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DEED OF TRUST 2 U 1 O O�� S 7
<br />(Continued) Page 3
<br />Trustor shall within fitteen (15) days after the lian erises or, if a lien is filed, within fifteen 115) days after Trustor has notice of the
<br />filing, secura the discharge of the lien, or if reques#ed by Lander, depasit with Lender cash or a sufficient carporate surety bond ar
<br />other security satisfactory to Lendsr in an emount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges
<br />that could accrue as a result of a foreclosure or sale under the lien. In any contest, Trustor shall defend itself and Lender and shall
<br />satisty any edverse judgment befare enforcement against the Property. Trustor shall name Lender as an additional obligee under any
<br />surety bond furnished in the contest proceedings.
<br />Evidance of Payment. Trustor shall upon demand furnish to Lender satisfactory avidence of payment pf the taxes ar assessments and
<br />shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxas and assessmants
<br />egainst the Property.
<br />Notice of Construction. Trustar 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 Praperty, if any mechanic's lien, materiafinen's lien, or pther lien could be asserted on
<br />eccount of the work, services, or materials. Trustor will upon request nf Lender furnish to Lender advance assurances satisfactory to
<br />Lender that 7rustar can and will pay the cost of such improvements. '
<br />PROPER7Y DAMAGE INSURANCE. The follawing provisians relating to insuring the Property are e part of this Deed pf Trust.
<br />Maintenance of Insurance. Trustor shall procure and maintain policies qf fire insurance with standard extended coverage
<br />endorsements on a replacement basis far the full insurable value covering all Imprpvements an the Rea� Prvperty in an amount
<br />sufficient to avoid application pf any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Trustor shall also
<br />procure and maintain comprehensive genaral liability insurance in such coverage amounts as Lender may request with Trustee and
<br />Lendar being namad as additipnel insureds in such liability insurance policies. Additionally, Trustor shall maintain such other
<br />insurance, including but not limited to hazerd, business interruption, and boiler insuranca, as Lender may reasonably require. Policies
<br />shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies
<br />reasonebly acceptsblg tn Lender. Trustor, upon request of Lender, will deliver tn Lender from time to time the policies or certificates
<br />of insurance in fprm satisfactory to Lender, including stipulations thet coverages will not be cancelled or diminished without at least
<br />thirty (30) days priar written notice to Lender. Each insurance policy also shall include an endorsement praviding that caverage in
<br />favor oi Lender will npt be impaired in any way by any ect, omission or default of Trustor or any other person. The Real Property is or
<br />will be located in en area designated by the Director of the Federal �mergency Management Agency as a special flood hazard area.
<br />Trustor agrees to o6tain and maintain Federal Flood Insurance, if available, for tha full unpaid principal belance of the loan and any
<br />prinr liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as
<br />otherwise required by Lender, and to maintain such insurance for the term of tha loan.
<br />Applicatipn of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss
<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 />election, receive and retain the proceeds of any insurance and apply the prpceeds to the reduction af the Indebtadness, payment af
<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 Improve�nents in a menner satisfactary to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reiml�urse Trustor from the proceeds for the reasonable cost of repair or restoration if
<br />Trustor is not in default under this peed of Trust. Any proceeds which have not been disbursed within 1$0 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 ampunt 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 balanca of the
<br />Indebtedness. If Lender hplds any proceeds after payment in full af the Indebtedness, such proceeds shall be paid to Trustar as
<br />Trustor's interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, hawever not more than ance a year, Trustor shall furnish to Lender a report
<br />vn each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount ot the pa�icy; (41
<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 policy. Trustor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine
<br />the cash value replacement cost of the Property.
<br />LENDER'S EXF'�NDITURES. If any action or prpceeding is commenced that would materially affect Lender's interast in the Proparty ar if
<br />7rustor fails ta comply with any provision pf this �eed of Trust or any Related Qocuments, including but not limited to Trustor's failure to
<br />disch�rge or pay when due any amounts Trustar is required ta discharge or pay under this Deed of Trust or any Related Documents, Lender
<br />on Trustor's hehalf may (but shall not ba ohligated to1 take any action that Lender deems appropriate, including but not limited to
<br />discharging or 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 and preserving the Property. All such expenditures incurred or paid by Lender for such purposes
<br />will then bear interest at the rate charged under the Note from the date incurr�d or paid by Lender ta the date of repayment by Trustor. All
<br />such expenses will become a part of the Indebtedness and, at Lender"s option, will (A) be payable on demand; (B) be added to the
<br />balsnce of the Npte and be apportianed among and he payable with any instellment payments to become due during either (1► the term of
<br />any applicable insurance policy; or (2) the ramaining term af the Note; or (C) be treated as a balloon payment which will be due and
<br />paysble at the Npte's maturity. The Deed af Trust also will secure payment of these emounts. 5uch right shall be in addition to all other
<br />rights and remadies to which Lender may he entitled upon �efault.
<br />WARRANTY; pEFENSE OF TITL�. The following provisions relating to ownarship of the Property are e part of this Deed af Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketa6le 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 any titla insurance policy, titls report, or final
<br />title npinion issued in fevor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Trustor has the full right,
<br />power, and authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. 5ubject to the exceptipn in the paragraph above, Trustor warrants and will forever defend the title to the Property
<br />ageinst 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 Daed of Trust, Trustor shall defend the action st Trustor's expensa. Trustar 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
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