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03-26-1998 DEED OF TRUST Page 3
<br /> Loan No.ssaosa (Continued) �R_ 1[;�1,'�
<br /> fiffeen (15)days a(ter the lien arises or,if e lien is filed,within fifteen(15)days after Trustor has notice of the filing,secure the discharge of the
<br /> lien, or i(requested by Lender, deposit with Lender cash or a su(flcient corporate surety bond or other security satisfactory to Lender in an
<br /> amount suf8cient to discharge the lien plus any costs and attorneys'fees or other charges ihai could accrue as a result of a foreclosure or sale
<br /> under the lien. In any contest,Trustor shall defend ifself and Lender and shall satis(y any adverse judgment before eniorcement against the
<br /> Property. Trustor shall neme Lender as an additional obligee 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 or assessments and shall
<br /> authorize the appropriate governmental officlal to deliver fo Lender at any time a written statement of the taxes and essessments a�ainst the
<br /> Properly.
<br /> Notice of Constructlon. Trustor shall notiy Lender at least flfteen(15)days before any work is commenced,an services are furnished or an
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<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 mate�ials. Trustor will upon request of Lender furnish to Lender advance assurances saHsfactory to Lender that Trustor can and will
<br /> pay the cost oi such improvements.
<br /> PROPERTY DAMAGE INSURANCE. The tollowing provisions reiatlng to fnsuring the Property are a part of this Deed of Trust.
<br /> Maintenance of Insurance. Trustor shell procure and maintain policies of Hre 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 sufHcient to avoid applicaHon of any
<br /> coinsurance ciause,and with a standard mo�tgagee clause in favor of Lender. Trusior shall also procure and maintaln comprehensive general
<br /> liability insurance in such coverage amounts as Lender may request wiih hustee and Lender being named as additional insureds in such Ifability
<br /> insurance policies. AddiNonally, Trustor shall maintain such other insurance, Including but not limited to hazard, business intenuptlon, and
<br /> boiler insurance,as Lender may reasonabty require. Policies shall be written In form,emouMs,coverages end basis reasonably acxeptable to
<br /> Lender and issued by a company or companles reasonably acceptable to Lender. Trustor,upon request of Lender,will deiiver to Lender from
<br /> time to time the policies or cerNflcates of insurance in torm saNstactory to Lender,includ(ng sHpulaHons that coverages will not be cancelled or
<br /> diminished without at least ten(10)days'prior written noti�e to Lender. Each Insurance policy also shall include a�endorsemenf providing that
<br /> coverage in favor of Lender wiil not be impafred in any way by any act,omission or default of Trustor or any other person. The Real Property Is
<br /> located in an area designated by the Director of the Federal Emergency Menagement Agency as a special flood hazard area. Trustor agrees to
<br /> obtain and mafntafn Federal Flood insurance for the full unpaid principal balance ot the loan, up to the maximum policy Iimits set under the
<br /> National Flood Insurance Program,or as othervvise required by Lender,and to malntaln such insurance for 1he term of the loan.
<br /> Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Prpperty. Lender may make proof of loss it Trustor
<br /> fails to do so within fifteen(15)days of the casualty. Whether or not Lender's secu�ity is impaired,Lender may,at its election,receive and retain
<br /> the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness,payment of any lien affecting the Property, or 1he
<br /> restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or replace the
<br /> damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof ot such expenditure, pay or
<br /> reimburse Trustor(rom 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 aRer their receipt and which Lender has not committed io the repair or resto�ation of
<br /> the Property shall be used first to pey any amount owing to Lender under this Deed of Trust,then to pay accrued interest,a�d the remainder,if
<br /> any,shall be applied to ihe principai 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 fnure 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 ot Trust,or at any foreclosure sale of such Property.
<br /> Trustor's Repon 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 the fnsurer; (b)the�isks insured; (c)the amount of the policy; (d)the prope►iy insured,
<br /> ihe then curreni replacement value of such property, and the manner of determining that value; and (e) the expiration date of the policy.
<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 /> DCPENDITURES BY LENDER. If Trustor fails to comply with any provision of this Deed of Trust, or if any action or proceeding is commenced that
<br /> would maierially aHect Lender's interests in the Property, Lender on Trustor's behalf may, but shall not be required to,take any action ihat Lender
<br /> deems appropriate. Any amount that Lender expends in so doing will bear interest at the rate provided for in the Note from the date Incurred or paid
<br /> by Lender to the date of repayment by Trustor. All such expenses,at Lender's option,will (a)be payable on demand, (b)be added to the balance
<br /> of the Note and be apportioned among and be payable with any installment payments to become due during either (i)the term of any applicable
<br /> insurance policy or (ii)the remaining ierm of ihe Note,or (c)be treated as a balloon payment which will be due and payable at the Note's maturity.
<br /> This Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or any
<br /> remedies to which Lender may be entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to
<br /> bar Lender(rom any remedy thaf it othervvise 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 /> Tltle. 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 forlh in the Real Property description or in any title insurance policy,title repo�t,or final title opinion issued in
<br /> favor of,and accepted by,Lender in connection with this Deed of Trust,and (b)Trustor has the full right,power,and aulhority 10 execute and
<br /> deliver ihis Deed of Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph above,Truslor warcants and will forever defend the title to the Property against the
<br /> lawful claims of 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 pr�ceeding and to be represented in the proceeding by counsel of Lender's own cho(ce, and
<br /> Trustor will deliver,or cause to be delivered,to L�nder such instruments as Lender may request trom time to time to permit such particfpation.
<br /> Compliance With Laws. Trusior warrants that the Property and Trustor's use of the Property complies with all existing applicabie laws,
<br /> ordinances,and regulations of governmental authorities.
<br /> CONDEMNATION. The(ollowing provisions relating to condemnation proceedings are a part of this Deed o}Trust.
<br /> Application of Net P�oceeds. If all or any part of 1he Property is condemned by eminent domain proceedings or by any proceeding or
<br /> purchase in lieu of condemnation,Lender may at its election require that all or any portion of the net proceeds of the award be applfed to the
<br /> Indebtedness or the repair or restorafion of the Property. The net proceeds of the award shall mean the award after payment of all reasonable
<br /> costs,expenses,and attorneys'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 participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Trustor will deliver or
<br /> cause to be delivered to Lender such instruments as may be requested by it from time to time to permit such participation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental iaxes,
<br /> fees and charges are a part of this Deed of Trust:
<br /> Current Taxes,Fees and Charges. Upon request by Lender,Trustor shall execute such documents in addition to fhis Deed of Trust and take
<br /> whatever other action is requested by Lender to perfect and continue Lenders lien on the Real Property. Trustor shall reimburse Lender for all
<br /> taxes, as described below, together with all expenses incurred in recording, perfecting or continuing lhis Deed of Trust, including without
<br /> limitation all texes,fees,documentary stamps,and other charges for recording or registering this Deed of Trust.
<br /> Taxes. The following shall constitute taxes to which this section applies: (a)a specific tax upon this type of Deed of Trust or upon all or any
<br /> part of the Indebtedness secured by this Deed of Trust; (b)a specific tax on Trustor which Trustor is aulhorized or required to deducf(�om
<br /> payments on the Indebtedness secured by this type of Deed of Trust; (c)a tax on this type of Deed of Trust chargeable against the Lender w
<br /> the holder of the Noie; and (d) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by
<br /> Trustor.
<br /> Sub�quent Texes. If eny tax to whlch this sectlon applies is enacted subsequent to the date ot this Deed of Trust, this event shall have the
<br /> same effect as an Event of Default(as defined below),and Lender may euercise any or ail of its available remedies for an Event of Default as
<br /> provided below uniess Trustor either (a)pays the tax before it becomes delinquent,or (b)contests the tax as provlded above in the Texes and
<br /> Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender.
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