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<br /> ��-22-�999 g . , � bEED OF �'iUST . _ .a , ,.. .::. _... .: , '- Pa�e 3
<br /> Loan No 1045160 (CoMinued)
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<br /> Riyht To Contest. Trustor may withhold payment of any tax,assessment,or claim in connectlon with a good feNh dispute over the obNpetlon
<br /> to pay,so long as Lender's interest in the Properiy is not jeopardized. If a lien arises or is filed as a resuft of nonpayment,Trustor ahall within
<br /> fifteen(15)days affer the lien arises or,if a lien is filed,within fifteen(15)days aRer 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 saHsfactory 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 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 additional obligee under any surety bond furnished in the contest proc;eedings.
<br /> Evtdence ot Payment. Trustor shall upon 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 assessmenis against the
<br /> Property.
<br /> Notice of Construction. T�ustor 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 Properiy, 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 furnlsh to Lender advance assura�satisfactory to Lender that Trustor cen and wili
<br /> pay the cost of such improvements.
<br /> PROPERTY DAMAGE INSURANCE. The following provisions reladng to insuring the Properiy are 8 part of this Deed of Trust. .
<br /> MaiMen�of Insuranoe. Trustor sheN procure and maintain poNdes of fi�s insurance w�h standard axtended coverap�endo►a�►+�r�ls on a
<br /> ���r����; .� . . >.� . ..o[!°. a .��.aN ,. _suMlaisnt ta avold aPPNcatlon d any
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<br /> fnsurance policies. AddiHonally, T or shaN maintain such uther nsurance, � ng , �
<br /> boiler insurance,as Lender may reasonably require. Policies shall be written in form,amounis,coverages and basis reasonably 8cceptable to
<br /> Lender and issued by a company or companies reasonably acceptable to Lender. Trustor,upon request of Lender,will deliver to Lender from
<br /> time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or
<br /> diminished without at least ten(10)days'prior wriflen 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. Should the Real
<br /> Property at any time become located in an area designated by the Director of the Federal Emergency Management Agency as a special flood
<br /> hazard area,Trustor agrees to obtain and maintain Federal Flood Insurance for the full unpaid principal balance of the loan and any prior Uens
<br /> on the property securing the loan,up to the maximum policy limits set under the National Flood Insurance Program,or as otherwise required by
<br /> Lender,and to maintain such insurance for the term of the loan.
<br /> Application of Proceeds. Trustor shall prompdy notify Lender of any loss or damage to the Property. Lender may make proof of loss ff Trustor
<br /> fails to do so within fifteen(15)days of the casualty. Whether or not Lender's securiiy is impaired,Lender may,et lis electlon,receive and retain
<br /> the proceeds of any insurance and apply the procesds to the reduction d the Indebtedness,payment of any lien affectlnp the Properiy,or the
<br /> restoration and repair of the Property. If Lender elects to apply the proceeds to restoratlon and repalr. Trustor shaN ropair or repl�e the
<br /> damaqed or destroyed Improvements in a manner saHsfactory b Lendsr. Lander shaY. upon satlafactory proof ot such expsn�ture,PeY or
<br /> reimburse Trustor from the proceeds for the reasonable cost of repair or restoratbn M Tn�stor ta not In default undor this Deed of Trusf. My
<br /> procseds which have not been disbursed within 180 days after thek r�ceipt a�d wtdch Lendar hes not commiitad to the repatr or restoradon of
<br /> the Property shaN be used flrst to pay any amouM,owirq to Lender under this Deed of Trust,then to pay axrued Interast,and the remainder,if
<br /> any,shell be appQed to the principal balance of fhe Indebtedness. If Lender hdds any proceeds after payment fn fuN of the Indebtedness,such
<br /> proceeds shall be paid to Trustor as Trustor's interests may appear.
<br /> Unexpired Insuronce at Sale. Any une�ired insurance shall inure to the benefit of,and pess to,the purchaser of the Prope�iy covered by this
<br /> Deed of Trust at any trustee's sale or other sale held under the provisions of this Deed oi Trust,or at any foreclosure sale of such Property.
<br /> Compllance with Ddstiny Indebtedness. During the period in which any Existing Indebtedness described beiow is in effect,compliance with
<br /> the insurance provisions contained in the instrument evidencing such Existing 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 oNy to that portion of the erqceeds not p�able to the holder of the Existin Indebtedness.
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<br /> Trw�'s Rport on Mau�tq. Upon rp�M�:p�.��;:'..�.
<br /> e�dsurp poNcy ot�nsurance snowtnp: ca)n�s�rrie�a tns insurer; (b)#,e risks i�,rsd;.(c�taa:rnou�it �,�� _ ,
<br /> the then cuRent replacement value of such property, and the menner of determining that value; and (e) the expkatlon data of thtl poNcy.
<br /> Trusto�shall, upon request of Lender,have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the
<br /> Property.
<br /> IXPENDITURES BY LENDER. If Trustor fails to comply with any provision of this Deed of Trust, including any obUgation to maintain Existing
<br /> Indebtedness in good standing as required below,or if any action or proceeding 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 provided for in the Note from the date incuned or paid by Lender to the date of 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)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 amounts. The rights 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 irom any remedy that
<br /> it otherwise would have had.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relaHng to ownership of the Property are a part of this Deed of Trust.
<br /> Title. Trustor warrants that: (a)Trustor holds good and marketable H�e ot record to the Property in tee simple,free and dear of aN Nans and
<br /> encumbrances other than those set forth in the Real Property descxiptlon or fn the Exisdnp Indebtedness secUon below or in any Hde Insurance
<br /> policy,dtle report,or flnal tltle opinion issued in favor of,and axepted by,Le�der in con�ectlon with this Dsed of Trust,and (b)Trustor has the
<br /> full right,power,and authorHy to execute and deliver this Deed of Trust to Lender.
<br /> Defenae of Title. Subject to the exc:epUon in the paragraph above,Trustor warranls and will 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 quesHons Trustor's title or the interast 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 procseding,but
<br /> Lender shall be enHded to participate in the proceeding and to be represented in the proc�eding by counsel of Lender's own choice, and
<br /> Trustor will deliver,or cause to be delivered,to Lender such instruments as Lender may reGuest from time to time to permit such participation.
<br /> Compllance Wfth Lews. Tn�tor war�an� that ttw Prope�ty qnd Trustar's usa of ths Property compUes with ail e�dsUr►g applicable Iaws, �
<br /> ordinanc�s,and regulaBons of governmental eutho��as.
<br /> D(ISTING INDEBTEDNESS. The following provisions concerning existing indebtedness (the"Exlsting Indebtedness'�are a part of this Deed of
<br /> Trust.
<br /> Existiny Lkn. 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 F�dsting Indebtedness and to prevent any default on such indebtedness,any default
<br /> under the instruments evidencing such indebtedness,or any default under eny security documents for such indebtedness.
<br /> Default. If the payment of any installment of principal or any interest on the ExisNng Indebtedness is not made within the time required by the
<br /> note evidencing such indebtedness,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 Modiflcation. Trustor shall not enter into any agreement with the holder of any mortgage,deed of trust,or other security agrsement which
<br /> has priority over this Deed of Trust by which that agreement is modified,amended,extended,or renewed without the p�ior written consent of
<br /> Lender. Trustor shall neither request nor acxept any future advances under any such security ayreement without the p�ior written conse�t of
<br /> Lender.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a pa�t of this Deed of Trust.
<br /> Applfcation of Net Proceeds. If all or any pa�t of the Property is condemned by eminent domain proceedings or by any proceediny or
<br /> purchase in lieu of condemnation,Lender may at its 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 the Property. The net proceeds of the award shell mean the award aRer payment of all reasonabla
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