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DEED OF TRUST 200302966
<br />Wan No: 41042 (Continued) Page 3
<br />Property.
<br />Notice of Construction. Trustor shell notify Lander at least Mean (15) days before any work is commenced, any services are furnished, or
<br />any materials are supplied to the Property, if any mechanic's lien, meterialmen's lien, or other lien could be asserted on account of the work,
<br />services, or materials and the cost exceeds $60.00. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to
<br />Lender that Trustor can and will pay the cost of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to Insuring the Property are a pert of this Deed of Trust.
<br />Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on
<br />e replacement basis for the full Insurable value covering all Improvements on the Reel Property in an amount sufficient to avoid application of
<br />any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Trustor shell also procure and maintain comprehensive
<br />general liability insurance in such coverage amounts as Lander may request with Trustee and Lender being named as additional insureds in
<br />such liability Insurance policies. Additionally, Trustor shall melntain such other insurance, including but not limited to hafard, business
<br />interruption, and bolter 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. Trustor, upon request of
<br />Lander, will deliver to Lander 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 />shell include an endorsement providing that coverage in favor of Lander will not be impaired in any way by any act, omission or default of
<br />Trusts or any other person. Should the Reel Property be located In an Mee designated by the Director of the Federal Emergency
<br />Management Agency as a special food haasrd lines, Trustor 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 food hmard 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 />Applkallon of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property if the estimated cost of repair or
<br />replacement exceeds $50.00. Lender may make proof of loss if Trustor fails to do so within fifleen (15) days of the casualty. Whether or not
<br />Lender's security Is Impaired, Lender may, at Lender's election, receive and retain the proceeds of any Insurance and apply the proceeds to
<br />the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. It Lander elects to
<br />apply the proceeds to restoration and repair, Trustor shall repair or replace the damaged or destroyed Improvements In a manner
<br />satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the
<br />reasonable cost of repair or restoration if Trustor is not in default under this Deed of Trust. Any proceeds which have not been disbursed
<br />within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay
<br />any amount owing to Lender under this Dead of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the
<br />principal balance of the Indebtedness. If Lentler holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid
<br />to Trustor as Tiustoes 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 duplication of
<br />insurance requirement. If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust for division of
<br />proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor 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 />data of the policy. Trustor shell, upon requasl of Lender, have an independent appraiser satisfactory to Lender determine the cash value
<br />replacement cost of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lenders interest in the Property or if Trustor
<br />fails to comply with any provision of this Dead of Trust or any Related Documents, including but not limited to Trustoes failure to comply with any
<br />obligation to maintain Existing Indebtedness in good standing as required below, or to discharge or pay when due any amounts Trustor is
<br />required to discharge or pay under this Dead of Trust or any Related Documents, Lender on Trustor's behalf may (but shell not be obligated to)
<br />take any action that Lender marine appropriate, Including but not limited to discharging or paying all taxes, liens, security interests, encumbrances
<br />and other claims, at any time levied or placed on the Properly and paying all costs for insuring, maintaining and preserving the Property. All such
<br />expenditures incurred or paid by Lander for such purposes will then bear interest at the rate charged under the Nola from the date incurred or
<br />paid by Lender to the dale of repayment by Trustor. All such expenses will become a pert of the Indebtedness end, at Lender's option, will (A)
<br />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
<br />become due during either (1) the term of any applicable Insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon
<br />payment which will be due and payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. Such right shell be
<br />In addition to all other rights and remedies to which Lender may be snared upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Dead of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and
<br />encumbrances other than those set forth in the Reel Property description or in the Existing Indebtedness section below or in any title
<br />Insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b)
<br />Trustor has the full right, power, and authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the immlion in the paragraph above, Trustor warrants and will forever defend the title to the Property against
<br />the lawful claims of all persons. In the event any action or proceeding is commenced that questions Trustoes fide or the interest of Trustee or
<br />Lender under this Dead of Trust, Trustor shell defend the action at Trustor's expense. Trustor may be the nominal parry 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 />Trustor will deliver, or cause to be delivered, to Lander such Instruments as Lender may request from time to time to permit such
<br />participation.
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