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�'��"a� �°��' �"�"" DEEDOFTRUST 201103404
<br />Loan No: 101239486 (Continued) Page 3
<br />Notice of Construction. Trustor shall notify Lender at least fifteen (15) days before any 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 will upon request of Lender furnish to Lender advance assurances satisfectory to
<br />Lender thet Trustor can and 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 />Maintenance of Insurance. Trustor shell procure and maintain policies of fire insurance 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 standerd mortgagee clause in favor of Lender. Trustor shall elso procure
<br />end maintein comprehensive general liability insurance in such coverage emounts as Lender may �equest with Trustee and Lender
<br />being named as additional insureds in such liability insurance policies. Additionally, T�ustor shall meintain 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 companias 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 wiil not be cencelied or diminishad without at least ten (10) days
<br />prior written notice to Lender. Each insurance policy elso shall include an endorsement providing that coverage in favor of Lender will
<br />not be impeired in any way by any act, omission or default of Trustor or any other person. Should the Reat Property be located in an
<br />erea designated by the Director of the Federal Emergency Management Agency as a special fload hezard area, Trustor egrees to
<br />obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal belance of the Ioan end any prior liens on the
<br />property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or es otherwise required
<br />by Lender, and to maintain such insurance for the term of the loan.
<br />Application of Proceeds. Trustor shali promptly notify Lender of any loss or damege to the Property. Lender may make proof of loss
<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 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 affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoratfon and
<br />repair, Trustor shall repair o� replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repair 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 repair or restoration of the Property shall be used first to pay any amount owing to Lender
<br />under this Daed of Trust, then to pay eccrued interest, and the remeinder, 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 />Compflance with Facisting Indebtednass. 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 extant compliance with the terms of this Deed of Trust would constitute a
<br />duplication of insurance requirement. If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust
<br />for division of proceeds shall apply only to that portion of the proceeds not payable to the holder of tha Existing Indabtedness:
<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 menner of determining that velue; and (5) the
<br />expiration date of the policy. Trustor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine
<br />the cash value replacement cost of the Property.
<br />LENDER'S EXPENDITURES. If eny 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 af this Deed of Trust or any Related Documents, inciuding but not limited to Trustor's failure to
<br />comply with any obligation to maintain Existing Indebtedness in good standing as required below, or to discharge or pay when due any
<br />amounts Trustor is required to discharge or pay under this Deed of Trust or any Related Documents, Lender on Trustor's behalf may (but
<br />shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens,
<br />security interests, encumbrances and other claims, et any time levied or placed on the Property and paying ell costs for insuring,
<br />maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest et the
<br />rete 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 />epportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance
<br />policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's
<br />meturity. 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 Property ere a pert of this Deed of Trust:
<br />Title. Trustor warrants thet: (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 thosa set forth in the Real Property description or in the Existing Indebtedness section below or in
<br />any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of
<br />Trust, and (b) Trustor has the full right, power, and authority to execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Trustor werrants and will forever defend the title to the Property
<br />against the lawful 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 shall dafend the action at Trustor's expense. Trustor may be the
<br />nominal party in such proceeding, but Lender shall be entitled to perticipate in the proceeding and to be represented in the proceeding
<br />by counsel of Lender's own choice, end Trustor will deliver, or cause to be delivered, to Lender such instruments as Lender may
<br />request from time to time to permit such participation.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing epplicable
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