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DEED OF TRUST 2 0 0 9 0 512 4
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<br />in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten (10) days
<br />prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in fever of Lender will
<br />not be impaired in any way by any act, omission or default of Trustor or any other perspn. The Real Property is or will be located in
<br />an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area. Trustor agrees to
<br />obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal balance of the loan and any prior liens on the
<br />property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, pr as otherwise required
<br />by Lander, and to maintain such insurance for the term of the loan.
<br />Application of Proceeds. Truster shall promptly notify Lender of any loss or damage to the Property if the estimated cost of repair or
<br />replacement exceeds 510,000.00. Lender may make proof of loss if Trustor fails to do sp within fifteen (15) days of the casualty.
<br />Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and
<br />apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of
<br />the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the damaged or destroyed
<br />Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Trustor
<br />frpm the proceeds for the reasonable cost of repair or restoration if Trustor is not in default under this Deed of Trust. Any proceeds
<br />which have not been disbursed within 180 days after their receipt and which Lander has net committed to the repair or restoration of
<br />the Property shall be used first to pay any amount awing to Lender under this Deed of Trust, then to pay accrued interest, and the
<br />remainder, if any, shall be applied tp the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full pf
<br />the Indebtedness, such proceeds shall 6e paid to Trustor as Trustor's interests may appear.
<br />Trustor's Report pn 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: 11) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4)
<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 pf the Property.
<br />TAX AND INSURANCE RESERVES. Subject to any limitations set by applicable law, Lender may require Trustor to maintain with Lender
<br />reserves for payment of annual taxes, assessments, and insurance premiums, which reserves shall be created by advance payment or
<br />monthly payments of a sum estimated by Lender to be sufficient to prpduce, amounts at least equal to the taxes, assessments, and
<br />insurance premiums tp be paid. The reserve funds shall be held by Lender as a general deposit from Trustor, which Lander may satisfy by
<br />payment of the taxes, assessments, and insurance premiums required to be paid by Trustor as they become due. Lender shall have the
<br />right to draw upon the reserve funds to pay such items, and Lender shall not be required to determine the validity or accuracy of any item
<br />before paying it. Nothing in the Deed of Trust shall be construed as requiring Lender tp advance ether monies for such purposes, and
<br />Lender shall not incur any liability for anything it may do or omit to do with respect tp the reserve account. Subject to any limitations set
<br />by applicable law, if the reserve funds disclose a shortage or deficiency, Trustor shall pay such shortage or deficiency as required by
<br />Lender. All amounts in the reserve account are hereby pledged to further secure the Indebtedness, and Lender is hereby authorized to
<br />withdraw and apply such amounts on the Indebtedness upon the occurrence of an Event of Default. Lender shall not be required to pay
<br />any interest or earnings on the reserve funds unless required by law or agreed to by Lender in writing. Lender does not hold the reserve
<br />funds in trust for Trustor, and Lender is not Trustor's agent for payment of the taxes and assessments required to bs paid by Trustor.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Prpperty or if
<br />Truster fails to comply with any provision of this Deed of Trust or any Related pocuments, 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 Trustpr'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 pr paid by Lender for such purposes
<br />will then bear interest at the rate charged under the Npte 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 (A) be payable on demand; 18- be added to the
<br />balance of the Nota and be apportioned among and be payable with any installment payments to become due during either (1) the term of
<br />any applicable insurance policy; or 121 the remaining term pf the Note; or IC- ba treated as a balloon payment which will be due and
<br />payable at the Note's maturity. The Deed of Trust elan will secure payment of these amounts. Such right shall be in addition to all other
<br />rights and remedies to which Lender 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) 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 Prpperty 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 Ib1 Trustor has the full right,
<br />power, and authority to execute and deliver this Deed of Trust to Lender.
<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 pr prpceeding 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 expanse. Trustor may ba 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.
<br />Compliance With Laws. Truster warrants that the Property and Trustor's use of the Property complies with all existing applicable
<br />laws, ordinances, and regulations of governmental authorities.
<br />Survival of Representations and Warranties. All representations, warranties, and agreements made by Trustor in this Deed of Trust
<br />shall survive the executipn and delivery of this Deed of Trust, shall be continuing in nature, and shall remain in full force and effect
<br />until such time as Borrower's Indebtedness shall be paid in full.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and Trustor shall promptly
<br />take such steps as may be necessary to defend the action and obtain the award. Trustor may be the nominal party in such
<br />proceeding, but Lender shall be entitled to participate in the prpceeding and to ba represented in the prpceeding by counsel of its awn
<br />choice, and Trustor will deliver pr cause to be delivered to Lender such instruments and documentation as may be requested by
<br />Lander from time to time tp permit such participation.
<br />Applicatlon of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings pr by any proceeding or
<br />purchase in lieu pf condemnation, Lender may at its election require that ail or any portion of the net proceeds of the award be applied
<br />to the Indebtedness or the repair or restoration of the Property. The net proceeds pf the award shall mean the award after payment pf
<br />all reasonable costs, expenses, and attorneys' fees incurred by Trustee or Lender in connection with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The fo-lowing provisions relating to governmental
<br />taxes, fees and charges are a part of this Deed of Trust:
<br />Current Taxes, Fees and Charges. Upon request by Lender, Trustor shall execute such documents in addition to this Deed of Trust
<br />and take whatever other action is requested by Lender to perfect and continue Lender's lion on the Real Prpperty. Trustor shall
<br />reimburse Lender fpr all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Deed
<br />of Trust, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Deed of
<br />Trust.
<br />Taxes. The following shall constitute taxes to which this section applies: 111 a specific tax upon this type of Deed of Trust or upon
<br />all or any part of the Indebtedness secured by this Deed of Trust; 12- a specific tax on Borrower which Borrower is authorized or
<br />required to deduct from payments on the Indebtedness secured by this type of Deed of Trust; (3) a tax on this type of Deed of Trust
<br />chargeable against the Lender or the holder of the Note; and (4) a specific tax on all or any portion of the Indebtedness or on
<br />payments of principal and interest made by Borrower.
<br />Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Deed of Trust, this event shall
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