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<br />Loan No: 1012'6919
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<br />DEE DQFIBY SI
<br />(Continuid)
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<br />2008 059 '(,6
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<br />Page 3
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<br />that could accrue as a result of a foreclosure or sale under the lien. In any contest, Trustor shall defend itself and lender and shall
<br />satisfy any 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.
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<br />Evidence of Payment. Trustor shall upon demand furnish to lender satisfactory evidence of payment of the taxes 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.
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<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 materials. Trustor will upon request of lender furnish to lender advance assurances satisfactory to
<br />lender that Trustor can and will pay the cost of such improvements.
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<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust.
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<br />Maintenance of Insurance. Trustor 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, together with such other
<br />hazard and liability insurance as lender may reasonably require. Policies shall be written in form, amounts, coverages and basis
<br />reasonably acceptable to lender and issued by a company or companies reasonably acceptable to lender. Trustor, upon request of
<br />lender, will deliver to lender from time to time the policies or certificates of insurance in form satisfactory to lender, including
<br />stipulations that coverages will not be cancelled or diminished without at least ten (10) 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 Trustor 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, Trustor agrees to obtain and maintain Federal Flood
<br />Insurance, if available, for the full unpaid principal balance of the loan and any prior liens on th'e property securing the loan, up to the
<br />maximum policy limits set under the National Flood Insurance Program, or as otherwise required by lender, and to maintain such
<br />insurance for the term of the loan.
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<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 Trustor fails to do so within fifteen (15) 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, 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, payor 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 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 Trustor as
<br />Trustor's interests may appear.
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<br />lENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other
<br />claims, (B) to provide any required insurance on the Property, or (C) to make repairs to the Property then lender may do so. If any
<br />action or proceeding is commenced that would materially affect lender's interests in the Property, then lender on Trustor's behalf may,
<br />but is not required to, take any action that lender believes to be appropriate to protect lender's interests. All expenses incurred or paid by
<br />Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of
<br />repayment by Trustor. All such expenses will become a part of the Indebtedness and, at lender's option, will (A) be payable on demand;
<br />(B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during
<br />either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment
<br />which will be due and payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided
<br />for in this paragraph shall be in addition to any other rights or any remedies to which lender may be entitled on account of any default.
<br />Any such action by lender shall not be construed as curing the default so as to bar lender from any remedy that it otherwise would have
<br />had.
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<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust;
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<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 any title insurance policy, title report, or final
<br />title opinion issued in favor of, and accepted by, lender in connection with this Deed of Trust, and (b) Trustor has the full right,
<br />power, and authority to execute and deliver this Deed of Trust to lender.
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<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 Trustor's title or the
<br />interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the action at Trustor's expense. Trustor 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 />request from time to time to permit such participation.
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<br />Compliance With laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable
<br />laws, ordinances, and regulations of governmental authorities.
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<br />Survival of Promises. All promises, agreements, and statements Trustor 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 Borrower's
<br />Indebtedness is paid in full.
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<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
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