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��p� ��"` ` • ': : DEEDOFTRUST ��������,�
<br />Loan No: 101239747 (Continued) Page 3
<br />that could accrue as a resuit of a foreclosure or sale under the lien. In any contest, Trustor shall defend itaelf and Lender and shall
<br />satisfy any adverse judgment before enforcement against the Property. Trustor shall name Lender as an additional obligee under eny
<br />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
<br />shall euthorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments
<br />against the Properry.
<br />Notice of Construction. Trustor shall notify Lender at least fifteen (75) 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 satisfactory to
<br />Lender thet Trustor can and wili 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 />Mahrtenance of Insurance. Trustor shall 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 applicetion of any coinsurance clause, and with a standerd mortgagee clause in favor of Lender, together with such other
<br />hazard and liebility insurance as Lender may reasonably require. Policies shall be written in form, amounts, coverages 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 nox be cancelled or diminished without at least ten (70) days priar written notico to Lender. Each
<br />insurance policy aiso shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any
<br />act, omission or default of Trustor or any other person. Should the Real Property be located in an area designated by the Director of
<br />the Federal Emergency Management Agency as a special flood haaard area, Trustor agrees to obtain and maintain Federal Flood
<br />Insurance, if eveilable, for the full unpaid principal belance of the loan and any prior liens on the property securing the loan, up to the
<br />maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such
<br />insurance for the term of the loan.
<br />Application of Proceeds. Trustor shali promptly notify Lender of any loss or damage to the Property. Lender mey make proof of loss
<br />if Trustor fails to do so within fifteen i15) days of the casualty. Whether or not Lender's security is impaired, Lender may, at Lender's
<br />election, receive and retein 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 restoration and
<br />repair, Trustor shall repair or 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 reasonabie cost of repeir 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 recefpt
<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 any, shall be applied to the principal halance 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 appear.
<br />LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests, encumbrances, and other
<br />claims, (B) to provide any 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 behalf may,
<br />but is not required to, take any action that Lender believes to be appropriate to protect Lender's interests. All expenses incurred or paid 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 />repayment by Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand;
<br />(B) be added to the balance ot the Note and be apportioned among and be payable with any installment payments to become due during
<br />either 17 ) the term of eny applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment
<br />which will be due and peyable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided
<br />for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account of eny 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 />WARRAflITY; DEFENSE OF TiTLE: The ft�llowing provisions relating to ownership of the Property ar� a`pert 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 ell
<br />liens and encumbrances other than those set forth in the Real Property description or in any titie insurance policy, title repart, 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, 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 warrants 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 defend the action at Trustor's expense. Trustor may be the
<br />nominal parry 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 participation.
<br />Compliance With Lews. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable
<br />laws, ordinances, and regulations of governmental authorities.
<br />Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall survive the execution
<br />and 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
<br />Indebtedness is paid in full.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
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