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DEED OF TRUST
<br />Loan No: 1589456 (Continued) 20021093$ Page
<br />of Trust.
<br />Compliance with Governmental Requirements. Truster shall promptly comply with all laws, ordinances, and regulations, now or hereafter
<br />in effect, of all governmental authorities applicable to the use or occupancy of the Property. Truster may contest in good faith any such law,
<br />Ordinance, or regulation and withhold compliance during any proceeding, Including appropriate appeals, so long as Truster has notified
<br />Lender In writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not Jeopardized. Lender
<br />may require Truster to post adequate security or a surety bond, reasonably satisfactory to Lander, to protect Lender's interest.
<br />Duty to Prdlect. Truster agrees neither to abandon or leave unattended the Property. Truster shall do all other acts, In addition to those
<br />acts set forth above in this section, which from the character and use of the Property are reasonably necasseiy to protect and preserve the
<br />Property.
<br />Construction Loan. If some or all of the proceeds of the loan creating the Indebtedness are to be used to construct or complete
<br />construction of any Improvements on the Property, the Improvements shall be completed no later than the maturity date of the Note (or such
<br />earlier date as Lender may reasonably establish) and Truster shall pay in full all costs and expenses in connection with the work. Lender will
<br />disburse loan proceeds under such terms and conditions as Lender may deem reasonably necessary to Insure that the interest created by
<br />this Deed of Trust shall have priority over all possible liens, including those of material suppliers and workmen. Lender may require, among
<br />other things, that disbursement requests be supported by receipted bills, expense affidavits, waivers of (lens, construction progress reports,
<br />and such other documentation as Lender may reasonably request.
<br />TAXES AND LIENS. The following provisions relating to the taxes and (lens on the Property are part of this Deed of Trust:
<br />Payment. Truster shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (Including water
<br />and sewer), fines and Impositions levied against or on account of the Property, and shall pay when due all claims for work done on or for
<br />services rendered or material furnished to the Property. Truster shall maintain the Property free of all liens having priority over or equal to the
<br />interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due, except for the Existing Indebtedness
<br />referred to below, and except as Otherwise provided in this Deed of Trust.
<br />Right to Contest. Truster may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation
<br />to pay, so long as Lender's interest in the Properly Is not jeopardized. If a lien arises or is filed as a result of nonpayment, Truster shall within
<br />filleen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Truster has notice of the filing, secure the discharge of the
<br />lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an
<br />amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges that could accrue as a result of foreclosure or
<br />sale under the lien. in any contest, Truster shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against
<br />the Property. Truster shall name Lender as an additional obligee under any 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 shall
<br />authorize the appropriate governmental official to deliver to Lender at any time a will statement of the taxes and assessments against the
<br />Properly.
<br />Notice of Construction. Truster shall notify Lander at least fifteen (15) days before any work is commenced, any services are furnished, or
<br />any materials are supplied to the Property, If any mechanic's lien, maleriaimen's lien, or other lien could be asserted On account of the work,
<br />services, or materials. Truster will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Truster can and
<br />will pay the cost of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust.
<br />Maintenance of Insurance. Truster shall procure and maintain policies of fire insurance with standard extended coverage endorsements on
<br />a fair value basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of
<br />any coinsurance clause, and with a standard mortgagee clause in favor of Lender, together with such other hazard and liability insurance as
<br />Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and issued
<br />by a company or companies reasonably acceptable to Lander. Trustor, upon request of Lender, will deliver to Lender from time to time the
<br />policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished
<br />without at least thirty (30) days prior written notice to Lender. Each insurance policy also shall include an endorsement providing that
<br />coverage in favor of Lander will not be impaired in any way by any act, omission or default of Truster or any other person. Should the Real
<br />Properly be located In an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area,
<br />Truster agrees to obtain and maintain Federal Flood Insurance, If available, within 45 days after notice Is given by Lender that the Property Is
<br />located in a special flood hazard area, for the full unpaid principal balance of the lean and any prior liens on the property securing the loan,
<br />up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lander, and to maintain such
<br />insurance for the term of the loan.
<br />Application of Proceeds. Truster shall promptly notify Lender of any less or damage to the Properly. Lender may make proof of loss if
<br />Truster falls to do so within fifteen (15) days of the casually. Whether or not Lender's security is impaired, Lander may, at Lender's election,
<br />receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting
<br />the Property, or the restoration and repair of the Properly. If Lender elects to apply the proceeds to restoration and repair, Truster shall
<br />repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such
<br />expenditure, pay or reimburse Truster from the proceeds for the reasonable cost of repair or restoration If Truster is not In default under this
<br />Dead of Trust, Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the
<br />repair or restoration of the Property shall be used Ilrst to pay any amount owing to Lander under this Deed of Trust, then to pay accrued
<br />interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment
<br />in full of the Indebtedness, such proceeds shall be paid to Truster as Truster's interests may appear.
<br />Compliance with alerting 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 />insurance provisions under this Deed of Trust, to the extent compliance with the forms of this Deed of Trust would constitute a duplication of
<br />insurance requirement, If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust for division of
<br />proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />LENDER'S EXPENDITURES. If Truster tails (A) to keep the Property free of all taxes, (lens, security interests, encumbrances, and other claims,
<br />(B) to provide any required insurance on the Properly, (C) to make repairs to the Property or to comply with any obligation to maintain Existing
<br />Indebtedness In good standing as required below, then Lander may do so. If any action or proceeding is commenced that would materially affect
<br />Lender's Interests in the Properly, than Lander on Truster's behalf may, but is not required lo, take any action that Lender believes to be
<br />appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will then bear interest at the rate charged
<br />under the Note from the data incurred or paid by Lender to the date of repayment by Truster. All such expenses will become a part of the
<br />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
<br />be payable with any Installment payments to became due during either (1) the term of any applicable Insurance policy: or (2) the remaining
<br />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
<br />secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which
<br />Lender may be entitled on account of any default. Any such action by Lander shall not be construed as curing the default so as to bar Lender
<br />from any manly 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 Deed of Trust:
<br />Title. Truster warrants that: (a) Truster holds good and marketable fills of record to the Property in fee simple, free and clear of all liens and
<br />encumbrances other than those set forth in the Real Property description or in the Existing Indebtedness section below or in any title
<br />insurance policy, title report, or final title Opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b)
<br />Truster has the full right, power, and authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of Till.. Subject to the exception in the paragraph above, Truster warrants and will forever defend the title to the Properly against
<br />the lawful claims of all persons. In the event any action or proceeding is commenced that questions Truster's title Or the interest of Trustee or
<br />Lender under this Dead of Trust, Truster shalt defend the action at Truster's expense. Truster may be the nominal party in such proceeding,
<br />but Lander 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 time to time to permit such
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