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- - DEED OF TRUST 200208456
<br />Loan No: 774831 (Continuel Page 3
<br />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,
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<br />Truor shall within fifteen (15) days after the lien arises or, it a lien is filed, within fifteen (15) days after Truster has notice of the
<br />filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or
<br />othersecurity satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and allorneVs' fees, or other charges
<br />that could accrue as sult of a foreclosure or sale under the lien. In any contest, Trustor shall defend itself and Lender and shall
<br />satisfy any adverse judgment before 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. Truster shall 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 Lander at any time a written statement of the taxes and assessments
<br />against the Property.
<br />Notice of Construction. Truster shall notify Lender at least fifteen (15) days before any work is commenced, any services are
<br />furnished, or any materials are supplied to the Property, If any mechanic's lien, materialmon'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 advance assurances satisfactory to
<br />Lender that Trustor can and will pay the cost of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Dead of Trust.
<br />Maintenance of Insurance. Truster shall procure and maintain policies of fire e with standard expanded coverage
<br />endorsements on 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 Lender. Trustor shall also procure
<br />and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Trustee and Lender
<br />being named as additional insureds in such liability insurance policies. Additionally, Truster shall maintain such other insurance,
<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 racesmalby acceptable to Lander and issued by a company or companies reasonably
<br />acceptable to Lander. Trustor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance
<br />in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least tan (10) days
<br />prior written notice to Lender. 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 act, omission or default of Truster or any other person. Should the Real Property be located In an
<br />ea designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Truster agrees to
<br />obtain and maintain Fai l Flood Insurance, if available, within 45 days after notice is given by Lander that the Property is located in
<br />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
<br />the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such
<br />m oranue for the term of the loan.
<br />Application of Proceeds. Truster shall promptly notify Lander of any less or damage to the Property. Lender may make proof of loss
<br />If Truster fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's
<br />eluction, receive and retain the proceeds of any insurance and apply the proueede to the reduction of the Indebtedness, payment of
<br />any lien affecting the Property, or the restoration and repair of the Property. If Lender cleats 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. Lander shall, upon
<br />satisfactory proof of such expenditure, pay or mburse Truster 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 Igo days after their receipt
<br />and which Lander has net 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 assumed interior, 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 the Indebtedness, such proceeds shall be paid to Trustor as
<br />Trustor's interests may appear.
<br />Trustor '• Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish to Lender a repair
<br />an each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4)
<br />the property in s e
<br />red, the then currant replacement value of such property, and the m of determining that value; and (5) the
<br />expiration date of the policy. Trustor shall, upon request of Lender, have an Independent appraiser satisfactory to Lender determine
<br />the cash valve replacement cast of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Properly or if
<br />Trustur fails to comply with any provision of this Dead of Trust or any Related Documents, including but not limited to Trustor's failure to
<br />discharge or Puy when due any amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender
<br />on Trustor's behalf may (but shall riot be obligated to) take any action that Lender deems appropriate, including but not limited to
<br />discharging or paying all taxes, liens, security Interests, oncumbramous and other claims, at any time levied or placed on the Properly and
<br />paying all ousts for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lander for such purposes
<br />will then bear interest at the rate charged under the Note from the data incurred or paid by Lender to the date of repayment by Truster. All
<br />such expenses will become a part of the Indebtedness and, at Lander's option, will (A) be payable on demand; (R) be added to the
<br />balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of
<br />any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and
<br />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
<br />rights and remedies to 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) Truster holds good and marketable title of record to the Property in fee simple, free and clear of all
<br />liens and encumbrances other than those set forth in the Real Property description or any title insurance policy, title report, or final
<br />title opinion issued in favor of, and accepted by. Lender In contraction with this Deed of Trust, and (b) Trustor has the full right,
<br />power, and authority in execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Truster warrants and will forever defend the title to the Property
<br />against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Trustor's title or the
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