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10-02 -2002 DEED OF TRUST 200210597 Page 3
<br />Loan No (Continued)
<br />shall name Lander es an additional obliges under any surety bond furnished In the contest proceedings.
<br />Evidence of Payment. Truster shall upon demand furnish to Lander satisfactory evidence of payment of the taxes or assessments and shall
<br />authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the
<br />Properly.
<br />Notice of Construction. Truster shall notify Lender at lead fifteen (15) days before any work is commenced, any services are furnished, or any
<br />materials are supplied to the Property, if any mechanic's lien, materstmen's lien, or other lien could be asserted on account of the work,
<br />services, or materials. Truster will upon request of Lander furnish to Lender advance assurances satisfactory to Lander that Truslor can and will
<br />pay the cost of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relaling to insuring The Property are a pad of this Dead of Trust.
<br />Maintenance of Insurance. Truster shall procure and maintain policies of fire Insurance with standard extended coverage endorsements on a
<br />replacement basis for the full insurable value covering all Improvements on the Real Properly in an amount sufficient to avoid application of any
<br />coinsurance clause, and with a standard mortgagee clause in favor of Lander. Truslor shall also procure and maintain comprehensive general
<br />liability Insurance in such coverage amounts as Lander may request with trustee and Lander being named as additional insureds in such liability
<br />insurance policies. Additionally, Truster shall maintain such other insurance, including but not limited to hazard, business interruption, and
<br />holler Insurance, as Lender may reasonably require. Policies shall be written In form, amounts, coverages and basis reasonably acceptable to
<br />Lander and issued by a company or companies reasonably acceptable to Lander. Truster, upon request of Lender, will deliver to Lender from
<br />time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or
<br />diminished without at least ten (10) days' prior written notice to Lender, Each Insurance policy also shall include an endorsement providing that
<br />coverage in favor of Lender will nor be Impaired in any way by any act, omission or default of Truslor or any other person. Should the Real
<br />Property at any time become located In an area designated by the Director of the Federal Emergency Management Agency as a special flood
<br />hazard area, Truslor agrees to obtain and maintain Federal Flood Insurance for the full unpaid pracq al balance of the loan and any prior liens
<br />on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by
<br />Lender, and to maintain such insurance for the term of the loan.
<br />Application of Proceeds. Truslor shall promptly notify Lander of any lass or damage to the Property. Lender may make proof of loss if Trustor
<br />fails to do so within fifteen (15) days of casually. Whether or not Lender's security is Impaired, Lander may, at Its election, receive and retain
<br />the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the
<br />restoration and repair of the Property. If Lander elects to apply the proceeds to restoration and repair, Truster shall repair or replace the
<br />damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or
<br />reimburse Truslor from the proceeds for the reasonable cost of repair or restoration if Truster is not in default under this Deed of Trust Any
<br />proceeds which have not been disbursed within I80 days aXer their receipt and which Lender has not committed to the repair or restoration of
<br />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
<br />any, shall be applied to the principal balance of the Indebtedness. If Lander holds any proceeds after payment in full of the Indebtedness, such
<br />proceeds shall be paid to Trustor as Trustor's interests may appear.
<br />Unexpired Insurance at Sale. Any unexpired Insurance shall inure to the benefit of, and pass to, the purchaser of the Property covered by this
<br />Deed of Trust at any trustee's sale or other sale held under the provisions of this Deed of Trust, or at any foreclosure sale of such Properly.
<br />Tined Report on Insurance. Upon request of Lander, however not more then once a year, Truster shall furnish to Lander a report on each
<br />existing policy of insurance showing: (a) the name of the insurer; (b) the risks Insured; tot the amount of the policy; (d) the property Insured,
<br />the then current replacement value of such property, and the manner of determining that value; and (e) the expiration dale of the policy.
<br />Truslor shall, upon request of Lender, have an Independent appraiser satisfactory to Lander determine the cash value replacement cost of the
<br />Property.
<br />EXPENDITURES BY LENDER. If Truster fails to Comply with any provision of this Deed of Trust, or it any action or proceeding is commenced that
<br />would materially affect Lender's interests In the Property, Lender on Trustors behalf may, but shall nor be required to, take any action that Lender
<br />deems appropriate. Any amount that Lander expends in so doing will bear interest at the role provided for in the Note from the date incurred or paid
<br />by Lender to the dale of repayment by Truslor. All such expenses, at Lender's option. will le) be payable on demand, (b) be added to lire balance
<br />of the Note and be apportioned among and be payable with any installment payments to become due during aliher (1) the term of any applicable
<br />insurance policy or (it) the remaining term of the Note, or (c) be treated as a balloon payment which will be due and payable at the Note's mercury.
<br />This Dead of Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any
<br />remedies to which Lander may be enlilled on account of the default. Any such action by Lander shall not be construed as curing the default so as to
<br />bar Lender from any remedy that it otherwise would have had,
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Dead of Trust.
<br />Title. Truslor warrants that: (a) Truster holds goad and marketable title at record to the Property in fee simple, free and clear of all hens and
<br />encumbrances other than these set forth in the Real Property description or in any title insurance policy, title wood. or final title opinion issuetl in
<br />favor of, and accepted by, Lender in connection wllh this Deed of Trust, and (h) Truslor has the lull right, power, and authority to execute and
<br />deliver this Deed of Trust to Lender.
<br />Balance of Title. Subject to the exception In the paragraph above, Truster warrants and will forever defend the title to the Properly against the
<br />lawful claims of all persons. In the event any action or proceeding is Commenced that questions Truskers title or the interest of Trustee or
<br />Lender under this Deed of Trust, Trustor shall defend the action at Trustor's expense. Truslor may be the nominal party in such proceeding, but
<br />Lender shall be entitled to participate in the proceeding and to be represented In the proceeding by counsel of Lender's own choice, and
<br />Truster will deliver, or cause to be delivered, to Lender such Instruments as Lender may request from lime to time to permit such padicifu llan.
<br />Compliance With Lewis. Trustor warrants that the Property and Truslor's use of the Properly Complies with all existing applicable laws,
<br />ordinances, and regulations of governmental authorities.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust.
<br />Application of Net Proceeds. If all or any part of the Properly Is condemned by eminent domain proceedings or by any proceeding or
<br />purchase in lieu of condemnation, Lender may at its election require that all or any potion of the net proceeds of the award be applied to the
<br />Indebtedness or the repair or restoration of the Properly. The net proceetls of the award shall mean the award after payment of all reasonable
<br />costs, expenses, and atTerne,ii fees Incurred by Trustee or Lander in connection with the condemnation.
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lander in writing, and Trustor shall promptly take such
<br />steps as may be necessary to defend the action and obtain the award. Truslor may be the nominal party in such proceeding. but Lender shall
<br />be entitled to participate in the proceeding and to be represented In the proceeding by counsel of its own choice, and Trustor will deliver or
<br />cause to be delivered to Lentler such instruments as may be requested by it from time to time to permit such participation.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following Provisions relating to governmental taxes,
<br />fees and Charges ere a pad of this Dead of Trust:
<br />Current Taxes, Fees and Charges. Upon request by Lander, Trustor shall execute such documents in addition to this Deed of Trust and take
<br />whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Truslor shall reimburse Lender for all
<br />taxes, as described below, together with all expenses incurred in recording, porfectrng or continuing this Deed of Trust including without
<br />linatation all taxes, fees, documentary stamps, and other charges for recording or registering this Dead of Trust.
<br />Taxes. The following shall constitute taxes to which this section applies: (al a specific tax upon this type of Dead of Trust or upon all or any
<br />part of the Indebtedness secured by this Deed of Trust; (h) a specific lax an Trustor which Trustor is authorized or required to deduct from
<br />payments on the Indebtedness secured by this fyps of Deed of Trust; (c) a tax on this type of Deed of Trust chargeable against the Lender or
<br />the holder of the Note; and (d) a specific lax on all or any portion of the Indebtedness or on payments of principal and interest made by
<br />Truslor.
<br />Subsequent Taxes. If any tax to which this section applies is enacted subsequent to The date of this Deed of Trust, this event sell have the
<br />same affect es an Event of Default (ss defined below), and Lender may exercise any or all of its available remedies for an Event of Default as
<br />provided below unless Truslor either (a) pays the tax before it becomes delinquent, or (b) contests the tax as provided above in The Taxes and
<br />Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satlslaclory to Lander.
<br />SECURITY AGREEMENT; FINANCING STATEMENTS. The following Provisions relating to This Used of Trust as a security agreement are a part of
<br />this Deed of Tnrst.
<br />Security Agreement. this instrument shall constitute a security agreement to the extent any of the Properly cc neighbor failures or other
<br />personal property, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to
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