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, J ' DEED OF TRUST ,`~QQ9(~5559 Loan No: 101222722 (Continued) Page 3 that could accrue as a result of a foreclosure or sale under the lien. In any contest, Trustor shall defend itselt and Lender and shall .satisfy any adverse judgment before enforcement against the Property. Trustor shall name. Lender as an additional obligee under any, surety bond furnished in the contest proceedings. Evidence of Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement. of the taxes and assessments against the Property. Notice of Construction. Trustor shall notify Lender at least fifteen 1151 days before any work is commenced, any services are furnished, or any materials are supplied to the Property, it any mechanic's lien,• materialmen's lien, ar other lien could be asserted an account of the work, services, or materials. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Trustor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust. Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a fair value basis for the full insurable value covering all Improvements an the Real Property in an amount sufficient to avoid application of any coinsurance Clause, and with a standard mortgagee clause in favor pf Lender. Trustor shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in such liability insurance policies. Additionally, Trustor shall maintain such other insurance, including but not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten (1p- days prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will net be impaired in any way by any act, nmissipn nr default pf Trustor or any ether person. Should the Real Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal balance of the .loan and any prior liens on the property secuCjng the loan, up to the maximum. policy limits set under the National. Flood Ihsurance Program,. or,as otherwise required by Lender, and to maintain such insurance for the term of the loan. Application of Proceeds. Trustor shall promptly notify Lender' of any' loss or damage td the Property. -:Lender rney..make proof of 'less, if Trustor fails to do so vvithin fifteen (15) days of the casualty. Whether or not lender's security is impaired, Lender may; at Lender's ' iri the proceeds of any insurance and apply the proceeds to the reductipn of the .Indebtedness,,. payment pf .; el Y tion, recerv Band, rata art or the restoration "and re air of 'the Prn art If Lender elects to a I the roceeds to restoratidri and an lien affectin the Prop y, p p y. pp y p repair, Trustor shall repair or replace the damaged or destroyed Improvements in a mariner satisfactory to. Lender: lender shall, upon satisfactory proof of such expenditure, pay or reimburse Trustor from the. proceeds for the reasonable .cost of repair or restoration if Trustor is not .in default under this Deed of Trust. Any proceeds. which have not been disbursed within, 1$0 days after their receipt aril which Lender 'has not committed to the repair or restoration of the Property shall be used'frst to paY any amount dwing to Lehder under this Dead of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the ' - Indebtedness. ° If Lender holds 'any proceeds offer payment in full of the Indebtedness,' such proceeds shall be paid to Trustdr as r TrusTor's ~riterests may appea Trustor's Rapnrt on Insurance.. Upon request of Lender, however not more than once a year, Truster shalh furnish to Lender a report . on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured;.. (3) the amount of the policy; (4) the property insured, the then current replacement value of such property, and the manner of determining.- hat, value; and (5-- th.e -. ' expiration date of the policy.' Trustor shall, upoh request of Lender, have an independent appraiser satisfactory to Lender determine the cash vel'ue rtsplacemenr cost of the Property: - LENDER'S EXPENDITURES. If any action .orsproceeding is commenced that would materially affect Lender's interest in Lhe!: Property or if Trustor fails to comply with any provision of this Deed of Trust or any Related Documents, including but not limited to Trustar's failure to discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Trustor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by 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 repayment by Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will IAl be payable on demand; 1B1 be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either 111 the term of any applicable insurance policy; ar (2) the remaining term of the Note; or IC1 be treated as a balloon payment which will be due and payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon Default. WARRANTY; DEFENSE pF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust Title. Trustor warrants that: la- Trustor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and Ibl Trustor has the full right, power, and authority to execute and deliver this Deed of Trust to Lender. Defense of Titl®. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Trustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the action at Trustor's expense. Truster may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request frpm time to time to permit such participation.