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Loan No: 775620
<br />200213595
<br />DEED OF TRUST
<br />(Continued) Page 3
<br />,r
<br />Notice of Construction. Trustor shall notify Lender at least fifteen (15) days before any work Is commenced, any services are
<br />furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on
<br />account of the work, services, or matanels- Truslor will Upon request of Lender furnish to Lender advance assurances satisfactory to
<br />Lender that Trustor can and will pay the cast 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. Truslor shall procure and maintain policies of fire insurance with standard extended coverage
<br />endorsements on a fair value basis for the full Insurable value covering all Improvements on the Real Property in an amount sufficient
<br />to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Truster shall also procure
<br />and maintain comprehensive general liability insurance, in such coverage amounts as Lender may request with Trustee and Lender
<br />being named as additional insureds In such liability insurance policies. Additionally. Truster shall maintain such other insurance,
<br />including but not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shall be
<br />written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably
<br />cepteble to Lender. Truster, upon request of I ender, will deliver to Lender from time to time the policies or certificates of insurance
<br />in form satisfactory to Lender, Including stipulations that coverages will not be cancelled or diminished without at least ten (10) days
<br />prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will
<br />not be impaired In any way by any act, omission or default of Truster or any other person. Should the Real Property be located in an
<br />area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to
<br />obtain and maintain Federal Flood Insurance, If available, within 45 days after notice is given by Lender that the Property is located In
<br />a special flood hazard area, for the full unpaid principal balance of the lean and any prier liens on the property securing the loan, up to
<br />the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such
<br />mouranoo for the term of the loan_
<br />Application of Proceeds. Truster shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss
<br />it Truster fails to do so within fifteen 0 5) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's
<br />Mention, re and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of
<br />any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and
<br />repair, Truslor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall. upon
<br />satisfactory proof of such expenditure, pay or mburse buster from the proceeds for the reasonable cast of repair or restoration it
<br />Trustnr is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt
<br />and which Leader has nut cammltfed to the repair or restoration of the Property shall he used first to pay any amount owing to Lender
<br />under this Deed of Trust, than to pay accrued Interest, and the remainder, If any, shall be applied to the principal balance of the
<br />Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Truster as
<br />Truster'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 previsions contained In the Instrument evidencing such Existing Indebtedness shell 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
<br />duplication of Insurance requirement. If any proceeds from the Insurance become payable on loss, the provisions in this Deed of Trust
<br />for division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Truslor shall furnish to Lender a report
<br />on each existing policy of Insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; 14)
<br />the property Insured, the then current replarement value of such property, and the manner of determining that value; and 15) the
<br />expiration date of the policy. Trustur shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine
<br />the cash value replacement cost of the Property.
<br />LENDER'S EXPENDITURES. If any mo n or proceeding is commenced that would materially affect Lender's interest In the Property or if
<br />Trus Wr falls to comply with any provision of this Dead of Trust or any Related Documents, Including but not limited to Trustar's failure to
<br />comply with any obligation to maintain Existing Indebtedness in good standing as required below, or to discharge or pay when due any
<br />aunts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Truster 'a behalf may (but
<br />shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens,
<br />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 then bear interest at the
<br />rate charged under the Note tram the date incurred or paid by Lender to the data of repayment by Trustor. All such expenses will became
<br />a part of the Indebtedness and, at Lender's option, will IA) be payable on demand; (B) be added to the balance of the Note and be
<br />apportioned among and he payable with any Installment payments to become due during either (11 the term of any applicable Insurance
<br />policy: or (2) the remaining term of the Note; or IC) be treated as a balloon payment which will be due and payable at the Note's
<br />maturity. The Deed of Trust also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to
<br />which Lender may be entitled upon 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 that: (a) Trustor holds good and marketable title of record to the Property in fee simple, free and clear of all
<br />liens and encumbrances other than those set forth in the Real Property description or in the Existing Indebtedness section below or In
<br />any title insurance policy, title report, or final title opinion Issued in favor of, and accepted by, Lender in connection with this Deed of
<br />Trust, and (b) 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 Property
<br />against the lawful claims of all persons- In the event any action or proceeding is commenced that questions Truster's title or the
<br />interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the action at Trustor's expense. Truster may be the
<br />nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding
<br />by counsel of Lender's own choice, and Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may
<br />cravat from time to time to permit such participation_
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