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Loan No: 122725
<br />LENDER'S EXPENDITUFiES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other
<br />claims, (B) 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 Trustnr's behalf may, but is not required tv, take any action that
<br />Lender believes to be apprppriate to protect Lender interests. All expenses incurred or paid by Lender for such purpases wiil`then �ear�
<br />interest at the rate charged under the Note from the date incurred or paid by Lender ta the date of repaymenY by Trustnr. All such
<br />expenses will become a part of the Indebtedness and, at Lender's option, will (A) 6e payable on demand; (B) be added to the balance of
<br />the Note and be apportioned among and be peyable with any installment payments to become due during sither (1) the term of any
<br />applicable insurence policy; or (2) the remaining term of the Note; or (C) ba 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 ramedies 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 wauld have had.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating tn ownership of the Property ere a part of this Deed of `frust:
<br />(' �� Title. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Property in fee simple, frae and clear of all
<br />1� liens and encumbrances other than those set forth in the Real Property description or in the Existing Indebtedness section below or in
<br />U any titla insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in cpnnection 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 />befense of Title. 5ubject 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 7rustor's #itle or the
<br />interest vf 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 perticipate 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. Trustpr warrants that the Property end Trustor's use of the Property complies with all existing applicable
<br />laws, ordinances, and regulations of governmental authoriYies.
<br />this Deed of Trust.
<br />DEED OF TRUST 2 O�() O S'� � Si
<br />(Continued) Page 2
<br />Compliance with Governmental Requirements. Trustor shall promptly comply with all laws, ordinances, and regulations, now or
<br />hereafter in effect, of all govarnmental authorities applicable to the use or occupancy of the Property. Trustor may contest in good
<br />faith any such law, ordinence, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long es
<br />Trustar has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are
<br />not jeopardized. Lender may raquire Trustor to post adequate security or a surety bond, reasonably satisfectory to Lender, to protect
<br />Lender's interest.
<br />buty ta Protect. Trustor agrees neither to a6andon or leave unattended the Prpperty. Trustor shall do all other ects, in addition to
<br />those acts set forth above in this section, which from the character and use of the Property are reesonably necessary to protect and
<br />preserve the Property.
<br />TAXES ANCLJ,.IEL1��._ r_elatir�qto the taxes and liens on the Property are part of this Deed of Trust:
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<br />Payment. 7rustor ahall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (including
<br />water and sewer►, fines and impositions Ievied against or on account of the Property, and shall pay when due all claims for work done
<br />on or for services rendered or material furnished to the Property. ?rustor shall maintain the Property free of all liens having priority
<br />over or equal to the interest of Lender under this beed of Trust, except for the lien of taxes and assessments not due, except for the
<br />Existing Indebtedness referred to below, and except as atherwise provided in this peed of Trust.
<br />Right to Contest. . Trustor may withhold payment of any tax, assessment, or claim in connection wfth a good faith dispute over the
<br />obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment,
<br />7rustor shall within fifteen (15) days after the lien erises 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 hy Lender, deposit with Lender cash or a sufficient corporate surety hnnd or
<br />other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees, or ather charges
<br />that could accrue as a result nf a foreclosure or sale under the lien. In any contest, Trustor shall defend itself and Lender and shall
<br />satisfy any adverse judgment before enforcement against the Property. Trustor shall name Lend�r as an additional obligee under any
<br />surety bond furnished in the contest procaadings.
<br />Evidence of Psyment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessmsnts and
<br />shall authorize the appropriate governmental official to 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 supplisd to the Property, if any mechanic's lien, materialmen's lien, or othsr lisn could 6e asserted on
<br />account of the work, services, or materials and the cost exceeds 51,Opp.00. Trustor will upon request of Lender furnish to Lender
<br />advance assurances satisfactary to Lender that Trustor can and will pay the cost of such improvements.
<br />PRQPERTY 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 pf fire insurance with standard extended coverage
<br />endorsements on a fair value basis fnr the full insurable value cvvering 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 reasvnably require. Policies shall be written in form, amounts, coverages and basis
<br />reasanably acceptable to Lender and issued by a company or companies reasanably acceptable to Lender, 7rustor, upon request of
<br />Lender, wilf deJiver ta Lender from time ta time the policies or certificates of insurance in form satisfactory to Lender, including
<br />stipulations that couereges wili not be cancelled or diminished without at least ten (10) deys prior written notice"to Lender. Each
<br />insurance policy also shall include an endorsement providing that coverage in favor nf Lendsr will not be impaired in any way by any
<br />act, omission or default af Trustor or any other person. Should the Real Property be Iocated in an area designated by the Director of
<br />the Federal Emergency Management Agency es a special flood hazard area, Trustor agrees to obtain and maintain Federal Flood
<br />Insurance, if available, within 45 days after nqtice is given by Lender that the Propsrty 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 />Inan.
<br />Application of Proceeds. Trustar shall promptly notify Lender of any Inss or damage to the Property if the estimated cost of repair or
<br />replacement exceeds S 1,000.00. Lender may make proof of loss if Trustor fails to do sa within fifteen (15) days of the casualty.
<br />Whether or not Lender's security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insur�nce end
<br />apply the proceeds ta the reduction of the Indebtedness, payment of any lien affecting the Property, or the restvr�tion and repeir of
<br />the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the dameged or destroyed
<br />Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expanditure, pay or reimburse Trustor
<br />from the proceeds fvr the reasonable cost of repair or restoration if Trustor is not in default under this Deed of Trust. Any proceeds
<br />which have nvt been disbursed within 180 days after their receipt and which Lender has nnt committed to the repair or restoration of
<br />the Property shall be used first to pay any amount owing to Lender under this 17eed of Trust, then to pay accrued interest, and the
<br />remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds eny proceeds after payment in full of
<br />the Indebtedness, such prpceeds shall be paid to Trustpr as Trustor's interests may appear.
<br />Cnmpliance with Existing Indebtedness. During the period in which eny Existing Indebtedness described belaw is in effect, compliance
<br />with the insurance provisions cantained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the
<br />insurance provisions under this ❑eed of Trust, to the extent compliance with the terms of this Deed of Trust wauld constitute a
<br />duplication of insurance requirement. If any proceeds trom the insurance become payable on loss, the provisions in this Deed of Trust
<br />for divisfon of proceeds shall apply only to that portion of the procseds nat payable to the holder of the Existing Indebtedness.
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