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DEED OF TRUST 9 9 1,� ��� � Page 2
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<br /> its agents to enter upon the Property to make such inspections and tests, at Trustor's expense, as Lender may deem appropriate to
<br /> determine compliance of the Property with this section of the Deed of Trust. Any inspections or tests made by Lender shall be for Lender's
<br /> purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Trustor or to any other person. The
<br /> representations and warranties contained herein are based on Trustor's due diligence in investigating the Property for Hazardous
<br /> Substances. Trustor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Trustor
<br /> becomes liable for cleanup or other costs under any such laws;and (2) agrees to indemnify and hold harmless Lender against any and all
<br /> claims, losses, liabilities,damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach
<br /> of this section of the Deed of Trust or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened
<br /> release occurring prior to Trustor's ownership or interest in the Property,whether or not the same was or should have been known to Trustor.
<br /> The provisions of this section of the Deed of Trust, including the obligation to indemnify,shall survive the payment of the Indebtedness and
<br /> the satisfaction and reconveyance of the lien of this Deed of Trust and shall not be affected by Lender's acquisition of any interest in the
<br /> Property,whether by foreclosure or otherwise.
<br /> Nuisance,Waste. Trustor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to
<br /> the Property or any portion of the Property. Without limiting the generality of the foregoing, Trustor will not remove, or grant to any other
<br /> party the right to remove, any timber, minerals (including oil and gas),coal, clay, scoria, soil, gravel or rock products without Lender's prior
<br /> written 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 /> Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to
<br /> attend to Lender's interests and to inspect the Real Property for purposes of Trustor's compliance with the terms and conditions of this Deed
<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 as Trustor has notified
<br /> Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender
<br /> may require Trustor to post adequate security or a surety bond, reasonably satisfactory to Lender,to protect Lender's interest.
<br /> Duty to Protect. Trustor agrees neither to abandon nor 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 the
<br /> Property.
<br /> TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Deed of Trust:
<br /> Payment. Trustor shall 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, except for the Existing Indebtedness
<br /> referred to below,and except as otherwise provided in this Deed of Trust.
<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 as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment,Trustor shall within
<br /> fifteen(15)days after the lien arises or,if a lien is filed,within fifteen(15)days after Trustor 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 sufficient to discharge the lien plus any costs and attorneys'fees, or other charges that could accrue 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. Trustor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings.
<br /> Ev!rlence of Payment. Trustor 5hall uoon 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 (15) days before any work is commenced, any services are furnished,or
<br /> an;�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$1,000.00. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory
<br /> to 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 /> 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. The Real Property
<br /> is or will be located 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, for the full unpaid principal balance of the loan and any prior
<br /> liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as othervvise
<br /> required by Lender,and to 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 if the estimated cost of repair or
<br /> replacement exceeds$1000. Lender may make proof of loss if Trustor fails to do so within fifteen(15)days of the casualty. Whether or not
<br /> Lender's security is impaired, Lender may,at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to
<br /> the reduction of the Indebtedness,payment of any lien affecting the Property,or the restoration and repair of the Property. If Lender elects to
<br /> apply the proceeds to restoration and repair, Trustor shall repair or replace the damaged or destroyed Improvements in a manner
<br /> satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the
<br /> reasonable cost of repair or restoration if Trustor is not in default under this Deed of Trust. Any proceeds which have not been disbursed
<br /> within 180 days after their receipt and which Lender has not cummiYed to the repair o�restoration of the Property shall be used first to pay
<br /> any amount owing to lender under this Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the �
<br /> principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness,such proceeds shall be paid
<br /> 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 EXPENDITURES. If Trustor fails (A) to keep the Property 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 maydo 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 date 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 /> of 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;or (2) the remaining term of the Note;or (C) be treated as a balloon payment which will be due and payable at the i
<br /> Note's maturity. The Property also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any
<br /> other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall not be construed as
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