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DEED OF TRUST 2 19 5 Page 3 Loan No: 101204823 (Continued) e fair value basis for the full Insurable value covering all Improvements on the Real Properly in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgages, clause in favor of Lentler, together with such other haverd and liability Insurance m Lander may reasonably require. Policies shell be written In form, amounts, coverages antl basis reasonably acceptable to Lander and Issued by a company or companies reasonably acceptable to Lender. Trustor, upon request of Lander, will deliver to Lender from time to time the policies or certificate, of Insurance In form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lander. Each insurance policy also shall include an endorsement providing that coverage In favor of Lander will not be Impairetl in any way by any act, omission or defauX of Trustor or any other person. Should the Reel Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice Is given by Lender that the Property Is the up to me msxlmuim policy liml6 seteunder the (National Flood Insurance Program,IOr es othaerwioel required by Le^d property securing maintain such Incurred In a Insurance for the term of the loan. Application of Proceeds. Trustor shall promptly notify Lander of any loss a damage to the Property. Lender may make proof of loss if Trustor hits to do so within fifteen (15) days of the casualty. Whether or not Lenders security a Impaired. Lentler may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any Ilan affecting the Property , or the restoration and repair of the Property. If Lander elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the damaged or destroyed Improvements in a manner satsactory to Lander. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Trusts from the proceeds for the reasonable corn of repair or restoration X Trustor Is not In default under this Dead of Trust. Any proceeds which have not been disbursed within 180 days after train receipt and which Lender has not committed to the repair or restdrellon of the Property shell be used first to pay any amount owing to Lender under this Dead of Trust, then to pay accrued Interest, and the remainder, If any, sell be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness. such proceeds shall be paid to Trustor as Trustors Interests may appear. LENDER'S IXPENDITURES. If Truslor fails (A) to keep the P(opady bee of all texas, liens, security interests, encumbrances, and other claims, (B) to provide any required Insurance on the Property, or (C) to make repairs to to Property then Lender may do so. It any action or proceeding is commenced that would materially affect Lender's Interests in the Proper%, then Lender on Trustor's behalf may, but is not required to, take any action that Lander believes to be anpropriala to protect Lender's interests. All expenses Incurred or paid by Lander for such purposes will than bear interest at the rate charged under the Note from the date incurred a paid by Lander to the data of repayment by Truslor. 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 of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be bested as a balloon payment which will be tlue and payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shell be In etltlltian to any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lentler shall not be construed as curing the default $o es to bar Lender bon any remedy that It otherwise would have had WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Properly we a pad of this Dead of Trust: Title. Truslor warrants that: (a) Trustor holds good and marketable title of record to the Properly in Me simple, free and clear of all liens and encumbrances other than those sat forth in the Real Property demription or In any file Insurance policy, use report, or red a author opinion to issued In favor ol, antl accepted by, Lender in connection with this Deed of Trust, end (b) Trustor Fee the full right, p my execute and deliver this Deed of Trust to Lander. Defense of Title. Subject to the exception In the paragraph above, Trustor warrants and will forever defend the fitie to the Property against the lawful claims of all persons. In the event any action or proceeding Is commenced that questions Trustor's NNe or the interest of Trustee or Lentler antler this Dead m Trust, Trustor shell of the action at Trpsters expense. Trustor may be the nominal perry In such promeding, but Lentler shall be entlfted to participate In the proceeding and to be represented In the proceeding by counsel of Lender's own choice, and Trustor will deliver, or cause to be delivered, to Lander such Instruments as Lender may request from Nme to time to Permit such Participation. Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Properly complies with all existing applicable laws, ordinances. and regulations of governmental authorities. Survival of Promisee. All promises, agreements, and sMlements Truslor bas made In this Dead of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature and shell remain in full force and one& until such time as Borrower's Indebtedness is paid in lull. CONDEMNATION. The followitg provisions relating to condemnation proceedings are a part of this Dead of Trust: Proceedings. If any proceeding In condemnation is filed. Truslor shall promptly notify Lander In writing, and Truslor shall promptly take such steps as may be normal to defend the action and obtain the award. Trustor may be the nominal party In such proceeding, but Lender shall be entitled to participate In the Proceeding and to be represented In to proceeding by counsel of Its own choice, and Trustor will deliver or cause to be delivered to Lentler such Instruments and documentation as may be requested by Lender from time to time to permit such participator. Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase In lieu et condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and attorneys fees incurred by Trustee or Lender in connection with Me condemnation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, tees and charges are a pad of this Dead of Trust: Current Taxes, Fees and Charges. Upon request by Lender, Trustor shell execute such documents in addition to This Dead of Trust and lake whatever other action Is requested by Lander to perfect and continue Lender's lien on the Reel Property. Trustor shall reimburse Lender for all without tats didescribed below, together wlth all as eflam incurred wording, i perfecting or continuing of Trust, g lees, documents slams g 0 registering