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DE�D OF TRUST � O � O���i 9�
<br />Loan No: 1222'IQ (Colltlllued) Page 2
<br />threatsnsd release occurring prior to 7rustor's o�Nnership qr interest in the Property, whether or not the same was or should have
<br />been known to Trustor. The provisions of this �ection of the Deed of Trust, including the obligation ta indemnify and defend, shall
<br />survive the payment of the Indebtedness and tli: satisfaction and racpnveyance of the lien of this peed of Trust and shall not be
<br />affected by Lender's acquisitian of any interest ir the Property, whether by foreclosure or otherwise.
<br />Nuisance, Waste. Trustor shall not cause, condi.�.t or permit eny nuisance nor commit, permit, or suffer any stripping of or waste on
<br />or to the Property or any portion of the Property. Withou# limiting the generality of the foregoing, Trustor will not remove, or grant to
<br />any other party the right to remoue, eny timber, minerals (including oil and ges1, coal, clay, scoria, soil, gravel or rock products
<br />without Lender's prior written consent.
<br />Remeval of tmprovements. Trustor shall not demolish or remnve any Improvements from the Real Property without Lender's prior
<br />written consent. As a condition to the removal �>f any Imprnvements, Lender may require Trustor to make arrangemants setisfactory
<br />to Lender to replace such Improvements with ImK�ovements of at least equel value.
<br />Lender's Right to Enter. Lender and Lender's ag�:: �ts end representatives may enter upon the Real Property st sll reasonable times to
<br />attend tn Lender's interests and to inspect the Real Property for purposes of Trustor's compliance with the terms and conditions of
<br />this Deed af Trust.
<br />Compliance with C3ovammental Requirementa. Trustor shall promptly cnmply with all laws, ordinances, and regulations, now or
<br />hereafter in ePfep#, nf ell governmental authnritia� applicable to the use or occupancy of the Property. Trustor may contest in gond
<br />faith any such law, ordinance, or regulation and withhold compliance during any prnceeding, including appropriate eppeals, so long as
<br />Trustor has notified Lender in writing prior to doin�� sa end so long as, in Lender's sole opinion, Lender's interesis in the Property are
<br />not jeopardized. Lender may require Trustor to post adequate security or a surety 6ond, reasonably satisfactory to Lender, to protect
<br />Lender's interest.
<br />Duty to Protect. 1"ruator agrees neither to abendor, or leave unattended the Property. Trustor shsll do all other acts, in addition to
<br />those acts set forth above in this section, which frr.Ym the character and use of the Property ere reasonably necessary tn prptect and
<br />preserve the Property.
<br />Construc#ien Loan. If some or all of the proceeds of the loan creating the Indebtednass are to be used to construct or complete
<br />cnnstruction of any Improvements on the Property, the Improvements shall be completed no later than the maturity date of the Note
<br />(or such earlier date as Lender may reasanably esta�,lish) and Trustor shall pay in full all oosts and expenses in connection with the
<br />work. Lender will disburse loan proceeds under suc^� terms and conditions as Lender may deem reasonably necessery to insure that
<br />the interest created by this Deed of Trust shall have r�riority over all possibls liens, including those of material suppliers and wqrkmen.
<br />Lender may require, amqng other things, that disbursement requests be supported by receipted bills, expense affidavits, waivers of
<br />liens, constructinn progress reports, and such otlier d�:cumentetion as Lender may raasonably request.
<br />TAXES AND I.IENS. 7he fnllowing prouisions relating �to the taxes and liens an the Property are part of this beed of Trust:
<br />Payment. Trustor shall pay when due (end in all even�s prior to delinquencyl all taxes, apecial taxes, assessments, charges (including
<br />water and sewer►, fines and imppsitions levied against or on eccount of the Proper#y, and shall pay when dua all claims for work done
<br />on or fpr services rendered nr material furnished to tl;. Property. 7rustor shall maintain the Property free of all liens having priority
<br />over or squal to the interest of Lender under this Deec� of Trust, except for the lien of taxes and assessments not due and except as
<br />otherwise provided in this beed of Trust.
<br />Right to Cantest. Trustor may withhold paymen# of ar�y tax, assessment, or cleim in connection with a good faith dispute ovsr the
<br />o6ligation to pay, so long ss Lender's interest in �[he Prr.perty is not jenpardized. If a lien arises or is filed as a result of nonpayment,
<br />Trustor shall within fifteen (15) days after the lien aris�-s 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 'ay Lender, deposit with Lender cash or a sufficient corporate surety bond or
<br />other aecurity setisfactory tp Lender In an emount s�ficdent tv discharge the lien plus eny costs and attorneys' fees, or other charges
<br />that could eccrue as a result of a fnreclosure or sale un,�sr the lien. In any cnntest, Trustor shall defend itself and Lender and shall
<br />setisfy any adverse judgment before enforcement again: r. the Property. Trustor shall name Lender as an additianel obligee under any
<br />surety bond furnished in the contes# proceedings.
<br />Evidance of Payment. Trustar shall upon demand f}' rnlsh to Lender satisfactory evidence of paymant of the taxes or assessments and
<br />shall authorize the appropriate governmental official to defiver ta Lender at eny time a written stetement of the taxes and assessments
<br />against the Property.
<br />Notice of Construction. Trustnr shall notify LendQr at least fifteen (15) days before any work is commenced, any sarvices 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 ot Lender furnish to Lender advance assurances satisfactory ta
<br />Lender that Trustor can and will pay the cost of such improvements.
<br />PROPERTY DAMAGE INSUFiANCE. The following provisipns. relating to insuring the Property are a pert 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 covering all Improvements on the Real Property in an amount sufficient
<br />to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender, together with such othar
<br />hazard and lisbility insurance as Lender may reason'�bly require. Policies shall be written in form, amounts, coverages and basis
<br />reasnnably acceptable to Lender and issued by a corflpany or companies reasonably acceptabla to Lender. 7rustor, upon request of
<br />Lender, will deliver to Lender from time to time the,.policies or certificates of insurance in form satisfactary to Lender, including
<br />stipulations that coverages will not be cancelled or diminished without at least #en (10) days prior wri#ten notice to Lender. Each
<br />insurance policy also shall include an endorsement prdviding that coverage in favor of Lender will not be impaired in any way by any
<br />ect, omission or default nf Trustor or any othar person. Should the Resl Property be located in an area designatad by the Director of
<br />the Federal Emergency Management Agency as a s�ecial flood hazard area, 7rustor agrees to obtain and maintain Federal Fload
<br />Insurance, if available, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the
<br />full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set
<br />under the National Flood Insurance F'rogram, or as oth�rwise required by Lender, and to maintain such insurance for the term of tha
<br />loan. �
<br />Applice#ion of Proceeds. Trustnr shall promptly nptify liknder of any loss or damage to the Property if the estimated cqst of repair or
<br />replacement exceeds S 1,000,00. Lender may make prbof af loss if Trustor fails tn do so within fiftean (15) days of the casualty.
<br />Whether ar not Lender's security is impaired, Lender msry, at Lender's electipn, receive and retein the proceeds of any insurance and
<br />apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting tha Property, or the restvretion end repair of
<br />the Property. If Lender elects to apply the proceeds to r�sstoratipn end repair, Trustor shall repair or replace the damaged or destroysd
<br />Improvements in a menner satisfac#ory to Lender. Lendar shall, upon satisfactary proof of such expenditure, pay or reimburae Trustor
<br />from the proceeds for the reasonable cost of repair or restoration if 7rustor is not in default under this Deed of Trus#. Any proceeds
<br />which have not been disbursed within 1$0 days after their receipt and which Lender has not committed to the repair or restaration of
<br />the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, than to pay accrued interest, and the
<br />ramainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after peyment in full of
<br />the Indebtedneas, such proceeds shall be paid to Trustor as Trustor's interests may appear.
<br />LENDER'S EXPENDITURES. If Trustor fails 1A) to keep the �'roperty free of all taxes, liens, security interests, encumbrances, and other
<br />claims, (B) to provide any required insurance on the Properjy, or (C) to maka repairs to the Property then Lender may do so. If any
<br />ection or proceeding is commenced that would materially affect Lender's interests in the Proper#y, then Lender on Trustor's behalf may,
<br />but is not required to, take any action that Lender believes to be appropriate to protect Lender's interests, All expenses incurred or peid by
<br />Lender far such purposes will then bear interest at the rat� charged under the Note from the date incurred or paid by Lender ta the date of
<br />repayment by Trustor. All such expenses will becoma e part of the Indebtedness end, at Lender's option, will (A) be payable on demand;
<br />(B) be added to the balence of the Note and be apportioned amqng and be payable with any installment payments to become due during
<br />either (11 the term of any applicable insurance policy; or �2) the remaining term of th� Note; or (C) be tr�eted as a balloon payment
<br />which will be due and payable st the Note's maturity. 7he Deed of Trust slso will secure payment af these amounts. 7he rights provided
<br />for in this paragraph ehell be in addition to any other rights or any remedies to which Lender may be enYitled on account of any default.
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