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DEED OF TRUST
<br />(Continued) 2 Q i Q Q 9 Q 3� Page 2
<br />or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Trustor will not remove, or grant to
<br />any other psrty the right to remove, any timber, minerals (including oil and gas►, coal, clay, scoria, sail, gravel or rock products
<br />without Lender's prior written consent.
<br />Removal af Improvements. Trustor shall not demolish or remove any Improvements from the Real Prnperty without Lender's prior
<br />written consent. As a condition to the removal of any Improvements, Lender may requira 7rustor to make arrangements satisfactory
<br />to Lender to replace such Improvements with Improvements of at least equal value.
<br />Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times [o
<br />attend tn Lender's interests and to inspect the Raal Property for purposes of Trustnr's compliance with the terms and conditions of
<br />this Deed 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 occupancy of the Property. 1'rustor may contest in goad
<br />faith any such law, ordinance, or regulation and withhpld compliance during any proceeding, including appropriate appeals, so long as
<br />Trustor 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 require Trustor ta post adequate security or a surety bond, reasonably satisfactory to Lender, to pratect
<br />Lender's interest.
<br />Duty to Protect. Trustor agrees neither to a6andon or leaye unattended the Property. Trustor shall do all other acts, in additian to
<br />thosa acts set farth above in this section, which from the character and use af the Property are reasonably necessary to protect and
<br />preserve the Property.
<br />TAXES AND LIENS. The following prnvisions relating to the taxes and liens on the Property are part of this Deed af Trust:
<br />Payment. 7rustor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (including
<br />water and sewer►, fines and impositians levied against or on account of the Property, and shall pay when due all claims for work done
<br />on or for services renderad or material furnished to the Property. Trustor shall maintain the Property free of all lians having priority
<br />over or equal to the interesY of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as
<br />ptherwise provided in this Deed of Trust.
<br />Right to Contest. Trustor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the
<br />obligation to pay, so lang as Lender's interest in the Prnperty is not jeopardized. If a lien arises or is filed as a result of nonpayment,
<br />7rustor shail within fiiteen (15) days after the lian arises or, if a lien is filed, within fifteen (15) days aiter Trustor has notice of the
<br />filing, secure the discharge of the lisn, or if raquested by Lender, deposit with Lender cash or a sufficient carporate surety bond or
<br />other security satisfactory to Lender in an amount sufficient [o 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 contast, Trustor shell defend itself and Lender and shal�
<br />satisfy any adverse judgment 6efore enforcement against the Property. Trustor shaf� name Lender as an additional obligee under any
<br />surety bond furnished in tha contest proceedings.
<br />Evidence of Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments 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 (16) days before any wark is commenced, any services ara
<br />furnished, or any materials are supplied to the Property, if any mechanic's lien, matarialmen's li�n, 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 wi[h standard extended coverage
<br />e�sdarsements on a replacemeni bssis for 4he full insurable value covering all Improvements on the Real Property in an amount
<br />sufficien[ to avoid application of any coinsurance clause, and with a standard morTgagee clause in favor of Lender, together with such
<br />other 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 af insurance in form satisfactory to Lender, including
<br />stipulations that coversges will not be cancelled or diminished without at least thirty (�0) days prior writ[en 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 nr 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 maintein Federal Flood
<br />Insurance, if availa6le, within 45 days after notice is given by Lender that the Prnperty is located in a special flood hazard area, for the
<br />full unpaid principal 6alance of the laan and any prior liens on the property securing the loan, up to the maximum policy timits set
<br />under the National Fload Insurance Program, or as atherwise required by Lender, and to maintain such insurance far the term of the
<br />loan.
<br />Application of Praceeds. 7rustor shall promptly notify Lender of any loss or damage to the Property. Lender may make prppf 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 ihe restora[ian 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 />sstisfactory proof of such expenditure, pay or reimburse Trustor frnm the proceeds for the reasonable cost of repair or restoratian if
<br />7rus[or 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 shalt 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 />Indek�tedness. If Lender holds any proceeds after payment in full of the Inde6tedness, such proceeds shall be paid to 7rustor as
<br />Trustor's interests may appear.
<br />TAX AND INSURANCE RESERV�S. 5ubject [o any limitations and consistent with any requirements set by appliceble law, Lender may
<br />require Trustor to maintain with Lendar reservas for payment of annual taxes, assessments, and insurance pramiums, which reserves shall
<br />be created by an initial deposit and subsequent monthly payments, or payments at such other interval as payments under the Note may be
<br />dus, of a sum estimated by Lender to be sufficient ta pay the total annual texes, assessments, and insurance premiums Lender reasanably
<br />anticipates to be paid from these reserves. 7he reserve funds shall be held by L.ender as a general depasit from Trustor, which Lender may
<br />satisfy by payment of the taxes, assessmenTs, and insurance pramiums required to be paid by Trustor as ihey becoma due. Lender shall
<br />have the right to draw upon the reserve funds ta pay such items, and Lender shall not be required to determine the validiry ar accuracy of
<br />any item before paying it. Nothing in the Deed of Trust shall be construed as requiring Lender to advance other monies for such purpoaes,
<br />and Lender shall not incur any liability for anything it may do or nmit to do with respect to the reserve account. Subject to any limitations
<br />set by applicable law, if the reserve funds disclose a shortage or deficiency, Trustor shall pay such shortage or deficiency as required by
<br />Lender. If Lendsr discovers that the payments into the raserve account have produced a surplus beyond ihe annual amounts due to be
<br />paid from the reserve funds by more than the cushion permitted by applicable law, but a payment on the Note has not been rsceived within
<br />30 days of the paymen[ due date, Lender msy retain the excess funds. All amoun[s in the reserve account are hereby pledged to further
<br />secure the Indebtedness, and Lender is hereby authorized to withdraw and apply such amounts an the Indebtedness upon the occurrence
<br />of an Event of Default. Lender shell no[ be required to pay any interes[ or earnings on the reserve funds unless required by law or egreed
<br />to by Lender in writing. Lender does not hold the reserve funds in trust for Trustor, and Lender is not Trustor's agent for payment of the
<br />taxes and assessments required to be paid by Trustor.
<br />LENDER'S EXPENDITURES. If 7rustor 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, or (C) ia make repairs to the Property than Lender may do so. If any
<br />action or praceeding is commenced that would materially affect Lender's interests in the Property, then Lender on Trustor's behalf may,
<br />but is not required to, take any action that Lender beliaves to be appropriata to protect Lender's interests. All expenses incurred or paid by
<br />Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of
<br />repayment by Trustor. All such expenses will become a part of the Indebtedneas and, at Lender's option, will (A) be payabla on demand;
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