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03-26-1998 DEED OF TRUST �8'��.Gi3U2� Page 3
<br /> Loan No 684290 (Continued)
<br /> Rlyht To Contest. Trustor may withhold payment of any tax,assessment,or claim in connection with a good faith dispute over the obiigation
<br /> to pay,so long as Lender's interest in the Property is not jeopardi�ed. It a I(en a�ises or is Nled as a resuit of nonpayment,Trustor shall within
<br /> flReen(15)days after the Ifen arises or, ii a lien is flled,within flfteen(15)days a(ter Trustor has notice of the fliing,secure the discharge of the
<br /> lien, or if requested by Lender, deposit with Lender cash or a sufflcient corporate sureiy bond or other secu�ity satisfactory to Lender in an
<br /> amount sufficient to discharge the lien plus any costs and attorneys'fees or other Charges that couid accrue as a result of a foreclosure or sale
<br /> under the lien. In any contest,Trustor shall defend itself and Lender and shall satisfy any adverse judgment before enforcement ageinst the
<br /> Property. Trustor shall name Lender as an additional obligee under eny surety bond furnished in the contest proceedings.
<br /> Evidence of Payment. Trustor shall upon demand furnish to Lender satisfactory evidence ot payment of the taxes or assessments and shall
<br /> authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the
<br /> Property.
<br /> Notice of Construction. Trustor shall notiy Lender at least fifteen(15)days before any work fs commenced,any services are furnished,or any
<br /> maierials are supplied to the Property, if any mechanic's Ilen, mate�ialmen's lien, or other lien could be asse�ted on account of the work,
<br /> seniices,or mate�lals. Trustor will upon request of Lender furnish to Lender advance assuranc�s satisfactory to Lender thet 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 /> Maintenance of Insurance. Trustor shall procure and maintain policies of flre insurance with standard extended coverage endorsements on a
<br /> replacement basis for the full insurable value covering all Improvemenis on the Real Properiy in an amount sut�cient to avoid applicadon of any
<br /> coinsurance clause,and with a standard mortgagee clause in favor ot Lender. Trustor shaN also p�xure a�d maintain comprehenslve peneral
<br /> liability insurance in such coverage amounts as Lender may request with trustee and Lender being named as additlonal insureds in such Ilability
<br /> insurance policies. AddiHonally, Trustor shall maintain such other insurance, including but not Iimited to hazard, business Interrup8on, and
<br /> boiler insurance,as Lender may reasonably require. PoUcies shall be written in form,amounts,coverages and basis reasonably acceptable to
<br /> Lender and issued by a company or companies reasonably axeptable to Lender. Trustor,upon request of Lender,will deliver to Lender irom
<br /> time to time the policies or certificates of insurance in form satisfectory to Lender,including stipulations that coverages will not be cancelled or
<br /> diminished without at.least ten(10)days'prfor writte�not(ce 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 eny 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 Director of!he Federal Emergency Manegement Agency as a special flood
<br /> hazard area,Trustor agrees to obtain and maintain Federal Flood Insurance for the full unpaid p�incipal balance of the loan, up to the maximum
<br /> policy limits set under the National Flood Insurance Program,or as otherwise required by Lender,and to maintain such insurance for the term of
<br /> the loan.
<br /> Applicatlon of Proceeds. Trustor shall promptly notiy Lender of any loss or damege to the Property. Lender may make proof of loss if Trustor
<br /> fails to do so within 8fteen(15)days ot fhe casualty. Whether or not Lender's security fs 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 the
<br /> restoration and repair of the Property. If Lender elects to apply the proceeds to restoratfon and repair, Trustor shall repair or replace the
<br /> damaged or destroyed Improvements fn a manner satisfactory to Lender. Lender shall, upon satisfaciory 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 thelr 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 thfs Deed of Trust,ihen 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 shali be paid to Trustor as Trustor's interests may appear.
<br /> Unexpired Insurence 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 /> Trusfor's Report on Insurance. Upon request of Lender,however not more than once a year,Trustor shall furnish to Lender a reporf on each
<br /> existing policy of insurance showing: (a)the name of the insurer; (b)the risks insured; (c)the amount of the policy; (d)the property insured,
<br /> the then current replacement value of such property, and the manner of determining that value; and (e) the expiration dale ot the policy.
<br /> Trustor shall, upon request of Lender, have an independent appraiser satisfactory to Lender determine the cash velue replacement cost of the
<br /> Property.
<br /> EXPENDITURES BY LENDER. If Trustor fails to comply with any provision oi this Deed of Trust, or if any action or proceeding is commenced that
<br /> would maierially affect Lender's interests in the Property, Lender on Trustor's behelf may, but shail not be required to,take any action that Lender
<br /> deems appropriete. Any amount that Lender expends in so doing will bear interest at the rate provided for in the Note from the date incuned or pafd
<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 /> o(the Note and be apportioned among and be payable with any installment payments to become due during either (i)the term of any epplicabie
<br /> insurance policy or (H)the remafning term of the Note,or (c)be treated as a balloon payment which wili be due and payable at lhe Note's maturity.
<br /> This Deed of Trust also will secure peyment of these amounts. The�ights 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 from any remedy that it otherwise would have had.
<br /> WARRANTY;DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a parf of this Deed of Trust.
<br /> Title. Trustor warcants 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 Property description or in any title insurance policy,title report,or final title op(nion 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 suthority to execute and
<br /> deliver this Deed of Trust to Lender.
<br /> Detense of Title. Subject to the exception in the paragraph above,Trustor warrants and will forever defend the title to the Property against the
<br /> lawful claims of all persons. In ihe event any action or proceeding is commenced that questions Trustor's tiile 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 pa►ty in such proceeding,but
<br /> Lender shall be entitled to participate ln the proceeding and to be represented in the proceeding by counsel oi Lender's own choice, and
<br /> Truslor wili deliver,or cause to be delivered,to Lender such instruments as Lender may request from time to time to permit such participadon.
<br /> Compliance Wifh Lews. Trustor warrants that the Property and TrOstor's use of the Property compties with all existing applicable laws,
<br /> ordinances,and regulations of governmental authorities.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust.
<br /> AppliCation of Net Proceeds. If all or any part of the 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 po�tion of the net proceeds of the award be applied to the
<br /> Indebtedness or the repair or restoration o(the Property. The net proceeds of the award shall mean the award after payment of all reasoneble
<br /> costs,expenses,and attorneys'fees incurred by Trustee or Lender in connection with the condemnation.
<br /> Proceedinys. If any proceeding in condemnation is filed,Trustor shall promptly noiify 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 deifver or
<br /> cause to be delivered to Lender such instruments as may be requested by it from time to Nme to permit such participation.
<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 Taxes,Fees and Charges. Upon request by Lender,Trustor shali 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 incuRed in recording, perfecting or continuing this Deed of Trust, including without
<br /> limitation ell taxes,fees,dxumentery stamps,and othe�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 speciflc tax on Trustor which Trustor is authorized or required to deduct(rom
<br /> pflyments on the(ndebtedness secured by this type of Deed of Trust; (c)a tax on this type of Deed ot Trust chargeable a�ainst the Lender or
<br /> ihe holder of the No1e; and (d) a sEiecific tax on all or any po�tion of the Indebtedness or on payments of principal and iMerest made by
<br /> Trustor.
<br /> Subsequent Taxes. If eny tex to which this section applies is enacted subsequenf to the date of this Deed of Trust, this event shall have the
<br /> same effect as an Event of Default(as defined below),and Lender may exerclse any or all of its avai�able remedies for an Event of Default as
<br /> provided below unless Trustor either (a)pays the tax before it becomes delinquent,or (b)COn16SfS fh9 feX eS DfOVld9d ebeve 1n tha Tarac anr�
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