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�=16-1999 DEED OF TRUST Page 3
<br /> •- Lt3an No 1042944 9 9 1112 �0 (Continued)
<br /> Property. Trustor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings.
<br /> Evidence of Peyment. Trustor shall upon demand furnish to Lender satisfactory avidence of payment of the taxes or assessments and shall
<br /> authorize the appropriate governmental oificial 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 notity 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 account of the work,
<br /> services,or materisis. 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 shall prxure and maintain policies of fire insurance with standard extended coverage endorsements on a
<br /> replacement basis for the full insurable valu�covering all Improvements on the Real Prope�ty in an amount suificient to avoid applicaHon of any
<br /> coinsurance clause,and with a standard mo�tgagee clause in favor of Lender,together with such other hazard and liability insurance as Lender
<br /> may reasonably require. Policies shall 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,wiil deliver to Lender irom 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 sha�l 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 Trustor or any other person. Should the Reai Property 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 for the ft,�ll unpaid principal balance of tha loan and any prior liens on the property
<br /> securing the loan,up to the ma�dmum pol�y limits set under the Nadonal Flood Insurance Program,or as otherwise roquired by Lender,and to
<br /> maintain such insurance for the term of the loan.
<br /> Applicatton of Proceeds. Trustor shall prompHy 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 proc�eds 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 restoraHon 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 flrst 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 Trusto�'s interests may appear.
<br /> Unexpired Insurance at Sele. 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 Existing Indebiedness. During the period in which any Ebsting Indebtedness described below is in effect,compliance with
<br /> the insurance provisions contained in the instrument evidencing such F�dsHng Indebtedness shall constitute compliance with the insurance
<br /> provisions under this Deed of Trust, to the extent compliance with the terms of this Deed of Trust would constitute a duplication 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 E�dsting Indebtedness.
<br /> DCPENDITURES BY �ENDER. 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 actlon or proc�eding is commenced that would materially 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 doing will bear interest at the rate protided for in the Note from the date incurred or paid by Lender to the date of repayment by
<br /> Trustor. All such expenses,at Lender's option,will (a)4e 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)the 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 am�unts. The righis proVided for in this parapraph shall b�in addition fo any other rights or any remedles 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 /> WAHRANTY;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 Property in fee simple,free and clear of all liens end
<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 /> Defenae of Tltk. Subject to the exception in the paragraph above,Trustor warrants and will forever defend the tide to the Property against the
<br /> lawful claims of all persons. In the event any action or proceeding is commenced that questions Trustor's tiile 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 entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lende�'s own cho(ce, 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 participaHon.
<br /> Compliance With Laws. Trustor 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 /> DCISTING INDEBTEDNESS. The following provisions concerning e�dsting indebtedness (the"E�dsting Indebtedness'� are a part of this Deed of
<br /> Trust.
<br /> Existiny Lien. The lien of this Deed of Trust securing the Indebtednass may be secondary and inferior to an e�dsting lien. Trustor expressly
<br /> covenants and agreas to pay,or see to the payment of,the Existing I�debtedness and to prevent any defautt on such indebtedness,any default
<br /> under the instruments evidencing such indebtedness,or any defauft under any security documenis for such indebtedness.
<br /> DeMult. If the payment of any installment of principal or any interest on the Existing Indebtedness is not made within the time required by the
<br /> note evidencing such indebtedness, or should a default oc:cur 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 defautt. _
<br /> No Modiflcatlon.'Trustor shall not enter into any agreement with fhe 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 /> Lender. Trustor shall neither request nor accept any future advanc�.s under any such security agreement without the prior written consent of
<br /> Lender.
<br /> CONDEMNATION. The following provisions r�ating 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 iis elecfion 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 the Property. The net proceeds of the award shall mean the award after payment of all reasonable
<br /> costs,expenses,and attorneys'fees incurred by Trustee or Lender in connection with the condemnation.
<br /> Prceeedings. If any proceeding in condemnaBon 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 party in such proceeding,but Lender shall
<br /> be entitled to participate in the proceeding and to be represented in the proc�eding 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 Hme to permit such participation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental tex�,
<br /> fees and charpes are a p4rt of this Daed of Trust:
<br /> Current Taxes,Fees and Charpes. Upon request by Lender,Trustor shalt e�cecute such dxuments in edditlon to this Deed of Trust and take
<br /> whatever other actio�is requested by Lender to perfect and continue Lender's lien on the Real Property. Trustor shall reimburse Lender for all
<br /> taxes, as desc�ibed below, together with all expenses incuned in recording, perfectiny or conNnuing 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 shaA�onstitutp t�xes ta witiqt�this section applies: (a)a specific tax upon this type of Deed of Trust or upon all or any
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