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DEEDOFTRUST �pia49699
<br />Loan No: 101237089 (Continued) Page 3
<br />Notice of Constructian. Trustor shall notify Lender at least fifteen (15) days before any work is commenced, any services are
<br />furnished, or eny materials are supplied to the Property, if any mechanic's lien, materialmen's lien, 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 vf this Daed-of Trust..
<br />Maintenance af Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage
<br />endorsemenis on a fair value basis for the full insurable value cov�ring 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 lia6ility insurance as Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis
<br />reasona6ly 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 policias ar cartificates of insurance in form satisfactory to Lender, including
<br />stipulations that coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each
<br />insurance policy slsv shall include an endnrsement providing that coverage in favor of Lender will not be impaired in any way by any
<br />act, omission or default of Trustor or any other person. Should the Real Property be located in an area designated by the Director af
<br />the Federal Emergency Menagement Agency as a special flood hazard area, Trustor agrees to obtain and maintain Federal Flood
<br />Insurance, if available, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the
<br />maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lander, and to maintein such
<br />insurance for the term of the loan.
<br />Application of Proceeds. 7rustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proaf of loss
<br />if Trustor fails to do so within tifteen (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 reduotion of the Indebtedness, payment of
<br />any lien affecting the Property, or the restoration and repair ot the Property. If Lender elects to apply the proceeds to resioration and
<br />repair, Trustvr shall repair nr replace the damaged or destroyed Improvements in a manner satisfactory to Lender. 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 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 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 to the principal balance of the
<br />Inde6tedness. If Lender holds any proceeds after payment in full of the Indebtedness, such procasds shall be paid to Trustor as
<br />Trustor's interests may appear.
<br />LENDER'S EXPEN�ITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, snd other
<br />claims, (B) to provide any required insurance on the Property, or (C) to make repairs to the Praperty then Lender may do so. If any
<br />action or proceeding 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 beliavas to be appropriate #a protect Lender's interests. All expenses incurred or paid by
<br />Lender for such purposes will then bear interest at the rate charged und�r the Note from the date incurred or paid by Lender to the date of
<br />repayment lay 7rustnr. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand;
<br />(B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during
<br />either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment
<br />which will be due and payable at the Note's maturity. The Deed of Trust also will secure paymsnt vf these amounts. The rights provided
<br />for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account af any default.
<br />Any such action by Lender shall not ba cpnstrued as curing the default so as #o bar Lender from any remedy that it otherwise would have
<br />had.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of 7rust:
<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 />Ilens and encumbrances other than those set forth in the Real f'roperty description or in any title insurance policy, title report, or final
<br />title opinion issued in favor of, and accepted by, Lender in connection with this Deed af Trust, and (b) Trustor has the full right,
<br />power, and authority #o execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will fqrever defend the title to the Property
<br />against the lawful claims of all persons. In the event any ac#ion or proceeding is commenced that questions Trustor's title or the
<br />interest of Trustee or Lender under this Deed pf Trust, Trustpr shall defend the action at Trustor's expense. Trustor may 6e the
<br />nominal party in such proceeding, but Lender shall be entitled to participate 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 L.ender such instruments as Landar may
<br />request from time to time to permit such participation.
<br />Compiiance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable
<br />laws, ordinances, and regulations of governmental authorities.
<br />5urvival of Promises. All promises, agreements, and statements Trustor has made in this Deed ot Trust shall survive the execution
<br />and delivery of this Deed of Trust, shall be continuing in nature and shall remain in full force and effect until such time as Trustor's
<br />Indebtedness is paid in full.
<br />COND�MNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />Praceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and Trustor shall promptly
<br />take such steps as may be necessary to defend the action and obtain the award. 7rustor may be the nominal party in such
<br />proceeding, but Lender shall be entitled to participate in the praceeding and to be represented in the proceeding by counsel af its own
<br />choice, and Trustor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by
<br />Lendsr frvm time to time t0 permit such participation.
<br />Applicatian qf Net Proceeds. If all or any part of the Property is candemned by eminent domein proceedings or by any proceeding or
<br />purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied
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