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DEED OF TRUST 200201998
<br />Loan No: 1489998 (Continued) Page 2
<br />replace such Improvement with Improvements of at least equal value.
<br />Lender's Right to Enter. Lender and Lender's agents and representatives may Soler upon the Real Property at all reasonable Mmes to
<br />attend to Lender's interest and to inspect the Real Properly for purposes of Trustor's compliance with the terms and conditions of this Deed
<br />of Trust.
<br />Compliance with Governmental Requirements. Truster shall promptly comply with all laws, ordinances. and regulations, now or hereafter
<br />in effect, of all governmental authorities applicable to the use or occupancy of the Properly, including without (Imitation, the Americans With
<br />Disabilities Act. Truslor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding,
<br />including appropriate appeals, so long as Trustor has rotted Lender in writing prior to doing so and so long as, In Landers sole opinion,
<br />Lenders interests in the Property are not leopardizad. Lender may require Trustor to post adequate security or a surety bond, reasonably
<br />satisfactory to Lender, to protect Lend" interest.
<br />Duty to Protect. Trustor agrees neither to abandon or leave unattended the Property. Trustor shall do all other acts, In addition to those
<br />acts at forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preiarva the
<br />Properly.
<br />Construction Loan. If some or all of the proceeds of the loan creating the Indebtedness are to be used to construct or complete
<br />construction of any Improvements on the Property, the Improvements shall be completed no later than the maturity date of the Note (or such
<br />earlier date as Lander may reasonably establish) and Truslor shall pay in full all cost and expenses in connection with the work. Lender will
<br />disburse loan proceeds under such terms and conditions as Lender may doom 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 workmen. Lender may require, among
<br />other things, that disbursement request be supported by receipted bills, expense affidavits, waivers of (lens, construction progress reports,
<br />and such other documentation as Lender may reasonably request.
<br />TAXES AND LIENS. The following provisions relating to the lazes and liens on the Properly are part of this Deed of Trust:
<br />Payment. Truslor shall pay when due (and in all event prior to delinquency) all taxes, special floes, assessment, 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 malarial furnished to the Property. Trustor shall maintain the Property her of all liens 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 />Dead of Trust.
<br />Right to Contest. Trustor may withhold payment of any lax, assessment, or claim in connection with a good faith dispute over the obligation
<br />to pay, so long as Lender's inlerest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment, Truslor shall within
<br />fifteen (15) days aHer the lien arises 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 it requested by Lender, deposit with Lender cash Ora sufficient corporate surety bond or other security satisfactory to Lender in an
<br />amount sufficient to discharge the lien plus any cost and attorneys' fees, or other charges that could accrue as a result of a foreclosure or
<br />sale under the lien. In any contest, Trustor shall defend telf and Lender and shall Satisfy any adverse judgment before enforcement against
<br />the Property. Trustor shall name Lender as an additional obliges under any surety bond furnished in the contest proceedings.
<br />Evidence of Payment. Trustor shall upon demand furnish to Lander satisfactory evidence of payment of the taxes or assessment and shall
<br />authonze the appropriate governmental Diticial to deliver to Lender at any time a written statement of the taxes and assessments against the
<br />Property.
<br />Notice of Construction. Trustor shall notify Lander 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. Truslor will upon request Of Lender furnish to Lender advance assurances satisfactory to Lander that Truslor can and
<br />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. 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. Truslor shall also procure and maintain comprehensive
<br />general liability insurance in such coverage amounts as Lender may request with Trustee and Lender being named as additional insureds In
<br />such liability Insurance policies. Additionally, Truslor 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. Truslor, upon request of
<br />Lender, will deliver to Lander from time to time the policies or certificates of Insurance in form satisfactory to Lentler, Including stipulations
<br />that coverages will not be cancelled or diminished without at least thirty (30) days prior written notice to Lender. Each insurance policy also
<br />shall include an endorsement providing that Coverage in favor of 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 food hazard area, Truster 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 sal 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. Truslor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss 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 Ilan affecting
<br />the Property, or the restoration and repair of the Properly. If Lender elect to apply the proceeds to restoration and repair, Truslor shall
<br />repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such
<br />expenditure, pay Or reimburse Trustor from the proceeds for the reasonable cast of repair or restoration II Trustor Is not in default under this
<br />Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed ID the
<br />repair or restoration of the Property shall be used first to pay any amount awing 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 Lender holds any proceeds after payment
<br />in full of the Indebtedness, such proceeds shall be paid to Trustor as Truslois interests may appear.
<br />Unexpired Insurance at Sale. Any unexpired insurance shall inure to the benefit of, and pass to, the purchaser of the Property covered by
<br />this Dead of Trust at any trustee's sale or other sale held under the provisions of this Deed of Trust, or at any foreclosure sale of such
<br />Property. r y ^ y
<br />Trustor's Report on Insurance. Upon request of LOr der, however not more than once a year, Truslor shall furnish to Lender 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 then 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. If any action or proceeding is commenced that would materially affect Landeri interest in the Property or if Trustor
<br />fails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Trustor's failure to discharge or pay
<br />when due any amounts Truslor 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 acflon that Lander deems approprata, 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 Net. from the date incurred or paid by Lander to the date of repayment by Truslor. All such expenses will become a part of the Indebtedness
<br />and. at Lender's option, will (A) be payable on demand; (B) 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 es If balloon payment which will be due and payable at the Note a maturity. The Deed of Trust also will secure payment
<br />of these amounts. Such right shell be in addition to all other nights and remedies to which Lander may be Sorted upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Properly are a part of this Deed of Trust:
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