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DEED OF TRUST `,� O�. �. O� 4 O G
<br />Loan No: 101��4btl35 ��� 4 - '�"� (Continued) Page 3
<br />endorsements on a feir value besis for the full insurable value covering all Improvements on the Real Property in an emount sufficient
<br />to evoid application of eny coinsurence clause, end with a standard mortgegee clause in favor of Lender. Trustor shall elso procure
<br />and maintain comprehenaive generel liability insurance in such coverage amounts es Lender mey request with Trustee and Lender
<br />being nemed as additional 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 besis reasonably acceptable to Lender and issued by e company ar 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 stipulations thet coverages will not be cencelled or diminished without et least ten (10) deys
<br />prior written notice to Lender. Each insurance policy elso shall inctude en endorsement providing that coverage in favor of Lender will
<br />not be impaired in eny way by any act, omission or default of Trustor or eny other person. Should the Real Property be loceted in en
<br />area designeted by the Director of the Federal Emergency Management Agency es a special flood hazard area, Trustor agrees to
<br />obtein and maintain Federel Flood Insurence, If evailable, for the full unpaid principal balance of the loan end eny prior liens on the
<br />property securing the loan, up to the maximum policy limits set under the Nationel Flood Inaurance Program, or as othenivise required
<br />by Lender, and to meintain such insurance for the term of the loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of eny loss or damage to the Property. Lender may make proof of loss
<br />if Trustor fails to do so within fifteen (16) days of the casualty. Whether or not Lender's security is impeired, Lender mey, at Lender's
<br />election, receive and retain the proceeds of eny insurance end 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 epply the proceeds to restoration and
<br />repair, Trustor shell repair or replace the demaged or destroyed Improvementa in a manner setisfactory to Lender. Lender shall, upon
<br />setisfactory proof of such expenditure, pey or reimburse Trustor from the 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 180 deys efter 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 Deed of Trust, then to pay accrued interest, and the remainder, if eny, shatl be epplied to the principal balance of the
<br />Indebtedness. If Lender holds eny proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as
<br />Trustor's interests may eppear.
<br />Compliance with Existlng Indebtedness. During the period in which eny Existing Indebtedness described betow is in effect, compliance
<br />with the inaurance provisions conteined in the instrument evidencing such Existing Indebtedness shatl 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 e
<br />duplication of insurance requirement. If any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust
<br />tor division of proceeds shall apply only to that portion of the proceeds not payeble 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 insurence 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 replecement velue of such property, and the manner of determining that value; and (6) the
<br />expiration date of the policy. Trustor shall, upon request ot Lender, have en independent appraiser satisfactory to Lender determine
<br />the cesh value replacement cost of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially sffect Lender's interest in the Property or (f
<br />Truator fails to comply with any provision of this Deed of Trust or eny Related Documents, including 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 obligeted to) take eny action that Lender deems appropriate, including but not limited to discharging or paying all taxes, Ifens,
<br />security intereats, encumbrences and other claims, at any time levied or placed on the Property and paying all costs for insuring,
<br />maintaining and preserving the Property. All 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 end, at Lender's option, will (A1 be payable on demand; (B) be added to the balance of the Note and be
<br />apportioned emong and be payable with any instellment payments to become due during either (1) the term of any appUcable insurance
<br />policy; or (2) the remeining term of the Note; or (C) be treated as a betloon peyment which will be due and payable et 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 Defeult.
<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 warrents that: (a) Trustor holds good and marketeble title of record to the Property in fee simple, free and clear of all
<br />liens and encumbrances other then those set forth in the Reel Property description or in the Existing Indebtedness section below or in
<br />any title insurance policy, title report, ar 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, end authority to execute and dellver this Deed of Trust to Lender.
<br />Defense of T(tle. Subject to the exception in the peregraph above, Trustor warrants and will forever defend the title to the Property
<br />ageinst 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 shell defend the action at Trustor's expense. Trustor may be the
<br />nominal party in such proceeding, but Lender shell be entitled to participete 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 es Lender may
<br />request from time to time to permit auch perticipation.
<br />Complianca With Laws. Trustor warrants thet the Property and Trustor's use of the Property complies with all existing applicable
<br />laws, ordinances, end reguletions of governmental authoritles.
<br />Survival of Representations and Werrarnies. All representations, werranties, and agreements made by Trustor in this Deed of Trust
<br />shell survive the execution and delivery of this Deed of Trust, shall be continuing in nature, end shall remain In full force and effect
<br />until such time as Trustor's Indebtedness shell be paid in full.
<br />EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this Deed of Trust:
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