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<br />200809579
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<br />Property, and shall pay when due all claims for work done on or for services rendered or material furnished
<br />to the Property. Grantor shall maintain the Property free of all liens having priority over or equal to the
<br />interest of Lender under this Deed of Trust except for the lien of taxes and assessments not due and except
<br />as otherwise provided in this Deed ofTrusl.
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<br />RIRht to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a
<br />good faith dispute over lhe obligation to pay, so long as Lender's interest in the Property is not jeopardized,
<br />Ira lien arises or is filed as a result of nonpayment, Grantor shall within fifteen (IS) days after the lien
<br />arises or, if a lien is filed, within tifteen (I S) days after Grantor has notice of the filing, secure the discharge
<br />of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or
<br />other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and
<br />Lender's reasonable attorneys fees, or other charges that could accrue as a result of a foreclosure or sale
<br />under the lien. In any contest, Grantor shall de'fend itself and Lender and shall satisfy any adverse judgment
<br />before enforcement against the Property. Grantor 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. Grantor shall upon demand and as stated in the Note furnish to Lender satisfactory
<br />evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official
<br />to deliver to Lender at any time a written statement of the taxes and assessments against the Property.
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<br />Notice of Construction. Grantor shall notify Lender at least fifteen (IS) days before any work is
<br />commenced, any services arc furnished, or any materials are supplied to the Property, if any mechanic's
<br />lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials.
<br />Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that
<br />Grantor 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
<br />this Deed ofTrusl.
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<br />Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard
<br />extended coverage endorsements on a replacement basis for the full insurable value covering all
<br />Improvements on the Property in an amount sufficient to avoid application of any coinsurance clause, and
<br />with a standard mortgagee clause in favor of Lender. together with such other hazard and liability insurance
<br />as Lender may reasonably require. Policies shall be wrinen in form, amounts, coverages and basis
<br />reasonably acceptable to Lender, with losses made payable to Lender. If Grantor fails to provide any
<br />required insurance or fails to continue such insurance in force, Lender may, but shall not be required to, do
<br />so at Grantor's expense, and the cost of the insurance will be added to the Indebtedness. Grantor, upon
<br />request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form
<br />satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at
<br />least thirty (30) days prior written notice to Lender. Each insurance policy also shall include an
<br />endorsement providing that coverage in favor of Lender will not be impaired in any way by any act,
<br />omission or default of Grantor or any other person.
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<br />Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property.
<br />Lender may make proof of loss if Grantor fails to do so within fifteen (IS) days of the casualty. Whether or
<br />not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any
<br />insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the
<br />Propeny, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration
<br />and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a maMer satisfactory
<br />to Lender. Lender shall, upon satisfactory proof of such expenditure, payor reimburse Grantor from the
<br />proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Deed of Trust.
<br />Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not
<br />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 Trost, then to pay accrued interest, and the remainder, if any. shall be applied to the
<br />principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the
<br />Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear.
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<br />Unexpired Insurance at Sale. Any unexpired insurance shall inure to the bene tit of, and pass to, the
<br />purchaser of the Propeny covered by this Deed of Trust at any trustee's sale or other sale held under the
<br />provisions of this Deed of Trust, or at any foreclosure sale ofsuch Property.
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<br />LENDER'S EXPENDITURES. If Grantor fails (A) to keep the Property free of all taxes, liens, security interests,
<br />encumbrances, and other claims, (8) to provide any required insurance on the Property, or (C) to make repairs to the
<br />Property then lender may do so. If any action or proceeding is commenced that would materially affect Lender's
<br />interests in the Property. then Lender on Grantor's behalf may, but is not required to. take any action that Lender
<br />believes to be appropriate to protect Lender's interests. All expenses paid by Lender for such purposes will then bear
<br />interest at the Note rate from the date paid by Lender to the date of repayment by Grantor. To the extent permined
<br />by applicable law, all such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be
<br />payable on demand; (8) be added to the principal balance of the Note and be apportioned among and be payable
<br />with any installment payments to become due during either (I) the term of any applicable insurance policy; or (2)
<br />the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's
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