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DEED OF TRUST 20028723.2
<br />Loan No: 1"74254 (Continued) Page 3
<br />PROPERTY DAMAGE INSURANCE. The following provia ns relating to insuring the Property are a part W this Deed of Trust.
<br />Maintenance OI Insurance Truster shall procure and maintain polices of life Insurance with standard extended coverage endorsements on
<br />a fair value basis for the lull 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. Truster 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. Addllpnally, Truster shall maintain such other Insurance, Including but not limited to hazard, business
<br />Interruption, and bailer Insurance, as Lender may reasonably require. Policies shall be written In form, amounts, coverages and basis
<br />reasonably acceptable to Lander and Issued by a company or companies reasonably acceptable to Lender. Thaim, upon request of
<br />Lender, will deliver to Lender from time to time the policies or certificates of insurance In form satisfactory to Lender, including stipulations
<br />that coverages well not be cancelled or diminished without at least tan (10) 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, emission or default Of
<br />Truster or any other person. The Real Properly is or will be located In an area designated by the Director of the Federal Emergency
<br />Management Agency as a special flood hazard area. Truster agrees to Obtain and maintain Federal Flood Insurance , if available , for the full
<br />unpaid principal balance of the loan and any or liens on the property securing the loan, up to the maximum policy limits set under the
<br />National Flood Insurance Program, or as otherwise opened by Lender, and to maintain such Insurance for the term of the loan.
<br />Application Of Proceeds. Factor shall promptly nobly Lender of any loss or damage to the Property. Lender may make proof of loss if
<br />Truator fain to do so within fifteen (ts) days of the casualty. Whether or not Lender's security a impaired, Lender may, at Lenders election,
<br />reive and retain the proceeds of any Insurance and apply the proceeds to the reduction Of the Indebtedness, paymenl Of any lien affecting
<br />the Property, or the restoration and repair of the Property. II Lander elects to apply the proceeds to restoration and repair, Truster 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 Tv51or from the proceeds for the reasonable Cast of repair or restoration X Truster 15 not In default under this
<br />Deed of Trust. Any proceeds which have not been disbursed within IM days after their receipt and which Lender has not committed to the
<br />repair or restoration of the Properly shall be used first to pay any amount owing 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 Truster as Traveler's Interests may appear_
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Truster shall furnish to Lender a report o0
<br />each existing policy of insurance showing: (I) the name of the move (2) the coke Insual (3) the amount of the policy: (4) the
<br />properly insured, the then current replacement value Of such property, and the manner Of determining that value; and (s) the expiration
<br />dale of the policy. Theodor shall, upon request M Lender, have an Independent appreiser satisfactory to Lender determine the cash value
<br />replacement cost of Property.
<br />LENDER'S "PENDITURES. If any action or proceeding Is commanwtl that would materially affect Lenders Interest In the Properly Or if Fusion
<br />fails to comply with any provision of this Deed Of Trust or any Related Documents, Including but not limited to Tri slorls failure to discharge or pay
<br />when due any amounts Truster Is added to discharge Or pay under this Deed of Trust or any Related Documents on Trustor's behalf
<br />may (but shall not be designed to) take any action that Lender deems appropriate, Including but not limned to discharl or paying all lazes .
<br />If security Interests, encumbrances and other claims, at any time Sol 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 All then beer Interest at the rate charged under
<br />the Note from the dale incurred or paid by Lender to the data of repayment by Truster All such expenses will become a pad of the Indebtedness
<br />and of Lender '9 option, will (A) be payable On demand: (B) be added to Oe balance of the Note and be appoNOned among and be payable
<br />with any Installment payments lc became due during either (1) the term of any applicable Insurance policy; or (2) the remaining term OI the
<br />Note: or (C) be treated as a balloon payment which will be due and payable al the Note's maturity. The Deed of Trust also will secure payment
<br />of these amounts. Such right shell be In addition to all other rights and remedies to which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions real to ownership of the Property are a pad 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 Gear of all lens and
<br />umbrancas other than those set forth in the Real Property descrallon or In any title Insurance policy, title report, or final Mlle opinion
<br />sued In laver or and accepted by, Lender In connection with this Dead of Trust, and (b) Truster has the full right, power and authority to
<br />execute and deliver this Deed of Trust to Lender.
<br />Derenu of Title. Subject to the exception In the paragraph above, Truster warrants and will forever defend the the to the Properly against
<br />the lawful claims of all persons. In the event any action or proceeding Is commenced that questions Trustor's title or the interest of Trustee or
<br />Lender under this Dead of Trust, Truslor shall defend the action at Truster's expense. Truster may be the nominal party in such proceeding,
<br />but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lentler s own choice, and
<br />Truster will delver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such
<br />participation.
<br />Compliance With Laws. Truster warrants that the Properly and Truslar's use of the Property complies with all existing applicable laws,
<br />ordinances, and regulations of governmental authorities.
<br />Survival of Representation$ and Warranties. All representations, venomous, and agreements made by Truster In this Deed of Trust shall
<br />sureve the execution and delivery OI this Deed Of Trust, shall be Continuing in nature , and shall remain In full force and effect until such time
<br />as Borrowers Indebtedness shall be paid In full.
<br />CONDEMNATION. The following provisions relallog to condemnation proceedings are a pad of this Dead of Trust:
<br />Proceedings. If any proceeding In condemnation Is filed, Truster shall promptly notify Lender In writing, and Truster shall prompt take such
<br />steps as may be necessary to defend the edlon and obtain the award Truster may be Oe nominal patty In such proceeding, but Lander
<br />shall be entitled to participate In the proceeding and to he represented in the proceeding by counul Of its own choice, and Truster will
<br />delver or cause to be delivered to Lender such Instruments and documentation as may be requested by Lender from lime to time to permit
<br />uch parmor ation.
<br />Application of Net Proceeds. if all or any pad of the Property I5 condemned by eminent domain proceedings or by any proceeding or
<br />purchase In lieu of condemnation, Lander may at its election require that all or any Sierra of the net proceeds of award be applied to the
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