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20020"if
<br />DEED OF TRUST
<br />Loan No: 774634 (Continued) Page 3
<br />filing, secure the discharge of the lien, or if requested by Lander, deposit with Lender cash or a sufficient corporate surety band or
<br />other security satisfactory to Lender In an amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges
<br />that could accrue as a result of a foreclosure or sale under the lien_ In any contest, Tractor shall defend Itself and Lander and shall
<br />satisfy any adverse judgment haters enforcement against the Property. Truster shall name Lender as an additional obligee under any
<br />surety bond furnished In the contest proceedings.
<br />Evidence of Payment. Trustor shell upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and
<br />shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments
<br />against the Proparty.
<br />Notice of Construction. Truster shall notify Lender at least fifteen (15) days before any work is commenced, any services are
<br />furnished, nr any materials are supplied to the Propertyr if any marinenic's lien, materialmen'I lien, or other Ilan could be asserted on
<br />account of the work, services, or materials. Trustor will upon request of Lender furnish to Lander advance assurances satisfactory to
<br />Lender that l rector can and will pay the cost of such Improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions retailing to insuring the Property are a part of this Dead of Trust.
<br />Maintenance of Insurance. Trustor shall procure and maintain policies of fire with standard extended coverage
<br />endorsements o 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 coinsurance clause, and with a standard mortgagee clause in favor of Lander. Toaster shall also procure
<br />and maintain comprehensive general liability insurance soon covurage amounts as Lender may request with Trustee and Lender
<br />being named as additional insureds In such liability insurance policies. Addltiunolly, Trustor shall maintain such other In s
<br />including but not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shall be
<br />written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably
<br />acceptable to Lander. Traitor, upon request of Lender, will deliver to Lender from time to time the policies or enificates of insurance
<br />IF) form satisfactory to I. ender, Including stipulations that coverages will not be cancelled or diminished without at Icast ten (10) days
<br />prior written notice to Lander. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will
<br />not be impaired in any way by any actr omission or default of Trustor or any other person. Should the Real Property be located In an
<br />area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to
<br />obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that thePOoperly Is located it
<br />a special flood hazard area, fur the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to
<br />the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such
<br />insurance for the term of the loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any less or damage to the Property. Lender may make proof of loss
<br />if Trustor fails to do so within fifteen (15) days of the casualty Whether ar not Lender's security Is impaired, Lender may. at Lender's
<br />election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of
<br />any Ilan affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to reslomGOn and
<br />repair, Truster 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 Truster from the proceeds for the reasonable cost of repair or restoration if
<br />Trusmr 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 Lander 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. III to pay accrued interest, and this remainder, if any, shall be applied to the principal balance of the
<br />Indebtedness. If Lender holds any proceeds alter payment in full of the Indebtedness, such proceeds shall be paid to Trustor as
<br />Trustor s interests may appear.
<br />Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is in effect, compliance
<br />with the insurance provisions contained In the instrument evidencing such Existing Indebtedness shall constitute compliance with the
<br />urance provisions under this Dead of Trust, to the extent compliance with the terms of this Deed of Trust would constitute a
<br />duplication of insurance requirement. It any proceeds from the insurance become payable on lossr the provisions in this Deed of Trust
<br />for division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />Trustor's Report on Insurance. Upon request of Lender, however not Facts than Fannie a Vasa, Trustor shall furnish to Lender a report
<br />on each existing policy of Insurance showing: 01 the name of the insurer; (2) the risks insured: 131 the amount of the policy; (4)
<br />the property insured, the then currant replacement value of such property, and the manner of determining that value; and (5) the
<br />expiration date at the policy. Trustor shall, upon request of Leader, have an independent appraiser satisfactory to Lender determine
<br />the cash value replacement cost of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding Is commenced that would materially affect Lender's Interest In The Property or II
<br />Trustor fails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Trustor'. failure to
<br />comply with any obligation to maintain Existing Indebtedness In good standing as required helnw, or in discharge or pay when due any
<br />amounts Trustor Is required to discharge or pay under this Dead of Trust or any Related Documents. Lender on Trustor 's behalf may (but
<br />shall not be obligated tot take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens,
<br />security interests, ancumboraupo and other claims, at any time levied or placed an the Property and paying s11 costs for insuring,
<br />maintaining and preserving the Property. All such expenditures Incurred or paid by Lender for such purposes will then bear interest at the
<br />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
<br />a part of the Indebtedness and, at Lender's sminn, will (A) be payable on demand; (OI be added to the balance of the Note and be
<br />apportioned among and be payable with any installment payments to becoma due during either (1) the term of any applicable insurance
<br />policy; o (21 the remaining term of the Note; o (C) be pealed a a balloon payment which will be. due and payable at the Note's
<br />maturity r The Deed of Trust also will secure payment of these amounts. Such right shall be In all to all other rights and remedies to
<br />which Lender may be entitled upon Default.
<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 title of record to the Properly in fee emrple, Iron and door of all
<br />liens and encumbrances ether than those set forth in the Real Property description or in the Existing Indebtedness section below or in
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