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<br /> DEED OF TRUST 2 010 0 8 2 7 9
<br /> Loan No: 101228233 (Continued) Page 3
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<br /> Notice of Construction. 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 lion, materialmen's lien, or 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 improvements.
<br /> PROPERTY DAMAGE INSURANCE:. The following provisions relating to insuring the Property 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 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 other
<br /> hazard and liability insurance as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis
<br /> reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Trustor, upon request of
<br /> Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including
<br /> stipulations that coverages will not be cancelled or diminished without at least tan (10) days prior written notice to Lender. Each
<br /> insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any
<br /> act, omission or default of Trustor or any other person. Should the Real 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 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 Program, or as otherwise required by Lender, and to maintain such insurance for the term of the
<br /> loan.
<br /> Application 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 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 a manner satisfactory to Lender. Lender shall, upon
<br /> satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if
<br /> Trustor is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 180 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 amount 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 proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as
<br /> Trustor's interests may appear.
<br /> Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is in effect, compliance
<br /> with the insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the
<br /> insurance provisions under this Deed of Trust, to the extent compliance with the terms of this Deed of Trust would constitute a
<br /> duplication of insurance requirement. If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust
<br /> for division of proceeds shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br /> LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other
<br /> claims, (6) to provide any required insurance on the Property, (C) to make repairs to the Property or to comply with any obligation 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 materially affect 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 purposes will then bear
<br /> interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such
<br /> expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (8) be added to the balance of
<br /> the Note and be apportioned among and be payable 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 treated as a balloon payment which will be due and payable
<br /> at the Note's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph 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 by 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 /> WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust:
<br /> Title. Trustor warrants that: (a) Trustor holds good and marketable 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 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, Lender in connection with this Deed of
<br /> Trust, and (b) Trustor has the full right, power, and authority to execute and deliver this Deed of Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph above, Trustor 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 questions Trustor's title or the
<br /> interest of 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 entitled to participate in the proceeding and to be represented in the proceeding
<br /> by counsel of 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 to permit such participation.
<br /> Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable
<br /> laws, ordinances, and regulations of governmental authorities,
<br /> Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall survive the execution
<br /> and delivery of this Dead of Trust, shall be continuing in nature and shall remain in full force and effect until such time as Trustor's
<br /> Indebtedness is paid in full.
<br /> EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
<br /> Existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an existing lien, Trustor
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