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DEED OF TRUST 200207334
<br />Loan No: 774530 (Continued) Page 3
<br />odour security satisfactory to Lender In an amount suf ficiont to dnal le the Ile. plus any costs and attorneys' fee,, a other char,.,
<br />that could a result of a foreclosure or sale under the lien. In any contest, Truster shall defend itself and Lender and shall
<br />satisfy any adverse judgment Lufore enforcement against the Property. Truster shall carne Lender as an additional obligee under any
<br />salary hand morishad in the contest proceetlangs
<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 governnaeatl offir:ial to deliver to Lender at any time a written statement of the taxes and assessments
<br />zgainet the Property.
<br />Notice of Consumer,... Truster shall notifV Lender at least t1i (151 have before any work is commenced, any services
<br />furnished, or any materials are supplied to the Property, if any mechanic's lien, matcholnaen's lien, or other lien could be asserted on
<br />account of the work, services, or materials. Truster will upon request of Lender furnish to Lender aJvrnoe assuranpes .satisfactory to
<br />Londur that Trustor can and will pay the cost of such Improvcmmds.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part M this Deed of Trust.
<br />Maintenance of Insurance. Truster shell procure and maintain policies of fire insurance with standard extended coverage
<br />eadenoraents on a fair value basis for the full insurable value vuvering all Improvements on the Real Property in an amount sufficient
<br />AO ay.ld appllcafl ul of any p insurance clause, and with a standard mortgagee clause in favor of Lender. Trustor shall also procure
<br />and maintain comprehensive gureel liability In such coverage amounts as Lender may request with Trustee and Lender
<br />being named as additional insureds in sash liahilty insurance
<br />insurance policies, Additionally, Tractor shall maintain such other insurance,
<br />eluding but not limited to hazard, bus Inlcrruptiu nd hailer insurance, s Lender may reasonably rcpua . Politics shall be
<br />our n
<br />written in from, i coverages r, upon and basis reasonably acceptable ode a Lender and issued bye company . umpa es marennably
<br />ce
<br />in acceptable to f Lcory amounts, Truster, upon request la Lender, will deliver to Lender from time to time the policies or certificates of Insurance
<br />pform satisfactory o Lender, ;Each lmg stipulations pons that coverages will net be se a nt providing or diminished without at least ten 1101 tlays
<br />prier written notice n Lentler, Each ins ore poor also shall Include r endorsement on. So d th coverage in favor of Lender will
<br />out be impaired in any way by any act o or default of Tructiar
<br />qua or any other person. Should d Real Property be der agr in an
<br />area designated main by the raleder of the Fee, if Emergency Ma 45 days Agency are a special flood r thattl area, Trusts locate to
<br />obtain and flood hazard Federal far the Insurance, if available, within f da to after ,oboe is given by Lender that the Property is an, up In
<br />a special flood hazard area, far the full unpaid p(m Flood balance of the loan and any her liens q the property ,anoint the Ina,, up to
<br />the maximum policy limits set under the National Flood Insuence Program, or as otherwise required by Lender, and to maintain such
<br />insurance for too terns of the Ina,_
<br />Application of Proceeds. Truster shall promptly until Lender of any loss or damage to the Property. Lands may make proof of loss
<br />If Truster fails te do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lander may, at Lender's
<br />cloetiou, rocalive, and retain the proceeds of any In and apply the proceeds to the reduction of the Indebtedness, payment of
<br />any lien affecting the oratory, ar the promotion and repair of the Property. If Lrmdm plants to apply the proceeds to restoration and
<br />repair, Trustor shell repair or replete thu damaged or destroyed Improvements in a satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay q Imbursu Toaster from the proceeds for nthe raasonable cost of repair or estoration if
<br />Trustor Is not in default under this Deed of Trust. Any proceeds witch have hat 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, than to pay accrued interest, and the remainder, if any, shall led 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 />Trevor'. .,,forest, may app..,.
<br />Trustor 's Report on Insurance. Upon regtmst of Lender, however not more than once a year, Trustor shall furnish to Lender a report
<br />theash a ty insured, pellet of insurance sh replan m e the ....... e of the insurer; n the risks Ter I determining ; ( rho mhaunt of the pnllcy; he
<br />property in reed, the then ausior replacement value of Lech property. and the manner of iser saify that value; and to the
<br />expiration date ac utults Truster shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine pulhey
<br />the cash value replaccnecl vast of the Property.
<br />LENDERS EXPENDITURES. If any action or proceeding is carrouround that would materially affect Lender's interest in doe Property or if
<br />Tres fur fails to ncmply with any Provision of this Deed of Trust or any Relater] Documents, including but not limited to Truster's failure to
<br />discharge or pay whim the any amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender
<br />on Trustor', behalf may (but shall not It. nhIiT,md tot take any action that Lentler decnn appropriate, including but not limited to
<br />da0 arcing or paying ell taxes, liens, s c ants interests, encumbrances and other claims, at any time luviud or pdacad an the Property and
<br />paying all posts for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes
<br />will then bear Iatorest at the rate charged under the Note from the date incurred or pair] by Lender to the date of repayment by Truster. All
<br />such expenses will bove c a part of the Indebtedness and, at Lentler', option, wail (A) be payable on demand, (B) be added to the
<br />balance of the Note and be apportioned among and be payable with any installment payments to become duo during either ( I ) the term of
<br />any applicable Insurance policy, or (2) the remaining tern of gee Note, or (C) be treated as a balloon payment which will be can and
<br />Payable at the Note's maturity. The Deed of Trust also will secure payment of douse amounts, Such right shall be in addition to all other
<br />rights and remedies to which Lender naay be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provicepre rulating to ownership of the Property are a part of this Deed of Trust
<br />Title. Trustor warrants that (a) Truster holds good and marketable title of record to the Property in fee sample, free and clear of all
<br />(lens and encumbrances other than those set forth In the Real Property description or any title rearance policy, title report, or final
<br />title arelnen Issued In favor of, and accepted by, Lander a
<br />it ecgon with this Deed of Trust, and L) Trustor has file full right,
<br />power, and authority to execute and deliver this Deed of Trust to Leader.
<br />Defense of Title. Subject to the cal -anon in the paragraph above, Trustor warrants a u] will forever defend the title to the Property
<br />against the lawful claims of all persons_ In the a eat any action or preeeeding is commenced that yuactian, Tnrset', tide or the
<br />interest of Trustee or Lender under this Deed of Trust, Truster shall defend the action a Trustor', exptnst. Trastor may be the
<br />cal party a uch pr .eedinp, but Lender shall be entitled to participate In the ern ceding and to be represented in the per. calms
<br />by counsel of Leader. awn chaise, and Trustor will deliver, or cause to be Jediveed, to Lender such Instruments as Lender may
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