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<br />DEED OF TRUST
<br />Loan No: 7004066316 (Continued) 200213781 Page 3
<br />That could accrue as a result of a foreclosure or sale under the lien. In any contest, Truster shall defend itself and Lender and shall
<br />satisfy ar'vy adverse judgment before enforcement against The Property. Trustor shall name Lender as an additional obligee under any
<br />surety bond furnished in the contest proceedings.
<br />Evidence of Payment. Tonight shall upon demand furnish to Lender satisfactory evidence of payment of The texas or assessments and
<br />shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments
<br />against the Property.
<br />Notice of Construction. Truster shall notify Lender at least fifteen 1151 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 materials. Trusmr will upon request of Lender furnish to Lender advance assurances satisfactory to
<br />Lender that Truster 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. Trustor shall procure and maintain policies of fire insurance with standard extended coverage
<br />endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount
<br />sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Truster shall also
<br />procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Trustee and
<br />Lender being named as additional insureds in such liability insurance policies. Additionally, Truster shall maintain such other
<br />insurance, including but not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies
<br />shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies
<br />rsonably acceptable to Lender. Truster, upon request of Lender, will deliver to Lender from time to time the policies or certificates
<br />of Insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least
<br />thirty 1301 days prior written notice to Lender. Each insurance policy also shall Include an endorsement providing that coverage in
<br />favor of Lender will not be impaired In any way by any act, 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
<br />area. Trustor agrees to obtain and maintain Federal Flood Insurance, If available, within 45 days after notice Ia given by Lender that
<br />the Property is located in a special flood hazard area, for the full unpaid principal balance of the loan and any prior liens on the
<br />property securing the Than, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required
<br />by Lender, and to maintain such insurance for the term of the loan.
<br />Appliemion of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of lass
<br />if Trustor fails to do so within fifteen 1151 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 Lander elects to apply the proceeds to restoration and
<br />repair, Trustor 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 Trustor from the proceeds for the reasonable cost of repair or restoration if
<br />Trustor 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 Lander
<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 />Indeba dnees. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as
<br />Tuotor's interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish to Lender a report
<br />on each existing policy of insurance showing: ryl the name of the insurer; 121 the risks insured; 131 the amount of the policy; 141
<br />the property insured, the then current replacement value of such property, and the manner of determining that value; and 151 the
<br />expiration date of the policy. Trustor 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 action or proceeding is commenced that would materially affect Lender's interest in the Property or if
<br />Trustor fails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Trustor's failure to
<br />discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender
<br />on Trustor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to
<br />discharging or paying all taxes, liens, security Interests, encumbrances and other claims, at any time levied or placed on the Property and
<br />paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes
<br />will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All
<br />such expenses will become a part of the Indebtedness and, at Lender's option, will IAI be payable on demand; 181 be added to the
<br />balance of the Note and be apportioned among and ba payable with any installment payments to become due during either 111 the term of
<br />any applicable insurance policy: or 121 the remaining term of the Note; or ICI be treated as a balloon payment which will be due and
<br />payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. Such right shall be in addition to all other
<br />rights and remedies to which Lander 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) Truster 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 any title insurance policy, title report, or final
<br />title opinion issued in favor of, and accepted by, Lender In cnnner,Tion with this Dead of Trust, and (bl Trustor has the full right,
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