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<br />
<br /> ' DEED"OF TRUST 2 0 1 0 0 3 8 91
<br /> Loan No: 101231176 (Continued) Page 3
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<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 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 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, 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 or companies reasonably acceptable to Lender. Trustor, upon request of
<br /> Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including
<br /> stipulations that coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each
<br /> insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be 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, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the
<br /> maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such
<br /> 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 0 5) 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 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 /> TAX AND INSURANCE RESERVES. Subject to any limitations and consistent with any requirements set by applicable law, Lender may
<br /> require Trustor to maintain with Lender reserves for payment of annual taxes, assessments, and insurance premiums, which reserves shall
<br /> be created by an initial deposit and subsequent monthly payments, or payments at such other interval as payments under the Note may be
<br /> due, of a sum estimated by Lender to be sufficient to pay the total annual taxes, assessments, and insurance premiums Lender reasonably
<br /> anticipates to be paid from these reserves. The reserve funds shall be held by Lender as a general deposit from Trustor, which Lender may
<br /> satisfy by payment of the taxes, assessments, and insurance premiums required to be paid by Trustor as they become due. Lender shall
<br /> have the right to draw upon the reserve funds to pay such items, and Lender shall not be required to determine the validity or accuracy of
<br /> any item before paying it. Nothing in the Deed of Trust shall be construed as requiring Lender to advance other monies for such purposes,
<br /> and Lender shall not incur any liability for anything it may do or omit to do with respect to the reserve account. Subject to any limitations
<br /> set by applicable law, if the reserve funds disclose a shortage or deficiency, Trustor shall pay such shortage or deficiency as required by
<br /> Lender, All amounts in the reserve account are hereby pledged to further secure the Indebtedness, and Lender is hereby authorized to
<br /> withdraw and apply such amounts on the Indebtedness upon the occurrence of an Event of Default. Lender shall not be required to pay
<br /> any interest or earnings on the reserve funds unless required by law or agreed to by Lender in writing. Lender does not hold the reserve
<br /> funds in trust for Trustor, and Lender is not Trustor's agent for payment of the taxes and assessments required to be paid by Trustor.
<br /> LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other
<br /> claims, (B) to provide any required insurance on the Property, or (C) to make repairs to the Property then Lender may do so. If any
<br /> action or proceeding is commenced that would materially affect Lender's interests in the Property, 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 or paid by
<br /> Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of
<br /> repayment by Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand;
<br /> (B) 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 (2) the remaining term of the Note; or (C) 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 other rights or any remedies to which Lender may be entitled on account of any default.
<br /> Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have
<br /> had.
<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.
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