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DE�D OF TRUST 2 O 10 0 9 6 6 4
<br />Loan No: '101237266 (Cvntinued) Page 3
<br />satisfy any adverse judgment before enforcement against the Property, Trustor shall name Lender as an additional obligee under any
<br />surety bond fumished in the contest prpceedings.
<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 otficial to deliver to Lender at any time a written statement of the taxes and assessments
<br />against the Prpperty.
<br />Notice of Construction. Trustor shall notify Lender at least fifteen (15) days before 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 other lien could be asserted on
<br />acCaunt of the wprk, sarvices, or materials. Trustor will upon request of Lender furnish tv Lender advance assurances satisfactory to
<br />Lender that Trustor can and will pay the cnst of such improvements.
<br />PRpPERTY DAMAGE INSURANCE. The fallowing provisions r�lating to insuring the Property are a part af 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 !'roperty in an amount sufficient
<br />to evoid application of any coinsurence clause, and with e standard mprtgagee clause in favor of Landar. 7rustor shall also procure
<br />and maintain comprehensive general liability insurance in such caverage amounts as Lander may requast with Trustee and Lender
<br />being named as additional insureds in such liability insurance policies. Additionally, Trustor shall maintein such other insurance,
<br />including but not limited to hazard, business interruption, and 6oiler insurance, as Lender may reasonably require. Policies shall be
<br />written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasona6ly
<br />acceptable to Lender. Trustvr, upon requast of Lender, will deliver to Lender from time to time the policies or certificates of insurance
<br />in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten (10) days
<br />prior written notice to Lender. Each insurance policy also shall include an endorsement prpviding that coverage in favor of �ender will
<br />not be impaired in any way by any act, omission nr default pf Trustor or any other person. Should the Real property be located in an
<br />area designated by the Director of the Federal Emergency Manegement Agency as a special flaad hazard ares, 7rustor agrees to
<br />obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal 6alance of the loen and any prior liens an 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 ta maintain such insurance for the term of the loan.
<br />Application of Proceeds. Trustor shall promptly nbtify Lender of any loss or damage to the f'roperty. 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 proceads to the reduction vf tha Indebtedness, payment of
<br />any lien affecting [he Property, or the restoration and repair of the Property. If Lender elects tn apply the proceeds to restoration and
<br />repair, Trustor shall repair or replace the damaged or destroyed Improvements in a menner satisfactory to Lendar. 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 peed of 7rust. Any proceeds which have not been disbursed within 180 days after their receipt
<br />and which Lender has not committed ta the rapair 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 intsrest, 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 #he Indebtedness, such proceeds shall be paid to Trustor as
<br />Trustor's interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish to Lender a report
<br />on each existing policy of insurance showing: (1) the name of the insurer; (2► the risks insured; (3) the amount 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'S 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 provision of this Deed of Trust or any Related Documents, 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 Trus[or's behalf may (but shall not be obligated to) take any action that Lendar dsems appropriate, including but not limited to
<br />discharging qr paying all iaxes, liens, security interests, encumbrances and other claims, et any time levied nr placed on the Property and
<br />paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes
<br />will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All
<br />such expenses will become a part of the Indebtedness and, at Lender's option, will (A) 6e payable an demand; (B) be added to the
<br />balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of
<br />any applicable insurance policy; or (2) the remaining term af the Note; or (Gl be [reated as a balloon payment which will be due and
<br />payable at the Note's maturity. The Deed of Trust also 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 following prnvisions relating to ownership of the Property are a part of this Deed of Trust:
<br />Title. Trustor warrants that: (a) Trustvr holds good and marketable title of record to the Property in fee simple, free and clear of all
<br />liens and encum6rances othar than those set forth in the Real Property description or in any title insurance policy, title report, or final
<br />title opinion issued in favor of, and accepted 6y, Lender in connection with this Deed of Trust, and (b) Trustor has the full right,
<br />power, and authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph a6ove, 7rustar warrants and will forever defend the title to the Property
<br />against the lawful claims of all persons. In the event any actinn or proceeding is cvmmenced that questivns Trustor's title or the
<br />interest of 7rustee 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 participa[e in the proceeding and to be represented in the proceeding
<br />by counsel of Lender's awn 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. 7rustor warrants that the I'roperty and Trustor's use of the Property complies with all existing applicable
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