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� DEEDOFTRUST �0�.�.O�i3�'�
<br />Loan No: 101244370 � � (Continued) Page 3
<br />or complete construction of any Improvements on the Property, the Improvements shall be completed no leter than
<br />the maturity date of the Note (or such earlier date as Lender may reasonably estabiish) and Trustor shall pay in full
<br />all costs and expenses in connection with the work. Lender will disburse loan proceeds under such terms and
<br />conditions as Lender may deem reasonably necessary to insure that the interast created by this Deed of Trust shall
<br />have priority over all possible liens, including those of material suppliers end workmen. Lender may require, among
<br />other things, that disbursement requests be supported by receipted bills, expense affidavits, waivers of liens,
<br />construction progress reports, and such other documentation as Lender may reasonably request.
<br />TAXES AND LIENS. The following provisions releting to the taxes and liens on the Property are part of this Deed of
<br />Trust:
<br />Payment. Trustor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessmants,
<br />charges (including water and sewer), fines and impositions levied egeinst or on account of the Property, and shall
<br />pay when due all cleims for work done on or for services rendered or material furnished to the Property. Trustor
<br />shall maintain the Property free of all liens having priority over or equal to the interest of Lender under this Deed of
<br />Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this Deed af
<br />Trust.
<br />Right to Contest. Trustor may withhold payment of eny tax, assessment, or claim in connectfon with a good feith
<br />dispute over the obligation to pay, so long as Lender's interest in the Property is not jeoperdized. If a lien arises or
<br />is filed as a result of nonpayment, Trustor shali within fifteen (15) days efter the lien arises or, if a lien is filad,
<br />within fifteen (15) days after Trustor has notice of the filing, secure the discherge of the lien, or if requested by
<br />Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an
<br />amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges that could accrue as a
<br />result of a foreclosure or sale under the lien. In any contest, Trustor shall defend itself and Lender and shall satisfy
<br />any adverse judgment before enforcement against the Property. Trustor shali name Lender as an additional obligee
<br />under any 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
<br />or assessments and shall authorize the appropriate governmental official to detiver to Lender at any time a written
<br />statement of the taxes and assessments ageinst tha Property.
<br />Notice of Construction. Trustor shall notify Lender at least fifteen (15) days before any work is commenced, any
<br />senrices are furnished, or any materials are supplied ta the Property, if any mechanic's lien, materialmen's lien, or
<br />other lien could be asserted on account of the work, services, or materials. Trustor will upon request of Lender
<br />furnish to Lender edvance assurances satisfactory to Lender that Trustor can end will pay the cost of such
<br />improvements.
<br />PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of
<br />Trust.
<br />Maintenance of Insurance. Trustor shall procure and maintain policies of fire insurance with standard extended
<br />coverage endorsements on a fair value basis for the full insurable value covering all Improvements on the Real
<br />Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee
<br />clause in favor of Lender. Trustor shall also procure end maintain comprehenslve general liability insurance in such
<br />coverage amounts as Lender may request with Trustee and Lender being named as additional insureds in such
<br />liability insurance policies. Additionally, Trustor shall maintain such other insurance, including but not limited to
<br />hazard, business interruption, and boiler insurance, as Lender may reasonably require. Policies shall be written in
<br />form, amounts, coverages and basis reasonably ecceptable to Lender and issued by a company or companies
<br />reasonably accepteble to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the
<br />policies or certificates of insurance in form satisfactory to Lender, including stipulations that coverages will not be
<br />cancelled or diminished without at least ten i10) days prior written notice to Lender. Each insurance policy also
<br />shall include an endorsement providing that coverege in favor of Lender will not be impaired in any way by any act,
<br />omission or default of Trustor or any other person. Should the Real Property be loceted in an area designated by
<br />the Director of the Federal Emergency Management Agency as a special flood hazard area, Trustor egrees to obtain
<br />and maintain Federal Flood Insurence, if available, for the full unpaid principal balance of the Ioan and any prior
<br />liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance
<br />Program, or as otherwise required by Lender, and to maintain such insurence for the term of the loan.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may
<br />make proof of loss if Trustor fails to do so within fifteen (15) deys of the casualty. Whether or not Lender's
<br />security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply
<br />the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration
<br />and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shali repair or
<br />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
<br />repair or restoration if Trustor is not in default under this Deed of Trust. Any proceeds which have not been
<br />disbursed within 180 days after their receipt and which Lender has not committed to the �epair or restoration of
<br />the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br />interest, and the remainder, if any, shali be epplied to the principal belance of the Indebtedness. If Lender holds
<br />any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trustor's
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