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DEED OF TRUST 2��- i'O �'� ��
<br />(Continued) Page 2
<br />and (b) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and
<br />ordinances, including wi[hout limitation all Environmentel Laws. "frustor authorizes Lender and its agents to en[er upon the Property
<br />to make such inspections and tests, at 7rustor's expense, as Lender may deem appropriate to determine compliance of the Prpperty
<br />with this section ot the Deed of Trust. Any inspections or tests made 6y Lender shall be for Lender's purposes only and shall not be
<br />construed to create any responsibility or liability on the part of Lsnder to 1'rustor or to eny ather person. The representations and
<br />warranties contained herein are based on Trustor's due diligence in investigating the Property far Hazsrdous Subscances. Trustor
<br />hereby (1) releases and waives any future c�aims against Lender for indemnity ar cantripution in the event Trustor becomes 1ia61e for
<br />cleanup or other costs under any such lews; and (2) agrees to indemnify, defend, and hold harmless Lender against any and all
<br />claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a
<br />breach of this sectinn of the Deed of Trust or as a cansequence of any use, generation, manufac[ure, storage, disposal, release or
<br />threatened release occurring prior to Trustor's awnership or interest in the Property, whether or not the same was or should have
<br />been known to Trustor. The provisions of this section of the beed of Trust, including [he obligation to indemnify and defend, shall
<br />5urvive tMe payment af the Indebtedness and the satisfaction and recanveyance of the lien of this Deed of 7rust and shell not be
<br />affected by Lender's acquisition of any interest in the Property, whether by foreclosure or otherwise.
<br />Nuisance, Waste. Trustor shall not cause, conduct ar permit any nuisance nor commit, permit, or suffer any stripping of nr weste on
<br />or to the Properiy or any portion of the Property. W'ithout limiting the generality of the foregoing, 7rustor will no[ remove, or grant to
<br />any other party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock prpducts
<br />without Lender's prior written consent.
<br />Removal of Improvements. 7rustor shall not demolish or remove any Improvements from the Real Property without Lender's prior
<br />written consent. As a condition to the ramoval of any Improvements, Lender may require Trustor to mske arrengements satisfactory
<br />tn Lender to replace such Improvements with Improvements of at least equal va�ue.
<br />Lender's Right to Enter. Lander and Lender's agents and representatives may enter upon the Real Property at all reasonable times to
<br />attend to Lender's interests and to inspect the Real Property for purposes of 7rustor's compliance with the [erms and conditions of
<br />this Deed of 7rust.
<br />Compliance with Governmental Requirements. Trustor shall promptly comply with all laws, ordinances, and regulations, now pr
<br />hereafter in effect, of all gnvernmental au[horities applicable to the use or occupancy of the Property, including without limitation, the
<br />Americans With Disabilities Act. Trustor may contest in good faith any such law, ordinanca, or regulation and withhold compliance
<br />during any proceeding, including appropriate appeals, so long as Trustor has npiified Lender in writing prior to doing so and so long as,
<br />in Lender's sole opinion, Lender's interests in the Praperty ere not jeopardized. Lender may requira Trustar to post adequate security
<br />or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest.
<br />Duty to Pratect. Trustor agrees neither to abandon or leave unattended the Property. Trustor shall do all other acts, in addition to
<br />those acts set fnrth ebove in this section, which from the character and use of the Property are reasonably necessary to protect and
<br />preserve the F'roperty.
<br />TAXES AND LIENS. The following provisions releting to the taxes and liens on the Property are part of this deed of Trust:
<br />Payment. Trustor shall pay when due (and in all events prior ta delinquency) all [axes, special taxes, assessments, charges (including
<br />water and sewer►, fines and impositions levied against or nn account of the Prpperty, and shall pay when due all claims for work done
<br />on or fbr services rendered ar material furnished to the Property. Trustor shalt maintain the Property free of all liens having priarity
<br />over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as
<br />otherwise 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 long as Lender's interest in the Praperty is not jeopardized. If a lien arises or is filed as a result of nonpeyment,
<br />Trusiar shall wiihin fifteen_(15) daY$ a�fter th� lien ari�es_or,_if a lien is filed, �nriShin fifteen_�76)._days_after 7rustor has_notic_e of.the__.
<br />filing, secure the discharge of the lien, or if requested 6y Lender, deposit with Lender cash pr a sufficient corporate surety bond or
<br />other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges
<br />�hat could accrue as e result of 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 agains[ [he Property. Trustor shall name Lender as an addi[ional obligee under any
<br />surety band furnished in the contest proceedings.
<br />Evidence of Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments end
<br />shall authorize ths appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments
<br />againsi thQ Property.
<br />Notice of Construction. Trustor shall notify Lender at least tifteen 115) days before any work is commenced, any services ere
<br />furnished, or any 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 ma[erials. 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 />PROP�Rl'Y pAMAGE INSURANCE. The fnllowing provisions relating to insuring the Property are a part of this Deed of Trust.
<br />IUlaintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage
<br />endorsements on a fair value besis for the full insurable value covering all Improvements on the Real Property in an amount sufficient
<br />to avoid application of any coinsurance clause, and with a standard mor[gagee clause 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 additional insureds in such liability insurance policies. Additionally, Trustor shall maintain such other insurance,
<br />including but not limitad to hazard, business interruption, and boiler insurance, as Lender may reasonably raquire. Poticies shall be
<br />written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably
<br />acceptable to Lender. Trustor, upon request 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 no[ be cancelled or diminished without at least thirty (30)
<br />days prior written notice to Lender, Each insurance policy also shall include an endorsement providing that coverage in favor of
<br />Lender will not be impaired in any way by any ac[, omission or default of Trustor or any nther person. Should the Reat Proper[y be
<br />located in an area designated by the Direc(or pf the Federal Emergency Management Agency as a special flood hazard area, Trustor
<br />aarees to o6tain and meintain Federal Flnod Insurance, if available, for [he full unpaid principal balance of the loan ar.d any prior liens
<br />an the property securing the loan, up to the maximum poticy limits set under khe National Flood Insurance Program, or as otherwise
<br />required by Lender, and to maintain such insurance for the term of the loan.
<br />Application of Procaeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss
<br />if Trustar fails to do so within fifteen (15) days of the casualty. Whether or not l.ender's security is impaired, Lender may, at Lender's
<br />election, receive and reYain the proceeds of any insurance and apply the proceeds to the reduction of the tndebtedness, payment of
<br />any lien affecting the Property, or the restnretion and repair of the Property. If Lender elects to apply the proceeds to restoration and
<br />repair, Trustor shall repair ar replace the damaged or destroy�d Improvements in a manner satisfactory [o Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repair ar r�storation if
<br />Trustor is not in dafault 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 />Indebtedness. If Lender holds any proceeds af[er payment in full of the Indebtedness, such proceeds shall 6e paid to Trustor as
<br />Trustor's interests may appear.
<br />7rustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish to Lendar a[eport
<br />on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the amount nf the policy; (41
<br />the prpperty insured, the then current replacement value of such property, and tha manner of determining that value; and �5) the
<br />expiration date of the policy. Trustor shall, upon request of l.ender, have an independent appraiser satisfactory to Lender determine
<br />the cash value replacement cost of the Prpperty.
<br />LENDER'S EXPENDITURES. If any action or proceeding i� commenced that would materially affect Lender's interest in the Property or if
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