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<br />200702694
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<br />Property with interest thereon as provided by the Note and Deed of Trust from
<br />the date of advance by Beneficiary to the date of payment by the Trustor. The
<br />indebtedness and all obligations secured by this Deed of Trust may be referred
<br />to herein as the "Secured obligationsH.
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<br />2. TAXES AND ASSESSMENTS. Trustor shall pay all taxes and
<br />special assessments of every kind, now or hereafter levied against the Trust
<br />Estate or any part thereof directly, without notice or demand as each
<br />installment comes due and shall provide the Beneficiary with evidence of the
<br />payment of the same.
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<br />3 . CONSTRUCTION OF IMPROVEMENTS. Trustor shall complete in a
<br />good and workmanlike manner any building or improvements or repair relating
<br />thereto which may be begun on the Property or contemplated by the loan secured
<br />hereby, to pay when due all costs and liabilities incurred therefore and not to
<br />permit any construction or materialman's liens against the Property. Trustor
<br />also agrees, anything in this Deed of Trust to the contrary notwithstanding:
<br />(a) to promptly commence work and to complete the proposed improvements
<br />promptly; (b) to complete same in accordance with plans and specifications as
<br />approved by Beneficiary; (c) to comply with all of the terms of any building
<br />loan agreement between Trustor and Beneficiary; (d) to allow Beneficiary to
<br />inspect the Property at all times during construction; and (e) to replace any
<br />work or materials unsatisfactory to Beneficiary within 15 days after written
<br />notice from Beneficiary of such fact, which notice may be given to Trustor by
<br />registered or certified mail sent to its last known address, or by personal
<br />service of the same.
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<br />4. INSURANCE AND REPAIRS. Trustor shall maintain fire and
<br />extended coverage insurance insuring the improvements and buildings
<br />constituting part of the Trust Estate for an amount no less than the
<br />replacement value of such improvements or the amount of the unpaid principal
<br />balance of the Note, whichever is greater. Trustor shall also maintain
<br />comprehensive general liability insurance on the Property and, if any
<br />construction of new improvements occurs after execution of this Deed of Trust,
<br />completed operations coverage for two years after construction of the
<br />improvements has been completed (on an "occurrence basisH against claims for
<br />"personal injury" including, without limitation, bodily injury, death or
<br />property damage occurring on, in or about the Property and the adjoining
<br />streets, sidewalks and passageway), such insurance to afford immediate minimum
<br />protection to a limit satisfactory to Beneficiary and in no event less than
<br />$1,000,000.00 with respect to personal injury or death to anyone or more
<br />persons or damage to property. Trustor shall also provide during the course of
<br />any construction or repair of improvements on the Property builders completed
<br />value risk insurance against "all risks of physical 10ssH including collapse
<br />and transit coverage, during construction of such improvements, with
<br />deductibles acceptable to Beneficiary, in non-reporting form, covering the
<br />total value of work performed and equipment, supplies and materials furnished.
<br />Such insurance policies shall contain a standard mortgage clause in favor of
<br />Beneficiary and shall not be cancelable, terminable or modifiable without ten
<br />(10) days prior written notice to Beneficiary. Trustor shall furnish
<br />Beneficiary a certificate of insurance coverage at Beneficiary'S request, with
<br />a provision in such certificate that the insurer shall provide Beneficiary ten
<br />(10) days advance notice of any cancellation of the policy at any time for any
<br />reason, or of expiration of policy without renewal thereof. In the event of
<br />the foreclosure of this Deed of Trust or other transfer of title to the
<br />Property, or any part thereof, by non-judicial foreclosure sale or deed in lieu
<br />of foreclosure, the purchaser of the Property, or such part thereof, shall
<br />succeed to all of Trustor's rights, including any rights to unexpired insurance
<br />and unearned or returnable premiums, in and to all insurance policies required
<br />by this section, subject to limitations on assignment of blanket policies, and
<br />limited to such rights as relate to the Property or such part thereof. If
<br />Beneficiary is made a party defendant to any litigation concerning this Deed of
<br />Trust or the Property, or any part thereof or interest therein, or the
<br />occupancy thereof by Trustor, then Trustor shall indemnify and hold Beneficiary
<br />harmless from all liability by reason of such litigation, including all
<br />attorneys fees and expenses incurred by Beneficiary in any such litigation,
<br />whether or not any such litigation is prosecuted to judgment. This
<br />indemnification shall survive the termination of the trust agreement. Trustor
<br />shall promptly repair, maintain, and replace the Trust Estate or any part
<br />thereof so that, except for ordinary wear and tear, the Trust Estate shall not
<br />deteriorate. In no event shall the Trustor commit waste on or to the Trust
<br />Estate.
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<br />federal,
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<br />5. ENVIRONMENTAL COMPLIANCE.
<br />state, and local environmental laws,
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<br />Trustor shall comply with all
<br />ordinances, rules, requirements,
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