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IIII 00I0I I0I00I0I2I5I II IIII
<br />DEED OF TRUST 20021311.1
<br />Loan No: NEW (Continued) Page 3
<br />Right to Contest. Truster may withhold payment of any tax, assessment, or claim In connection with a goad faith dispute over the
<br />obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a Ilen arises or is filed as a result of nonpayment,
<br />Truster shall within fifteen ry 5) days after the lien arises or, if a lien is filed, within fifteen (15) days after Truster has notice of the filing,
<br />secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety band or other security
<br />satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and reasonable attorneys' fees, or other charges that
<br />could accrue as a result of a foreclosure or sale under the lien. In any contest, Truster shall defend itself and Lender and shall satisfy any
<br />adverse judgment before enforcement against the Property. Truster shall name Lender as an additional obligee under any surety bond
<br />furnished in the contest proceedings.
<br />Evidence of Payment. Truster shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or ents and shall
<br />authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against
<br />the Property.
<br />Notice of Construction. Truster shall notify Lender at least fifteen 11 5) days before any work is commenced, any services are furnished, or
<br />any materials are supplied to the Property, If any mechanic's lien, materialmen'a lien, or other lien could be asserted on unt of the
<br />work, services, or materials. Truster will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Truster
<br />can and will pay the cost of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a pan of this Deed of Trust
<br />Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on
<br />a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application
<br />of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Trustor shall also procure and maintain
<br />comprehensive general liability insurance in such coverage amounts as Lender may request with Trustee and Lender being named as
<br />additional insureds in such liability insurance policies. Additionally, Trustor shall maintain such other insurance, including but net limited to
<br />hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shall be written in farm, amounts, coverages
<br />and basis reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Trustor, upon request
<br />of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including
<br />stipulations that coverages will not be cancelled or diminished without at least thirty (30) days prior written notice to Lender. Each
<br />insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act,
<br />mission or default of Trustor or any other person. Should the Real Property be located in an area designated by the Director of the Federal
<br />Emergency Management Agency as a special flood hazard area, Trustor agrees to obtain and maintain Federal Flood Insurance, if available,
<br />within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the full unpaid principal balance
<br />of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance
<br />Program, or as otherwise required by Lender, antl to maintain such insurance for 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
<br />election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien
<br />affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Truster
<br />shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of
<br />such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if Trustor is not In default
<br />under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not
<br />committed to the repair or estoration of the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, than
<br />to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any
<br />proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Truster shall furnish to Lender a report on
<br />each existing policy of insurance showing: IA the name of the Insurer; (2) the risks insured; 13) the amount of the policy; (4) the
<br />property insured, the then current replacement value of such property, and the manner of determining that value; and 151 the expiration
<br />date of the policy. Truster shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value
<br />replacement cost of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if Trustor
<br />fails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Trustor's failure to discharge or
<br />pay when due any amounts Truster is required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Trustor's
<br />behalf may (but shall not be obligated tot take any action that Lender deems appropriate, including but not limited to discharging or paying all
<br />taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring,
<br />maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will than bear interest at the rate
<br />charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such expenses will became a part of
<br />the 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
<br />and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the
<br />remaining term of the Note; or (Q be treated as a balloon payment which will be due and payable at the Note's maturity. The Deed of Trust
<br />also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon
<br />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 ants that: (a) Trustor holds good and marketable title of re ord to the Property In fee simple, free and clear of all liens
<br />and encumbrances other than those set forth In the Real Property description or in any title insurance policy, title report, or final title opinion
<br />issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Trustor has the full right, power, and authority to
<br />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 against
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