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<br />
<br /> DEED OF TRUST 2 0 0 9 0 8 4 5
<br /> Loan No: 101223154 (Continued) Page 3
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<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 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. Trustor 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. Trustor 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, Trustor 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 tan (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. Trustor 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. It 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 Trustor 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 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 accrued 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 /> 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: (1) 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 (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 Deed of 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 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 or paid by Lender for such purposes
<br /> 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
<br /> such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the
<br /> balance of the Note 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 (2) the remaining term of the Note; or (C) be treated as a balloon payment which 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: (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 Property 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 (b) 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 or proceeding 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 expense. Trustor may be 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. Trustor 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 execution and delivery of this Dead of Trust, shall be continuing in nature, and shall remain in full force and effect
<br /> until such time as Trustor'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
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