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03-�9-1998 DEED OF TRUST Page 3
<br /> Loan No 682195 (i;ontinued) 98-+1t�2919
<br /> amount sutficient to discharge the lien plus any costs and attorneys'fees or other charges that could accrue as a result of a foreclosure or sale
<br /> un�ier the lien. In any contest,Trustor shall defend itself and Lender and shall satisfy any adverse judgment be(ore enforcement against the
<br /> Property. Trustor shall name Lender as an addiiional obligee under any surety bond furnished in the contest proceedings.
<br /> Evidence of Payment. Trustor shall upon demand furnish io Lender satis(actory evidence of payment of the taxes or assessments and shall
<br /> authorize the appropriate governmentai official to deliver to Lender at any time a written statement of the taxes and assessments against the
<br /> P�operty.
<br /> Notfce of Construction. Trustor shall notify Lender at least fiReen(15)days before any work is commenced,any services are furnished,or any
<br /> materials are supplied to the Property, if any mechanic's Ifen, materialmen's lien, or other lien couid be asserted on account of the work,
<br /> services,or materials. 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 Trust.
<br /> MaiMenance of Insurance. Trusior shall prxure and maintain policies of flre insurance with standard extended coverage endorsements on a
<br /> replacement basis for the full insurable value covering all Improvements on the Real Property in an amount su(Hcient to avoid application of any
<br /> coinsurance clause,and with a standard mo�tgagee clause in favor of Lender,together with such other hazard and liabiliiy insurance as Lender
<br /> may reasonably require. Policfes shall be written fn form, amounts, coverages and basis reasonably acceptable to Lender and fssued by a
<br /> company or companies reasonably acceptable to Lender. Trustor, upon request of Lender,will deliver to Lender from time to flme the pol(cies
<br /> or certiflcates of insurance in form satlsfactory to Lender, induding stipulations that coverages will not be cancelted or diminished without at
<br /> leasf ten(10)days'prior written notice to Lender. Each Insurance poflcy also shall include an endorsement providing that coverage in favor of
<br /> Lender will not be impaired in any way by Sny act, omission or defauit of Trustor or any other person. Should the Real Property at any time
<br /> become located in an area designated by the Director of the Federal Emergency Management Agency as a speciai flood hazard area,Trustor
<br /> agrees to obtain and maintain Federal Flood Insurance for the full unpaid p�incipal balance of the loan, up to the maximum policy limits set
<br /> under the National Flood Insurance Program,or as othervvise required by Lender,and to maintain such insurance for the term of the loan.
<br /> Application of Proceeds. Trustor shall promptly notity Lender of any loss or damage to the Property. Lender may make proof of loss if Trustor
<br /> fails to do so within fiReen(15)days of the casualiy. Whether or not Lende�'s security is impaired,Lender may,at Its election,receive and retain
<br /> the proceeds oi any insurance and apply the proceeds to the reduchon of the Indebtedness,payment ot any lien affecting the Property,or the
<br /> restoration and repair of the Prope�ty. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the
<br /> damaged or desiroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof o(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 lhis Deed of Trust,lhen 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 after payment in full of the Indebiedness,such
<br /> proceeds shall be paid to Trustor as Trustor's interests may appear.
<br /> Unexpired Insurance af 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 sa�e or other sale held under the provisions of thfs Deed ot Trust,or at any foreclosure sale of such Property.
<br /> Complfance with Existinp Indebtedness. During the period in which any Existing Indebtedness described below is in effect,compliance with
<br /> the insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the insurance
<br /> provisions under this Deed of Trust, to the extent compliance with the terms of this Deed o(Trusi wou�d consiitute a duplication of fnsurance
<br /> requirement. If any proceeds from the insurance become payable on loss,the provisions in this Deed ot Trust for division o(proceeds shall
<br /> apply only io that portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br /> DCPENDITURES BY LENDER. If Trustor fails io comply with any provision of this Deed of Trust, including any obligation to maintain Existing
<br /> Indebtedness in good standing as requlred below,or if eny action or proceeding is commenced that would materially affect Lender's interests in the
<br /> Property, Lender on Trustor's behalf may, but shall not be required to, take any action that Lender deems appropriate. Any amounl that Lender
<br /> expends in so doing will bear interest at the rate provided (or in the Note from the date incurred or paid by Lender to the date ot repayment by
<br /> Trustor. Atl such expenses,at Lender's option,will (a)be payable on demand, (b)be added to the balance of the Note and be apportioned among
<br /> and be payable with any installment payments to become due during either (i)ihe term of any applicable insurance policy or (ii)the remafning term
<br /> of the Note, or (c) be treated as a balloon payment which wi�l be due and payable at the Note's maturity. This Deed of Trust also will secure
<br /> payment of these amounts. The rights provided for in ihis paragraph shall be in addition to any other rights or any remedies to which Lender may be
<br /> entitled on account o(the default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from eny remedy that
<br /> it othervvise would have had.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions reiating to ownership of the Prope�ty are a part of this Deed of Trus1.
<br /> Tille. Trustor warrants that: (a)Trustor holds good and marketable title of record to the Properfy in fee simple,iree and clear of all Ilens and
<br /> encumbrances other than those set forth in the Real Property description or in the Existing Indebtedness section below or in any title insurance
<br /> policy,title report,or final title opinion issued in favor o(,and accepted by,Lender in connection with this Deed of Trust,and (b)Trustor has the
<br /> full righi,power,and authority to execute and deliver this Deed of Trust to Lender.
<br /> Defense of TNIe. Subject to the excepiion in the paragraph above,Trustor warrants and wfll forever defend the title to the Prope�ty agafnst the
<br /> lawful claims o(all persons. In the event any action or proceeding is commenced that questions Trustor's title or the interest of Trustee or
<br /> Lender under this Deed of Trust,Trustor shall defend the action at Trustor's expense. Trustor may be the nominal party in such proceeding,but
<br /> Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, 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 participafion.
<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 of governmental authorities.
<br /> EXISTING INDEBTEDNESS. The following provisions concerning existing indebtedness (the "Exisli�g Indebtedness") are a part of this Deed o(
<br /> Trust.
<br /> Exlsting Lien. The lien o(ihis 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 indebledness,any default
<br /> under the instruments evidencing such indebtedness,or any dafauli under any security documents for such indebtedness.
<br /> Default. If the payment of any installment o(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 subh 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 de}ault.
<br /> No Modiflcatlon. Trustor shall not enter into any agreement with the holder of any mortgage,deed of trust,or other security agreement which
<br /> has priority over ihis Deed of Trust by which that agreement is modified,amended, extended, or renewed without the prior written consent of
<br /> Lender. Trustor shall neiiher request nor accept any future advances under any such security agreement wilhout the prior written consent of
<br /> Lender.
<br /> CONDEMNATION. The following provisions relating to condemnat(on proceedings are a part of this Deed of Trust.
<br /> Appilcation of Net Proceeds. If all or any pari o( the Property is condemned by eminent domain proceedings or by any proceeding or
<br /> purchase in lieu of condemnation,Lender may at i1s election require that all or any portion of the ne1 proceeds of the award be applied to ihe
<br /> Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean ihe award after payment o(all reasonabie
<br /> costs,expenses,and allorneys'fees incurred by Trustee or Lender in connection with the condemnation.
<br /> Proceedings. If any proceeding in condemnation is filed,Trustor shall promptly notify Lender in writing, and Trustor shall promptly take such
<br /> steps as may be necessary to defend the action and obtain the award. Trustor may be the nominal party in such proceeding,but Lender shall
<br /> be entitled to particlpate in the proceeding and to be represented in the proceeding by counsel of its own chofce, and Trustor wifi deliver or
<br /> cause to be delivered to Lender such Instruments as may be requested by it from time to time to permit such pa�ticipation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes,
<br /> fees and charges are a pa�t of this Deed of Trust:
<br /> Current Ttuces,Fees and Chtuges. Upon request by Lender,Trustor shaii execute such documents in addition to this Deed of Trust and take
<br /> whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Trustor shall reimburse Lender for all
<br /> taxes, as described below, together with all expenses 'rncuned in recording, perfecting or coniinuing this Deed of Trust, including without
<br /> limitation all taxes,fees,documentary stamps,and other charges for recording or registering this Deed of Trust.
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