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-- 11-A9-1999 DEED OF TRUST Page 3
<br /> Loan No 1041326 (Continued) 9 9 1110 2 2
<br /> fifteen (15)days after the lien arises or,if a lien is filed,within fifteen(15)days after Trustw has notice of the filing,secure the discharge of the
<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 suificient 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 shall defend itself and Lender and shall saHsy any adverse judgment before enforcement agafnst the :
<br /> Property. Trustor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings.
<br /> Evidence ot Peyment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the texes or assessments and shall
<br /> suthorize tha appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the :
<br /> Prope�ty.
<br /> Notice of Construction. Trustor shall notify Lender at least fifteen(15)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 axount 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 maintein 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 avad applicaHon of any
<br /> cansurance ciause,and with a standard mortgagee clause in favor of Lender,together with such other hezard and Ilability insurance as Lender :
<br /> may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acx�ptable to Lender and issued by a
<br /> company or companies reasonably acxeptable to Lender. Trustor,upon request of Lender,will deliver to Lender from time to time the policies
<br /> or certificetes of insurance in form satisfectory to Lender, including stipulations that coverages will not be cancelled or diminished wRhout at
<br /> least ten(10)days'prior written noHce to Lender. Each insurance poNcy 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 defauft of Trustor or any other person. Should the Real Properiy at any time
<br /> become located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area,Trustor
<br /> agrees to obtain and maintain Federal Flood Insurance fw the full unpaid principal balance of the loan and any prior liens on the property
<br /> securing the loan, up to the ma�dmum policy limiis 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 Pro�xeds. Trustor shall promptly notiy Lender of any loss or damage to the Properly. 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 procesds to the reduction of the Indebtedness,payment of any lien affecting the Property,or the
<br /> restoraHon 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 Improvemenls 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 restora4on H 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 restorallon 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 Ind�tedness. If Lender hdds any proceeds after payment in full of the Indebtedness,such
<br /> proceeds shell be paid to Trustor as Trustor's interests may appear.
<br /> Unexpired Insurence M Sale. Any unexpired insurance shall inure to the benefit of,and pass to,the purchaser of the Properly 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 Properry.
<br /> D(PENDITURES BY LENDER. If Trustor fails to comply with any provision of this Deed of Trust,or if any action or proc�eding is commenced that
<br /> would materially affect Lender's interests in the Property, Lender on Trustor's behalf may,bW shall not be required to,take any action that Lender
<br /> deems appropriate. Any amount that Lender expends in so dang 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 such expenses,at Lender's option,will (a)be payable on demand, (b)be added to the balance
<br /> of the Note and be appaiioned among and be payable with any instaliment 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 amounis. The righls provided for in this paragraph shall be in addition to any other rights or any
<br /> remedies to which Lender may be entiHed on account of the default. Any such action by Lender shall not be construed as cu�ing the default so as to
<br /> bar Lender from any remedy that it otherwise would have had.
<br /> WARRANTY;DEFENSE OF TITLE. The fdlowing 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 dde 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 descrip�on a in any title insurance pdicy,title report,or final tiNe opinion issued in
<br /> favor of,and acxx:epted by,Lender ln connection with this Deed of Trust,and (b)Trustor has the full right,power,and authority to execute and
<br /> de8ver this Deed of Trust to Lender.
<br /> Defense of Titk. Subject to the exc�ption in the paragraph above,Trustor warrenis and wNl forever defend the tiHe to the Property against the
<br /> lawful claims of all persons. In the event any action or procseding is commenced that quesdons Trustor's tide or the interest of Trustee or
<br /> Lender under this Deed of Trust,Trustor shall defend the action at Trustor's e�ense. 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 instrumenls as Lender may request from tlme to 6me to permit such participation.
<br /> Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all exlsting applicable laws,
<br /> ordinances,and regulaHons of governmental authorities. :
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust.
<br /> AppliCatlon 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 elecNon require that all or any portion of the net procesds of the award be applied to the
<br /> Indebtedness or the repair or restoration of the Prope�ty. The net proceeds of the award shall mean the award after payment of all reasonable
<br /> costs,expenses,and attomeys'fees incurred by Trustee or Lender in connection with the condemnadon.
<br /> Proceedinys. If any proc�eding in condemnation is filed,Trustor shall promptly notiy Lender in wriiing,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 parly in such proceeding,but Lender shall
<br /> be entitled to participate in the proc�eding 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 time to time to permit such participatlon.
<br /> IMPOSITION OF TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental texes,
<br /> fees and charges are a part of this Deed of Trust:
<br /> Current Taxes,Fees and Charpes. Upon request by Lender,Trustor shall execute such documents in addition to this Deed of Trust and take
<br /> whatever other acHon is requested by Lender to perfect and con8nue Lender's lien on the Real Properiy. Trustor shall reimburse Lender for all
<br /> texes, as described below, together with all e�enses incurred in recording, perfectin� or continufng this Deed of Trust, including without
<br /> limitation all taxes,fees,documentary stamps,and other charges for recording or registering this Deed of Trust.
<br /> Taxes. The following shall constitute taxes to which this section appiies: (a)a specific tex 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 specific tax on Trustor which Trustor is suthorized or required to deduct irom
<br /> paymenis on the Indebtedness secured by this type of Deed of Trust; (c)a tex on this iype 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 /> Subsequsnt Taxes. If any tax to which this section eppiies is enacted subsequent to the date of this Deed of Trust,this event shall have the
<br /> same effect as an Event of Defautt(as defined below),a�d Lender may exercise any or all of iis available remedies for an Event of Default as
<br /> provided below unless Trustor either (a)pays the tex before it becomes delinquent,or (b)contests the tex as provided above in the Taxes and
<br /> Liens secfion and deposits with Lender cash or a sufficient corporate surety bond or other securiiy satisfactory to Lender.
<br /> SECURITY AGREEMENT;FINANCING STATEMENTS. The following provisions relating to this Deed of Trust as a security agreement are a part of
<br /> this Deed of Trust.
<br /> Security Apreemsnt. This insuument shali consti#ute a security a9reement to the extent any of the Property constitutes fixtures or other
<br /> personal propery, and Lender shall have all of the rights of a secured party under the Uniform Commerciai Code as amended }rom Nme to
<br /> time.
<br /> Security Interest. Upon request by Lender,Tn�tor shall execute flnancirp statements and take whatever other actlon is requested by Lender
<br /> to perfect and contlnue Lender's security interest in the Rents and Personal Properly. In addlNon to recording this Deed of Trust in the real
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