deliver or ;
<br /> cause 10 be deNvered to Lender such instruments as may be requested by ff from tlme to 6me to permit such participadon.
<br /> IMPOSITION OF TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental texes, �
<br /> fees and charyes ara a parf of this Deed of Tnist:
<br /> Cunent Taxes,Fess and Char�es. Upon request by Lender,Trustor shaN execute such documents in addiHon to thls Deed of Trust and take
<br /> whatever other actlon Is requested by Lender to perfect and contlnue Lender's lien on the Real Prope�iy. Trustor shell reimburse Lender for all
<br /> taxas, as described below, together with aN expen5es incurred in recording, perfecting or continui�g this Deed of Trust, including without
<br /> limitation sA taxes,fees,dxumentary stamps,and other charges for recording or repisterirp this Deed of Trust.
<br /> Taxes. The followinp shaN 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 Tn�.st; (b)a specific tax on Trustor which Trustor is authorized or required to deduct from
<br /> peymenls on the Indebtedness secured by thi.s type of Deed of Trust; (c)a tax on this type of Deed of Trust charqeable agair�st the Lender or
<br /> the hdder of the Note;and (d) a specNic tax on sA or any po�tion of the Indebtedness or on payments of principal and iMerest made by
<br /> Trustor.
<br /> Subsequent Taoces.�If any tex to which this secNon applies is enacted subsequent to the date of this Deed of Trust,this event shall have the
<br /> same effect as an Event of Defauft(as deflned below),and Lender may exercise any or all of its available remedies for an Event of Defautt as
<br /> provided below unless Trustor either (e)pays the tax betore it becomes delinquent,or (b)contests the tex as provided above in the Taxes and
<br /> Liens secHon and deposns with Lender cash or a sufficient corporate surety bond or other security satisfactory to tiender.
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