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DEED OF TRUST 200303971
<br />Loan No: 777165 (Continued) Page 3
<br />a fair value basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of
<br />any coinsurance clause, and with a standard mortgagee clause In favor of Lender, together with such other hazard and liability insurance as
<br />Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lander and issued
<br />by a company or companies reasonably acceptable to Lander. Truster, upon request of Lender, will deliver to Lender from time to time the
<br />policies or certificates of insurance In form satisfactory to Lander, including stipulations that coverages will not be cancelled or diminished
<br />without at least ten (10) days prior written notice to Lender. Each Insurance policy also shall include an endorsement providing that
<br />coverage In favor of Lander will not be impaired in any way by any act, omission or default of Truster or any other person. Should the Real
<br />Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area.
<br />Truster agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that the Property is
<br />located in a special flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan,
<br />up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such
<br />insurance for the term of the loan.
<br />Application of Proceeds. Truster shall promptly notify Lender of any loss or damage to the Property. Lander may make proof of loss if
<br />Truster falls to do so within fifteen (15) days of the casualty. Whether or not Lender's security Is Impaired, Lender may, at Lenders election,
<br />receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting
<br />the Property, or the restoration and repair of the Property. If Lander elects to apply the proceeds to restoration and repair, Truster shall
<br />repair or replace the damaged or destroyed Improvements In a manner satisfactory to Lender. Lander shall, upon satisfactory proof of such
<br />expenditure, 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 180 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 Trustor'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 duplication of
<br />insurance requirement. If any proceeds from the insurance become payable on less, the provisions in this Dead 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 />LENDER'S EXPENDITURES. If Truster falls (A) to keep the Property tee of all taxes, liens, security interests, encumbrances, and other claims,
<br />(B) to proves any required insurance on the Property. (C) to make repalrs to the Property or to comply with any obligation to maintain Existing
<br />Indebtedness in good standing as required below, then Lender may do so. If any action or proceeding is commenced that would materially affect
<br />Lender's interests in the Property, then Lender on Trustor's behalf may, but is not required to, take any action that Lander believes to be
<br />appropriate to protect Lenders interests. All expenses incurred or paid by Lander for such purposes will then beer interest at the rate charged
<br />under the Note from the dale incurred or paid by Lender to the date of repayment by Truster. All such expenses will become a pan of the
<br />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
<br />be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining
<br />term of the 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
<br />secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which
<br />Lender may be entitled on account of any default. Any such action by Lender shall not be construed as curing the default so as to bar Lender
<br />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 pan 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, tree and clear of all liens and
<br />encumbrances other than those set forth in the Real 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 />Truster has the full right, power, and authority to execute and deliver this Deed of Trust to Lander.
<br />Defense of Title. Subject to the exception in the paragraph above. Truster warrants and will forever defend the title to the Property against
<br />the lawful drums of all persons. In the event any action or proceeding is commenced that questions Trusters title or the interest of Trustee or
<br />Lender under this Deed of Trust, Truster shall defend the action at Trustor's expense. Truster 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 Trustor's use of the Property complies with all existing applicable laws,
<br />ordinances, and regulations of governmental authorities.
<br />Survival of Promises. All promises, agreements, and statements Truster has made in this Dead of Trust shall survive the execution and
<br />delivery of this Deed of Trust, shall be continuing in nature and shall remain in full force and effect until such time as Twisters Indebtedness
<br />is paid in full.
<br />EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a pan of this Deed of Trust:
<br />Existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an existing lien. Trustor expressly
<br />covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such indebtedness, any
<br />default under the instruments evidencing such indebtedness, or any default under any securry documents for such Indebtedness.
<br />No Modification. Truster shall not enter Into any agreement with the holder of any mortgage, deed of trust, or other security agreement
<br />which has priority over this Dead of Trust by which that agreement Is modified, amended, extended, or renewed without the prior written
<br />consent of Lander. Truster shall neither request nor accept any future advances under any such woody agreement without the prior writen
<br />consent of Lander.
<br />CONDEMNATION. The fallowing provisions relating to condemnation proceedings are a pad of this Deed of Trusts
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