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DEED OF TRUST , ! 20 9;34.4 2 G 5 e 3
<br />Loan No: 777198 (Continued) Page
<br />fifteen (15) days after the lien arises or, d a lien is filed, within fifteen (15) days attar Trustor has notice of the filing, secure the discharge of the
<br />lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender In an
<br />amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges that could accrue as a result of a foreclosure or
<br />sale under the lien. In any contest, Trustor shall defend Itself and Lender and shall satisfy any adverse judgment before enforcement against
<br />the Property. Truster shall name Lender as an additional obligee under any 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 shall
<br />authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the
<br />Property.
<br />Notice of Construction. Truster shall notify Lender at least fifteen (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, materialmen's lien, or other lien could be asserted on account of the work,
<br />services, or materials. Truster will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Truster can and
<br />will pay the cost of such Improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a pad of this Dead of Trust.
<br />Maintenance of Insurance. Truster 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 avoid application of
<br />any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Truster shalt 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 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 />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 poor written notice to Lender. Each insurance policy also
<br />shall include an endorsement providing that coverage in favor of Lender will net be impaired in any way by any act, omission or default of
<br />Trustor or any other person. Should the Real Property be located In an area designated by the Director of the Federal Emergency
<br />Management Agency as a special flood hazard area, 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 flood hazard area, for the full unpaid principal balance of the loan
<br />and any prior liens an 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 />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss If
<br />Trustor fails 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 Lender elects to apply the proceeds to restoration and repair, Trustor shall
<br />- repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such
<br />expenditure, pay or reimburse Trustor 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 Dead 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 Trustor as Trustor's interests may appear.
<br />Trusters 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 />date of the policy. Trustor 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 would materially affect Lender's interest in the Property or if Truster
<br />fails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Trustees failure to discharge or pay
<br />when due any amounts Trustor 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 taxes,
<br />liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining
<br />and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under
<br />the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such expenses will become a pad of thelndebtedness
<br />and, at Leaders option, will (A) be payable on demand; (S) be added to the balance of the Note and be apportioned among and be payable
<br />with any installment payments to become due during 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 Dead of Trust also will secure payment
<br />of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entted upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The fallowing provisions relating to ownership of the Property are a pad of this Deed 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 Real Property description or in any title insurance policy, fitle report, or final tale 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 />Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the title to the Property against
<br />the lawful claims of all parsons. In the event any action or proceeding Is commenced that questions Trustees the or the Interest of Trustee or
<br />Lender under this Dead of Trust, Truster net defend the action at Trustees 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 />Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to tare to permit such
<br />participation.
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