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Loan No: 101 �347�3"I ^' F '° � ?� D � Con�t nuedlST 2 410 0'7 5 8 9 p�� 3
<br />Notice of Construction. 7rustor shall notify Lendar at I�ast fifteen (15) days before any work is commsnced, any services are
<br />furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, nr 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 impravements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Prqperty 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 cvvering all Improvements on ihe Real Property in an amount sufficient
<br />to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Trustor ahall also procure
<br />and maintain comprehensive general liability insuranca in such cpverage amounts as Lender may request with Trustae and Lender
<br />being named as additional insurads in such liability insurance policies, Additipnally, 7rustor shall maintain such other insurance,
<br />including but not limited to hazard, business interruption, and boiler insurance, as Lender may reasonably raquire. Policies shall be
<br />written in form, ampunts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably
<br />acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the poticies or certificates of insurance
<br />in form satisfactory to Lender, including stipulations that coverages will not be cancalled or diminished without at least ten (1p) days
<br />prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favar of Lender will
<br />not be impairad in any way by any act, pmission or default of Trustor or any other person. Shauld the Real Property be located in an
<br />area designated by tha Director of the Federal Emergency Management Agency as a special fload hazard area, Trustor agrees to
<br />obtain and maintain Federal Flood Insurance, if available, 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 5at under the National Flppd Insurance Program, or as otherwise required
<br />by Lender, and to maintain such insurance fpr the term pf the loan.
<br />Application of Proceeds. Trustor shal) promptly notify Lender of any loss pr damage to the Property. Lender may make proaf of Ipss
<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 />alection, receive �nd retain the proceeds of any insurance and apply the proceeds ta tha raduction of the Indebtedness, payment of
<br />any lien affecting the Property, or the restoration and repair of the Property. If l,ender elects to apply the proceeds to restoration and
<br />repair, Trustor shall repair or replace the damaged or destroyad Improvaments in a manner satisfactory to Lender. L.ender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor frpm the proceeds for the reasonable cost of rapair or restaration if
<br />Trustor is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 1$0 days after their receipt
<br />and which Lendar has not committed to the repair or restoration of the Property shall be uaed first tp pay any amount owing to Lender
<br />under this Deed qf Trust, then to pay accrued interest, and the remainder, if any, sh�ll 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 />Trustpr's interests may appear.
<br />Cpmpliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is in effect, camplianpe
<br />with the insurance provisions contained in the instrument evidencing such Existing Indebtedness shall con&titute compliance wiTh the
<br />insurance provisions under this Deed of Trust, to the extent compliance with the terms of this beed of Trust would constitute a
<br />duplication of insurance requirement. If any proceeds from the insurance become payable pn loss, the provisions in this Deed of Trust
<br />for division of proceeds shall apply only to that portion of the procaeds not payabla to the holder of the Existing Indebtedness.
<br />Trustor's Report on Insuranae. Upon request of Lender, however not more than once a year, Trustor shall turnish to Lender a report
<br />on each existing policy pf insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount af the policy; (4)
<br />the property insured, the then current replacement value of such praperty, and the manner of determining that value; and (5) the
<br />expiration date of the policy. 7rustor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine
<br />the cash value replacement cost of the Property.
<br />L@NDER'S EXPENDITURES. If any action or proceeding is commenced that would materiaily affect Lender's interest in the Prpperty or if
<br />Trustor fails to comply with any prpvisipn of this Deed of Trust or any Related Documents, including but not limited ta Trustpr's failure to
<br />comply with any obligation ta maintain Existing fndebtedness in good standing as required below, or to discharge or pay when due any
<br />amounts Trustar is required to discharge or pay under this Deed of Trust or any Related Docurnents, Lender on Trustor's behalf may (but
<br />shall not be obligated to) take any action that Lender deems appropriate, including but nat limited to discharging or paying all taxes, liens,
<br />security interests, encumbrances and other claims, at any time leviad pr placed pn the Property and paying all costs for insuring,
<br />maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposas will then bear interest at the
<br />rata charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such expenses will become
<br />a part of the Indebtedness and, at l.ender's option, will (A) be payable on demand; (8) be added to the balance af the Note and be
<br />apportioned among and be payable with any instaliment payments to become due during either (1) the term of any applicable insurance
<br />policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's
<br />maturity. The Deed of Trust also will secure payment of these amounts. Such right shell be in addition to all other rights and remedies to
<br />which Lender may be entitled upon Dafault.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership pf the Property are a part of this Deed of Trust:
<br />Title. Trustor warrants that: (a) 7rustor holds good and marketable title qf rscard 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 below or in
<br />any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, �.endsr in oonnsction with this Deed of
<br />Trust, and (b) Trustor has the full right, powar, and autharity ta execute and deliver this Deed of Trust to Lender.
<br />Pefense of Title. 5ubject to the exception in the paragraph above, 7ruator 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 questians Trustor's title or the
<br />interest qf 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 entitlad ta participate in the prqceeding and to be represented in the proceeding
<br />by counsel af 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 tp permit such participation.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable
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