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DFED OF TRUST 2 010 019 2 9
<br />Loan No: 90922785; r ; , ~ ~ 4 r (Continued) Paga 3
<br />Payment. Trustor shall pay when due land in all events prior to delinquency) all taxes, special taxes, assessments, charges (including
<br />water and sewer, fines and impositions levied against or pn 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. 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 far the lien of taxes and assessments net due and except as
<br />otherwise provided in this Deed of Trust.
<br />Right tv Contest. Trustor may withhold payment of any tax, assessment, or claim in connection with a goad 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 band 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 obligee 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 Lander at any time a written statement of the taxes and assessments
<br />against the Prpperty.
<br />Notice of Construction. Trustor shall notify Lender at least fifteen 115) days before any work is commenced, any services are
<br />furnished, ar any materials are supplied to the Property, if any mechanic's lien, 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 Trustor can and will pay the cost of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property era 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 an the Real Property in an amount sufficient
<br />to avpid application of any coinsurance clause, and with a standard mortgagee clause in fever of Lender, together with such other
<br />hazard and liability insurance as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis
<br />reasonably acceptable to Lender and issued by a company pr companies reasonably acceptable to Lender. Trustor, upon request pf
<br />Lender, will deliver to Lender from time to time the policies or pertificates of insurance in form satisfactory to Lender, including
<br />stipulatipns that voveragas will not be cancelled or diminished without at least ten (10) days prier written notice to Lender. Each
<br />insurance policy also shall include an endorsement providing that coverage in favor of Lender will not bs impaired in any way by any
<br />act, omission or default of Trustor or any other person. Should the Real Property be located in an area designated by the Director of
<br />the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to obtain and maintain Federal Flood
<br />Insurance, if available, within 45 days after notice is given by Lender that the Property is located in a spacial flood hazard area, for the
<br />full unpaid principal balance of the loan and any prior liens on the property securing the loan, up tp the maximum policy limits set
<br />under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the
<br />loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any Ipss 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. Whe[her or not Lender's security is impaired, Lender may, at Lender's
<br />election, receive and retain the proceeds pf 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 pf 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 Trustor from the proceeds for the reasonable past 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 />LENDER'S EXPENDITURES. If Trustor faits IAl to keep the Property free of all taxes, liens, security interests, encumbrances, and other
<br />claims, (S) to provide any required insurance on the Property, or ICl to make repairs to the Property then Lender may do so. If any
<br />action or prpceeding is commenced that would materially affect Lender's interests in the Prpperty, then Lender on Trustor's behalf may,
<br />but is not required to, take any action that Lender believes to be appropriate to protect Lender's interests, All expenses incurred pr paid by
<br />Lender for suph purposes will then bear interest at the rate charged under the Npte from the date incurred or paid by Lender to the date of
<br />repayment by Trustor. All such expenses will became a part of the Indebtedness and, at Lender's option, will IA- be payable on demand;
<br />IR- be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during
<br />either (1) the term of any applicable insurance policy; or 121 the remaining term pf the Note; or IC- be treated as a balloon payment
<br />which will be due and payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided
<br />for in this paragraph shall be in addition to any ether rights or any remedies to which Lender may be entitled on account of any default.
<br />Any suph action by Lender shall not be construed as curing the default sa as to bar Lender from any remedy that it otherwise would have
<br />had.
<br />WARRANTY; DEFENSE pF TITLE. The fallowing provisions relating to ownership of the Property are a part of this Deed pf Trust
<br />Title. Trustor warrants that: la1 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 fprth 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 Peed 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 action pr proceeding is commenced that questions Trustor's title or the
<br />interest of Trustee or Lender under this Dead of Trust, Trustor shall defend the action at Trustar's expense. Trustor may be the
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