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<br />D��D O� TRUST 2 o i i o o� s;�
<br />Laan Na: 101237797 (Continued) Page 3
<br />water and sewerl, fines and impositions levied against or on account of the Property, and shall pay when due all claims for wprk done
<br />on or for services rendered or material furnished to the Property. Trustor shall maintain the Property free of all liens having priority
<br />over or equal to the interest of l.ender under this Deed of Trust, except for the lien of taxes and assessments not due and except as
<br />atherwise 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 Property is not jeopardized. If a lien arises or is filed as a result of nonpeyment,
<br />Trustor shall within fifteen (15) days after the lien arises or, if a lien is filed, within fifteen (15) days after Trustor has notice of the
<br />filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or
<br />pther security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attomeys' fees, or other charges
<br />that could accrue as a result of a foreclosure or sale undar the lien. In any contast, Trustor shall defend itself and Lender and shall
<br />satisfy any adverse judgment before enforcement against the Property. Trustor shall name Lender as an additional oblig�e under any
<br />surety bond 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 and
<br />shall authorize the appropriate governmental official to deliver to Lender at any time a written stetement pf the taxes and assessments
<br />against the Property.
<br />Notics of Canstructipn. Trustor shall notify Lender at least fifteen (15) days before any work is commenced, any services are
<br />furnished, or any materials are supplied tb the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted pn
<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 impravements.
<br />PROPERTY DAMAGE INSURANCE. The following pravisions relating to insuring the Property are a part of this Deed of Trust.
<br />Maintenance of Insurance. Trustor shall procure and maintain policies pf fire insurence with standard extended coverage
<br />endorsements on a fair value basis 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 mortgagee clause in favor of Lender. Trustor shall also procure
<br />and maintain comprehensive general liability insuranca in such coveraga amounts as Lender may request with Trustee and Lender
<br />6eing named as additipnal insureds in such liability insurance policies. Additionally, Trustor shall maintain such other insurance,
<br />including but not limited to hazard, business interruption, and boiler 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 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 sa[isfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten (10) days
<br />prior written notice to Lender. �ach insurance policy also shall include an endorsement providing that coverage in favor of Lender will
<br />not be impaired in any way by any act, omission or default of Trustor or any other person. Should the Real Property be located in an
<br />area designa[ed by the Director of the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to
<br />obtain and maintain Federal 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 f'rogram, or as otherwise required
<br />by Lender, and to maintain such insurance for the term of the loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of Ioss
<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 Landar'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 lian affecting the Property, or the restoration and repair of ihe Property. If Lender elects to apply the proceeds to restoration and
<br />repair, Trustor shall repair or replace the damaged or destrayed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay ar reimbursa Trustor from ihe 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 1 SO days after their receipt
<br />and which Lender has not committed to the repair or restoration of the Praperty shall 6e used first to pay any amount owing to Lender
<br />under this Deed of Trust, then to pay accrued interest, and the remainder, it any, shall be applied to the principal balance of the
<br />Indebtadness. If �.ender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to trustor as
<br />Trustor's interesYS may appear.
<br />7rustor's Report on Insurance. Upon request af Lendar, hpwever not more than once a year, Trustor shall furnish to Lender a repprt
<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 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 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 bocuments, including but not limited to Trustor's failura to
<br />discharge or pay when dus any amounts Trustor is required to discharge or pay under this peed of 7rust or any Related Documents, Lender
<br />on Trustor's behalf may (but shall not be obligated to) take any action that Lender daems apprapriate, including but not limited to
<br />discharging or paying all taxes, liens, security interests, ancumbrances and other claims, at any time levied or placed on the Properiy and
<br />paying all cvsts for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender tor such purposes
<br />will then bear interest at tha rate chargad under the Note from the date incurred or paid by Lender to the da[e of repayment by Trustor. All
<br />such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the
<br />balanca af 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 of the Note; or IC) be treated as a balloon payment which will be dua and
<br />payable at the Note's maturity. The Deed of Trust alsv 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 befault.
<br />WARRANTY; DEFENSE OF TITLE. The following provisians relating to ownership of the Property are a part of this Deed of Trust:
<br />Title. 7rustor warrants that: (a) Trustor holds good and marketable title of record to the Property in fae simple, free and clear of all
<br />liens and encumbrances other than those set forth in the Real Property description or in any title insurance palicy, title report, or final
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