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�.- ,, � �s ., <_ � , �, ., ,;,� DEED OF TRUST 2 � 110 3 6 9 2
<br />Loan No: 101Z�1091- ' " - �- � � ° = (Continued) Page 3
<br />filing, secure the discharge of the lien, or if requested by Lander, deposit with Lender cesh or a sufficient corporete surety bond or
<br />other security satisfactory to Lender in en amount sufficient to discharge the lien plus any costs and ettorneys' fees, or other charges
<br />thet could eccrue as a result of a foreclosure or sale under the lien. In any contest, Trustor shall defend itself end 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 Peymerrt. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and
<br />shall euthorize the eppropriate governmentel official to deliver to Lender at any time a written statement of the taxes and assessmenta
<br />against the Property.
<br />Notice of Construction. Trustor shall notify Lender at least fifteen (16) days before any work is commenced, any services are
<br />furnished, or eny meterials are supplied to the Property, if any mechanic's lien, meterialmen'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 Lendar advance assurences satisfactory to
<br />Lender that Trustor cen end 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 shall procure and maintain policies of fire insurance with standard extended coverage
<br />endorsements on a fair value besis for the full insurable value covering all Improvements on the Real Property in an amount sufficient
<br />to avoid application of any coinsurence clause, and with a standard mortgagee clause in favor of Lender. Trustor shall also procure
<br />end tnaintain oomprehensive general liability insurance in suah cove�age amounts as Lender may request with T�ustee and Lender
<br />being named as additional insureds in such Ifability insurance policies. Additionally, Trustor shall maintain such other insurance,
<br />including but not Iimited to hazard, business interruption, and bofler insurance, es Lender may reasonably require. Policies shall be
<br />written in form, amounts, coverages and basis reasonebly ecceptable to Lender snd issued by a company or companies reasonably
<br />acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the poUcies 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) 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 impaired in any way by any act, omission or default of 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 agrees to
<br />obtain and maintain Federel Flood Insurance, if available, for the full unpaid principal balance of the loen end any prior liens on the
<br />property securing the loan, up to the maximum policy limits set under the National Flood Insurance Progrem, or as otherwise required
<br />by Lender, and to maintain such Insurance for the term of the loan.
<br />Apptication of Proceeds. Trustor shall promptly notify Lender of any toss or damage to the Property. Lender may make proof of loss
<br />if Trustor fails to do so within fifteen (1 b) 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 epply the proceeds to the reduction of the Indebtednesa, payment of
<br />any lien effecting the Properry, or the restoration and repair of the Properry. If Lender elects to apply the proceeds to restoration and
<br />repair, Trustor shall repair or replace the demaged or deatroyed Improvements in a menner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of repeir or restoration if
<br />Trustor is not in default 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 fi�at to pay any amount owing to Lender
<br />under this Deed of Trust, then to pey 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 />Compliance with F�cisting Indebtedness. During the period in which any Existing Indebtedness described below is in effect, complience
<br />with the insurance p�ovtsions contained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the
<br />insurance provisions under this Deed of Trust, to the extent complience with the terms of this Deed of Trust would constitute a
<br />duplication of insurence 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 the Existing Indebtedness.
<br />Trustor's Report on In�ura�ca. . Upon request of Lender, however not_more than once a year, Trustor shell furnish to Lender a.report
<br />on each existing policy of insurance showing: 11! the neme of the insurer, (2) the risks insured; (3) the emounrof the policy; (4)
<br />the property insured, the then current replecement velue of such property, and the menner of determining thst value; and (6) the
<br />expiration date of the policy. Trustor shall, upon request of Lender, have an independent appralaer 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 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 in good standing as required below, or to discharge or pay when due eny
<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) teke eny action thet Lender deems appropriete, including but not limited to discharg(ng or paying all taxes, tiens,
<br />security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring,
<br />mainteining and preserving the Property. All auch expenditures incurred or paid by Lender for such purposes will then bear interest at the
<br />rete charged under the Note from the date incurred or peid by Lender to the date of repayment by Trustor. All such axpenses will become
<br />a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the belance of the Note and be
<br />apportioned emong and be payable with any installment payments to become due during either (1) the tarm of eny appliceble insurence
<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 are a part of this Deed of Trust:
<br />Title. Trustor warrants that: la) Trustor holds good and marketeble 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 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
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