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DEED OF TRUST 20.030101 S
<br />Loan No: 776352 (Continued) Page 3
<br />or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as
<br />otherwise provided in this Deed of Trust.
<br />Right to Contest. Truster may withhold payment of any tax, assessment, or claim In connection with a good faith dispute over the
<br />obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or s filed a result of nonpayment,
<br />Truster shall within fifteen L 5) days after the lien arises or, if a lien is filed, within fifteen (15) days after Truster has notice of the
<br />filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or
<br />other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges
<br />that could accrue as a result of a foreclosure or sale under the lien. In any contest, Truster shall defend itself and Lender and shall
<br />satisfy any adverse judgment before enforcement against the Property. Truster shall name Lender as an additional obligee under any
<br />surety bond furnished in the contest proceedings.
<br />Evidence of Payment. Truster shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and
<br />shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments
<br />against the Property.
<br />Notice of Construction. Truster shall notify Lender at least fifteen (15) days before any work is commenced, any services are
<br />furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on
<br />account of the work, services, or materials. Truster will upon request of Lender furnish to Lender advance assurances satisfactory to
<br />Lender that Truster can and will 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 />Maintenance of Insurance. Truster shall procure and maintain policies of fire Insurance with standard extended coverage
<br />endorsements on a fair value basis for the full insurable value covering all Improvements on the Real Property In an amount sufficient
<br />to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender, together with such other
<br />hazard and liability insurance as Lender may reasonably require. Policies shall be written in farm, amounts, coverages and basis
<br />reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Truster, upon request of
<br />Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including
<br />stipulations that coverages will not be cancelled or diminished without at least ten 110) days prior written notice to Lender. Each „
<br />insurance policy also shall Include an endorsement providing that coverage in favor of Lender will not be impaired In any way by any
<br />ac ro or default of Trustor or any other person. Should the Real Property be locatetl in an area designated by the Director of
<br />the Federal Emergency Management Agency as special flood hazard area, Truster agrees to obtain and maintain Federal Flood
<br />Insurance, if available, within 45 days after notice is given by Lender that the Property Is located in a special flood hazard area, for the
<br />full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set
<br />under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance far the term of the
<br />con.
<br />Application of Proceeds. Truster shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss
<br />If Truster fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security Is impaired, Lender may, at Lender's
<br />election, re and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of
<br />any lien affectng the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and
<br />repair, Truster shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Truster from the proceeds for the reasonable cast of repair or restoration if
<br />Truster is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt
<br />and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender
<br />under this Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the
<br />Indebtedness. If Lender holds any proceeds after payment In full of the Indebtedness, such proceeds shall be paid to Truster as
<br />Truster's interests may appear.
<br />Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is in effect, compliance
<br />with the insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the
<br />insurance provisions under this Deed of Trust, to the extent compliance with the terms of this Deed of Trust would constitute a
<br />duplication of insurance requirement. If any proceeds from the insurance became payable on loss, the provisions in this Deed of Trust
<br />for division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />LENDER'S EXPENDITURES. If Truster fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other
<br />claims, BI to provide any required insurance on the Property, ICI to make repairs to the Property or to comply with any obligation to
<br />maintain Existing Indebtedness in good standing as required below, then Lender may do so. If any action or proceeding is commenced that
<br />would materially affect Lender's interests in the Property, then Lender on Truster's behalf may, but is not required to, take any action that
<br />Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will then bear
<br />interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Truster. All such
<br />expenses will become a pan of the Indebtedness and, at Lender's option, will (A) be payable on demand; (el be added to the balance of
<br />the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any
<br />applicable Insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable
<br />at the Note's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in
<br />addition to any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall
<br />not be construed as curing the default so as to 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 Deed of Trust:
<br />Title. Truster warrants that: (a) Truster holds good and marketable title of record to the Property in fee simple, free and clear of all
<br />liens and encumbrances other than those set forth in the Real Property description or n the Existing Indebtedness section below or
<br />any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender In connection with this Deed of
<br />Trust, and (b) Trustor has the full right, power, and authority to execute and deliver this Dead of Trust to Lender.
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