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200502105
<br />Payment of Indebtedness. All indebtedness secured hereby shall be paid when due.
<br />2. Title. Trustor is the owner of the Property, has the right and authority to convey the
<br />Property and warrants that the lien created hereby is a first and prior lien on the Property and the
<br />execution and delivery of this Deed of Trust does not violate any contract or other obligation to
<br />which Trustor is subject.
<br />3. Taxes, Assessments. To pay before delinquency, all taxes, special assessments and all
<br />other charges against the Property now or hereafter levied.
<br />4. Insurance. To keep the Property insured against damage by fire, hazards included
<br />within the term "extended coverage" and such other hazards as Lender may require, in amounts
<br />and with companies acceptable to Lender, naming Lender as an additional named insured, with
<br />loss payable to Lender. In case of loss under such policies, Lender is authorized to adjust, collect
<br />and compromise all claims thereunder and shall have the option of applying all or part of the
<br />insurance proceeds (i) to any indebtedness secured hereby and in such order as Lender may
<br />determine, (ii) to Trustor to be used for the repair or restoration of the Property, or (iii) for any
<br />other purpose or object satisfactory to Lender without affecting the lien of this Deed of Trust for
<br />the full amount secured hereby before such payment ever took place. Any application of
<br />proceeds to indebtedness shall not extend or postpone the due date of any payments under the
<br />Note, or cure any default thereunder or hereunder.
<br />5. Escrow. Upon written demand by Lender, Trustor shall pay to Lender, in such
<br />manner as Lender may designate, sufficient sums to enable Lender to pay as they become due,
<br />one or more of the following. (i) all taxes, assessments and other charges against the Property;
<br />(ii) the premiums on the property insurance required hereunder, and (iii) the premiums on any
<br />mortgage insurance required by Lender.
<br />6. Maintenance, Repairs and Compliance with Laws. Trustor shall keep the Property in
<br />good condition and repair; shall promptly repair, or replace, any improvement which may be
<br />damaged or destroyed; shall not commit or permit any waste or deterioration of the Property;
<br />shall not remove, demolish or substantially alter any of the improvements on the Property; shall
<br />not commit, suffer or permit any act to be done in or upon the Property in violation of any law,
<br />ordinance or regulation; and shall pay and promptly discharge at Trustor's cost and expense, all
<br />liens, encumbrances and charges levied, imposed or assessed against the Property or any part
<br />thereof.
<br />7. Eminent Domain. Lender is hereby assigned all compensation, awards, damages and
<br />other payments or relief (hereinafter "Proceeds ") in connection with condemnation or other
<br />taking of the Property or part thereof, or for conveyance in lieu of condemnation. Lender shall
<br />be entitled at its option to commence, appear in and prosecute in its own name, any action or
<br />proceedings and shall also be entitled to make any compromise or settlement in connection with
<br />such taking or damage. In the event any portion of the Property is so taken or damaged, Lender
<br />shall have the option, it its sole and absolute discretion, to apply all such Proceeds, after
<br />deducting therefrom all costs and expenses incurred by it in connection with such Proceeds, upon
<br />any indebtedness secured hereby and in such order as Lender may determine, or to apply all such
<br />Proceeds, after such deductions, to the restoration of the Property upon such conditions as
<br />Lender may determine. Any application of Proceeds to indebtedness shall not extend or
<br />postpone the due date of any payments under the Note, or cure any default thereunder or
<br />hereunder. Any unapplied funds shall be paid to Trustor.
<br />8. Performance by Lender. Upon the occurrence of an Event of Default hereunder, or if
<br />any act is taken or legal proceeding commenced which materially affects Lender's interest in the
<br />Property, Lender may in its own discretion, but without obligation to do so, and without notice to
<br />or demand upon Trustor and without releasing Trustor from any obligation, do any act which
<br />Trustor has agreed but fails to do and may also do any other act it deems necessary to protect the
<br />security hereof. Trustor shall, immediately upon demand therefor by Lender, pay to Lender all
<br />costs and expenses incurred and sums expended by Lender in connection with the exercise by
<br />Lender of the foregoing rights, together with interest thereon at the default rate provided in the
<br />Note, which shall be added to the indebtedness secured hereby. Lender shall not incur any
<br />liability because of anything it may do or omit to do hereunder.
<br />9. Hazardous Materials. Trustor shall keep the Property in compliance with all
<br />applicable laws, ordinances and regulations relating to industrial hygiene or environmental
<br />protection (collectively referred to herein as "Environmental Laws "). Trustor shall keep the
<br />Property free from all substances deemed to be hazardous or toxic under any Environmental
<br />Laws (collectively referred to herein as "Hazardous Materials "). Trustor hereby warrants and
<br />represents to Lender that, to Trustor's knowledge, there are no Hazardous Materials on or under
<br />the Property. Trustor hereby agrees to indemnify and bold harmless Lender, its directors,
<br />officers, employees and agents, and any successors to Lender's interest, from and against any and
<br />all claims, damages, losses and liabilities arising in connection with the presence, use, disposal or
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