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03-27-1998 DEED OF TRUST Page 3
<br /> Loan No 685255 (Continued) � 98-�t�2835
<br /> � Right To Contest. Trustor may withhold payment of any tax,assessment, or claim in connect(on with a good faith dispute over the oblfgallon
<br /> to pay,so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment,Trustor shall within
<br /> fifteen (15)days atter the lien arises or,if a Uen is filed,within fifteen(15)days aHer Trustor has notice of the filing,secure the discharge of the
<br /> lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an
<br /> amount su�cient to discharge the lien plus any costs and attorneys'fees or other charges that�ould accrue as a;esult o(a foreclosure or sale
<br /> under the lien. In any contest, Trustor shall defend itself and Lender and shall satisiy any adverse judgment before enforcement against the
<br /> Property. Trusfor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings.
<br /> Evfdence of Payment. Trustor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall
<br /> auihorize the appropriate governmental officiai to deliver to Lender at any time a written statement of the taxes and assessments ageinst the
<br /> Property.
<br /> Notice of Constructlon. Trustor shall noti(y Lender at least fifteen(15)days before any work is commenced,any services are furnished,or any
<br /> materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work,
<br /> services,or materia�s. 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 pa�t of this Deed of Trust.
<br /> Maintenance of Insurance. Trustor shall procure and maintain policies ot fire insurance with standard extended coverage endorsements on a
<br /> replacement basis for ihe full insurable value covering all Improvements on the Real Property in an amount sufficient io avoid application of any
<br /> coinsurance clause,and with a standard mortgagee clause in favor of Lender. Trustor shall also procure and maintain comprehensive genera�
<br /> liability insurance in such coverage amounts as Lender may request with trustee and Lender being named as additional insureds in such Ilabiliry
<br /> insurance policies. Additionally, Trustor shail maintaln such other insurance, including but not Ilmlied lo hazard, business intenuption, and
<br /> boiler insurance,as Lender may reasonably require. Policies shall be wriHen in form,amounts,coverages and basis reasonably acceptable to
<br /> Lender and issued by a company or companies reasonably acceptable to Lender. Trustor, upon request of Lender,will deliver to Lender irom
<br /> time to time the policies or certiflcates of insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or
<br /> diminished without at least ten(10)days'prior wrilten notice to Lender. Each insurance policy also shall include an endorsement providing that
<br /> coverage in favor of Lender will not be impaired in any way by any act, omission or default of Trustor or any other person. Should the Real
<br /> Property at any time become located in an area designated by the Dlreclor of the Federal Emergency Management Agency as a specfal flood
<br /> hazard area,Trustor agrees to obtain and maintain Federal Flood Insurance for the full unpaid principal balance of the loan, up io the maximum
<br /> policy limits set under the National Flood Insurance Program,or as oiherwise required by Lender,and to mainlain such insurance for the lerm of
<br /> the loan.
<br /> Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to ihe Property. Lender may make proof of loss if Trustor
<br /> fails to do so within fiffeen(15)days ot the casualty. Whether or not Lender's security is impaired,Lender may,at its election,receive and retain
<br /> ihe proceeds of any insurance and apply the proceeds to the reduction ot the Indebtedness,payment of any lien affecting the Property, or the
<br /> restoration and repair of the Property. If Lender elects to apply the proceeds to restoratfon and repair, Trustor shall repafr or replece the
<br /> damaged or destroyed Improvemenis in a manner satisfactory to Lender. Lender shal�, 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 Deed of Trust. Any
<br /> proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair 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 interest,and the remainder,if
<br /> any,shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds aRer payment in full of the Indebtedness,such
<br /> proceeds shall be paid to Trustor as Trustor's interests may appear.
<br /> Unexpired Insurance at Sale. Any unexpired insurance shall inure to the benefit of,and pass to,the purchaser of the Property covered by this
<br /> Deed of Trust at any trustee's sale or other sale held under the provisions of this Deed of Trust,or at any foreclosure sale of such Property.
<br /> Compllance wilh Existing Indebtedness. During the period in which any Existing Indebtedness described below is In eHect,complfance with
<br /> the insurance provisions coniained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the fnsurance
<br /> provisions under this Deed of Trust, to the extent compilance with the terms of this Deed of Trust would constitute a duplication of insurance
<br /> requirement. If any proceeds from the lnsurance become payable on loss, the provisions in this Deed of Trust for division of proceeds shall
<br /> apply only to fhat portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br /> Trustor's Report on Insurance. Upon request of Lender,however not more than once a year,Trustor shall furnish to Lender a report on each
<br /> existing policy of insurance showing: (a)the name of ihe insurer; (b)the�isks insured; (c)the amount of the policy; (d)the property insured,
<br /> the then curreni replacement value of such property, and the manner of determining that value; and (e) 1he expiration date of the poflcy.
<br /> Trustor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash value replacement cost of the
<br /> Property.
<br /> IXPENDITURES BY LENDER. If Trustor fails to comply with any provision of this Deed of Trust, including any obligation to maintain Existing
<br /> Indebtedness in good standing as required below,or if any action or proceeding is commenced that would materially affect Lender's interests in the
<br /> Property, Lender on Trustor's behalf may, but shall no1 be required to, take any action that Lender deems approp�fate. Any amount that Lender
<br /> expends in so doing will bear interest at the rate provided for in the Note (rom the date incurred or paid by Lender to the date of repayment by
<br /> Trustor. All such expenses,at Lender's option,will (a)be payable on demand, (b)be added to the balance of the Note and be apporlioned among
<br /> and be payable with any installment payments to become due during either (i)the term ot any applicable insurance policy or (ii)the remaining term
<br /> of the Note, or (c) be treated as a balloon payment which will be due and payable at the Note's maturity. This Deed o(Trust also will secure
<br /> payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be
<br /> entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to bar Lender f�om any remedy that
<br /> it otherwise would have had.
<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: (a)Trustor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and
<br /> encumbrances other than those set forth in the Real Prope�ty description or in the Existing Indebtedness seciion below or in any title insurance
<br /> policy,title report,or�nal title opinion issued in favor of,and accepted by,Lender in connection with this Deed of Trust,and (b)Trustor has the
<br /> full right,power,and authority to execute and deliver ihis Deed of Trust to Lender.
<br /> Defense ot Title. Subject to the exception in the paragraph above,Trusfor warrants and will forever defend the title to the Property against ihe
<br /> lawful claims o(all persons. In the event any action or proceeding is commenced ihat questions Trustor's title or the interest of Trustee or
<br /> Lender under this Deed of Trusi,Trustor shall defend the action at Trustor's expense. Trustor may be the nominal party in such proceeding,but
<br /> Lender shall be entitled io participate in the proceeding and to be represented in the proceeding by counsel of Lender's own chofce, and
<br /> Trustor will deliver,or cause to be delivered,to Lender such instruments as Lender may request from time to time to permit such participatfon.
<br /> Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all existing applicable laws,
<br /> ordinances,and regulations o(governmental authorities.
<br /> EXISTING INDEBTEDNESS. The following provisions concerning existing indebtedness (the "Existing Indebtedness") are a part of this Deed of
<br /> Trust.
<br /> Euisting Llen. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an existing lien. Trustor expressly
<br /> covenants and agrees to pay,or see to the payment of,the Existing Indebtedness and to prevent any default on such indebtedness,any default
<br /> under the instruments evidencing such indebtedness,or any defaulf under any security documents for such indebtedness.
<br /> Default. Ii the payment of any installment of principal or any interest on the Existing Indebtedness is not made within the time required by the
<br /> note evidencing such indebtedness, or should a default occur under the instrument securing such indebtedness and not be cured during any
<br /> applicable grace period therein, then,at the option of Lender,the Indebtedness secured by this Deed of Trust shall become immediately due
<br /> and payable,and this Deed of Trust shall be in default.
<br /> No Modtflcatio�. Trustor shall not enter into any agreement with the holder of any mortgage,deed ot trust,or other security agreement which
<br /> has priority over this Deed of Trust by which that agreement is modified,amended, extended, or renewed without the p�ior written consent of
<br /> Lender. Trustor shall neither request nor accept any future advances under any such security agreement without the prior written consent of
<br /> Lender.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust. .
<br /> Application of Net Proceeds. It all or any part o( the Property is condemned by eminent domafn proceedings or by any proceeding or
<br /> purchase in lieu of condemnation,Le�der may at its election require that atl or any po�tion oi fhe net proceeds ot the award be applied fo the
<br /> Indebtedness or the repair or restoration of the Prope�ty. The net proceeds of the award shall mean the award aiter payment of all reasonable
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