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Loan No:20096362
<br />D (Con�t nued) � ��' i � �� � 2 Page 2
<br />replace such Improvements with Improvements of at least equal value.
<br />Lender's Right !o Enter. Lender 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 Reai Property for purposes of Trustor's compliance with the terms and conditions of this Deed
<br />of Trust.
<br />Compliance with Governmental Requirementa. Trustor shaii promptly comply with all laws, ordinances, and regulations, now or hereafter
<br />in effect, of all governmental authorities applicable to the use or occupancy of the Property. Trustor may contest in good faith any such law,
<br />ordinance, or regulation and withhold compliance during any proceeding, inciuding appropriate appeals, so long as Trustor has notified
<br />Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender
<br />may require Trustor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest.
<br />Outy to Protect. Trustor agrees neither to abandon or leave unattended the Property. Trustor shall do all other acts, in addition to those
<br />acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the
<br />Property.
<br />TAXES AND LIENS. The following provisions retating to the taxes and liens on the Property are part of this Deed of Trust:
<br />Payment. Trustor shall pay when due (and in ail events prior to delinquency) all taxes, special taxes, assessments, charges (including water
<br />and sewer), fines and impositions levied against or on account of the Property, and sha�l pay when due all claims for work done on or for
<br />serviaes rendered or material furnished to the Property. Trustor shall maintain the Property free of all liens having priority over or equal to the
<br />interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this
<br />Deed of Trust.
<br />Right to Contest. Trustor may withhold payment of any tax, assessment, or claim in connection wfth a good faith dispute over the obligation
<br />ta pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment, Trustor shall within
<br />fifteen (15) days after the lien arises or, if a lien is filed, within fifteen {15) days after Trustor has notice of the filing, secure the discharge of the
<br />lien, or if requested by Lender, deposit wfth Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an
<br />amount sufficient to discharge the lien plus any costs and attorneys' fees, ar other charges that couid accrue as a result of a foreclosure or
<br />safe under the lien. In any contest, Trustor shaN defend itself and Lender and shall satisfy any adverse judgment before enforcement against
<br />the Property. Trustor snall name �ender as an additional obligee under any 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 shall
<br />authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the
<br />Property.
<br />Notice of Construction. Trustor shall notify Lender at teast fifteen (15j days before any work is commenced, any services are furnished, or
<br />any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account af the work,
<br />services, or materials. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Trustor can and
<br />will pay the cost of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust.
<br />Ma(ntenance of Insurance. 'frustor shali procure and maintain policies of fire insurance wifh standard extended coverage endorsements on
<br />a fair value basis for the full insurable value covering all Improvements on the Reai Property in an amount sufficient to avoid application of
<br />any coinsurance clause, and with a standard mortgagee clause in favor of Lender, together with such other hazard and liability insurance as
<br />Lender may reasonably require. Policies shall be written in form, amounts, coverages and basis reasonably acceptable to Lender and issusd
<br />by a company or companies reasonably acceptabie to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the
<br />policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished
<br />without at least ten (10) days prior written notice to �ender. Each insurance policy also shall include an endorsement providing that
<br />coverage in favor of Lender will not be impaired in any way by any act, omission or defauft of Trustor or any other person. Should the Real
<br />Property be located in an area designated by the Director of the Federafi Emergency Management Agency as a special flood hazard area,
<br />Trustor agrees to obtain and maintain Federai Flood Insurance, if availabie, for the full unpaid principal balance of the loan and any prior
<br />liens on the property securing the loan, up to the maximum policy Iimits set under the National Fiood Insurance Program, or as otherwise
<br />required 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 ►oss +f
<br />Trustor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's securiry is impaired, Lender may, at Lender's election,
<br />receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting
<br />the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall
<br />repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender sha�i, upon satisfactory proof of such
<br />expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if Trustor is not in default under this
<br />Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the
<br />repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br />interest, and the remainder, if any, shail be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment
<br />in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's interests may appear.
<br />LENDER'S EXPENDITURES. tf Trustor faiis (A) to keep the Property free of ail taxes, liens, security interests, encumbrances, and other claims,
<br />(B) to provide any required insurance on the Properiy, or (C) to make repairs to the Properry then Lender may do so. If any action or
<br />proceeding is commenced that would materially affect Lender's interests in the Property, then Lender on Trustor's behalf may, but is not required
<br />to, take any action that Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such
<br />purposes 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.
<br />All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payabie on demand; (B) be added to the balance
<br />of the Note and be apportioned among and be payabie with any installment payments to become due during either (1) the term of any
<br />applicable insurance policy; or (2} the remaining term of the Note; or (Cj be treated as a balloon payment which will be due and payable at the
<br />Note's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to
<br />any other rights or any remedies to which lender may be entlded on account of any default. Any such action by Lender shall not be construed as
<br />curing the defautt so as to bar Lender from any remedy that ft otherwise would have had.
<br />WARRANTY; DEFENSE OF TITLH. The foliowing provisions relating to ownership of the Property are a part of this Deed of 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 liens and
<br />encumbrances other than those set forth in the Reai Property description or in any tftie insurance policy, tiUe report, or final title opinion
<br />issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Trustor has the full right, power, and authority to
<br />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 forever defend the title to the Property against
<br />the lawtul claims of all persons. In the event any action or proceeding is commenced that questions Trustor's title or the interest of Trustee or
<br />L.erider under this Deed of Trust, Trustor shall defend the action at Trustor's expense. Trustor may be the nominal party in such proceeding,
<br />but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and
<br />Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such
<br />participatfon.
<br />Complfance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable laws,
<br />ordinances, and regulaUons of governmenial authorides.
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<br />Survival of Promiaes. All promises, agreements, and statements Trustor has made in this Deed of Trust shall survive the execution and
<br />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 Indebtedness
<br />is paid in fu1L
<br />CONDEMNATION. The following provisfons relating to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shali promptiy notify Lender in writing, and Trustor shall promptly take such
<br />steps as may be necessary to defend the action and obtain the award. Trustor may be the nominal party in such proceeding, but Lender
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