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DEED OF TRUST
<br />Loan No: 1708528 200307021 (Continued) Paget
<br />Compliance with Governmental Requirement.. 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. Trustor may contest in good
<br />faith any such law, ordinance, or regulation and withhold compliance during any proceeding, Including appropriate appeals, so long ea
<br />Irustur has notified Lender in writing prior to doing so and so long as, in Lender's sale opinion, Lender's interests in the Property are
<br />not jeopardized. Lender may require Truster to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect
<br />Lender's interest.
<br />Duty to Protect. Truster agrees neither to abandon or leave unattended the Property. Trustor 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 Property 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. Truslor shall pay when due land in all events prior to delinquency) all taxes, special taxes, assessments, charges I'mcluderg
<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 />on or for s rvices rendered or material furnished to the Property. Trustor 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, except for the
<br />Existing Indebtedness referred to below, and except as 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 geed 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 115) days after the lien arises or, if a lien Is filed, within fifteen 115) days after Theater 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 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. Trustor shall notify Lender at least fifteen 1151 days before any work is commenced, any services are
<br />furnished, or any materials are supplied to the Property, if any mechanic's lien; matenalmen'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 Lander 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 Lander, together with such other
<br />hazard and liability 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. Truster, upon request of
<br />Lender, will deliver to Lender freer time to time the policies or certificates of insurance in farm satisfactory to Lender, including
<br />stipulations that coverages will nor be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each
<br />Insurance policy also shall mclode an endorsement providing that coverage in favor of Lander will not be impaired in any way by any
<br />act omission or default of Truster or any other person. Should the Real Property be located In an area designated by the Director of
<br />the Federal Emergency Management Agency as a special flood hazard area, Truster agrees to obtain and maintain Federal Flood
<br />insurance, If available, within 45 days after notice is given by Lender that the Property is located in a spacial flood hazard area, for the
<br />full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set
<br />under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the
<br />loan.
<br />Application of Pmceads. Toaster shall promptly notify Lender of any less or damage to the Property. Lender may make proof of loss
<br />If Truster fails to do so within fifteen 0 5 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 Trustor 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 awing to Lender
<br />under this Deed of Ireal, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the
<br />Indebtedness. If Lander 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 />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
<br />duplication of insurance requirement. If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust
<br />for division of proceeds shell 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 free of all taxes, liens, security interests, encumbrances, and other
<br />claims, 181 to provide any required insurance on the Property, ICI to make repairs to the Property or to comply with any obligation to
<br />maintain Existing Indebtedness in good standing as required below, then Lender may do so. If any action or proceeding Is commenced that
<br />avoid materially affect Lender's interests in the Property, then Lender on Trustar's behalf may, but is not required to, take any action that
<br />Lender believes to be appropriate to protect Lender's Interests. All expenses incurred or paid by Lender far such purposes will then bear
<br />Interest at the rate aburyed under the Note from the date incurred or paid by Lender to the date of repayment by Truster. All such
<br />expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (e) he added to the balance of
<br />the Note and be apportioned among and be payable with any Installment payments to become due during either (1) the term of any
<br />applicable insurance policy; or (2) the remaining term of the Note; or ICI be treated as a ballean payment which will be due and payable
<br />at the Note's maturity. The Deed of Trust also will secure payment of these amounts. The fights provided for in this paragraph shall be in
<br />addition to any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lander shall
<br />not he construed as curing the default so as to bar Lender 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 part of this Deed of Trust:
<br />Title. Trustor warrants that: la) Trustor holds good and marketable title of record to the Property in fee simple, free and clear of all
<br />(lens and encumbrances other than those set forth in the Reel Property description or in the Existing Indebtedness section below or in
<br />any title In s e pellcv, title report, or final title opinion issued in favor of, and accepted by, Lender In connection with This Deed of
<br />1 rust, and (b) Tmstor has the full rig M, power, and authority to execute and deliver this Dead of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Toaster 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 Tfustor's title or the
<br />interest of Trustee or Lander under this Deed of Trust, Trustor shall defend the action at Trustor's expense. Trustor may be the
<br />urinal 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 awn 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.
<br />Compliance With Laws. Truster warrants that the Property and Trustar's use of the Property complies with all existing applicable
<br />laws, ordinances, and regulations of governmental authorities.
<br />Survival of Promises. All promises, agreements, and statements Truster has made in this Deed of Trust shall survive the execution
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