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<br />Loan IVo: 101240725
<br />DEED OF TRUST 2 � 110 3�. 6'7
<br />(Continued)
<br />Page 3
<br />Notice of Constructlon. Trustor shall notlfy Lender at least fifteen (15) days before eny work is commenced, any services are
<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 materials. Trustor wlll upon request of Lender furnish to Lender advance assurances satisfectary to
<br />Lender that Trustor can and will pay the cost of such improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions retating to insuring the Property are a pert of this Deed of Trust.
<br />Maintenance of Insurence. Trustor shall procure and maintain policies of fire insurence with standard extended coverage
<br />endorsements on a fair velue basis for the full insurable value covering ell Improvements on the Real Property in an emount sufficient
<br />to avofd epplication of eny cotnsurance clause, end with a standerd mortgagee clause in favor of Lender. Tn.�stor shall aiso procure
<br />and maintain comprehensive general Uebility insurance in such coverage amounts as Lender mey request with Trustee and Lender
<br />being named as additional insureds in such IiebiUty insurance policies. Additionally, Trustor shall meintain such othe� insurance,
<br />including but not Umited to hazerd, businass interruption, and boiler insurance, as Lender may reasonably require. Policies shall be
<br />written in form, amounts, covereges and basis reasonabty acceptable to Lender and issued by a company or companies reasonebly
<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 stipuletions that coverages will not be cancelled or diminished without at least ten (10) days
<br />prior written notice to Lender. Each insurance policy also shall include an endorsement providing thet coverage in favor of Lender will
<br />not be impeired in any way by any act, omission or defeult af Trustor or any other person. Should the Real Property be located in an
<br />area designated by the Director of the Federal Emergency Management Agency es a special flood hazard area, Trustor ag�ees to
<br />obtain and maintain Federal Flood Insurence, if aveilable, for the full unpaid principal belance of the loan and any prior liens on the
<br />property securing the loen, up to the meximum policy limits set under the National Flood Insurance Program, or as otherwise required
<br />by Lender, and to maintain such insurance for the term ot the loan.
<br />Appllcation of Proceeds. Trustor shell promptly notify Lender of eny loss or damege to the Property. Lender mey 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, et 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 />any lien effecting the Property, or the restoration end repair of the Property. If Lender elects to apply the proceeds to restoration and
<br />repair, Trustor shall repair or replace the damaged or destroyed Improvements in e menner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pey or reimburse Trustor from the proceeds for the reasonable cost of repair or restoretion lf
<br />Trustor is not in defeult under this Deed of Trust. Any proceeds which have not been disbursed within 180 days efter their receipt
<br />and which Lender has not committed to the repair or restoretion of the Property shall be used first to pay eny amount owing to Lender
<br />under this Deed of Trust, then to pay accrued interest, and the remainder, if any, shell 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 />Compliance with Existing Indebted�ess. During the period in which any Existing Indebtedness described below is In effect, compliance
<br />with the insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the
<br />insurance provisions under this Deed of Trust, to the extent compliance with the terms of this Deed of Trust would constitute a
<br />duplication of insurence requirement. If any proceeds from the insurence become payeble on loss, the provisions in this Deed of Trust
<br />for division of proceeds shall apply only to that portion of the proceeds not peyable to the holder of the Existing Indebtedness.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish to Lender a report
<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 the manner of determining thet value; end 15) the
<br />expiration dete of the policy. Trustor shall, upon request of Lender, have en independent appraiser satisfactory to Lender determine
<br />the cash value replacement cost of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would meterially affect Lender's interest in the Property or if
<br />Trustor fails to comply wlth any provision of this Deed of Trust or any Related Documents, including but not limited to Trustor's failure to
<br />comply with any obligation to maintain Existing Indebtedness (n good standing as required below, or to discharge or pay when due any
<br />amounts Trustor is required to discharge or pey under this Deed of Trust or any Related Documents, Lender on Trustor's behalf may ibut
<br />shell not be obligated to? take eny action that Lender deems eppropriate, including but no.t limited to discharging or paying all taxes, liens,
<br />security interests, encumbrences and other cleims, at eny time levied or placed on the Proparry end paying all costs for insuring,
<br />maintaining end preserving the Property. Atl such expenditures incurred or paid by Lender for such purposes will then bear interest at the
<br />rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such expenses will become
<br />a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be
<br />apportioned among and be payable with any instaltment payments to become due during either (1) the term of any applicable inaurance
<br />poticy; or (2) the remaining term of the Note; or (C) be treated as a baltoon payment which will be due end payable at the Note's
<br />maturity. The Deed of Trust also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to
<br />which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Properly 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
<br />liens and encumbrances other than those set forth in the Real Property descriptlon or in the Existing Indebtedness section below or in
<br />any titte insurance policy, titte report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of
<br />Trust, and ib) Trustor has the full right, power, and euthority to execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. SubJect to the exception in the peregraph above, Trustor warrants end will forever defend the title to the Property
<br />egainst the lawful claims of all persons. In the event any action or proceeding is commenced that questions Trustor's title or tha
<br />interest of Trustee or Lender under this Deed of Trust, Trustor shell defend the action at Trustor's expense. Trustor may be the
<br />nominal party in such proceeding, but Lender shall be entltled to perticipate in the proceeding and to be represented In the proceeding
<br />by counsel of Lender's own choice, and Trustor will dellver, or ceuse to be delivered, to Lender such instruments as Lender may
<br />request from time to time to permit auch participation.
<br />Compliance With Laws. Trustor werrents that the Property and Trustor's use of the Property complies with all existing applicable
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