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DEED OF TRUST � o i o 0 7 4 2 O
<br />(Continued) Paga 2
<br />threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and
<br />acknowledged by Lender in writing, (a) neither Trustor nor any tenant, contractor, agent or other authorized user of the Property
<br />shall use, generate, manufacture, store, treat, dispose of or release any Mazardous Substance on, under, about or from tha Prpperty;
<br />and (b) any such activity shall be conducted in compliance with all applicable federal, state, and Ipcal laws, regulations and
<br />ordinances, including withput limitation all Environmental Laws. Trustor authorizes Lender and its agents to enter upon the Proparty
<br />to make such inspections and tests, at 7rustor's expense, as Lender may deem appropriate to determine compliance of the Property
<br />with this section of the peed of Trust. Any inspections or tests made by Lander shall be for Lender's purposes only and shall not be
<br />construed to create any responsibility or liability on the part af Lender to Trustor or to any othar person. The representations and
<br />warranties contained herein are basad an Trustor's due diligence in investigating the Property for Hazardous Substances. Trustor
<br />hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Trustar becomes liable for
<br />cleanup or other cos#s under any such laws; and (2) agrees to indemnify, defend, and hvld harmless Lender against any and all
<br />claims, losses, liabilities, damages, penalties, and expenses which Lender may directly pr indirectly sustain or suffer resulting from a
<br />breach of this section of the Deed of Trust or as a consequence of any usa, generation, manufacture, storage, disposal, release or
<br />threatened release occurring prior to Trustor's ownership or interest in the Property, whether or not the same was or should have
<br />been known to Trustor. The provisions of this section of the Deed of Trust, including the abligation to indemnify and defend, shall
<br />survive the payment of the Indebtedness and the satisfaction and reconveyance of #he lien of this Deed of Trust and shall not be
<br />affected by Lender's acquisitipn of any interest in the Property, whether 6y foreclosure or otherwise.
<br />Nuisance, Waste. Trustor shall npt cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on
<br />or to the Property or any portion of the Property. Without limiting the generality of tha foregoing, Trustor will not remove, or grant to
<br />any pther party the right to remove, any timber, minerals (including oil and gas1, coal, clay, scoria, soil, gravel or rock products
<br />without Lender's prior writtsn consent.
<br />Removal of Improvements. Trustor shall not demolish or remave any Improvements from the Real Property without Lender's prior
<br />written consent. As a condition to the removal pf any Improvements, Lender may require Trustor to make arrangaments satisfactory
<br />to Lender to replace such Improvamants with Improvements of at least equal value.
<br />Lender's Right to Enter. �.ender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to
<br />attend to Lender's interests and tp inspect the Real Property for purppaes qf Trustor's compliance with the terms and conditions af
<br />this Deed of Trust.
<br />Compliance with Governmental Requirements. Trustor shall promptly comply with ell laws, ordinances, and reguletions, now or
<br />hereafter in eftect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, tha
<br />Americans With Disabilities Act. Trustor may contest in good faith any such law, ordinance, ar regulation and withhold compliance
<br />during any proceeding, including appropriate appeals, so Iong as Trustor has notified Lendar in writing prior to doing so and so long as,
<br />in Lender's sole opinion, l.ender's interests in the Property are not jeopardizad. Lender may require 7rustor tp post adequate security
<br />or a surety bond, reasonably satisfactpry to Lender, to protect Lender's interest.
<br />Duty ta Protect. 7rustor agrees neither to abandon or leave unattended the Property. Trustor shall dp all pther acts, in addition to
<br />those acts sst forth above in this section, which from tha character and use of the Property are reasonably necessary to protect and
<br />preserve the Property.
<br />Construction Loan. If some or sll of the proceeds of the loan creating the Indebtedness are to be used to construct or complete
<br />construction of any Improvements on the Property, the Improvaments shall be completed na later than the maturity date of tha Note
<br />(or such earlier date as Lender may reasonably establish) and Trustar shall pay in full all costs and expenses in connection with the
<br />work. Lender will disburse loan procaeds under such terms and conditians as Lender may deem reasonably necassary to insure that
<br />the interest created by this Deed of Trust shall have priority over all possible liens, including those of material suppliers and wprkmen.
<br />Lender may require, amvng other things, that disbursement requests be supported by receipted bills, expense affidavits, waivers of
<br />liens, construction prpgress reports, and such other documentatipn as Lender may reasonably requsst.
<br />TAX�S AN� LIENS. The following provisions relating to the taxes and liens on tha Property are part of this Deed of Trust:
<br />Payment. Trustor shall pay when due (and in all avents prior to delinquency) all taxes, special taxes, assessments, charges (including
<br />water and sewer►, fines and impositions levied against or on account of the Property, and shall pay when due all claims for work dona
<br />on or for &ervices rendered or material furnished to the Property. Trustor shall maintain the Prpperty free of all liens having priority
<br />over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments nat due, axcept for the
<br />�xisting Indebtedness referred ta below, and except as otherwise provided in this Deed of Trust.
<br />Right to Contest. Trustor may withhold payment of any tax, assessment, ar claim in connection with a good 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 filsd 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 corparate surety 6ond or
<br />pther security satisfactory to Lender in an ampunt sufficient to discharge the lien plus any costs and attomeys' fees, ar pther 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 procsedings.
<br />Evidence of Payment. Trustor shall upan demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and
<br />shall authorize tha appropriate governmental official to deliver ta Lender at any time a written statement of the taxes and assessmenta
<br />against the Property.
<br />Notice of Cvns#ruction. Trustor shall notify Lender at least fifteen (15) days before any work is commenced, any services are
<br />fumished, 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, servicas, ar 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 />PR�PERTY bAMAGE INSURANCE. The following provisions relating tp insuring the Property are a part of this Deed of Trust.
<br />Maintenance of Insurance. Trustar shall procure and maintain policiss af fire insurance with stendard extended coverage
<br />endorsements on a fair value basis for the full insurable valus cavering all Improvements on tha Real Property in an amount sufficisnt
<br />to avoid applicatipn of any coinsurance clause, and with a standard mortgagee clause in favpr of Lender. 7rustor shall also procure
<br />and maintain comprahensive 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 interruption, 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 companiss reasonably
<br />acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the policies or certifiqates of insurance
<br />in form satisfactory tv Lender, including stipulations that coverages will not be cancelled or diminished without at leest ten (10) days
<br />prior written nptice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of l.endar will
<br />not be impaired in any way by any act, omissipn or default of Trustor or any other person. Should the Real Proparty be located in an
<br />area designated by the Director pf the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to
<br />obtain and maintain Federal Flood Insurance, if auailable, fvr the full unpaid principal balance vf the loan and any prior liens on the
<br />prpperty securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise raquired
<br />by Lender, and ta maintain such insurence for the term of the loan.
<br />Application of f'roceeds. Trustor shall promptly notify Lender of any loss or damage to [he 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 proceada of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of
<br />any lien affecting the Prpperty, or the restoration and repair of the Property. If Lender elects to apply the proceeds tp 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 qr reimburse 7rustor from the proceeds for the reasonable cast of repair ar restoration if
<br />Trustor is not in default under this Deed of Trust. Any proceeds which have not baen disbursad 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 vwing to Lender
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