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<br /> 11-05-2001 DEED OF TRUST Page 3
<br /> (Continued)
<br /> Compliance with Governmental Requirements. Trustor shall promptly comply with all laws,ordinances,and regulations,now or hereafter In
<br /> effect, of all governmental authorities applicable to the use or occupancy of the Property, Including without limitation, the Americans With
<br /> Disabilities Act. Trustor may contest In good faith any such law, ordinance, or regulation and withhold compliance during any proceeding,
<br /> Including appropriate appeals, so long as Trustor hes notified Lender In writing prier to doing so and so long as, In Lender's sole opinion,
<br /> Lender's Interests In the Property are not Jeopardized. Lender may require Trustor to post adequate security or a surety bond,reasonably
<br /> oto Len er, o—protect Lenders Interest.
<br /> Duty to Protect. Trustor agrees neither to abandon nor leave unattended the Property. Trustor shall do all other acts,In addition to those acts
<br /> set forth above In this seclion, which from the character and use of.the Property are reasonably necessary to protect and preserve the
<br /> Property.
<br /> DUE ON SALE-CONSENT BY LENDER. Lender may,at Its option,declare immediately due and payable all sums secured by this Deed of Trust
<br /> upon the sate or transfer,without the Lender's prior written consent,of all or any part of the Real Property, or any Interest In the Real Property. A
<br /> "sale or transfer" means the conveyance of Real Property or any right, title or Interest therein; whether legal, beneficial or equitable; whether
<br /> voluntary or involuntary; whether by outright sate, deedInstallment sale contract, land contract,contract for deed, leasehold Interest with a term
<br /> ,
<br /> greater than three(3)years,lease-option contract,or by sale,assignment,or transfer of any beneficial Interest In or to any landtrust holding title to
<br /> the Real Property, or by any other method of conveyance of Real Property Interest. If any Trustor Is a corporation, partnership or limited liability
<br /> i company,transfer also Includes any change In ownership of more than twenty-five percent(25%)of the voting stock,partnership interests or limited
<br /> liability company Interests, as the case may be, of Trustor. However, this option shall not be exercised by Lender If such exercise Is prohibited by
<br /> applicable law, -
<br /> TAXES AND LIENS. The following provisions relating to the taxes and lions on the Property are a pad of this Deed of Trust.
<br /> Payment. Trustor shall pay when due (and In all events at least ten (10) days prior to delinquency)all taxes, special taxes, assessments,
<br /> charges(Including water and sewer),fines and Impositions levied against or on account of the Property,and shall pay when due all claims for
<br /> work done on or for services rendered or material furnished to the Property. Trustor shall maintain the Property free of all liens having priority
<br /> over or equal to the interest of Lender under this Deed of Trust,except for the lien of lazes and assessments not due and except as otherwise
<br /> provided In this Deed of Trust.
<br /> Right To Contest. Trustor may withhold payment of any lax,assessment,or claim In connection with a good faith dispute over the obligation
<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,Truslor shall within
<br /> Arleen(16)days after the lien arises or,If a lien Is filed,within Nilsen(15)days after 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 sufficient 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 /> under the lien. In any contest,Trustor shall defend Itself and Lender and shall satisfy any adverse Judgment before enforcement against the
<br /> ` Property. Trustor shall name Lender as an addlttonal obligee under any surely bond furnished in the contest proceedings.
<br /> (h( Evidence of Payment. Trustor shall upon demand furnish to Lender Batlsfaciory evidence of 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. Truslor shall notify Lender at least fifteen(15)days before any work Is commenced, any services are furnished,or
<br /> any materials are supplied to the Property, If any mechanic's lien, materlalmen's lien, or other lien could 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
<br /> will 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 fire 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 sufficient to avoid application of
<br /> any coinsurance clause, and with a standard mortgagee clause In favor of Lender. Truslor shall also procure and maintain comprehensive
<br /> general liability Insurance In such coverage amounts as Lender may request with trustee and Lender being named as additional Insureds in
<br /> such liability Insurance policies. Additionally, Trustor shall maintain such other Insurance, including but not limited to hazard, business
<br /> Interruption,and boiler Insurance, as Lender may reasonably require. Notwithstanding the foregoing,In no event shall Trustor be required to
<br /> provide hazard Insurance in excess of the replacement value of the improvements on the Real Property. Policies shall be written In form,
<br /> amounts,coverages and basis reasonably acceptable to Lender and Issued by a company or companies reasonably acceptable to Lender.
<br /> Trustor,upon request or Lender,will deliver to Lender from time to time the policies or certificates of Insurance In form satisfactory to Lender,
<br /> Including stipulations that coverages will not be cancelled or diminished without at least ten (10)days'prior written notice to Lender. Each
<br /> 4 Insurance pollcy also shall Include an endorsement providing that coverage in favor of Lender will not be Impaired In any way by any act,
<br /> omission or default of Trustor or any other person. Should the Real Properly at any time become located In an area designated by the Director
<br /> of the Federal Emergency Management Agency as a special flood hazard area.Truslor agrees to obtain and maintain Federal Flood Insurance
<br /> for the full unpaid principal balance of the loan and any prior liens on the property securing the loan,up to the maximum policy limits set under
<br /> the National Flood Insurance Program,or as otherwlse required by Lender,and to maintain such Insurance for the term of the loan.
<br /> Application of Proceeds. Truslor shall promptly notify Lender of any loss or damage to the Property. Lender may make proof of loss If
<br /> Trustor falls to do so within fifteen (15)days of the casually. If In Lender's sole judgment Lenders security Interest in the Property has been
<br /> Impaired. Lender may, at Its election, receive and retain the proceeds of any Insurance and apply the proceeds to the reduction of the
<br /> Indebtedness,payment of any lien affecting the Property, of the restoration and repair of the Property. It the proceeds are to be applied to
<br /> restoration and.repalr,Trustor shall repair or replace the damaged or destroyed Improvements In a manner satisfactory to Lender. Lender
<br /> shall,upon satisfactory proof of such expenditure,pay or reimburse Truslor from the proceeds for the reasonable cost of repair or restoration if
<br /> Truslor is not in default under this Deed of Trust. Any proceeds which have not been disbursed within 100 days after their recalpt and which
<br /> Lender hasnot committed to the repair or restoration of the Properly shall be used first to pay any amount owing to Lender under this Deed of
<br /> Trust, then to pay accrued interest, and the remainder,If any, shall be applied to the principal balance of the Indebtedness. If Lender holds
<br /> any proceeds after payment In full of the Indebtedness,such 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 Properly covered by
<br /> this 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 /> Truster's Report on Insurance. Upon request of Lender, however not more than once a year,Trustor shall furnish to Lender a report on
<br /> each existing policy of Insurance showing! (a)the name of the Insurer; (b)the risks Insured; (c)the amount of the policy; (d)the property
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