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DEED OF TRUST
<br />Loan No: 774150 200205998 (Continued) Page 3
<br />satisfy any adverse judgment before enforcement against the Property. Tractor 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 (15) days before any work is commenced, any services
<br />furnished, or any materials are supplied to the Property, if any mechanic's lien, reaterialmen's lien, or other lien could be assumed on
<br />account of the work, services, or materials. Trustor 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 arcing g 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 fair value basis for the full insurable value covering all Improvements an the Real Property in an amount suffsient
<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 In s s Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis
<br />reasonably acceptable toaLander and issued by a company or companies s
<br />reasonably acceptable to Lender. Trusts, upon request of
<br />Lender, will deliver to Lender from time to time the policies o certificates of insurance in form satisfactory to Lender, intrinsic,
<br />stipulations that coverages will not be co celled or diminished without at least ten (10) days prior written entice to Lender. Each
<br />e pellet also shall include a endorsement providing that coverage in favor of Lander will not be impaired in any way by any
<br />act. omission or default of Tractor or any other person. Should the Real Property be located in n a designated by the Director of
<br />the Federal Emergency Management Agency 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 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 Lander, and to maintain such insurance for the term of the
<br />loan.
<br />Application of Proceeds. Trustor shall promptly notify Lander of any loss or damage to the Property. Lender may make proof of lose
<br />if Trustor fails to do as 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 reductian 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 Lander. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cast of repair or restoration it
<br />Trustor is nor 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, 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 />Trustor's interests may appear.
<br />LENDER'S EXPENDITURES. If Truster fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other
<br />claims, (B) to provide any required insurance on the Property, or (C) to make repairs to the Property then Lender may do so. If any
<br />action or proceeding is commenced that would materially affect Lender's Interests in the Property, then Lender on Trustor's behalf may,
<br />but is not required to, take any action that Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by
<br />Lander far such purposes will than bear interest at the rate charged under the Note from the date incurred or paid by Lender to the darn of
<br />repayment by Truster. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable be demand:
<br />(B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during
<br />either (1) the term of any applicable insurance l
<br />policy; or (2) the re home te
<br />remaining te of the Na: or (C) be treated as a balloon payment
<br />which will be due and payable at the Nota'smaturity. The Deed of Trust will secure payment of these amounts. The rights prnvided
<br />for In this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account of any default.
<br />Any such action by Lender shall not be construed as curing the default sr as to bar Lander from any remedy that it otherwise would have
<br />had.
<br />WARRANTY; DEFENSE OF TITLE. The tollhwln, nmaisions relating to ownership of the Property are a part of this Deed of Trust
<br />Title. Truster warrants that: (a) 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 o any title insurance policy, title report, or final
<br />title opinion issued in favor of, and accepted bye Lender in connection with this Dead of Trust, and lot Trustor has the full right,
<br />power, and authority in axenute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Trustor 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 Toaster's title or the
<br />Interest of Trustee or Lander under this Deed of Trust, Trustor shall defend the action at Trustor's expanse. Trustor may he the
<br />nominal party in such proceeding, but Lander 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 Law.. Trustor warrants that the Property and Truster 'a 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 statemanes 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 Borrower's r
<br />ndabtadnass is paid in full.
<br />CONDEMNATION. The following provisiens relating to condemnation proceedings are a part of this Deed of Trust:
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