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<br />DEED OF TRUST
<br />Loan No: ooOQOQQQ1$ (Continued) ~ 0 ~ O O ~ ~ n ~ Page 3
<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 tp 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 Constructlgn. Trustor shall notify Lender at least fifteen (15) days before any wgrk 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 gn
<br />account gf 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 />PRpPERTY DAMAGE INSURANCE. The fallowing 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 />endgrsaments on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount
<br />sufficient to avoid application gf any cginsurance clause, and with a standard mortgagee clause in favor of Lander. Trustor shall also
<br />procure and maintain comprehensive general liability insurance in such coverage amounts a5 Lender may request with Trustee and
<br />Lender being named as additional insureds in such liability insurance policies. Additionally, Trustor shall maintain such other
<br />insurance, including but not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies
<br />shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company gr companies
<br />reasonably acceptable to Lander. Trustor, upon request of Lender, will deliver to Lender from time to time the policies ar certificates
<br />of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least
<br />thirty (30) days prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in
<br />favor of Lender will not be impaired in any way by any act, omissign or default of Trustgr or any other person. Should the Real
<br />Property be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard
<br />area, Trustor agrees to obtain and maintain Federal Flood Insurance, if available, within 45 days after notice is given by Lender that
<br />the Property is located in a special flood hazard area, 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, gr as gtherwise required
<br />by Lender, and to maintain such insurance for the term of the loan.
<br />Application of Proceeds. Trustor shall promptly notify Lander of any Igss 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 tg 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 prggf of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost gf 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 cgmmitted to the repair gr restoratign of the Property shall be used first to pay any amount owing to Lender
<br />under this Dead of Trust, then to pay accrued interest, and the remainder, if any, shall be applied tg 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 Hama 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 cast gf the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that wguld 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 tg
<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 gption, 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 Nate; or (C) be treated as a balloon payment which will be due and
<br />payable at the Note's maturity. The Deed gf Trust also will secure payment of these amounts. Such right shall be in addition to all other
<br />rights and remedies tg which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating tg 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, gr 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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