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DEED OF TRUST
<br />Loan No: 777828 (Continued) 200307051 Page 3
<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, Trustor 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 special 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 sat
<br />under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the
<br />man.
<br />Applicator, of Proceeds. Truster shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss
<br />if Trustor tails to do so within fifteen 06) 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 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 proceede 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, if any, shall be applied to the principal balance of the
<br />Indebtedness. It 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 Indabtaddess. 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 Dead of Trust, to the extent compliance with the terms of this Deed of Trust would constitute a
<br />duplication of insurance requirement. It any proceeds from the insurance become payable on loss, the provisions In this Deed of Trust
<br />for division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />LENDER'S EXPENDITURES. If Truster fails (A) to keep the Property tree of all taxes, liens, security interests, encumbrances, and other
<br />claims, (B) to provide any required Insurance on the Property, (C) 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 />would materially affect Lender's interests in the Property, then Lender on Truster's behalf may, but is not required in, take any action that
<br />Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will than bear
<br />interest at the rata charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such
<br />expenses will become a pan of the Indebtedness and, at Lender's option, will (A) be payable on demand; (BI be added to the balance of
<br />the Note and be apportioned among and be payable with any installment payments to become due during either T) the term of any
<br />applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon 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 rights 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 Lender shall
<br />not be 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. Truster warrants thee let Trustor 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 the Existing Indebtedness section below or in
<br />any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender In connection with this Deed of
<br />Trust, and he Trustor has the full right, 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, Trustor warrants and will forever defend the fire 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, Trustor shall defend the action at Treater's expense. Truster 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 own choice, and Trustor 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. Trustor warrants that the Property and Trustor'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 Trustor has made in this Deed of Trust shall survive the execution
<br />and delivery of this Dead of Trust shall be continuing in nature and shall remain in full force and effect until such time as Trustor'.
<br />Indebtedness Is paid in full.
<br />EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br />Existing Lien. The Ilan of this Deed of Treat securing the Indebtedness may be secondary and interior to an existing lien. Truster
<br />expressly covenants and agrees to pay, or see to the payment of. the Existing Indebtedness and to prevent any default on such
<br />indebtedness, any default under the Instruments evidencing such indebtedness, or any default under any security documents for such
<br />indebtedness.
<br />No Modification. Trustor shall not enter into any agreement with the holder of any mortgage, deed of trust, or other security
<br />agreement which has priority over this Dead of Trust by which that agreement Is modified, amended, extended, or renewed without
<br />the prior written consent of Lender. Trustor shall neither request nor accept any future advances under any such security agreement
<br />without the prior written consent of Lender.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is filed, Truster shall promptly notify Lender in writing, and Trustor shall promptly
<br />take such steps as may be necessary to defend the action and obtain the award. Truster may be the nominal party in such
<br />proceeding, but Lender shall he entitled to participate in the proceeding and to be represented in the proceeding by counsel of Its own
<br />choice, and Trustor will deliver or cause to be delivered to Lender such Instruments and documentation as may be requested by
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