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DEED OF TRUST
<br />200300064' (Continued). ; Page
<br />Loan No: 776159 ,
<br />Maintenance of Insurance. rouser 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 aveitl application of
<br />any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Trustor shall also procure and maintain comprehensive
<br />general liability insurance in such coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in
<br />such liability insurance policies. Additionally, Truster shall maintain such other insurance, including but not limited to hazard, business
<br />interruption. and boiler insurance, as Lender may reasonably require. Policies shall be written in farm, amounts, torT upon rer quest
<br />reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Trustoo up q
<br />Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations
<br />that coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each insurance policy also
<br />shall 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 />Trifler or any other person. Should the Real Properly be located in an area designated by the Director of the Federal Emergency
<br />Management Agency as a special flood hazard area, Truster agrees 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 maximum policy limits set under the National Flood Insurance Program, or as
<br />otherwise required by Lender, and to maintain such insurance for the term of the loan.
<br />Applicaion of Proceeds. Truster shall promptly notify Lender of any loss or damage to the Property. Lender may make proof Of loss if
<br />Truster fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lentler may, tatOiLarndeen affecting
<br />receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, pay y Truster
<br />she
<br />the Properly, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair,
<br />repair or replace the damaged or tleatroyetl Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory Proof of such
<br />expenditudo pay or reimburse Truster from the proceeds for the reasonable cost of repair or restoration if Trustor is not in default under this
<br />Deed of Trust. Any proceeds which have not been disbursed within 1BO days after their receipt and which Lender has not committed to the
<br />repair 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 />interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment
<br />in full of the Indebtedness, such proceeds shall be paid to Truster as Truster's interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Truster shall furnish to Lender a report on
<br />each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured: (3) the amount of the policy; (4) the
<br />property insured, the then current replacement value of such property, and the manner of determining that value; and (5) the expiration
<br />date of the policy. Toucher shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value
<br />replacement cast of the Property.
<br />LENDER'S EXPENDITURES. It any action or proceeding is commenced that wouincinatio lathy nelimited Lender's r Trterestsn there to discharge oif or pay
<br />fails to comply with any provision of this Deed of Trust or any Related Documents, 9
<br />when due any amounts Truster is required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Trustor's behalf
<br />may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all maintaining
<br />ng
<br />liens, security interests, encumbrances and other claims, at anytime levied or placed ion the Property and paying all costs
<br />and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then beer interest at the rate charged under
<br />the Note from the date incurred or paid by Lender to the date of repayment by Truster All such expenses will become a pad Of the Indebtedness
<br />and, at Lenders option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable
<br />with any Installment payments to become due do ing either (1) the term of any applicable insurance policy; or (2) the remaining term of the
<br />Note: or (C) be treated as a balloon payment which will be due and payable at the Note's maturity - The Deed of Trust also will secure payment
<br />of these amount. Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust:
<br />Title. Truster warrants that: (a) Truster holds good and marketable title of recortl to the Properly in fee simple, free and deer of all liens and
<br />encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final title opinion
<br />issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Truster has the full right, power, and authority to
<br />execute and deliver this Deed of Trust to Lender.
<br />De2nse of Title. Subject to the exception in the paragraph above, Truster we nanis end will forever defend the title a the Properly against
<br />the lawful claims of all persons, In the event any action or proceeding is commenced that questions Truster title or the interest of Trustee or
<br />Lender under this Deed of Trust, Trustor shall defend the action at Truster's expense. Trustor may be the nominal party In such proceeding,
<br />but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and
<br />Truster will deliver, or cause to be delivered to Lender such instruments as Lender may request from time to time to permit such
<br />participation.
<br />Compliance With Laws. Truster warrants that the Property and Truster's use of the Property complies with all existing applicable laws,
<br />ordinances, and regulations of governmental authorities.
<br />Survival of Representations and Warranties. All representations, warranties' and agreements made by Truster in this Deed of Trust shall
<br />survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and shall remain in full force and effect until such lime
<br />as Trustor's Indebtedness shall be paid in full.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is filed Truster shall promptly notify Lender in writing, and Truster shalt promptly take such
<br />steps as may be necessary to defend the notion and obtain the award. Truster may be the nominal party in such proceeding, but Lender
<br />shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, end Truster will
<br />deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit
<br />such participation.
<br />or
<br />Application of Net Proceeds. If all or any pad of the Properly is condemned by eminent domain proceedings or by any proceeding the
<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
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