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• �2�.�7-1999 9 9 11 `�� -�j {� DEED OF TRUST Page 3
<br /> Loan No 1064690 (Continued)
<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 satlsfactory to Lender in an
<br /> amount sufficient to discharge the lien plus any cosis and attorneys'fees w other charges that could accrue as a resuft of a foredosure or sale
<br /> under the lien. In any contest,Trustor shall defend itself and Lender and shall satisfy any adverse judgment before enforcement agafnst the
<br /> Properly. Trustor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings.
<br /> Evidence oi Payment. Trustor shall upon demand furnish to Lender satlsfactory evidence of payment of the taxes or assessments and shaN
<br /> authorize the appropriate governmental official to deliver to Lender at any Ume a written statement of the taxes and assessmenis against the
<br /> Propery.
<br /> Noflce of Construction. Trustor sha�i notlty Lendar at least fiReen(15)days before any woric is commenced,any services are fumished,or a�y
<br /> materials are supplied to the Property, if any mechanic's lien, mate�ialmen's lien, or other lien could be asserted on account of the work,
<br /> servic�s,or materials. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Trustor can and witl
<br /> pay the cast of such improvements.
<br /> PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust.
<br /> MalntenanCe of Insurance. Trustor shall prxure and maintain policies of fire insurance with standard extended coverage endorsements on a
<br /> replacement basis for the full(nsurable value covering all Improvements on the Real Property in an amount sutficlent to avoid applicatlon of any
<br /> coinsurance clause,and with a standard mortgagee clause in favor of Lender. Trustor shall also procure and maintain comprehensive general
<br /> liability insurance fn such coverage amounts as Lender may request with trustee and Lender being named as addiHonal insureds in such Nability
<br /> insurance policies. Addibonally, Trustor shali mafntain such other insurance, including but not limited to hazard, business interruptlon, and
<br /> boiler insurance,as Lender may reasonably require. Policies shall be written in form,amounts,coverages and basis reasonably acceptable to
<br /> Lender and issued by a company or companies reasonably acxeptable to Lender. Trustor,upon request of Lender,will deliver to Lender irom
<br /> time to dme the policies or certificates of insurance in form satisfactory to Lend�,including stlpuiatlons that coverages wiil not be cancelled or
<br /> diminished 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 defautt 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 spedal 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 liens
<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 /> Appllcation of Proceeds. Trustor shall promptly notity Lender of any loss or damage to the Property. Lender may make proof of loss if Trustor
<br /> fafls to do so within fifteen(15)days of the casualty. Whether or not Lender's security is impaired,Lender may,at its elecHon,receive and retain
<br /> the proceeds of any insurance and apply the proceeds to the reducGon 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 satlsfactory to Lender. Lend�shall, upon satisfactory proof of such expenditure, pay or
<br /> relmburse Trustor from the proceeds for the reasonable cost of repair or restoration if Trustor is not in default under thls Deed of Trust. Any
<br /> proceeds whfch 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 first to pay any amount owing to Lender under this Desd of Trust,then to pay accrued int�t,and the remainder,if
<br /> any,shall be appHed to the principal balance of the Indebtedness. If Lender holds any proceeds aRer payment(n full of the Indebtedness,such
<br /> proceeds shall be paid to Trustor as Trustor's interesis may appear.
<br /> Une�irod Insurance M Sale. 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 a other sale heid under the provisions of this Desd of Trust,or at any foreclosure sale of such Property.
<br /> Trustor's Report on Insurance. Upon request of Lender,however not more than once a year,Trustor shall furnish to Lender a repat on each
<br /> e�dstinq policy of insurance showing: (a)the name of the insurer; (b)the risks insured; (c)the amount of the policy; (d)the property insured,
<br /> the then current replacement value of such property, and the manner of determining that value; and (e) the expiraHon date of the policy.
<br /> Trustor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replecement cost of the
<br /> Property.
<br /> TAX AND INSURANCE RESERVES. Subject to any limitations set by applicable iaw,Lender may require Trustor to maintain with Le�der reserves
<br /> for payment of annual taxes,assessments,ar�d insurance premiums,which reserves shall be created by advance payment or monthly payments of a
<br /> sum estlmated by Lender to be sufficient to produce amounts at least equal to the taxes,assessments,and insurance premiums to be paid. The
<br /> reserve funds shall be held by Lender as a general deposit from Trustor, which Lender may satis(y by payment of the texes, assessmenis,and
<br /> insurance premiums required to be paid by Trustor as they become due. Lender shall have the right to draw upon the reserve funds fo pay such
<br /> items, and Lender shall not be required to determine the validity or accuracy of any item before paying it. Nothing in the Deed of Trust shaU be
<br /> consirued as requi�ing Lender to advance other monies for such purposes,and Lender shall not incur any liability for anything ft may do or omit to
<br /> do with respect to the reserve account. Subject to any limitations set by applicable Iaw,if the reserve funds disclose a shortage or deficiency,Trustor
<br /> shall pay such shorfage or deficiency as required by Lender. All amounts in the reserve account are hereby pledged to further secure the
<br /> Indebtedness, and Lender is hereby authorized to withdraw and apply such amounts on the Indebtedness upon the occurrence of an Event of
<br /> Default. Lender shall not be required to pay any interest w earnings on the reserve funds unless required by law or agreed to by Lender in wriUng.
<br /> Lender does not hold the reserve funds in trust for Trustor,and Lender is not Trustor's agent for payment of the taxes and assessments required to
<br /> be paid by Trustor.
<br /> IXPENDITURES BY LENDER. If Trustor fails to comply with any provision of thls 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, but shall not be requlred to,take any acHon that Lender
<br /> deems appropriate. Any amount that Lender expends in so doing will bear interest at the rate provided for In the Note from the date I�cuRed 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 apportioned among and be payable with any installment payments to become due during either (i)the term of any eppl�able
<br /> insurance policy or (ii)the remaining term of the Note,or (c)be treated as a balloon payment which will be due and payabie at the Note's maturiy.
<br /> This Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any
<br /> remedies to which Lender may be entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to
<br /> bar Lender from any remedy that it otherwise would have had.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Dsed of Trust.
<br /> Title. Trustor warrants that: (a)Trustor holds good and marketable title of record to the Property in fee simple,iree and clear of all liens and
<br /> encumbranc�s othor than those set fo�th in the Real Property description or in any tide insurance policy,title report,or final tltle opinion issued in
<br /> favor of,and accepted by,lender in connection with this Deed of Trust,and (b)Trustor has the full right,power,and authority to execute and
<br /> deliver this Deed oi Trust to Lend�.
<br /> Defense of Title. Subject to the exception in the paragraph above,Trustor warrants and will forever defend the title to the Property against the
<br /> Iawful claims of all persons. In the event any action or proceeding is commenced that questions Trustor's title 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 pa�ty in such proc;eeding,but
<br /> Lender shall be entiHed to pa�ticipate 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 instruments as Lender may request from time to time to permit such,participation.
<br /> Complfance 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 suthorities.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust.
<br /> Application of Net Proceeds. If all or any pa�t of the Property is condemned by eminent domain proceedings or by any procseding or
<br /> purchase i�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 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 /> Proceedfnys. If any proceeding in condemnation is filed,Trustor shall prompNy 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 antipad to par�cip�ta fn the proceed(ny and to be rapresented in the proceediny by counsel oi its own choioo, �nd Trusta w(II deliver a
<br /> cause to be delivered to Lender such instruments as may be requested by It trom time to Nme to permit such particlpaUon.
<br /> IMPOSITION OF TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relaNng to govemmentel texes,
<br /> fees and charges are a part of this Deed of Trust:
<br /> Cuncnt Taxes,Fees end Char�es. Upon request by Lender,Trustor sha8 execute such documents in addition to this Dsed of Trust and take
<br /> whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Trustor shall reimburse Lender for all
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