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DEED Or= TRUST
<br />(Continued) `~ U U 9 ~ 5 6 51 Page a
<br />to Lender to replace such Improvements with Improvements of at least equal value.
<br />Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reaspnable times to
<br />attend to Lender's interests and to inspect the Real Property for purposes of Trustor's compliance with the terms and conditions of
<br />this Deed of Trust.
<br />Compliance with Governmental Requirements. Trustor shall promptly comply with all laws, ordinanoes, and regulations, now or
<br />hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, the
<br />Americans With Disabilities Act. Trustor may contest in good faith any such law, ordinanpe, or regulation and withhold compliance
<br />during any proceeding, including appropriate appeals, so long as Trustor has notified Lender in writing prior tp doing so and so Ipng as,
<br />in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender may require Trustor to post adequate security
<br />or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest.
<br />Duty to Protect. Trustor agrees neither to abandon nr leave unattended the Property. Truster shall do all ether acts, in addition to
<br />those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and
<br />preserve the Property.
<br />TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Deed of Trust:
<br />Payment. Trustor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (including
<br />water and sewer, fines and impositions levied against or nn account of the Property, and shall pay when due all claims for work done
<br />on pr for services rendered or material furnished to the Property. Trustor shall maintain the Property free of all liens having priority
<br />over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as
<br />otherwise provided in this Dead of Trust.
<br />Right to Contest. Trustor may withhold payment of any tax, assessment, or olaim in connection with a good faith dispute over the
<br />obligatipn to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises ar is filed as a result of nonpayment,
<br />Truster shall within fifteen (15) days after the lien arises nr, if a lien is filed, within fifteen (15) days after Trustor has notice of the
<br />filing, secure the discharge of the lien, nr if requested by Lender, deposit with Lender cash nr a sufficient corporate surety bond or
<br />other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges
<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 pbligee under any
<br />surety bond furnished in the contest proceedings.
<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.
<br />Notice of Construction. Trustor shall notify Lender at least fifteen 1151 days before any work is commenced, any services are
<br />furnished, or any materials are supplied tp the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted nn
<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 pan and will pay the cost of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Daed of trust.
<br />Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage
<br />endorsements on a fair value basis far the full insurable value covering all Improvements pn 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. Trustor shall also procure
<br />and maintain comprehensive general liabili#y insurance in ouch coverage amounts as Lender may request with Trustee and Lender
<br />being named as additional insureds in such liability insurance policies. Additionally, Trustor shall maintain such other insurance,
<br />including bu# riot limited to hazard, tmsiness-interruption, -and--boifer irrsurance-r as Lender- may reasonably require. policies shall be
<br />written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably
<br />acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance
<br />in form satisfactory to Lender, including stipulations that coverages will not be pancelled or diminished without at least ten 110- days
<br />prier written notice to Lender. Each insurance policy slap shall include an endorsement providing that coverage in favor of Lender will
<br />not be impaired in any way by any act, omission nr default of Trustor or any other person. Should the Real Property be located in an
<br />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 sepuring the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required
<br />by Lender, and to maintain such insurance for the term of the loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any Inss or damage to the Property. Lender may make proof of loss
<br />if Trustor fails #p do so within fifteen (15) days of the casualty. Whether nr 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 tp restoration and
<br />repair, Truster shall repair or replace the damaged nr destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay pr reimburse Truster 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 whiph 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 #p pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the
<br />Indebtedness. If Lender hplds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as
<br />Trustor's interests may appear.
<br />Trustor's Report on 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; 121 the risks insured; 131 the amount of the policy; 141
<br />the property insured, the then current replacement value pf such property, and the manner of determining that value; and 15- 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 />LENDER'S EXPENDITURES. If ahy action or proceeding is pammenced that would materially affect Lender's interest in the Property or if
<br />Trustor fails to comply with any provision of this Deed o.f Trust or any Related Documents, 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 Trustor'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 ether claims, at any time levied or placed on the Property and
<br />paying all pasts for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes
<br />will than 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
<br />such expenses will become a part of the Indebtedness and, at Lender's option, will IA- be payable an demand; 1131 be added to the
<br />balance of the Note and be appprtipned among and be payable with any installment payments to become due during either (1) the term of
<br />any applicable insurance policy; or 12) the remaining term of the Nnte; or IC- be treated as a balloon payment whiph will be due and
<br />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
<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: la- Trustor hplds good and marketable title of record to the Property in fee simple, free and clear of all
<br />liens and encumbrances other than these set forth in the Real Property description pr in any title insurance policy, title report, nr final
<br />title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and Ib- 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 option or proceeding is commenced that questions Trustor's title or the
<br />interest of Trustee nr Lender under #his 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 tp be represented in the proceeding
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