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DEED OF TRUST � � i � � � � � �
<br />(Continuedl �ege 2
<br />this C�eed of Trust.
<br />Compliance with Governmental Requirements. Trustor shall promptly comply with all laws, ordinances, and regulations, now or
<br />hereafter in effect, of all governmental authorities applicable to the use or occupency of the Property, including without limitatian, the
<br />Americans With Disabilities Act. Trustor may cantest in good faith any such law, ordinance, or regulation and withhold compliance
<br />during any prqceeding, including appropriate appeals, so long es Trustor has natified Lender in writing prior to doing sa and so long as,
<br />in Lendar's sole opinion, Lender's interests in the Proparty are not jeopardized. Lender may require Trustor to post adequste security
<br />or a surety bond, reasonably satiafactory to Lender, to protect Lender's interest.
<br />Duty to Protect. Trustor agrees neither to abandon ar leave unattended the Property. Trustor shall do all othar ects, in addition tb
<br />those acts set forth above in this section, which from the character and use of the Property are reesonebly necessary to protect and
<br />preserve the Property.
<br />TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part nf this Deed of Trust:
<br />Payment. Trustor shall psy when due (and in all events prior to delinquency) all taxes, speciel taxes, assessments, charges (including
<br />water and sewer►, fines end impasitions levied agsinst or on account of the Property, and shall pay when due all claims for work done
<br />on or for services rendered or material fumishad to the Property. 7rustor shall maintain the Property free of all liens having priority
<br />over or equel to the interest of Lender under this Deed of Trust, except for the Ifen of taxes and assessments not due and except `9s
<br />otherwise provided in this Deed nf Trust.
<br />Ftight ta Contest. Trustor may withhold paymsnt of any tax, assessment, or claim in cannection with a good faith dispute over the
<br />pbligation ta pay, sa long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nnnpayment,
<br />Trustor shall within fifteen (15) deys after the lien arisea or, if a lien is filed, within fifteen (15) days after Trustor hes notice of the
<br />filing, secure the discherge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or
<br />other security s�tisfactory to Lender in an amount sufficient to discharge the lien plus eny costs end sttarneys' fees, ar other charges
<br />that could accrue as a result of a foreclosure or sale under the lian. In eny contest, Trustor shell defend itself and Lender and shall
<br />satisfy any adverse judgment before enforcement ageinst the Property. Trustor shall name Lender as an additional obligee under any
<br />surety bond furnished in the contest proceedings.
<br />�vidence of Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and
<br />shall authorize the epprnpriate governmental official to deliver to Lender at sny time a written statement af the t�xes and assessments
<br />ageinst the Property.
<br />Notice of Constructian. Trustor shall notify Lender at least fifteen (15) days before any work is commenced, any services 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 />eccount 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 improvements.
<br />F'ROPERTY DAMAGE INSURANCE. 7ha following provisions relating to insuring the Property are a pert of this Deed of Trust.
<br />Maintenance of Insurence. Trustor shall procure and maintain policies of fire insurance with atandard extended coverage
<br />endorsements an s feir value basis for the full insurable value covering all Improvements on the Rsel Property in an amount sufficient
<br />to avoid application of any coinsurence clause, and with a standard mortgagee clause in favor af Lender. Trustor shall also procure
<br />' and maintain comprehensive 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 maintein such other insurence;
<br />including but not limited to hazard, business interruption, and boiler insurence, as Lender may reasonably require. Policies shall be
<br />written in fnrm, amounts, coverages end besis reasonably acceptable to Lender and issued 6y a company or companies reasonably
<br />acceptable to Lender. 7rustar, upon request of Lender, will deliver to Lender from time to time the policies or cartificates af"insurance
<br />in form satisfactory to Lender, including stipulations thst coverages will not be cencelled or diminished without at least ten (10) days
<br />prior written notice tn Lender. Each insurance pnlicy also shall include an endprsement praviding that coverage in favor of Lender will
<br />not be impaired in any way by any act, omission or default of Trustor or any pther person. Should the Real Property be located in an
<br />' erea designated by the qirector of the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to
<br />obtain and maintain �ederal Flnnd Insurance, if available, for the full unpaid principal belance of the loan and any prior liens on th�
<br />� property securing the losn, up to the maximum policy limits set under the National Flpod Insurance F'rogram, or as otherwise required
<br />'` ' by' Lender, and to maintain such insurance for ths term of the loan.
<br />`�` " Application of Pracaeds. Trustor shall pramptly notify Lender of any (oss or d�mege to the Property. Lender may make proof of Ivss
<br />if T:rustor fails to do so within fifteen (15) deys of the casualty. Whethar or not Lender's security ia impaired, Lender may, et LQnder's
<br />election, receive and retain the proceeds of any insurance end apply the proceeds to the reduction of 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 or replace the damaged or destroyed Improvements in e manner satisfectory to Lender. Lender shell, upon
<br />setisfectory proof of such expenditure, pey or reimburse Trustor from the proceeds for the reeson�ble cost of repair or restoretinn if
<br />Trustor is nat in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 days after #heir receipt
<br />and which Lender has nnt committed ta the repair or restoration of the F'roperty shall be used first to pay any emount owing to Lender
<br />under this Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the
<br />Indebtedness. If Lender holds any prpceeds after payment in full of the Indebtedness, such prpceeds shall be paid to Truator as
<br />Trustor's interests may appear.
<br />TruBtbr' Report on Insurance. Upon requast of Lender, hawever not more than once a year, 7rustnr shall furnish to Lender a repart
<br />on e�ch existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4)
<br />the property insured, the then current replacement value of such property, and the manner of determining that value; and (5) the
<br />expiration date of the pnlicy. Trustor shall, upon requeat af Lender, have an independent appraiser satisfactory to Lender determine
<br />the cash value replecement cost of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that wnuld materially affect Lender's interest in the Property or if
<br />Trustor fails to comply with any provision nf this Deed of Trust or any Related Documents, including but not limited to Trustor's failure ta
<br />discharge or pay when due any amounts Tr�stor is required to diacharge or pay under this Deed of Trust or any Related Documents, Lender
<br />on Trustor's behalf may (but shall not be obligated to) take eny action that Lender deems appropriate, including but not limited to
<br />discharging pr paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and
<br />paying all costs for insuring, maintaining snd preserving the F'roperty. All such expenditures incurred or paid by Lender for such purposes
<br />will then bear interest at tha rete charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All
<br />such expenses will become a part of the Indebtadness and, at Lender's option, will (A) be payable on demand; (BI be added to the
<br />balence of the Note and be apportioned emong end be payable with any instellment payments to becnms due during either (1) the term of
<br />any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as e balloon payment which will be due and
<br />payable at the Note's maturity. The Deed ot Trust also will secure payment of these amounts. 5uch right shall be in additian to all other
<br />rights and remedies to which Lender may ba entitled upan �efault.
<br />WARRAN7Y; DEFENS� QF TITLE. The following provisions relating to ownership of the Property are a part of this Deed af Trust:
<br />7itle. Trustor warrants that: (a) T'rustor holds gnod and marketable title of record to the Property in fee simple, free and clear of all
<br />lians end encumbrances other than those set forth in the Real Property dascrfption or in any title insurance policy, title report, or final
<br />title opinion issued in favor qf, and accepted by, Lender in connection with this Deed pf Trust, and (b) Trustor hes the full right,
<br />power, and authority ta execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Trustor warrants end will forever defend tha title to the Property
<br />against the lawful claims of all persons, In ths event eny action or proceeding is commenced that questipns Trustor's title or the
<br />interest of Trustee or Lender under this Deed of Trust, Trustor shell defend the action at Trustar's expense. Trustor may be ths
<br />nominal party in suchi proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding
<br />by counsel nf Lender's own choice, and Trustor will dsliver, or cause to be delivered, to Lender such instruments es Lender may
<br />requast from time to time to permit such participation.
<br />Cpmplinnce With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable
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