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DEED OF TRUST 200305944
<br />Loan No: 1696822 (Continued) Page 2
<br />this Deed of Trust.
<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 or occupancy of the Property, including without limitation, the
<br />Americans With Disabilities Act. Trustor may contest in good faith any such law, ordinance, or regulation and withhold compliance
<br />during any proceeding, including appropriate appeals, so long as Truster has notified Lender in writing prior to doing so and so long as,
<br />in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender may require Truster to post adequate security
<br />or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest.
<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 acts set forth above in this section, which from the character and use of the Properly are reasonably necessary to protect and
<br />preserve the 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 (including
<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 free 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 and except as
<br />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, se long as Lender's interest in the Property is not jeopardized. If a lien arises or Is tiled as a result of nonpayment,
<br />Truster shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen 0 5) days after Truster has notice of the
<br />tiling, secure the discharge of the lien, or if requested by Lender, 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 contest, 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 Lender 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, materialmen's lien, or ether 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 />Lender that Truster can and will pay the cost 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 insurance with standard extended coverage
<br />endorsements on a fair value basis for the full insurable value covering all Improvements on 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. Truster shall also procure
<br />and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Trustee and Lender
<br />being named as additional insureds in such liability insurance policies. Additionally, Truster shall maintain such other insurance,
<br />including but not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shall be
<br />written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably
<br />acceptable to Lender. Truster, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance
<br />in form satisfactory to Lander, including stipulations that coverages will net be cancelled or diminished without at least thirty (30)
<br />days prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of
<br />Lender will not be impaired in any way by any act, omission or default of Truster or any other person. Should the Real Property be
<br />located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Trustor
<br />agrees to obtain and maintain Federal Flood Insurance, it 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
<br />loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to
<br />maintain such insurance for the term of the loan.
<br />Application of Proceeds. Truster shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss
<br />it Trustor fails to do sa within fifteen 05) 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 Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Truster from the proceeds for the reasonable cost of repair or restoration if
<br />Truster 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, it 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 />Trustor's interests may appear.
<br />Theater's Report on Insurance. Upon request of Lender, however not more than once a year, Truster shall furnish to Lender a report
<br />on each existing policy of insurance showing: 11) the name of the insurer; (2) the risks insured; (3) the amount of the policy; 14)
<br />the property insured, the then current replacement value of such property, and the manner of determining that value; and (5) the
<br />expiration date of the policy. Truster shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine
<br />the cash value replacement cost of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if
<br />Truster fails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Truster'. failure to
<br />discharge or pay when due any amounts Treater is required to discharge or pay under this Deed of Trust or any Related Documents, Lender
<br />on Trustor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to
<br />discharging or paying all taxes, liens, security interests, encumbrances and ether claims, at any time levied or placed on the Property and
<br />paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred of paid by Lender for such purposes
<br />will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Truster. All
<br />such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; IRI be added to the
<br />balance of the Note and be apportioned among and be payable with any installment payments to become due during either It) the term of
<br />any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and
<br />payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. Such right shall be in addition to all other
<br />rights and remedies to which Lender may be entitled upon Default.
<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 />liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final
<br />title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and of Truster has the full right,
<br />power, and authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of Tide. 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 commenced that questions Trustor's title or the
<br />interest of Trustee or Lender under this Deed of Trust, Truster shall defend the action at Trustor's expense. Truster may be the
<br />nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding
<br />by counsel of Lender's own choice, 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.
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