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200207698 DEED OF TRUST Loan No: 1559699 (Continued) Page 2 Compliance with Governmental Requirements. Truster shall promptly comply with all laws, ordinances, and regulations, new or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, the Americans With Disabilities Act, Trustor may contest in good faith any such law, ordinance, or regulation and withheld compliance during any proceeding, including appropriate appeals, so long as Truster has notified Lender in writing prior to doing so and so long es, in Lander's sole opinion, Lender's interests in the Property are not jeopardized Lender may require Truslor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest Duty to Protect. Truster agrees neither to abandon or leave unattended the Property. Truster shall do all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property_ TAXES AND LIENS. The following Provisions relating to the taxes and liens on the Property are part of this Dead of Trust: Payment. Truster shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (including water and sewer), tines and impositions levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Trustor shall maintain the Property free of all (lens having priority over or equal to the interest of Lander under this Deed of Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this Dead of Trust. Right to Contest. Truster may withhold payment of any lax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment, Truster shall within fifteen (15) days after the lien arises or, If a her is filed, within fifteen (15) days after Truster has notice of the filing, secure the discharge of the Ilan, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' tees, or other charges that could accrue as a result of a foreclosure or sale under the lien. In any contest, Truslor shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against the Property. Truster shall name Lender as an additional obligee under any surety bond furnished In the contest proceedings. Evidence of Payment. Truslor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property. Notice of Construction. Truslor 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, it any mechanic's lien, materialmeri s lien, or other lien could be asserted on account of the work, services, or materials. Truslor will upon request of Lender furnish to Lander advance assurances satisfactory to Lender that Truster can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Properly are a pad of this Deed of Trust. Maintenance of Insurance. Truslor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a fair value basis for the full Insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender, Truslor shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in such liability insurance policies. Additionally, Truslor shall maintain such other Insurance, including but not limited to hazard, business interruption, and boiler Insurance, as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a 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 Lander, including stipulations that coverages will net be cancelled or diminished without at least thirty (30) days prior written notice to Lentler. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Truster or any other person. Should the Real Property be located in an area designated by the Director al the Federal Emergency Management Agency as a special flood hazard area, Truslor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that the Property Is located in a 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 limits sal under the National Flood Insurance Program, or as otherwise required by Lander, 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 Properly, Lender may make proof of loss if Truslor fails to do so within tifieen (15) days of the casualty. Whether or not Lander 'a security is impaired, Lender may, at Lender's election, receive 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, Truslor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lander shall, upon satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if Truster is not In default under this Deed of Trusl. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration 0 the Property shall be used first to pay any amount owing to Lender under this Deed 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 full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's interests may appear. Truslor's Report on Insurance. Upon request of Lender, however not more than once a year, Truster shall furnish to Lender a report on each existing policy of Insurance showing: (1) the name of the insurer; (2) the risks insured (3) the amount of the policy; (4) the properly insured, the then current replacement value of such property, and the manner of determining that value; and (5) the expiration date of the policy. Truslor shall, upon request of Lender, have an Independent appraiser satisfactory to Lender determine the cash value replacement test of the Property. LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if Trustor falls to comply with any provision of this Deed of Trust or any Related Documents, including but net limited to Trustor's failure to discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Trusters behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all texas, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred 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 Truslor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (I) the term of any applicable insurance policy; or (2) the remalning term of the Note; or (C) be treated as a balloon payment 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 upon Default. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust- Title. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Property in fee simple, free and clear of all (lens and encumbrances other than those set forth in the Real Property description or in any title Insurance policy, title report, or final title opbrion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Truslor has the full right, power, and authority to execute and deliver this Deed of Trust to Lender. Defense of Title. Subject to the exception In the paragraph above, Truslor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Tipster's title or the interest of Trustee or Lander under this Deed of Trust, Trustor shall defend the action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shall be entitled to participate In the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Trustor will deliver, or cause to be delivered to Lender such instruments as Lender may request from time to lime to permit such participation. Compliance With Laws Trustor warrants that the Properly and Trustor's use of the Property comply -- with all rr' -ling applicable laws, n,dlnances, and regulahons of governmental authorities. Survival of Representations and Warranties. All representations, warranties, and agreements made by Trustor in this Dead of Trust shall survive the execution and delivery of this Dead of Trust, shall be continuing in nature, and shall remain in full force and effect until such time as Trustor's Indebtedness shall be paid in lull.