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DEED OF TRUST 20021254
<br />Loan No: 1609163 (Continued) O page 2
<br />of Trust.
<br />Compliance with Governmental Requirements. Truslor 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. Truslor 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 Trustor to post adequate security or a surely bond reasonably satisfactory to Lender, to protect Lender's interest.
<br />Duty to Protect. Trustor agrees neither to abandon or leave unattended the Property. Truslar 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 necessary to protect and preserve the
<br />Property.
<br />TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Deed of Trust:
<br />Payment. Trustor shall pay when due (and in all events prior to delinquency) all tares, 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. Trustor shall maintain the Property free of all liens hating 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 />retained to below, and except as otherwise provided in this Deed of Trust
<br />Right to Contest. Trustor may withhold payment of any lax, assessment, or claim In connection with a good faith dispute over the obligation
<br />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, Trustor shall within
<br />fifteen (15) days after the lien arises or, if a lien Is filed, within fifteen (15) days after Trustor has notice of the filing, secure the discharge of the
<br />lien, or it requested by Lender, deposit with Lender cash or a sufficient corporate surely 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 bar could accrue as a result of a foreclosure or
<br />sale under the lien. In any contest, Trustor shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against
<br />the Property. Trustor shall name Lender as an additional obligee under any surety bond furnished In the contesl proceedings.
<br />Evidence of Payment. Truster shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall
<br />authodae the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the
<br />Property.
<br />Notice of Construction. Truster shall notify Lender at least !been (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, malerialmen's lien, or other lien could be assail on account of the work,
<br />seances, or materials. Trustor 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 Properly are a part of this Dead of Trust.
<br />Maintenance of Insurance. Trustor shall procure and maintain policies of fire Insurance with standard extended coverage endorsements on
<br />a lair value basis for the full insurable value covering all Improvements on the Real Properly 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 Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the
<br />policies or certificales 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 insurence policy also shall include an endorsement providing that
<br />coverage in favor of Lender will not be impaired in any way by any aol, omission or default of Trustor or any other person. Should the Real
<br />Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area
<br />Trustor agrees to obtain and maintain Federal Flood Insurance, it available, within 45 days after relics, is given by Lender that the Property Is
<br />located in a special flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan,
<br />up to the maximum policy 4mils set under the National Flood insurance Program, or as otherwise required by Lander, and to mountain such
<br />insurance far the term of the loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss If
<br />Trustor 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,
<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 Property. If Lender elects to apply the proceeds to restoration and repair, Trustor 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 Trustor Is not In default under this
<br />Dead of Trust. Any proceeds which have net 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 first to pay any amount owing to Lender 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 Truslor as Truslor'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 />insurance provisions under this Deed of Trust, to the extent compliance with the terms 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 Trustor tails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other claims,
<br />(B) to provide any required insurance on the Property, (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 Lender may do so. If any action or proceeding Is commenced that would malerialiy affect
<br />Lender's interests in the Property, then Lender on Truslor's behalf may, but is not required to, lake 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 date incurred or paid by Lender to the date of repayment by Truslar. 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 become tlue 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 Lender shall not be construed as curing the default so as to bar Lender
<br />from any remedy that it otherwise would have had,
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Properly are a pad of this Deed of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Properly 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, Idle helped, or final title opinion issued in favor of, and accepted by, Lender In connection with this Deed of Trust, and Ib)
<br />Trustor has the full right, power, and authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Trustor 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 Truder's title or the interest of Trustee or
<br />Lender under this Deed of Trust, Trustor shall defend the action at Trustor 's expense. Trustor may be the nominal party in such proceeding,
<br />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
<br />Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from lime to lime to permit such
<br />participation.
<br />Compliance With Laws. Trustor warrants that the Property. and Truslor's use 0 the Property complies with all existing applicable laws,
<br />ordinances, and regulations of governmental authorities.
<br />Survival of Promises. All promises, agreements, and statements Truster has made in this Deed of Trust shall survive the execution and
<br />delivery of this Deed of Trust, shall be continuing in nature and shall remain in full force and effect until such time as Truslor's Indebtedness
<br />is paid in full.
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