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DEED OF TRUST 200206420 Loan No: 774249 (Continued) Page 3 that could accrue as u result of a fsreclosure or sale under the lien. In any contest, Trustor shall defend Itself and Lender and shall satisfy any adverse lodgment union enforcement ayalnst the Property. Trustor sM1all name Lender as an additional obligee antler any surety bond furnished in the contest pmceadiri Evidence of Payment. Truster shall upon demand furnish to Lender satisfactory evidence of Payment of the taxes or assessments and shall authorize the appropriate gavinamental ottinal to deliver to Lender at any time a written statement of the taxes and assessments against the Property. Notice of Construction. Trustor shall notify lender at least fifteen (15) days before any work is commenced, any services are furnished, or 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, services, or materials. Truster will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Trustor can and will pay the cost of such impmvemsnte. PROPERTY DAMAGE INSURANCE. The following oviands relating to Insuring the Property are a part of this Deed of Trust. Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a fair value basis for the full insurable whoa covering all Improvements on the Real Property In on amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Trustor shall also procure and maintain comprehensive general liability insurance in such coverage ammmts as Lender may request with Trustee and Lender I named as additional Insureds In such liability insurance policies. Additionally, Trustor shall maintain such other Insurance . ncluding but oat limited to hueum, business interruption, and boiler Insurance, as Lender may reasonably require. Policies shall be written In form, amounts, coverages and hasis reasonably acceptable to Lender and issued by o company or companies reasonably acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of Insurance in form satisfactory to Lender, including stipulations that coverages will nut be cancelled or diminished without at least ten 110) days prior written notice to Lender. Each Insurance policy also shall include an endursoment providing that coverayc In favor of Lander will not be Impaired in any way by any act, omission or default of Trustor or any other person. Should the Real Property be located In an area designated by the Director of the Federal Emergency Management AgeocV as a special flood hazard area, Trustor agrees to Obtain and maintain Federal Flood Insurance. If available, within 45 days after nonce is given by Lender that the Property is located in special flood hazard area for the full Unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy Ilmits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Application of Proceeds. Truster shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss if Trustor fails to do so within fifteen 116) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's election, morivu and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the damaged or destroyed Improvements In a manner satisfactory to Lentler. Lender shall, upon satisfactory proof of such expenditure, pay Or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if Trustor is nut In default units this Deed of Trust. Any proceeds which have not been disbursed within 180 days attar their receipt and which Lender has not committed m the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Dead Of trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in toll of the Indebtedness, such proceeds shall be paid to Trustor as Toaster's Interests may appear. Compliance with Existing Indebtedness. During the period In which any Existing Indebtedness described below Is In effect, compliance with the insurance provisions contained in the Instrument evidencing such Existing Indebtedness shall constitute compliance with the insurance provision,, under this Used of Tncap to the extent compliance with the terms Of this Deed of Trust would constitute a duplication of insurance requirement If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust for occasion of proceeds shall apply Only to that portion of the proceeds not payable to the holder of the Existing Indebtedness. Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furmsh to Lender a report on each existing policy Of insurance shown, IL the name of the Insurer; 12) the risks Insured; (3) the amount of the policy; (4) the property r ured, Inc. then current replacement value of such property, and the manner of daterm'roinq that value; and (5) the expiration date of the policy. Trustor shall, upon request of Lender, have an Independent appraiser satisfactory to Lentler determine the cash value replacement cost Of the Property. LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest In the Property ar if Trustor fails to comply with any provision Of this Deed of Trust or any Related Documents, Including but not limited to Trustor s tadum to reply with any Obligation to maintain Existing Indebtedness In good standing us required below, or to discharge or pay when due any amounts Trustor is required to discharge or pay untler this Deed of Trust or any Related Documents, Lender on Iruslur's behalf may (but shall not be obligated m) take any action that Lender deems appropriate, including but not limited to discharging or paying all tuxes, liens, security Interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for Insuring, commencing and preserving the Property. All such expenditures grained or paid by Lender for such purposes will then bear Interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Traitor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; IR) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy: or 12) the remaining term Of the Nate; Or ICI be treated as a balloon payrnont which will be due and payable at the Note's maturity. The Deed Of Trust also will secure payment of these amounts. Such right shall be In addition to all Other rights and remedies to which Lender may be entitled clean Default. WARRANTY; DEFENSE OF TITLE. Thu fallowing provisions relating to ownership of the Property are, a part of this Deed of Trust: Title. Irustor warrants that: (al fruslor holds goad and markslabls title of record to the Poperty In tee simple, free and clear of all lien and encumbrances other than those set forth in the Real Property description or In the Existing Indebtedness section below or in any title insurance policy, title report, or final title upinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and IN Trustor has the lull right, power, and authority to execute and deliver this Deed of Trust to Lender.