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Loan No: 701"235$4'7 ` P � '� DEE�D OF� �R�U,ST 2 p 10 0 8 4 21 Page 3
<br />obligation to pay, so long as Lender's interest in the Prpperty is npt jeopardized. If a lien arises or is filad as a result of nonpayment,
<br />Trustor shall within fifteen (15) days after the lien arises qr, 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 satisfactary ta 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 of a foreclosure or sale under the lien. In any cpntest, Trustor shall defend itself and Lender and shall
<br />satisfy any adverse judgment befare enforcement against the Property. Trustor shall name Lender as an additional obligee under any
<br />surety bond furnished in the contest prpcsedings.
<br />Evidence of Payment. Trustor shall upon demand furnish to Lender satistactory evidence of payment of the taxes or assessments and
<br />shall authorize the appropriate governmental afficiai ta deliver to Lender at any time a written statement of the taxes and assessments
<br />against the property.
<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 lien, materialmen's lien, or o[her lien could be asserted on
<br />account of the wark, services, or materials. Trustor will upon request of Lender fumish ta Lender advance assurances satisfactory to
<br />Lender that Trustor can and will pay the cost of such improvements.
<br />PROPERTY l7AMAGE 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 Impravemants on the Real Property in an amount sutficient
<br />ta avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Trustor shall also procure
<br />and maintain comprehensive general liability insurance in such coverage amounts as Lander may request with Trustee and Lender
<br />being named as additional insureds in such liability insurance policies. Additionally, Trustor shall maintain such other insurance,
<br />including but not limited to hazard, business interruption, and bailer insurance, as Lender may reasonably raquire. Pplicies shall be
<br />written in form, amounts, coverages and basis reaspnably acceptable to Lender and issued by a company or companies reasonably
<br />acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insuranca
<br />in form satisfactory ta Lender, including stipula[ions that coverages will not be cancelled or diminished without at least ten (10) days
<br />prior written notice to Lender. �ach insurance policy also shall include an endorsement providing that coverage in favor of Lender will
<br />not be impaired in any way by any act, omission nr default pf Trustar or any other person. 5hould the Real Property be located in an
<br />area designated by the Director of tha Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to
<br />obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal balance af the loan and any prior liens on the
<br />property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise raquired
<br />by Lender, and to maintain such insurance for the term of the Io�n.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss ar damage to the Property. Lender may make proof af Ipss
<br />if Trustor fails to do so within fifteen (15) days of the casualty. Whether or npt 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 restaration and repair of the Property. If Lender elects to apply the proceeds to restoration and
<br />repair, 7rustor shall repair or replaca the damaged pr destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from tha proceeds fvr the reasonable cost of repair or restoration if
<br />Trustor is nat in default under this Deed of Trust. Any proceeds which have not besn disbursed within 18� days aftar thair receipt
<br />and which Lender has not committed to the repair or restoratipn of ths Prqperty 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 ta the principal balance of the
<br />Indebtedness. If l.ender holds any proceeds after payment in full of the Indebtedness, such prnceeds shall be paid to Trustor as
<br />Trustor's interasts may appear.
<br />Compliance with Existing Indebtedness. During the period in which any �xisting Indebtedness described below is in effect, compliance
<br />with the insurance provisions contained in the instrument evidancing 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 proceads shall apply only to that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br />Trustor's Report on Insuranca. Upan request of Lender, however not more than once a yaar, Trustpr shall furnish to Lender a report
<br />on each existing pplicy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4)
<br />the prqperty insured, the then current replacement value vt such prpperty, 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 raplacament cost of the Prpperty.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commencad that wquld materially affect Lender's interest in the Property or if
<br />Trustor fails to comply with any provision of this Daed of Trust or any Related Documents, including but npt limited to Trustor's failure to
<br />camply with any obligation to maintain Existing Indebtedness in good standing as required below, or tp discharge or pay when due any
<br />amaunts Trustar is required to discharge or pay under this Deed of Trust or any Related Dpcuments, Lender on Trustar's behalf may (but
<br />shall npt be obligated to) take any action that Lender deems apprppriata, including 6ut not limited to discharging or paying all taxes, liens,
<br />securiry interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring,
<br />maintaining and preserving the Prpperty. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the
<br />rate charged under the Note frpm the date incurred or paid by l.ender to the date of repayment by Trustor. All such expenses will become
<br />a part of the Indebtedness and, at l.ender's option, will (A) be payabls on demand; (6) be added to the balance of the Note and be
<br />apportioned among and be payabte with any installment payments to become due during either (1) Che term of any applicable insurance
<br />policy; or (2) the remaining term of the Note; or (C) be treeted as a balloon payment which will be due and payable at the Note's
<br />meturity. The Deed of Trust also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to
<br />which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisians relating to ownership af the Property are a part of this Deed qf Trust:
<br />Title. Trustor warrants that: (a) 7rustor holds gopd and marketable title of record to the Property in fee simple, free and clear of all
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