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<br /> • < , P ; f" DEED OF TRUST 200908284
<br /> Loan No: 101225365 (Continued) Page 3
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<br /> TAXES AND LIENS. The following provisions relating to the taxes and lions 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 on account of the Property, and shall pay when due all claims for work done
<br /> on or for services rendered or material furnished to the Property. Truster shall maintain the Property free of all liens having priority
<br /> over or equal to the interest of Lander under this Deed of Trust, except for the lien of taxes and assessments not due and except as
<br /> otherwise provided in this Deed of Trust.
<br /> Right to Contest. Trustor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the
<br /> obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment,
<br /> Trustor shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Trustor has notice of the
<br /> filing, secure the discharge 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 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. Truster shall name Lender as an additional obligee under any
<br /> surety bond furnished in the contest proceedings.
<br /> Evidence of Payment. Truster 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 (15) days before any work is commenced, any services are
<br /> furnished, or any materials are supplied to the Property, if any mechanic's lion, 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 Truster can 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 Deed of Trust.
<br /> Maintenance of Insurance. Truster 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. Truster shall also procure
<br /> and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Trustee and Lender
<br /> being named as additional insureds in such liability insurance policies. Additionally, Truster shall maintain such other insurance,
<br /> including but not limited to hazard, business interruption, and boiler insurance, 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 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 favor of. Lender will
<br /> not be impaired in any way by any act, omission or 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 securing 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. Truster 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, pay or reimburse Truster from the proceeds for the reasonable cost of repair or restoration if
<br /> Truster 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 accruod 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.
<br /> Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is in effect, compliance
<br /> with the insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the
<br /> insurance provisions under this Deed of Trust, to the extent compliance with the terms of this Deed of Trust would constitute a
<br /> duplication of insurance requirement. If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust
<br /> for division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br /> Trustor's Report on Insurance. Upon request of Lander, however not more than once a year, Trustor shall furnish to Lender a report
<br /> on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; 13) 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 (5) 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 of the Property.
<br /> LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's Interest in the Property or if
<br /> Trustor fails to comply with any provision of this Dead of Trust or any Related Documents, Including but not limited to Trustor's failure to
<br /> comply with any obligation to maintain Existing Indebtedness in good standing as required below, or to discharge or pay when due any
<br /> amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Trustor's behalf may (but
<br /> shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens,
<br /> security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring,
<br /> maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the
<br /> 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
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