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DEED OF TRUST 200206220
<br />Loan No: 773570 (Continued) Page3
<br />obligatinn to pay, so long as Lender's interest in the Property is oat jeopardized. If a lien arises or is filed as a result of nonpayment,
<br />Truster shall within fifteen (15) days after the Ilan arises or, if a lien Is filed, within fifteen (15) days after Tractor has net's- of the
<br />filing, secure the discharge of the lien, to If requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or
<br />other security satisfactory to Lander in an amount suffinlmrt to discharge the lien plus any casts and attorneys' fees, or ether charges
<br />that could accrue as a result of a forednsure or sale under the lien. In any contest, Truster shall defend itself and Lander and shall
<br />satisfy any adverse judgment before enforcement against the Property, Truster shall name Lander as an additional obligee under any
<br />surety bond furnished in the contest proceedings.
<br />Evidence of Payment Toaster shall upon demand furnish to Lender satisfactory evidence of payment of the taxes nr assessments and
<br />shall authorize the appropriate govermmnntal official to deliver to Lender at any time a written statement of the taxes and assessments
<br />against the Property.
<br />Notice of Construction. Tractor shall notify Lender at least fifteen (15) days before any work Is commenced, any services are
<br />furnished, or any materials are supplied to the Property, if any medenic's lion, materialmen's lien, or other lien Lend be asserted on
<br />account of the work, s or materials. Tractor will upon request of Lender furnish to Lander advance assurances satisfactory to
<br />Lender that Treader gar 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 Trott.
<br />Maintenance of Insurance. Toaster shall poseurs and maintain policias of fire Insurance with standard extended coverage
<br />endorsements on a fair value basis for Ue full insurable value covering all Improvements on the Real Property in an amount sufficient
<br />to avoid application of any c e Insurance clause, and with a standard mortgagee clause in favor of Lander. Truster shall also procere
<br />and maintain. a rnpachensrveganeral liability insurance in such ,coverage amounts as Lender may Fall with Trustee and Lender
<br />doing named es additional insureds In sash liability insurance po'ides. Additionally. Truster shall muluto In such .,her discourse,
<br />including but not limited to hazard, Looniest interruption, and boiler Insu once, s Lander may reasonably Longer e. Policies shall be
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<br />written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably
<br />acceptable to Lender. Teacher, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance
<br />in form satisfactory to Lender including stipulations that coverages will not be cancelled Or diminished without at least ten (10) days
<br />prior written notice to Lender. Each Insurance policy also shall include orr endorsement providing that coverage in favor of Lender will
<br />not be impaired in any way by any act, omission Or default of Truster Or any other person. Shand the Real Property be located in an
<br />ea designated by the Director of the Federal Emergency Management Agency as a special filled hazard area, Trustar agrees to
<br />obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that the Property is located in
<br />a special flood hazard area, for the full unpoid principal balance of the loan and any prior liens on the property securing the loan, up to
<br />the maximum policy limits set under the National Flood Insurance Program, or as otherwise radiated by Lender, and to maintain such
<br />insurance for the term of the Inan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any lose or damage to the Property. Lender may make proof of loss
<br />if Truster fails to do so within fifteen (15) days of thin casualty. Whether or not Lender's security is impaired, Lender may, at Lender's
<br />action, 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 lire Property. If Lender elects to apply the prnoaeds to restoration and
<br />repair, Trader shall repair or replace ltrc 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 proueeds which have not been disbursed within ten days after their receipt
<br />and which Lender has not counnorod to the repair or restoration of the Property shall be used first to pay any amount owing to Leader
<br />under this Deed of Trust, then to pay accrued interest, and the remaindur If any, shall be applied to the principal balance of the
<br />Indebtedness. If Lender holds any proceeds utter payment in fall of the Indebtedness, such proceeds shall be paid to Trapper as
<br />Trustor's interests may appear.
<br />Trustor's Report on Insurance. Upon national of Lender, however not inure than once a year, Trustor shall furnish to Lander a report
<br />on such existing policy of insurance - hawing- (1) the name of the Insurer; (2) the risks Insured; (31 the amount of the policy; (4)
<br />the property insured, the then current hallec pone[ value of such property, and the mane of determining that value: and to pre the
<br />expiration date of lire policy. Trustor shall, upon request of Lander, have an independent epyraiser satisfactory to Lender determine
<br />the cash value replacement oust of the Property.
<br />LENDER'S EXPENDITURES. If any action or pmi lading is commenced that would materially affect Lender's interest in the Property or if
<br />Truster 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 whorl due any amounts Truster is required to discharge or pay under this Deed of Trust or any Related Documents, Lender
<br />no Tresmr's behalf mey (but stroll not he obligated to) take any action that Lander deems appropriate, including but not limited to
<br />discharging or paying all taxes, liens, sonority interests, encumbrances and other deems, 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 beer Interest of the rate charged under the Note fran the data incurred or paid by Lender to the date of repayment by Trustor. All
<br />alit expenses will became a part of the Indebtedness and, a1 Lender's option, will (A) be payable on dmnan d; (R) be added to the
<br />balance of the Note and be apportioned among and be payable with any installment Carper t to become due during either (1) the farm of
<br />any applicable insumnca po'Iny; or (2) the remaining term of the Note; or (0) be treated as a balloon payment which will be due and
<br />payah'e at the Note's maturity, The Deed of Trust alas will secure payment of these amounts. Such night shall be in addition to all other
<br />rights and remedies to which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Properly are a part of this Deed of Trust,
<br />Title. Truster warrants that (a) Truster 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 any title insurance policy, title report, or final
<br />title opinion roatend In favor of, and accepted by, Lender in connection with this Deed of Trust, and di Truster has the full right,
<br />power, and authority to execute and deliver this Deed of Trust to Lander.
<br />Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the tide to the Property
<br />against the lawful claims of all persons. In the event any action or preventing Is commenced that ques ens Trustor's title or the
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