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<br /> 201201954
<br /> DEED OF TRUST
<br /> Loan No: 872058529 (Continued) Page 3
<br /> covereges wili not be cancelled or diminished without at least ten (10) days prior written notice to Lender. Each
<br /> insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired
<br /> in any way by any acT, omission or default of Trustor or any other person. Shoul:d the Real Property be located in
<br /> an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area,
<br /> Trustor agrees to obtain and maintain Federal Flood Insurance, if available, for tne maximum amount of Trustor's
<br /> credit line and the fuil unpaid principal balance of a�y 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 ofi the 7oan.
<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 ao so within fifteen t15) days of the casualty. Whether or not Lender`s
<br /> security is impaired, Lender may, at Lender's election, receive and retain the proceeds of any insurance and apply
<br /> the proceeds to the reduction of the Indebtedness,. payment of any lien. afifecting the Property, or the restoratio.n
<br /> and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Trustor snall repair or
<br /> replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br /> saYisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds fior the reasonable cost of
<br /> repair or restoration if Trustor is not in default under this Deed of Tr�st. Any proceeds which have not beert
<br /> disbursed withln 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 this Deed of Trust, then to pay acerued
<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 fuU ofi the Inde6tedness, such proceeds sh�all be paid to Trustor as Trustor's
<br /> interests may appear.
<br /> LENDER'S EXPENDITURES. If Ttustor fails (A) to keep the Property free of all taxes, li��ens, security interests,
<br /> encumbrances, and other claims, (B) to provide any required insurance on the Property, or (C) to make repai�s to the
<br /> Property then Lender� may do so. If any action or proceedi�ng is commenced tnat would materially affect Lender's
<br /> iMerests in the Property, then Lende� on Trustor's behalf may, but is not required to, take any action that Lender
<br /> believes to be appropriate to protect Lender's inierests. All expenses incurred or paid by Lender for such purposes will
<br /> then bear interest at the rate charged under the Credit Agreement from.the date incurred or paid by Lender to the date
<br /> of repayment by Trustor.. All such expenses will 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 /> payable with any installment payments to become due duting either (1) the term of any applicabie insurance policy; or
<br /> (2) ihe remaining ierm of the Credit Agreement; or (C) be treated as a balloon payment which will be due and payabie
<br /> at the Credit AgreemenYs maturity. Tne Deed of Trust also will secure payment of these amounts. The rights provided
<br /> for in this paragraph shall be in addition to any other rights or any remedies to which Lender may be entitled on account
<br /> of any defiault.. Any such action by Lender shall not be construed as curing tne defiault so as to bar Lender from any
<br /> rem.edy that it otherwise would have had.
<br /> WARRANTY�DEFENSE OF TITLE. The foilowing provisions relating to ownership ofi the Property are a part of this Deed
<br /> of Trust:
<br /> Title. Trustor warrants that: (a) Trustor holds good and marketable title of record.to the Property in fee simple,
<br /> free and clear ofi all liens and encumbrances other than those set forth in the Reaf Property description or in any
<br /> title insurance policy, title report, or final title opinion issued in favor ofi, and accepted by, Lender in connection
<br /> witn this Deed of Trust, and (b) Trusior has the fuU right, power, and authority to execute and deliver Yhis Deed of
<br /> Trust to Lender.
<br /> Defense of Title�. Subject to the exception in the paragraph above, Trustor warrants and will forever defiend the
<br /> titLe to the Property 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 unde�r Yhis Deed of Trust, Trustor shall defend the
<br /> action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender snall be entitled to
<br /> participate in the proceeding and to be represented in the proceeding by counsel of Lender°s own choice, and
<br /> Trustor will del:iver, or cause to be delivered, to Lender such instrumenYS as Lender may request from time to time
<br /> io�oermit such participation.
<br /> Compliance Weth Laws_ Trustor warrants that the Property and Trustor's use of the Property complies with all
<br /> existing appli.cable laws, ord�inances, and regulations of governmental authorities. � �
<br /> Survival of Promises. All promises, agreements, and siatements Trustor has made in this Deed of Trust shall
<br /> survive the execution and delivery of tnis Deed of Trust,shatl be continuing in nature and shall remain in fWl force
<br /> and effect unti�.l 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 promptly notify Lender in writing, and
<br /> Trustor shall promptly take sucn steps as may be necessary to defend the. action and obtain the award. Trustor
<br /> may 6e 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 irts own choice, and Trustor will deliver or cause to be delivered to
<br /> Lender sucn instruments and documenTation as may be requested by Lender from time to #ime to permit such
<br /> participation.
<br /> AppGcation of Net�Proceeds_ If all or any part of the Proper[y is condemned by eminent domain proceedings or by
<br /> any proceeding or purehase in lieu ofi condemnation, Lender may at its election require that all or any portion of ihe
<br /> net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net
<br /> proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees
<br /> inc�urred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES. FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br /> to govemmental taxes,fees and charges are a part of this Deed of Trusi:
<br /> Current Ta�ces, 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 by Lender to perfect and continue Lender's lien on
<br /> the Real Property. Trustor sha❑ reimburse Lender for all taxes, as described below, together with all expenses
<br /> incurred in recording, perfecting or continuing tnis Deed of Trust, induding without limitation all taxes, fees,
<br /> documentary stamps, and other charges for recording or registeri�ng this Deed of Trust.
<br /> Taxes. The fiollowing shall constitute taxes to wnich this section applies: ('I) a specific tax upon this type of
<br /> Deed of Trust or upon all or any part of tne Indebtedness secured by this Deed of Trust; (2) a specifiic tax on
<br /> Trustor which Trustor 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 ofi Deed of Trust chargeable against the Lender or the holder of the Credit
<br /> Agreement; and (4) a specifiic tax on all or any portion of the Indebtedness or on payments of principal and
<br /> interest made by Trustor.
<br /> Subsequent Ta�ces_ If any tax to which. this section applies is enacted subsequent to the date of tRis Deed of
<br /> Trust, tnis event shall have the same effect as an Event of Default, and Lender may exercise any or all ofi its
<br /> available remedies for an Event of Defiault as provided below unless Trustor either (1) pays the tax before it
<br /> becomes definquent, or (2) contests the tax as provided above in the Taxes and Liens section�and deposits with
<br /> Lender cash or a sufificient corpora�te surety bond or other security satisfiactory to Lender.
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