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200213704 DEED OF TRUST
<br />Loan No: 775916 (Continued( 1 Page 3
<br />stipulations that coverages will not be cancelled or diminished without at least ten 1101 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
<br />act omission or default of Truster or any other person. Should the Real Property be located in an area designated by the Director of
<br />the Federal Emergency Management Agency as a special flood hazard area, Truster agrees to obtain and maintain Federal Flood
<br />Insurance, if available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the
<br />full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set
<br />under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the
<br />loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss
<br />if Truster fails to do so within fifteen n 51 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
<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, Truster 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 reimburse Truster from the proceeds for the reasonable cost of repair or restoration if
<br />Truster 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 Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender
<br />under this Deed of Trust, then 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 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
<br />duplication of insurance requirement. If any proceeds from the insurance become payable on loss, the provisions in this Dead of Trust
<br />for division of proceeds shall apply only to that portion of the proceeds net payable to the holder of the Existing Indebtedness.
<br />LENDER'S EXPENDITURES. If Truster fails IAI to keep the Property free of all taxes, liens, security Interests, encumbrances, and other
<br />claims, IBI to provide any required insurance on the Property, ICI to make repairs to the Property or to comply with any obligation to
<br />maintain Existing Indebtedness In good standing as required below, then Lender may do so. If any action or proceeding is commenced that
<br />would materially affect Lender's Interests In the Property, then Lender on Truster's behalf may, but is not required to, take any action that
<br />Lender believes to be appropriate to protect Lender's interests. All expenses Incurred or paid by Lender for such purposes will then bear
<br />interest at the rate charged under the Nate from the date incurred or paid by Lender to the date of repayment by Truster. All such
<br />expenses will become a part of the Indebtedness and, at Lender's option, will IA be payable on demand; IRI be added to the balance of
<br />the Note and be apportioned among and be payable with any installment payments to become due during either ryl the term of any
<br />applicable Insurance policy; or 121 the remaining term of the Note; or ICI be treated as a balloon payment which will be due and payable
<br />at the Note's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in
<br />addition to any other rights or any remedies to which Lender may be entitled on account of any default Any such action by Lender shall
<br />not be construed as curing the default so as to 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 Deed of Trust:
<br />Title. Truster warrants that: let Trainer 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 did Truster has the full right, power, and authority to execute and deliver this Dead 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
<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, Traitor shall defend the action at Trustor's expense. Traylor 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 Truster will deliver, or cause to be delivered, to Lender such instruments as Lender may
<br />request from time to time to permit such participation.
<br />Compliance With Laws. Truster warrants that the Property and Truster's use of the Property complies with all existing applicable
<br />laws, 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
<br />and delivery of this Deed of Trust, shall be continuing in nature and shall remain in full force and effect until such time as Truster's
<br />Indebtedness is paid in full.
<br />EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br />Existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an existing lien. Truster
<br />expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such
<br />indebtedness, any default under the instruments evidencing such indebtedness, or any default under any security documents for such
<br />indebtedness,
<br />No Modification. Truster shall not enter into any agreement with the holder of any mortgage, deed of trust, or other security
<br />agreement which has priority over this Deed of Trust by which that agreement Is modified, amended, extended, or renewed without
<br />the prior written consent of Lender. Tractor shall neither request nor accept any future advances under any such security agreement
<br />without the prior written consent of Lender.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation Is filed, Truster shall promptly notify Lender in writing, and Truster shall promptly
<br />take such steps as may be necessary to defend the action and obtain the award. Trustor may be the nominal party in such
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