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DEED OF TRUST
<br />LOall NO: 1072�7,�44 • , '' � ' . + ' (Continued) 2 0 1 � o � � � � Page 3
<br />EWdence of Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of paymant af the taxes or assessmants and
<br />shall authorize the appropriate governmental qfficial to deliver to Lender at any time a written statement of the taxes and assessments
<br />against the Prpparty.
<br />Notice ot Construction. Trustor shall notify Lender at least fifteen (15) deys befpre any work is commenced, any services are
<br />furnished, ar any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or otMer lien could be asserted vn
<br />account of the work, services, or materials. Trustor will upon request of Lender furnish ta Lender advance assurances satisfactory to
<br />Lender that Trustor can and will pay the cost of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The foliowing provisions relating to insuring the Property are a part of this Dead af Trust.
<br />Maintenance of Insurance. Trustor shall prqcur2 and maintain policies of fire insurance with standard extended coverage
<br />endorsements on a fair value basis for the full insura6le value covering all Improvements on the Real Property in an amount sufficient
<br />to avoid application of any coinsurance clause, and with a standard mortgagse clausa in favor of Lender, Trustor shall also procure
<br />and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Trustee and Lender
<br />being named as additipnal insureds in such liability insurance policies. Additionally, "frustor shall maintain such other insurance,
<br />including but not limited to hazard, businass interruption, and boiler insurance, as l.ender may reasonebly require. Policies shall be
<br />written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or campanies reasonably
<br />acceptable to Lender. Trustor, upqn request of Lender, will deliver to l.ender from time to time the policias or esrtificates of insurance
<br />in form satisfactory ta Lender, including stipulations that coverages will nqt be cancelled or diminished without at least ten (10) days
<br />prior written notice to Lender. Each insurance policy alsa shall include an endorsement providing that coverage in favor of Lender will
<br />npt be impaired in any way by any act, omission or default of Trustor or any other persqn. Should the Real Property be located in an
<br />area designated by the t]irector pf the Federal Emergency Management Agency ea a special flood hazard area, Trustor agrees to
<br />obtain and maintain Fedaral Flood Insurance, if available, for the full unpaid principal balance of 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 required
<br />by Lender, and to maintain such insurance for the tarm of the loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Properry. Lender may make prpof of loss
<br />if Trustar fails to do so within fifteen (15) days pf the casualty. Whether or not l.ender's securiry is impaired, l.endar may, at Lender's
<br />election, receive and retain the procaeds of any insurance and apply the proceeds to the reduction of ths Indebtedness, payment of
<br />any lien affecting the Property, ar the restoration and repair of tha Propsrty. If Lender elects to apply the proceeds to restoration and
<br />repair, Trustor shall repair or replace the damaged or destroyad Impravements in a manner satisfactory to Lender. Lender shall, upan
<br />satisfactory proof of such expenditure, pay or reimburss Trustor from the proceeds for the reasonable cost of repair ar restoration if
<br />Trustor is not in default under this peed 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 7rust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the
<br />indebtedness. If Lander holds any proceeds aftsr payment in full of the Indebtedness, such proceeds shall be paid ta Trustor as
<br />Trustor's interests may appear.
<br />7rustor's Reqort vn Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish to Lender a report
<br />on each sxisting policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the ampunt of the policy; (4)
<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'5 EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if
<br />Trustor fails to comply with any prouision of this Deed of Trust or any Related pocuments, including but not limited to Trustor's failure to
<br />discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender
<br />on Trustor's behalf may (but shall npt be obligated to) take any actian that Lender deems appropriate, including but not limited to
<br />discharging or paying all taxes, liens, security interests, encum6rancas 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 pr paid by Lender for such purposes
<br />will then bear interest at the rate charged under tha Nota from the date incurred or paid by Lender to the date of repayment by Trustpr. All
<br />such expenses will became a part of the Inde6tedness and, at Lender's option, will (A) be payable on demand; (B) ba added to the
<br />balance of the Note and be apportipned among and be payable with any installment payments to become due during either (1) the term of
<br />any applicable insurence policy; or (2) the remaining term qf the Note; or (C) be treated as a ballpon payment which will be due end
<br />payable at the Npte's maturity. 7he qeed of Trust alsp will secure payment of these amounts. Such right shall be in addition to all other
<br />rights and remedies to which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The fallowing provisions relating to ownership of the Prpperty are a part of this peed nf 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 ather than those set forth in the Real Property description or in any title insurancs policy, title report, or final
<br />titla opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Trustor has tha full right,
<br />ppwer, and authority to execute and dsliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exceptian in the paragraph above, Trustor warranks and will forever defend the titla ta the Property
<br />against the lawful claims of all persons. In the event any action or proceeding is commenced that qusstions Trustor's title or the
<br />interest of Trustee or Lender under this Daad of Trust, Trustar shall defend the actian at Trustar's expense. Trustor may be the
<br />nominal party in such proceeding, but Lender shall be entitled to participate in the prqceeding and to be reprasented in the proceeding
<br />by counsal of Lender's own choice, and Trustor will deliver, ar cause to be delivered, to Lender such instruments as Lender may
<br />request from time ta time to permit such participation.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property comp�ies with all existing applicable
<br />laws, ordinances, and regulations of governmental authorities.
<br />Survival of Rapresentatians and Warrantfes. All representations, warranties, and agreements made by Trustor in this Deed of Trust
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