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DEED OF TRUST (Continued) 200210405 Page authorize the appropriate governmental official to deliver to Lander at any time a written statement of Me taxes antl assessments against Me Property. Notice of Construction. Truster shell notify Lender at least fifteen T1 5) days before any work is commenced, any services are furnished, or any materials are supplied to Me Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials. Truster will upon request of Lender brush M Lender advance assurances satisfactory to Larder that Truster can and will pay Me cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisbns relating to insuring the Property are a part of MIS Deed of Trust. Maintenance of Insurance. Truster shall procure and maintain policies of fire Insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient M avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender, together with such other hazard and liability insurance as LaMar may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Larder 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 Lender, including stipulations that coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender. 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 Me Real Property be located in an area designated by Me Director of Me Federal Emergency Management Agency as a special fired hazard area, Truster agrees to obtain and maintain Fe feral Flood Insurance, if available, within 45 days after notice is given by Lender that Me Property is located in a special flood hazard area, for Me full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to Me maximum policy limits set under Me National need Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss 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 election, receive and retain Me proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting Me Property, or Me restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Truster shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Truster from the proceeds for Me reasonable cost of repair or restoration if Trustcr is not in default under this Dead of Trust. Any proceeds which have not been disbumed within 180 days after their receipt and which Lender has not committed to Me repair or restoration of Me Property shall be used first to pay any amount owing W Lender under this Deed of Trust, then to pay accrued interest, and Me remainder, it any, shall be applied to the principal balance of the Indebtedness. If Lender bass any proceeds after payment in full of the Indebtedness, such proceeds shall be pad to Truster as Trustor's interests may appear. Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is in effect, compliance with Me insurance provisbns contained in the instrument evidencing such Existing Indebleoness shall constitute compliance with Me insurance provisbns under MIS Deed of Trust, M the extent compliance with the terms of this Dead of Trust would constitute a duplication of insurance requirement. If any proceeds from Me insurance become payable on loss, the provisions In this Deed of Trust for division of prceeads shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness. LENDER'S EXPENDITURES. If Truster fails (A) to keep Me Property free of all taxes, liens, security interests, encumbrances, and other claims, (B) In provide any required insurance on the Properly, (C) to make repairs to Me Property or to wmply with any obligation to maintain Existing Indebtedness in good standing as required below, Men Lender may do so. If any action or proceeding is commenced that would materially affect Lender's interests in the Property, Men Lender on Trusters behalf may, but is not required to, lake any action that Lender believes to be appropriate to protect Lender's interests. All expenses incurred or pad by Lander for such purposes will Men bear interest at the rate charged under Me Credit Agreement from the date incurred or mid by Lender to the date of repayment by Truster. 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 Me Credit Agreement and be apportioned among and be payable with any installment payments to became due during either (1) Me term of any applicable insurance policy; or (2) the remaining tens of no Credit Agreement; or (C) be treated as a balloon payment which will he due and payable at Me Credit Agreement's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided for in MIS paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account of any default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of MIS Deed of Trust: Title. Truster warrants that: (a) Truster holds good and marketable title of record to Me Property in fee simple, free and clear of all liens and encumbrances other than those set forth in Me Real Property description or in Me Existing Indebtedness section below or in any tide insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with Mis Deed of Trust, and (b) Truster has Me full right, power, and authority to execute and deliver this Deed of Trust to Lender. Defense of Title. Subject to Me exception in the paragraph above, Truster warrants and will forever defend the tdie to the Property against the lawful claims of all persons. In Me event any action or proceeding is commenced that questions Trustor's tdle or the interest of Trustee or Lender under this Deed of Trust, Truster shall defend Me action at Trustor's expense. Truster may be the nominal parry 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 Truster will deliver, or cause to be delivered, to Lender such instruments as Lander may request from time to time to permit such participation. Compliance With Laws. Truster warrants that Me Property and Trustor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental autndri ies. Survival of Promises. All promises, agreements, and statements Tmstor has made in this Dead of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature and shall remain in full fame and effect until such time as Tustor's Indebtedness is had in full. EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a pad of MIS Deed of Trust: