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9� �111'7'11 ' Pa e 2
<br /> DEED OF TRUST g
<br /> (Continued)
<br /> except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any
<br /> use,generation, manufacture,storage, treatment,disposal, release or threatened release of any Hazardous Substance on, under,about or
<br /> from the Property by any prior owners or occupants of the Property,or (c) any actual or threatened litigation or claims of any kind by any
<br /> person relating to such matters;and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) neither Trustor nor •
<br /> any tenant,contractor,agent or other authorized user of the Property shall use,generate, manufacture,store,treat,dispose of or release any
<br /> Hazardous Substance on,under,about or from the Property;and (b) any such activity shall be conducted in compliance with all applicable
<br /> federal,state,and local Iaws,regulations and ordinances,including without limitation all Environmental Laws. Trustor authorizes Lender and
<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 pa�t of Lender to Trustor or to any other person. The
<br /> representations and warranties contained herein are based on Trusto�'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 sectfon of the Deed of Trust or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened
<br /> release occurting 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 sectlon 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 limifing 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 /> Removel of Improvemept� Tr�o�shall n��c�tnolish or remove any Improvements from the Real Property without Lender's prior written
<br /> consent. As a conditiori+to h�r dVal`of any IrtSprovements, 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 tim� 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 /> Complience with Govemmental Requirements. Trustor shall promptly comply with all Iaws,ordinances,and regulations,now or hereafter
<br /> in effect, of all governmental authorities applicable to the use or occupancy of the Property,including without limitation,the Americans With
<br /> Disabilities Act. Trustor may contest in good faith any such law,ordinance, or regulation and withhold compliance during any proc;eeding,
<br /> including appropriate appeals, so long as Trustor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion,
<br /> Lender's interests in the Property are not jeopardized. Lender may require Trustor to post adequate security or a surety bond, reasonably
<br /> 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 /> TAkES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Deed of Trust:
<br /> Pnyment. Trustor shall pay when due(and in all events prior to delinquency)all taxes,special taxes,assessmenis,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 and except as otherwise provided in this
<br /> 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 a�ises or,if a lien is filed,within fifteen(15)days after Trustor has notice of the flling,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 /> Evidence of Payment. Trustor shall upon demand furnish to Lender saHsfactory evidence of payment of the taxes or assessments and shall
<br /> authorize the approprfate governmental official to deliver to Lender at any time a written statement of the texes 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 servic�s are furnished,or
<br /> any 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. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Trustor can and
<br /> will pay the cost of such improvements.
<br /> PROPERTY DAMAGE INSURANCE. The following provfsions relating to insuring the Property are a part of this Deed of Trust.
<br /> Maintenence 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. Trustor shall also procure and maintain comprehensive
<br /> y�neral liability insurance in such coverage amounts as Lender may request with trustee and Lender being named as addiHonal insureds in
<br /> such liability insurance policies. Additionally, Trustor shall maintain such other insurance, including but not limited to hazard, business
<br /> i��terruption, and boiler insurance, as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis
<br /> r�asonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Trustor, upon request of
<br /> :ander,will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations
<br /> tr�at coverages will not be cancelled or diminished without at least ten(10) days prior written notice to Lender. Each insurance policy also
<br /> 7hail include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act,omission or default of
<br /> �rustor or any other person. Should the Real Property be located in an area designated by the Director of the Federal Emergency
<br /> Management Agency as a speoial flood hazard area,Trustor agre�to obtain and maintain Federal Flood Insurance, if available,within 45
<br /> days after notice is given by Lender that the Property is located in a special flood hazard area,for the full unpaid principal balance of the loan
<br /> and any prior liens on the property securing the loan,up to the meximum policy limits set under the National Flood Insurance Program,or as
<br /> oiherwise required by Lender,and to maintain such insurance for the term of the loan.
<br /> Hpplicatlon of Proceeds. Trustor shall prompfly notify Lender of any loss or damage to the Property. Lender may make proof of loss if
<br /> '�ustor fails to do so within fifteen(15)days of the casualty. Whether or not Lender's security is impaired,Lender may,at Lender's election,
<br /> � -ceive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness,payment of any lien affecting
<br /> ;�a Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall
<br /> .-pair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such
<br /> :�penditure,pay or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if Trustor is not in default under this
<br /> ;:�aed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the
<br /> r--pair or restoration of the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br /> i�,ierest,and the remainder,if any,shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment
<br /> i��full of the Indebtedness,such proceeds shall be paid to Trustor as Trustor's interests may appear.
<br /> t+nexpired Inaurence at Sale. Any unexpired insurance shall inure to the beneflt of,and pass to,the purchaser of the Property covered by
<br /> �-��s 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 /> �'�operty.
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