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DEED OF TRUST
<br />Loan No: 1655695 (Continued) 200302086 Paget
<br />Compliance with Governmental Requirements. Truster shall promptly comply with all laws, ordinances, and regulations, now or
<br />hereafter in effect, of all governmental authorities applicable to the use n cupancy of The Property Truster may contest In good
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<br />faith any such law, oohmmea, ar regulat and wllhhuld compliance during any proceeding, including appropriate appeals, so long as
<br />Truster has Funded Lentler In writing prior to aging so and so long as, In Lender's sole pP'.'.Lr Lender s 'interests in the Property are
<br />not jeopardized. Lander may require Truster to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect
<br />Lender's bous,t.
<br />Duty to Protect. Truster agrees neither to abandon or leave unattended the Property. Truster shall do all other acts, in addition to
<br />those act, set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and
<br />preserve It,,, Property.
<br />TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Deed of Trust:
<br />Payment. Truster shall pay when due land in all events prior to delinquency) all taxes, special taxes, assessments, charges lmaluding
<br />water and sewed, fines and impositions levied against or on account of the Property, and shall pay when due all claims for work done
<br />on or for services rendered or material furnished to the Property Truster shall maintain the Property tree of all liens having priority
<br />over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due, except for the
<br />Existing Indebtedness referred to below, and except as 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 nut jeopardized. if a lien arises or is filed as a result of nonpayment;
<br />To,or shall within fifteen (15) 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 Lander, 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 conical, 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 Lander 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, materialmet'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 />Lander 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 a with standard extended coverage
<br />endorsements on a fair value basis' lur the full insurable value covering all Improvements ana 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 form, 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 thirty 130) 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 />act, omission or default of Truster or any other person. Should the Heal Properly be located i a designated by the Director of
<br />the Federal Emergency Management Agency as a special flood hazard area, Truster agrees to obtain and maintain Federal Flood
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<br />,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 />lull ;the principal balance of the lean and any poor liens or the property der, and the lean. up to them fo policy limits set
<br />under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the
<br />loan,
<br />Application of Proceeds. Truster shall promptly notify Lander of any loss or damage to the Property. Lender may make proof of loss
<br />iIf Truster land 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, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of
<br />any lien affecting 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 Lander. 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 />Truslor 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 become payable on loss, the provisions in this Dead of Trust
<br />for division of proceeds shall apply only to that portion of the proceeds not payable to dust holder of the Existing Indebtedness.
<br />LENDER '5 EXPENDITURES. If Truster falls IAI to keep the Property bee of all taxes. Ilene, security morests, encumbrances, and other
<br />(B) to provide any required Insurance on the Property, (C) to make repairs to the Property or to comply with any obligation to
<br />alntaln Existing Indebtedness in good standing as required below, then Lender may on so. If any action or proceeding is commenced that
<br />would materially affect Lender's interests in the Property, than 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 beer
<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 />i .p unscs will become a part of the Indebtedness and, at Lender's option, will IAI be payable on demand, (8) be added to the balance of
<br />the Note and be appuriiuned among and be payable with any installment payments to become due during either (1) the term of any
<br />apelisrob, 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 />L tie Note's maturity. The Deed at 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 />nut 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 />Ilford and encumbrances other than those set forth in the Real Property description or in the Existing Indebtedness section below or In
<br />any title insurance policy, title report, for final title opinion issued In favor of, and accepted by. Lender in connection with this Deed of
<br />Trust, and be Truster has the full right, power, and authority to execute and deliver this Deed of Trust to Larder.
<br />Defense of Title. Subject to the exception in the paragraph above, Truster warrants and will forever defend the title to the Property
<br />against the lawful claims of all persons. In the event any action or proceeding Is ced that questions Truster 'a title or the
<br />interest of Trustee or Lender under this Deed of Trust, Truster shall defend the action at Truster's expense. Truster may be the
<br />nominal party in such proceeding, but Lander shall be entitled to participate in the proceeding and to be represented in the proceeding
<br />by counsel of Lender's own choir., and Truster will deliver, or cause to be delivered, to Lender such instruments as Lender may
<br />request from time to time to permit such participation.
<br />Compliance With Laws. Truster warrants that the Property and Truster's use of the Property complies with all existing applicable
<br />laws, ordinances, and regulations of governmental authorities. -` �r
<br />Survival of Promises. All promises, agreements, and statements Truster ties made it FU,s •Dead of Trust %hell survive the execution
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