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<br />DEED OF TRUST
<br />(Continued) 200306470 Page
<br />Payment. Truster shall pay when due land in all events prior to delinquencyl all taxes, special taxes, assessments. charges (including
<br />water and sewer), fines and impositions levied against or on account of the Property, and shall pay when due all claims for work done
<br />an 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, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment,
<br />Trustor shall within fifteen (15) days after the lien arises or, it a lien is filed, within fifteen 1151 days after Trustor has notice of the
<br />filing, 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 costa and attorneys' fees, or other charges
<br />that could accrue as a result of a foreclosure or sale under the lien. In any contest, Trustor shall defend itself and Lender and shell
<br />satisfy any adverse judgment before enforcement against the Property. Trustor shall name Lender as an additional obligee under any
<br />surety bond furnished in the contest proceedings.
<br />Evidence of Payment. Trustor 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 Lander at any time a written statement of the taxes and assessments
<br />against the Property.
<br />Notice of Construction. Trustor shall notify Lender at least fifteen 115) days before any work is commenced, any services are
<br />furnished or any materials are supplied to the Property, if any mechanic's lien, matenrilmen's lien, or other 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 Trustor can and will pay the cost of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The fallowing provisions relating to insuring the Property are a part of this Deed of Trust.
<br />Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage
<br />endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount
<br />sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause In favor of Lender. Trustor shall also
<br />procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Trustee and
<br />Lender being named as additional insureds in such liability Insurance policies. Additionally. Trustor shall maintain such other
<br />insurance, including but not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies
<br />shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies
<br />reasonably acceptable to Lender. Truster, upon request of Lender, will deliver to Lender from time to time the policies or certificates
<br />of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least
<br />thirty (30) days prior written notice to Lender. Each Insurance policy also shall include an endorsement providing that coverage In
<br />favor of Lender will not be impaired in any way by any act, omission or default of Trustor or any other person. The Real Property is or
<br />will be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area.
<br />Trustor agrees to obtain and maintain Federal Flood Insurance, If available, for the full unpaid principal balance of the loan and any
<br />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 notify Lender of any loss or damage to the Property. Lender may make proof of loss
<br />if Trustor fails to do so within fifteen (15) 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 Lander elects to apply the proceeds to restoration and
<br />repair, Trustor 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 Trustor from the proceeds for the reasonable cost of repair or restoration if
<br />Trustor 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 Lander has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lander
<br />under this Dead of Trust, then to pay accrued interest, and the remainder, If 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 Trustor as
<br />Truster's interests may appear.
<br />Trustor's Repon on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish to Lender a report
<br />on each existing policy of Insurance showing: (1) the name of the insurer; (21 the risks inured; 131 the amount of the policy; (4)
<br />the property insured, the then current replacement value of such property, and the manner of determining that value; and (51 the
<br />expiration date of the policy. Trustor 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 />Treater fails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Trustor's failure to
<br />discharge or pay when due any amounts Trustor Is required to discharge or pay under this Deed of Trust or any Related Documents, Lender
<br />on 1'rustor's behalf may (but shall not be obligated of take any action that Lender deems appropriate, including but not limited to
<br />discharging or paying all taxes, liens, security interests, encumbrances and other 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 or 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 Trustor. All
<br />such expenses will become a part of the Indebtedness and, at Lender's option, will IAI be payable on demand; (S) be added to the
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