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DEED OF TRUST ~ 01 ~ U 4 5 3 4
<br />Loan No: 101232942 (Continued) Page 3
<br />over or equal to the interest of Lender under this Deed pf Trust, except for the lien of taxes and assessments not due and except as
<br />otherwise provided in this Deed of Trust.
<br />Right to Contest. Trustor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the
<br />obligation to pay, so tang as Lender's interest in the Property is npt jeopardized. If a lien arises or is filed as a result of nonpayment,
<br />Trustor shall within fifteen 1151 days after the lien arises ar, if a lien is filed, within fifteen (15) days after Trustor has notice of the
<br />filing, secure the discharge pf the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond 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 band 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 authprize the appropriate governmental pfficial to deliver to Lender at any time a written statement of the taxes and assessments
<br />against the Property.
<br />Notice pf Construction. Trustor shall notify Lender at least fifteen 115) 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 />PRQPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust.
<br />Malntanance of Insurance. Trustor shall procure and maintain policies pf fire insurance with standard extended coverage
<br />endorsements on a fair value basis for the full insurable value covering all Imprpvements pn the Real Property in an amount sufficient
<br />tp 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 interruptipn, 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 tp Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance
<br />in fprm satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten 1101 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 ar 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, fpr 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 1151 days of the casualty. Whether 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 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 pr 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 tp 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 to the principal balance of the
<br />Indebtedness. If Lander 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 an Insurance. Upon request of lender, however not more than once a year, Trustor shall furnish to Lender a report
<br />on each existi~-~g policy of insurance showing: (1) the name of the insurer; (2) the risks insured; 131 the amount of the policy; 14)
<br />the property insured, the then current replacement value of such property, and the manner of determining that value; and 151 the
<br />expiratipn 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 pr prpceeding 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 tp Trustpr's failure to
<br />discharge or pay when due any amounts Trustor is required to discharge or pay under this Dead of Trust ar any Related Documents, Lender
<br />on Trustpr's behalf may (but shall not be obligated tat 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 rats charged under the Note from the date incurred or paid by Lender to the data of repayment by Trustor, All
<br />such expenses will become a part of the Indebtedness and, at Lender's option, will IAI be payable on demand; IB) be added to the
<br />balance of the Note and be apportioned ampng and be payable with any installment payments to become due during either (11 the term of
<br />any applicable insurance policy; or 12- the remaining term of the Note; or ICI be treated as a balloon payment which will bs due and
<br />payable at the Note's maturity. The Deed of Trust also will secure payment pf these amounts. Such right shall be in additipn 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: la- 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, Lander in connection with this Desd of Trust, and (bl Trustor has the full right,
<br />power, and authority to execute and deliver this Dead of Trust to Lender.
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