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201200607
<br /> DEED OF TRUST
<br /> Loan No: 87205844� (ContinUed) Page 3
<br /> in any way by any act,omission or defauft of Trustor or any other�.person. Should the Real Property be located in
<br /> � an area designated by the�Director of the Federal Emergency Management Agency as a special filood�hazard area,
<br /> Trustor agrees to obtain and maintain Federal Flaod Insurance,if available,for the maximum amount of Trustor's
<br /> credit line and the full unpaid principal balance of any prior liens on the property securing the loan, up to the
<br /> maximum policy limits set under the National Flood Insurance Program,or as otherwise required by Lender,and to
<br /> maintain such insurance for the term of the loan.
<br /> Application of Proceeds. Trustor shall promptly notify Lender of any loss or damage to the Property. Lender may
<br /> make proof of loss if Trustor fails to do so within fifteen (15) days of the casualty. Whether or not Lender's
<br /> secunty is impaired,Lender may,at LendePs election,receive and retain the proceeds of any insurance and apply
<br /> the proceeds to the reduction of the Indebtedness,. payment of any lien affecting the Property,or the restoration
<br /> and repair of the Property. If Lender elects to apply the proceeds to restoration and tepair,Trustor shall repair or
<br /> replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon �
<br /> satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br /> repair or restoration if Trustor is not in default under this Deed of Trust. Any proceeds which have not been
<br /> dis6ursed within 180 days after their receipt and which Lender has not committed to the repair or resioration of
<br /> the Property shall be used first to pay any amount owing to Lender under this Deed ofi Trust,then to pay accrued
<br /> 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
<br /> interests may appear.
<br /> LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests,
<br /> encumbrances,and other claims, (B) to provide a�y required insurance on the Property,.or (C) to make repairs to the
<br /> Property then Lender may do so. If any action or proceeding is commenced thaY would materially affect Lender's
<br /> interests in the Property, then Lender on Trustor's 6ehalf may, but is not required to, take any action that Lender
<br /> � believes to be appropriate to protect Le�der's interests. All expenses incurred or paid 6y Lender for such purposes will
<br /> then bear interest at the rete charged under the�Credit Agreement from the date incurred or paid by Lender to the daYe
<br /> of repayment 6y Trustor. All such expenses wilt become a part of the Indebtedness and,at Lender's option,will (A)
<br /> be payable on demand;. �(B) be added to the balance of the CrediT Agreement and be apportioned among and be
<br /> paya6le with any installment payments to become due during either (1) the term of any applicable insurance policy;or
<br /> � (2) the remaining term of the Credit Agreement;or (C) be treated as a balloon payment which will be due and payable
<br /> � at the Credit Agreement's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided
<br /> for in tihis paragreph shall be in addition to any other rights or any remedies to which Lender may be entitled on account �
<br /> � of any default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any
<br /> remedy that 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
<br /> of Trust:
<br /> Title. Trustor warrants that: (a)Trustor holds good and marketa6le title of record to the Property in fiee simple,
<br /> free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any .
<br /> title insurance poticy, titte report,or finai title opinion issued in favor of,and accepted by, Lentler in connection
<br /> with this Deed of Trust,and (b)Trustor has the full right,power,and authority to execute and deliver this Deed of
<br /> Trust to Lender. �
<br /> Defense of Title. Subj�ect to the exception in the paragraph above,Trustor warrants and will forever defend the
<br /> title to the Properry against the lawful claims of all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's title or the interest of Trustee or Lender under this Deed of Trust,TrusTOr shall defend the
<br /> action at Trustor's expense. Trustor may be the nominal party in sucli proceeding,but Lender sBall be eniitled to
<br /> participate in tne 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
<br /> � to permit such participation.
<br /> Compliance With Laws. Trustor warrants that the Proper[y and Trustor's use of the Property complies with all
<br /> existing applicable laws,ordinances,and regulations of governmental authorities.
<br /> Survival of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall
<br /> survive the execution and delivery of this Deed of Trust,.shall be continuing in nature and shall remain in fuil force
<br /> and effect until such time as Trustor's Indebtedness is paid in full.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br /> Proceedings. If any proceeding in condemnation is filed, Trustor shall promptty notify Lender in writing, and
<br /> Trustor shall promptly take such steps as may be necessary to defend the action and obtain the award. Trustor
<br /> may be the nominal party in such proceeding,but Lender shall be entitled to participate in the proceeding and to be
<br /> � represented in the proceeding by counsel of its own choice,and Trustor will deliver or cause to he delivered to
<br /> Lender such instruments and documenfation as may be requested by Lender from time to time to permit such
<br /> participation. ,
<br /> Applica4on of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by
<br /> any proceeding or purchase in lieu of condemnation,Lender may at its election eequite that all or any portion of the
<br /> � net proceeds of the award be applied to the Inde6ted�ess or the repair or restoration of the Properry. The net
<br /> . proceeds of the award shall mean the award after payment of all reasonable costs,expenses,and attorneys'fees
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The follawing provisions relating
<br /> to govemmental iaxes,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
<br /> this Deed of Trust and take whatever other action is requested 6y Lender io perfect and continue Lender's lien on
<br /> the Real Property. Trustor shall reimburse Lender for afl taxes, as described below, together with all expenses
<br /> incurred in recording, perfecting or continuing this Deed of Trust, including without limitation all tares, fees,
<br /> 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: (1) a specific tax upon this type of
<br /> Deed of Trust or upon all or any part of the Intlebtedness secured by this Deed of Ttast; (2) a specific tax on
<br /> Trustor which TrusYOr is authorized or required to deduct from payments on the Indebtedness secured by this type
<br /> . of Deed of Trust; (3) a tax on this type of Deed of Trust chargeable against the Lender or the holder of the Credit
<br /> Agreement; and (41 a specific Yax on alI or any portion of the Indebtedness or on payments of principal and
<br /> interest made by Trustor.
<br /> Subsequent Taxes. If any tax to which tfiis section applies is enacted su6sequent to the date ofi this Deed of
<br /> Trust, this event shall have the same effect as an E�ent of Default, and Lender may eicercise any or afl of its _
<br /> available remedies for an Event of Default as provided below unless Trustor either (1) pays the tax before it
<br /> becomes delinqaent,or (2) contests the tax as provided above in the Taxes and Liens section and deposits with
<br /> Lender cash or a sufficient corporate surety bond or other security satisfacmry to Lender.
<br /> SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating m this Deed of Trust as a
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