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DEED OF TRUST 200305812
<br />Loan No: 777579 (Continued) Page 3
<br />eadier date as Lender may reasonably establish) and Trustor shall pay in full all costs and expenses in connection with the work. Lender will
<br />disburse loan proceeds under such terms and conditions as Lander may deem reasonably necessary to insure that the Interest created by
<br />this Dead of Trust shall have priority over all possible liens, including those of material suppliers and workman. Lender may require, among
<br />other things, that disbursement requests be supported by receipted bills, expense affidavits, waivers of liens, construction progress reports,
<br />and such other documentation as Lender may reasonably request.
<br />TAXES AND LIENS. The following provisions relating to the taxes and liens on the Properly are par of this Deed of Trust:
<br />Payment. Yrustor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (including water
<br />and sewer), fines and impositions levied against or on account of the Property, and shall pay when due all claims for work done on or for
<br />services rendered or material furnished to the Property. Trustor shall maintain the Property lima of all (lens having priority over or equal to the
<br />interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this
<br />Deed of Trust.
<br />Right to Contest. Tmstar may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation
<br />to pay, so long as Lender's interest in the Property Is not jeopardized. If a lien arises or Is filed as a result of nonpayment, Trustor shall within
<br />fifteen (15) days after the lien arses or, If a lien is filed, within fifteen (15) days after 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 afforceys' foss, 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 Lander and shall satisfy any adverse judgment before enforcement against
<br />the Property. Trustor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings.
<br />Evidence of Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the havers or assessments and shall
<br />authorize the appropriate governmental official to deliver to Lander at any time a written statement of the taxes and assessments against the
<br />Property.
<br />Notice of Construction. Trustor 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. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Trustor can and
<br />will pay the cost of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Properly are a pad 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 />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. Trustor shall also procure and maintain comprehensive
<br />general liability insurance in such coverage amounts as Lender may request with Truslee and Lender being named as additional insureds in
<br />such liability insurance policies. Additionally, Trustor 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 pror wrtten notice to Lender. Each insurance policy also
<br />shall include an endorsement providing that coverage In favor W Lender will not 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 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 />Application of Proceeds. Trustor shall promptly nobly Lender of any loss or damage to the Property. Lender may make proof of lass If
<br />Trustor fails to do so within fifteen (15) days of the casualty. Whether or not Lenders security is Impaired, Lender may, at Lender's 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 Lander. Lander 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 />Dead 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 Lander holds any proceeds after payment
<br />in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustoes interests may appear.
<br />Trustor'm Report on insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish to Lentler 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 than 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 cost 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 Trustor
<br />fails to comply with any provision of this Dead of Trust or any Related Documents, Including but not limited to Tmstor's 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 Trustors 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 part of the Indebtedness
<br />and, at Lender's ophon, 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 Deed of Trust also will secure payment
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