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DEED OF TRUST
<br />Loan No: 15089 (Continued) 2 ~ ~~ U y J ~' S Page 2
<br />TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Dead of Trust:
<br />Payment. Trustor shall pay when due land in all events prior to delinquency) all taxes, special taxes, assessments, charges lincluding
<br />water and sewer, fines and impositions levied against or on account of the Property, and shall pay when due all claims for work dons
<br />on nr for services rendered or material furnished to the Property. Trustor shall maintain the Property free of all liens having priority
<br />aver or equal to the interest of Lander under this Deed of Trust, except for the lien of texas and assessments nor duo and except as
<br />otherwise provided in this Deed of Trust.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust.
<br />Maintenance of Insurance. Trustnr shall procure and maintain policies of fire insurance with standard extended coverage
<br />endnrsaments on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount
<br />sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Trustor shall also
<br />procure and maintain comprehensive general liability insurance in sunk anveraga amounts as Lender may request with Trustno and
<br />Lender being named as additional insureds in such liability insurance pnliaies. Additionally, Trustnr shall maintain such other
<br />insurance, including but not limited to hazard, business interruption, and boiler insurance, as Lander may reasonably require. Policies
<br />shall be written in farm, amounts, coverages and basis reasonably acceptable to Lender and issued by a company nr companies
<br />reasonably acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the policies or certificates
<br />of insurance in farm satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least
<br />ten (10) days prlnr written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor
<br />of Lender will not be impaired in any way by any act, omission or default of Trustor or any other person. Should the Real Property be
<br />located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Trustor
<br />agrees to obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal balance of the loan and any prior liens
<br />on the property securing the Inan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise
<br />required by Lender, and to maintain such insurance for the term of the loan.
<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 bead of Trust nr any Related Documents, including but not limited to Trustor's failure to
<br />discharge nr pay when duo any amounts Trustnr is required to discharge nr pay under this Deed of Trust or any Related Documents, Lander
<br />on Trustor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate on the Property and paying all costs
<br />for insuring, maintaining and preserving the Prnparty. All such expenditures incurred or paid by Lender for such purposes will then bear
<br />interest at the rata charged under the Nate from the date innurrad or paid by Lender to the date of repayment by Trustor. All suah
<br />expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; IBI be added to the balance of
<br />the Note and be apportioned among and be payable with any installment payments to become dun during either 11- the term of any
<br />applicable insurance policy; nr (2) the remaining term of the Note; or ICI be treated as a balloon payment which will be due 'and payable
<br />at the Note's maturity.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property era a part of this Deed of Trust:
<br />Title. Trustor. warrants that: la) Trustor holds good and marketable title of record to the Property in fee simple, free and clear of all
<br />lions and encumbrances other than those set forth in the Real Prnparty description or 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 (b) Trustor has the full right,
<br />power, and authority to execute and deliver this Dead of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Truster warrants and will forever defend the title to the Prnparty
<br />against the lawful claims of all parsons.
<br />EVENTS OF DEFAULT. Each of the following, at Lender's option, shall constitute an Event of Default under this Deed of Trust:
<br />Payment Default. Borrower fails to make any payment when due under the Indebtedness.
<br />Other Default. Trustor fails to comply with any other term, obligation, covenant or condition contained in this Deed of Trust or in any
<br />of the Related Documents.
<br />Compliance Default. Failure to comply with any other term, obligation, covenant or condition contained in this Deed of Trust, the Note
<br />nr in any of the Related Documents.
<br />Default an Other Payments. Failure of Trustnr within the time required by this heed of Trust to make any payment for texas or
<br />insurance, nr any other payment necessary to prevent filing of or to effect discharge of any lien.
<br />Death or Insolvency. The death of Borrower or Trustor, the insolvency of Borrower or Truster, the appointment of a receiver for any
<br />part of Borrower's nr Trustor's property, any assignment for the benefit of creditors, any type of creditor workout, or the
<br />commencement of any proceeding under any bankruptcy or insolvency laws by nr against Borrower or Trustnr.
<br />Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommndatinn
<br />party of any of the Indebtedness nr any guarantor, endorser, surety, or accnmmndation party dies nr becomes incompetent, nr
<br />revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.
<br />Adverse Change. A material adverse change occurs in Borrower's or Trustnr's financial condition, or Lander believes the prospect of
<br />payment or performance of the Indebtedness is impaired.
<br />Insecurity. Lander in good faith believes itself insecure.
<br />Right to Cure. Ii any default, other than a default in payment is curable and if Trustnr has not been given a entice of a breach of the
<br />same provision of this Deed of Trust within the preceding twelve (12) months, it may ba cured if Trustnr, after Lander sands vuritten
<br />notice to Borrower demanding cure of such default: (1) cures the default within ten (10) days; or (2) if the cure requires more than
<br />ten (10) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient Yo cure the default and
<br />thereafter continues and anmpletes all reasonable and necessary steps sufficient to produce anmpliance as soon as reasonably
<br />practical.
<br />RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default under any indebtedness, or should Borrower or
<br />Trustor fail to anmply with any of Borrower's or Trustnr's obligations under this Deed of Trust, Trustee nr Lander may exercise any one or
<br />more of the following rights and remedies:
<br />Acceleration Upon Default; Additional Remedies. If any Event of Default occurs as per the terms of the Note secured hereby,
<br />Lender may declare all Indebtedness secured by this Daad of Trust to be duo and payable and the soma shall thereupon became
<br />due_~nd payable w.ithnut any presentrt?~ut, demand,-{arntest ar notice of any kind.. Thereafter, Lender may:--
<br />(a) Either in parson or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court and
<br />without regard to the adequacy of its security, enter upon and take possession of the Property, nr any part thereof, in its
<br />own Hama or in the name of Trustee, and do any acts which it deems necessary or desirable to preserve the value,
<br />marketability nr rentability of the Prnparty, or part of the Prnparty or interest in the Prnparty; increase the income from the
<br />Property or protect the security of the Prnparty; and, with or without taking possession of the Property, sue for nr otherwise
<br />collect the rents, issues and profits of the Property, including those past due and unpaid, and apply the same, less costs and
<br />expenses of operation and collection attorneys' fees, to any indebtedness secured by this Deed of Trust, all in such order as
<br />Lender may determine. The entering upon and taking possession of the Property, the collection of suah rants, issues and
<br />profits, and the application thereof shall not cure or waive any default or notice of default under this Daed of Trust or
<br />invalidate any act done in response to such default or pursuant to such notice of default; and, notwithstanding the
<br />continuance in possession of the Property nr the collection, receipt and application of rents, issues or profits, Trustee or
<br />Lender shall be entitled to exercise every right provided for in the Note nr the Related Documents or by law upon the
<br />occurrence of any event of default, including the right to exeraisa the power of sale;
<br />(b) Commenae an action to forealnsa this Deed of Trust as a mortgage, appoint a receiver or specifically enforce any of the
<br />covenants hereof: and
<br />Ic) Deliver to Trustee a written dealaration of default and demand for sale and a written notice of default and election to
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