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201106770
<br />Notice of Construction. Trustor shall notify Lender at least fifteen (15) days before any work is commenced, any
<br />services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other
<br />lien in excess of One Million Dollars ($1,000,000) could be asserted on account of the work, services, or materials.
<br />Trustor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Trustor can and will
<br />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
<br />Trust.
<br />Maintenance of Insurance. Trustor shall procure and maintain policies of insurance in compliance with Trustor's
<br />obligations under the Agreement to Provide Insurance.
<br />Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may make
<br />proof of loss if Trustor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired,
<br />Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the
<br />reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If,
<br />Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the damaged or destroyed
<br />Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or
<br />reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if Trustor is not in default under this
<br />Deed of Trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not
<br />committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this
<br />Deed of 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 paid to
<br />Trustor as Trustor's interests may appear.
<br />Trustor's Report on Insurance. Upon request of Lender, however not more than once a year, Trustor shall furnish to
<br />Lender a report on each existing policy of insurance showing: (1) the name of the insurer; (2) the risks insured; (3) the
<br />amount of the policy; (4) the property insured, the then current replacement value of such property, and the manner of
<br />determining that value; and (5) the expiration date of the policy. Trustor shall, upon request of Lender, have an
<br />independent appraiser satisfactory to Lender determine the cash value replacement cost of the Property.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the
<br />Property or if Trustor fails to comply with any provision of this Deed of Trust or any Related Documents, including but not
<br />limited to Trustor's failure to discharge or pay when due any amounts Trustor is required to discharge or pay under this Deed
<br />of Trust or any Related Documents, Lender on Trustor's behalf may (but shall not be obligated to) take any action that Lender
<br />deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and
<br />other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the
<br />Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under
<br />the Note from the date incurred or paid by Lender to the date of repayment by Trustor. All such expenses will become a part
<br />of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be
<br />apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable
<br />insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and
<br />payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. Such right shall be in addition
<br />to all other rights and remedies to 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
<br />Trust:
<br />Title. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Property in fee simple, free and
<br />clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance
<br />policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of Trust,
<br />and (b) Trustor has the full right, 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
<br />the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions
<br />Trustor's title or the interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the action at Trustor's
<br />expense. Trustor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the
<br />proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Trustor will deliver, or cause
<br />to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation.
<br />Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing
<br />applicable laws, ordinances, and regulations of governmental authorities.
<br />Survival of Representations and Warranties. All representations, warranties, and agreements made by Trustor in this
<br />Deed of Trust shall survive the execution and delivery of this Deed of Trust, shall be continuing in nature, and shall
<br />remain in full force and effect until such time as Trustor's Indebtedness shall be paid in full.
<br />CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br />Proceedings. If any proceeding in condemnation is filed, Trustor shall promptly notify Lender in writing, and Trustor shall
<br />promptly take such steps as may be necessary to defend the action and obtain the award. Trustor may be the nominal
<br />party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the
<br />proceeding by counsel of its own choice, and Trustor will deliver or cause to be delivered to Lender such instruments and
<br />documentation as may be requested by Lender from time to time to permit such participation.
<br />Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any
<br />proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net
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