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<br />� DEED OF TRUST 2 O�. �. O 4 8��'
<br />Loan No; 101242552 (Continued) Page 3
<br />other security satisfactory to Lender in an emount sufficient to discharge the lien plus eny costs and attorneys' fees, or other charges
<br />that could accrue as a result of a foreclosure or sele under the lien. In any contest, Trustor shall defend itself and Lender and shall
<br />satisfy any adverse judgment before enforcement against the Property. Trustor shall name Lender as an additional obligee under any
<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 assassments and
<br />shall authorize the appropriate governmental official to deliver to Lender at any time a wrltten statement of the taxes and assessments
<br />against the Property.
<br />Notica 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, materia(men's lien, or other lien could be asserted on
<br />account of the work, senrices, or materfals. Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to
<br />Lender that Trustor can end will pey 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 />Meintenance 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 epplication of any coinsurance clause, and with a standard mortgagee clause in favor of Lander. Trustor shall elso procure
<br />and maintain comprehensive general liability insurance in such coverage emounts as Lender may request with Trustee and Lender
<br />being named as additional insureds in such liabi(ity insurence policies. Additionally, Trustor shall maintain such other insurance,
<br />including but not limited to hazerd, business interruption, an�l boiler insurance, as Lender may reasonabty require, Policies shall be
<br />written in form, amounts, coverages and basis reasonebly acceptable to Lender and issued by a company or companies reasonabiy
<br />acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurence
<br />in form satisfactory to Lender, including stipuletions that coverages will not be cancelled or diminished without et least ten (10) days
<br />prior written notice to Lender. Eech insurance policy also shall include an andorsement 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 as e special flood hazard area, Trustor egrees to
<br />obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal belance of the loan and eny prior liens on the
<br />property securing the (oan, up to the maximum policy limits set under the National Flood Insurence Program, or as othe�nrise required
<br />by Lender, and to maintain such insurance for the term of the loan.
<br />Application 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 (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 />eny 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 />satisfectory 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 first to pay any amount owing to Lender
<br />under this Deed ot Trust, then to pay 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 peid to Trustor as
<br />Trustor's interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, howevar not more then 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 replecement velue of such property, and the menner of determining that velue; and (5) the
<br />expiretion 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 any action or proceeding is commenced that would rnaterially 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 />dischacg� or.pay, when due any emounts Trustor is required to discharge or pay u»der th)s Deed of 7rust or any Related Documents,-Lender
<br />on Trustor's behalf may (but shall not be obligeted to) take eny action that Lender deems eppropriate, including but not iimited to
<br />discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed ort the Property and
<br />paying all oosts for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes
<br />will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All
<br />such expenses will become a part of the Indebtedness and, et Lender's option, will fA) be payable on demand; (B) be added to the
<br />balance of the Note and be apportioned among and be payable with any installment payments to become due during either (7 ) the term of
<br />any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due end
<br />payable at the Note's maturity. The Deed of Trust a(so will secure payment of these amounts. Such right shall be in addition to all other
<br />rights end remedies to which Lender may be entitled upon Default.
<br />WARRANTY; DEFENSE OF TITLE, The following provisions retating to ownership of the Property are a part of this Deed of Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good end 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 description or in any title insurance policy, title report, or final
<br />title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust, and 4b) 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, 7rustor warrants and will forever defend the title to the Property
<br />against tha 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 Desd of Trust, Trustor shall defend the ection at Trustor's expense. Trustor may be the
<br />nominal party in such proceeding, but Lender shall be entitled to participate in the proceading 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 participatlon.
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