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DEED OF TRUST
<br />Loan No: 10� 233825 � p i p 0 7 4 41 (Continued)
<br />PROPERTY DAMAGE INSURANCE. The fvllowing provisions relating to insuring the Property are a part of this Deed of Trust.
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<br />IVlaintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage
<br />endorsements on a fair value basis for the fuil insurable value covering al� Improvements on the Real Property in an amount sufficient
<br />to avnid application of any coinsuranca 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 shatl be written in form, amounts, coverages and basis
<br />reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. 7rustor, upon request of
<br />Lender, will deliver to Lender from time to time the palicias or certificates of insurance in form satisfactary ta Lender, including
<br />stipulations that coveragas will not be cancelled or diminishad 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, omissipn or default of Trustor or any pther person. Should the Real Property be located in an area designated by the Directnr 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 Ipan, 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 fpr the term of'the loan.
<br />Application of Proceads. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss
<br />if Trustor faits 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 raduction ot 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 pr replace the damaged or destrayed Improvements in a manner satisfactory to Lende.r, Lender shall, upon
<br />satisfactory proof ot 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 Daed 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 tq Lender
<br />under this Deed of Trust, then to pay accrued interest, and the remainder, it any, shall be applied to the principal balance of the
<br />Indebtednass. 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 />Compliance with Existing Indehtedness. During the periad in which any Existing Indebtedness described below is in effect, compliance
<br />with the insurance provisions contained in the instrument evidencing such �xisting Indebtedness shall constitute compliance with the
<br />insurance provisions under this Deed of Trust, to the extent compliance with the terms of this Deed of Trust would constitute a
<br />duplication of insurance requirement. If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust
<br />fpr division of proceeds shall apply only to that portion of the proceeds not payable to the hplder of the Existing Indebtedness.
<br />LEN�ER'S EXPENDITURES. If 7rustor fails (A) to keep the Property free of all taxes, liens, sacurity interests, encumbrances, and other
<br />claims, (B) to provide any required insurance on the Property, (C) to make repairs to the Property or to comply with any obligation to
<br />maintain Existing Indebtedness in good stending as required below, then l.ender may do so. If any action or proceeding is commenced that
<br />would materialiy affect Lender's interests in the Property, then Lender on Trustor's behalf may, but is not required ta, take any action that
<br />Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender fpr such purposes will then bear
<br />interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such
<br />expenses will become a part of the Inde6tedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of
<br />the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term pf any
<br />applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balioon payment which will be due and paya6le
<br />at the Note's maturity. The Deed of Trust also will secure payment af these amounts. The rights provided for in this paragraph shall be in
<br />addition ta any other rights or any remedies ta which Lender may be entitled on account of any default. Any such action by Lender shall
<br />not ba construed as curing the default sv as to bar Lender from any remedy that it otherwise wauld have had.
<br />WARRANTY; pEFENSE 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 gond 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 the Existing Indebtedness section 6elow or in
<br />any title insurance policy, title repart, or final titie opinion issued in favor of, and accepted by, Lender in connection with this Deed of
<br />Trust, and (b) Trustor has the full right, 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 6e delivered, to Lender such instruments as Lender may
<br />request frvm time to time to permit such participation.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable
<br />laws, ordinances, and regulatipns pf governmental authorities.
<br />Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed af Trust shall survive the execution
<br />and delivery of this [�eed of Trust, shall be continuing in nature and shall remain in full force and effect until such time as Trustor's
<br />Indebtedness is paid in full.
<br />EXISTING INpEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br />Existing Lien. The lian of this Deed of Trust securing the Indebtedness may be secondary and inferior to an existing lien. Trustor
<br />expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevant any default on such
<br />indebtedness, any default under the instruments evidencing such indebtedness, or any default under any security documents for such
<br />indebtedness.
<br />No Modification. Trustor shall not enter into any agreement with the holder of sny mprtgage, deed of trust, or other security
<br />agreement which has priority over this Deed of Trust by which that agreement is modified, amended, extended, or renewed without
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