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DEED OF TRUST 2 p� 10 3 0 2� Page 3
<br />Loen No: 101240431 ` � - � (Continued)
<br />Malntenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended coverage
<br />endorsements on a falr value basis for the full insurable velue covering all Improvements on the Reai Property in an amount sufficient
<br />to avoid applicetion of any coinsurance clause, and with e standard mortgagee clause in favor of Lender, together with such other
<br />heaard and liability insurance as Lender may reasonably require. Policies shall be written in form, amounts, covereges and basis
<br />reasonably 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 policies or certificates 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 also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any wey by any
<br />act, omission or defeult of Trustor or any other person. Should the Real Property be located in an area designeted by the Director of
<br />the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to obtain and maintain Federel Flood
<br />Insurance, if aveilable, within 45 days after notice is given by Lender that the Property is located in a special flood hazard area, for the
<br />full unpeid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set
<br />under the Netional Flood Insurence Program, or as otherwise required by Lender, and to maintain such insurance for the term of the
<br />loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss
<br />if Trustor fails to do so within fifteen (15) deys 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 reduction of the Indebtedness, payment of
<br />eny lien affecting the Property, or the restoretion and repair of the Property. If Lender elects to apply the proceeds to restoration and
<br />repeir, Trustor shall repair of replace the damaged or destroyed lmp[ovements in a manner satisfactq .ry to Lender., Lender shall, upon
<br />setisfectory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of rapair or restoration if
<br />Trustor is not in defeult 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 repeir 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 after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as
<br />Trustor's interests may appear.
<br />LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property ftee of all taxes, liens, security interests, encumbrances, and other
<br />clalms, (B) to provide eny required insurance on the Property, or (C) to make repairs to the Property 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 behelf iney,
<br />but is not required to, take any action that Lender believes to be appropriate to protect Lender's interests. All expenses incurred or pafd by
<br />Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of
<br />repeyment by Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demend;
<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 />efther (7 ) the term of any applicable insurance policy; or f2) the remaining term of the Note; or (C) be treated as e balloon payment
<br />which will be due and payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided
<br />for in this paregraph shall be in addition to any other rtghts or any remedies to which Lender may be entitled on eccount of any default.
<br />Any such action by Lender shall not be construed as curing the default so as to 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 Trust:
<br />Title. Trustor werrants that: (a) Trustor holds good and marketable title of record to the Property in fee simple, free and clear of all
<br />liens and encumbrances other than those set forth in the Real Property description or in eny title insurance policy, title report, or finel
<br />title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and (b) Trustor has the full right,
<br />power, end authority to 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
<br />against the lewful claims of all persons. In the event any action or proceeding is commenced that questions Trustor's title or the
<br />interest of Trustee or Lender under this Deed of Trust, Trustor shail defend the action at Trustor's expense. Trustor may be the
<br />nominal perty 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 Lender such instruments as Lender may
<br />request from time to time to permit such participatibn.
<br />Compliance With Lews. Trustor warrants that the Property and Trustor's use of the Property complies with all existing appliceble
<br />laws, ordinances, and regulations of governmental authorities.
<br />Survival of Promtses. All promises, agreements, and statements Trustor has made in this Deed of Trust shell survive the execution
<br />and delivery of this Deed af 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 />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and Trustor shell promptly
<br />take such steps as may be necessary to defend the action and obtain the award. Trustor may be the nominal perty in such
<br />proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of 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 />Lender from time to time to permit such participation.
<br />Applicetion of Net Proceeds. If all or any part of the Property is condemned by eminent domain 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
<br />to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of
<br />all reasonable costs, expenses, and attorneys' fees incurred by Trustee or Lender in connection with the condemnation.
<br />IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental
<br />taxes, fees and charges are a part of this Deed of Trust:
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