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Lo�n No: 122210
<br />DEED OF TRUST � Q i� U 7 E 9 i
<br />(Continued) Page 2
<br />written consent. As e condition to the removal of any Improvements, Lender may require Trustor tn meke errengements satisfactory
<br />to Lender to replace such Improvements with Improvements of at least equal velue.
<br />Lander's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to
<br />attend to Lender's interests and to inspect the Real Proqer#y far purposss of Trustor's compliance with the terms and conditions of
<br />this Deed of Trust.
<br />Compliance with Govemmantal Requirements. Trustor shall promptly comply with all laws, ordinances, and regulations, npw pr
<br />hereafter in effect, af ell governmental authorities applicable to the use or occupancy of the Proparty. Truator may contest in good
<br />faith any such law, ordinance, or regulation and withhold compliance during any procaeding, including appropriate appeals, so lang as
<br />Trustor has notified Lender in writing prior to daing so snd so long as, in Lender's sole opinion, Lender's interests in the Property are
<br />not jeopardized. Lender may require Trustor ta post adequate security ar a surety bond, reasonably satisfectory to Lendar, to pratect
<br />Lender's interest,
<br />Duty to Protect. Trustar agrees neither to abandon or leave unattended the Property. Trustor shell do all other acts, in addition to
<br />those acts set forth above in this section, which frpm the cherecter and use of the Property are reasonably necessary to protect and
<br />preserve the Property.
<br />Cenrtruction Loan. If seme or atl of the proceeds of the toan cresting the Indebtedners are to 6e...u�ed to con�truct or complete
<br />construction of any Impravements on the Property, the Improvementg ahall be nompleted no later than the maturity date of the Note
<br />(or such earlier date as Lender may reasonably establish) and Trustor shall pay in full all costs end axpensss in connection with the
<br />work. Lender will disburse loan proceeds under such terms and conditions as Lender may deem reasonably necessary 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 workmen.
<br />Lender may require, among other things, that disbursament requests be supported by receipted bills, expense affidavits, waivers of
<br />liens, construction progress reports, end such p#her documentation as Lender may reasonably request.
<br />TAXES AND LIENS. 7he following provisions relating ta #he taxes and liens on the Property are part of this beed of 7rust:
<br />Payment. Trustor shall pay when due (and in sll events prior to delinquency) all taxes, special taxes, assessments, charges (including
<br />water and sewer►, fines and imppsitions levied against or on account of the Property, and shall pay when due all cleims for work done
<br />on or for services rendered or material furnished to the Property. 7rustor shall msintain tha Praperty free af ell liens havfng priority
<br />over or equal to the interest of Lender under this Deed of 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 ths
<br />obligation ta pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as e result of npnpayment,
<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 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 nf a fpreclpsure or sale under the lien. In any contest, Trustor shall defend itself and Lender and shell
<br />satisfy eny advsrs� judgment before enforcement against the Property. Trustor shall name Lender as an additinnal n6ligse under any
<br />surety bond furnished in the contest proceedings.
<br />Evidenca of Payment. Trustor shall upon demand furnish to Lender satisfactpry evidence of payment of the taxes or assessments and
<br />shall authorize the appropriate governmental officisl to deliver to Lender at any time a written statement of the taxea and assessments
<br />against the f'roperty.
<br />Natice of Construction. Trustor shell notify Lender at least fifteen (15) days 6efore any work is commenced, any services are
<br />furnished, or any materials ars supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could 6e asserted on
<br />account ot the work, servicea, or materials. Trustor will upan requeat of Lender fumish to Lender adyance a�surance� satisfactory to
<br />Lender that Trustor can and will pay the cost of such improvements.
<br />PROF'ER7Y DAMAGE INSURANCE. The following pravisions relating to insuring the Property are a part of this Deed of Trust.
<br />Maintenance of Insurance. Trus#pr shall procure and maintein policies of fire insurance with standard extended coverege
<br />endorsaments on a fair value basis for the full insurable value covering all Imprpvements on the Real Property in an amount sufficient
<br />to evoid epplication of any coinsurance clause, and with a standard mar#gagee clause in favor oi Lender, together with such other
<br />hazard and liability insurance ss Lender may reasonably require. Policies shall be written in form, amoun#s, covsrages snd basis
<br />reasonably acceptebla ta Lender and issued by a company or companies reasonebly accepteble to Lander. Trustor, upon request of
<br />Lender, will deliver to Lender from time to time tha policies or certificates of insurance in form satisfactory to Lender, including
<br />stipulations that coverages will nnt be cancelled or diminished without at least ten (101 days prior written nntice to Lender. Eech
<br />insurance policy elso shall include an endorsement providing that coverage in favor of Lender will nn# be impaired in any way by any
<br />act, omission or default of Trustor or any other person. Should tha Raal Property be located in an area designated by the Director 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, within 46 days after notice is given by Lender that the I'roperty is located in a speciel flnad hezard arsa, for the
<br />full unpaid principal balance nf the loan and any prior liens on the property securing the loen, up tn the maximum policy limits set
<br />under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the
<br />loan.
<br />Application of Proceeds. 7rustor shall promptly nqtify Lender of any loss or damage to the Property if the estimeted cost of repair or
<br />replacement exceeds S1,OOOAO. Lsnder may make proof of loss if Trustor fails to do so within fiftaan (15) days of the casualty.
<br />Whether nr not Lender's security is impaired, Lender may, at Lender's election, receive end re#ain the proceeds of any insurance and
<br />epply the proceeds to the reduction of the Indebtedness, payment of eny lien affecting the Property, or the restoration and repair of
<br />the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the damagad or dastroyed
<br />Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof nf such expenditure, pay or reimburse Trustor
<br />from the proceeds for the reasonable cost of repair or restoration if Trustor is not in default under this beed of 7rust. Any proceeds
<br />which have not been disbursed within 180 days af#er their receipt and which Lender has not committed to the repsir pr restnretion of
<br />the Property shall be used first to pay any amount owing to Lender under this Deed of 7rust, then to pey accrued interest, and the
<br />remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lendar holds any proceeds after payment in full of
<br />the Indebtedness, such proceeds shall be paid to Trustor �s 7rus#pr's interests may appear.
<br />Compllance with Existing Indebtednass. buring the Weriod in which any Existing Indebtedness described below is in effect, compliance
<br />with the insurance provisions contained in the instrument evidencing such Existing Indebtedness shell constitute compliance with the
<br />insurance provisions under this (7eed of Truat, ta the extent compliance with the terms of this peed of Trust wnuld cpnstitute a
<br />duplication of insurance requirement. If eny proceeds from the insurance become payable on loss, the prpvisions in this Oeed of Trust
<br />for division of proceeds shall apply only to that portion of the praceeds not peyable to the halder of the Existing Indebtedness.
<br />LENDER'S EXPENDITURES. If TrusYor fails (A) to keep the Property free of all taxes, liens, security 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 o6ligation to
<br />maintain Existing Indebtedness in good standing as required below, then Lender may do so. If any action or proceeding is commenced that
<br />would materielly effect Lender's interests in the Property, then Lender on Trustor's behalf may, but is not required to, take any action that
<br />Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purpnses will then bear
<br />interest at the rate chargad under the Note from the date incurred or paid by Lender tn the date of repayment 6y Trustor. All such
<br />expenses will became a part of the Indebtedness and, at Lender's optian, will (A) be payable on demand; (B) be added to the balance of
<br />the Note and be apportioned among and be peyable with any installment payments to become due during either (1) the term of any
<br />applicable insurance policy; or (2) the remaining term of the Note; or (C) be traated as a balloon payment which will be due and payable
<br />et the No#e's maturity. The Deed of Trust also will secure payment of thase amounts. The rights provided for in this peragraph shall be in
<br />addition to any other rights or any remedies to which Lender may be entitled on account of any default. Any such action 6y Lender shall
<br />not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had.
<br />WARRAMTY; n�FENSE OF 71TLE. The fnllowing provisions relating to ownership of the Property are a part of this Deed of Trust:
<br />Title. Trustor warrants tha#: (a) Trustor holds good and marketable title of recard #p the Property in fee simple, free and clear of all
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