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DEED OF TRUST 200207556
<br />Loan No: 774633 (Continued) Page 3
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating 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 an a fair value basis for the full Insurable value covering all Improvements on the Real Property In an amount sufficient
<br />to avoid application of any c clause, and with a standard mortgagee clause in favor of Lender, together with such error
<br />hazard and liability insurance coinsurance uLender may rudsonably require. Policies shall be written in form, amounts, coverages and basis
<br />reasonably decontrols to Lender and issued by a company or companies reasonably acceptable to Lender. Toaster, upon request of
<br />Lender, will deliver to Lander from time to time the policies a certificates of it n form satisfactory to Lender, including
<br />stipulations that coverages will not be cancelled or diminished without at least ten 1101 days prier written notice to Lender. Each
<br />insurance policy also shall include an endorsemanl providing that coverage in favor of Lender will not be Impaired in any way by any
<br />act omission or default of Truster or any other person. Should the Real Property be located in an area designated by the Director of
<br />the Federal Emergency Management Agency a special flood hazard area, Truster agrees to affair, and maintain Federal Flood
<br />Insurance, if available, within 45 days after notion is given by Lender that the Property is located in a special Flood hazard area, for the
<br />full unpaid principal balance at the loan and any prier liens on the property securing ring the loan, up to the maximum policy limits set
<br />under the National Flood Insurance Program. or as otherwise required by Lender, and to maintain such insurance for the term of the
<br />loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lander may make proof at loss
<br />if Trustor fails to do so within fifteen 1151 days of the casualty Whether or net Lender's security Is impaired, Lender may, at Lender's
<br />election, re and retain the proceeds of any insurance and apply the proceeds to the reduction of the Ind.hl omoo, 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, Trustor shall repair or replace the damaged or destroyed Improvements In a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if
<br />Trustor is not 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 at committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lander
<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 rr. Indebtedness, such proceeds shall be paid to Trustor as
<br />Truster 'a Interests may appear_
<br />LENDER'S EXPENDITURES. If Trustor fails (At to keep the Property free of all taxes, liens, security interests, o umnreooes, and client
<br />claims. Fh to provide any required in n the Property, or (C) to make repairs to the Property then Lender may dos . If any
<br />action or proceeding Is commenced that would materially affect Lender's interests in this Property, then Lander on Trusmr'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 />Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lander to the date of
<br />repayment by Trustor. All such expenses will become a part Of the Indebtedness and, at Lenders option, will IAI be payable on demand;
<br />lal 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 111 the term Of any applicable insurance policy; or (2) the remaining term of the Note; or ICI be treated a a balloon payment
<br />which will be due and payable at the Note's amaturiry. The Deed of Trust l also will secure payment of those aruounts.sThe rights provided
<br />for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on unt of any default.
<br />Any sack action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that it Otherwise would have
<br />had.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable bile of record to the Property In fee simple, free and clear of all
<br />liens and a mbrancus other than these set forth In the Real Property description o in
<br />any title insurance policy, title report, Or final
<br />title opinion issued in favor of, and accepted by, Lender In connection with this Deed of Trust, and lot Trustor has the full right,
<br />power, and authority to execute and deliver this Dead of Trust to Lander.
<br />Defense of Title. Ruffner To rn. a caption in the paragraph above, Trustor warrants and will recover defend the rill. In the Property
<br />against the lawful claims of all persons. In the event any action or proceeding is cod that questions Trusr's title or the
<br />interest of Trustee or Lender under this Deed of Trust, Truster shall defend the action at m Truster 's expense. Trustor may be the
<br />morinal party in such proceeding, but Lender shall be arguing to participate in the proceeding and to be represented in the proceeding
<br />by spousal of Landei s own choice, and Trustor will deliver. or cause to be delivered, to Lender Turn Instruments as Lender may
<br />request from time to time to permit push participation.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's 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 statements Trustor has made in this Deed of Trust shall survive the execution
<br />and delivery of this Deed of Trust, shall be continuing In nature and shall remain in full force and effect until such time as Truster v
<br />Indebtedness Is paid in full.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and Trustor shall promptly
<br />take such steps a may be necessary to defend the action and obtain the award. Trustor may be the nominal party in such
<br />procear iny, but Lender shall be entitled to participate in The proceeding and to be represented In the proceeding by counsel of its own
<br />choice, and Trustor will deliver Or rates to be delivered to Lender such instruments and docurrentatieo as may be requested by
<br />Lender from time to time to permit such participation.
<br />Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or
<br />purchase in Ilea of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied
<br />to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of
<br />all reasonable costs, expenses, and attorneys' fees incurred by Trustee or Lender in connection with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following previsions Totaling to governmental
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