|
DEED OF tRUST
<br />Loan No: 872056243 (Continued) 2 012 0 4 9'7 7 Pa a
<br />company or companies reasonably acceptable to Lender. , Trustor, upon request of Lender, will deliver to Lender
<br />from time to time the policies or certificates of insurance ik� form satisfactory to Lender, including stipuletions thet
<br />coverages will not be cancelled or diminished without at I�east ten (70) deys prior written notice to Lender. Each
<br />insurance policy also shall include an endorsement providi�g thet coverage in favor of Lender will not be impaired
<br />in any way by eny act, omission or default of Trustor or any other person. Should the Real Property be located in
<br />an area designated by the Director of the Federal Emergerlcy Management Agency as a special flood hazard area,
<br />Trustor agrees to obtain and maintain Federel Flood Insur�nce, if available, for the maximum amount of Trustor's
<br />credit line and the full unpaid principal balance of eny p',rior liens on the property securing the loan, up to the
<br />maximum policy limits set under the National Flood Insurerlce Program, or as otherwise required by Lender, end to
<br />meintain such insurance for the term of the loen. !
<br />ApplicaUon 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 fifteeh (15) days of the casualty. Whether or not Lender's
<br />security is impaired, Lender may, at Lender's election, rec�ive and retain the proceeds of any insurence end 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 repair, Trustor shell repair or
<br />replace the demaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br />satisfactory proof of such expenditure, pey or reimburse� Trustor from the proceeds for the reasoneble cost of
<br />repair or restoration if Trustor is not in default under thi� Deed of Trust. Any proceeds which have not been
<br />disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoretion of
<br />the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br />interest, end the remainder, if any, shall be epplied to th� principai balance of the Indebtedness. If Lender holds
<br />any proceeds after payment in fuil of the Indebtednessa such proceeds shall be paid to Trustor as Trustor's
<br />interests may appear.
<br />Compliance with Existtng Irtdebtedness. During the perioc� in which any Existing Indebtedness described below is
<br />in effect, compliance with the insurence provisions cbntained in the instrument evidencing such Existing
<br />Indebtedness shall constitute compliance with the insura�ce provisions under this Deed of Trust, to the extent
<br />compliance with the terms of this Deed of Trust would cCnstitute e duplication of insurance requirement. If any
<br />proceeds from the insurance become payable on loss, the provisions in this Deed of Trust for division of proceeds
<br />shall apply only to that portion of the proceeds not payable'to the holder of the Existing Indebtedness.
<br />LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interests,
<br />encumbrances, end other claims, (B) to provide any required iinsurance on the Property, (C) to make repeirs to the
<br />Property or to comply with any obligation to maintain Existing !Indebtedness in good standing as required below, then
<br />Lender may do so. If any action or proceeding is commence�i that would materially affect Lender's interests in the
<br />Property, then Lender on Trustor's behalf may, but is not required to, take any action that Lender believes to be
<br />appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will then bear
<br />interest et the rate charged under the Credit Agreement from the date incurred or paid by Lender to the dete of
<br />repayment by Trustor. All such expenses will become e part o� the Indebtedness and, at Lender's option, will (A) be
<br />payable on demend; (8) be added to the balence of the Credit Agreement and be epportioned among and be peyable
<br />with any instaliment payments to become due during either (1) the term of any applicable insurance policy; or (2) the
<br />remaining term of the Credit Agreement; or (C) be treated as � balloon payment which will be due and payable at the
<br />Credit Agreement's maturity. The Deed of Trust also will securie peyment of these amounts. The rights provided for in
<br />this paragraph shall be in addition to any other rights or eny re�medies to which Lender may be entitled on account of
<br />any default. Any such action by Lender shell not be construbd as curing the default so as to bar Lender from any
<br />remedy that it otherwise would have had.
<br />WARRANTIf; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed
<br />of Trust:
<br />TiUe. Trustor warrants that: (a) Trustor holds good and Inarketable title of record to the Property in fee simple,
<br />free and clear of all liens and encumbrances other than tNose set forth in the Real Property description or in the
<br />Existing Indebtedness section below or in any title insuranc�e policy, title report, or final title opinion issued in favor
<br />of, and accepted by, Lender in connection with this Deed bf Trust, and (b) Trustor has the full right, power, and
<br />authority to execute and deliver this Deed of Trust to Lend�r.
<br />Dofense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the
<br />title to the Property egainst the lawful cleims of all personS. In the event any ection or proceeding is commenced
<br />that questions Trustor's title or the interest of Trustee or Lpnder under this Deed of Trust, Trustor shall defend the
<br />ection et Trustor's expense. Trustor mey be the nominal party in such proceeding, but Lender shell be entitled to
<br />perticipate in the proceeding and to be represented in th� proceeding by counsel of Lender's own choice, and
<br />Trustor will deliver, or cause to be delivered, to Lender sucih instruments as Lender may request from time to time
<br />to permit such participation. �
<br />Compliance WPth Laws. Trustor warrants that the Propertry end 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 staitements Trustor has made in this Deed of Trust shall
<br />survive the execution and delivery of this Deed of Trust, sF�all be continuing in nature and shall remain in full force
<br />and effect until such time as Trustor's Indebtedness is paid� full.
<br />EXISTING INDEBTEDNESS. The following provisions concernin� Existing Indebtedness are a part of this Deed of Trust:
<br />Existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an
<br />existing lien. Trustar expressly covenants and agrees to p�y, or see to the payment of, the Existing Indebtedness
<br />and to prevent any default on such indebtedness, any defa It under the instruments evidencing such indebtedness,
<br />or any default under any security documents for such indeb,tedness.
<br />No Modification. Trustor shall not enter into any agreembnt with the holder of any mortgege, deed of trust, or
<br />other security agreement which has priority over this I�eed of Trust by which that agreement is modlfied,
<br />emended, extended, or renewed without the prior writtery consent of Lender. Trustor shell neither request nor
<br />accept eny tuture advances under any such security egreerrhent without the prior written consent of Lender.
<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 shell promptly notify Lender in writing, and
<br />Trustor shall promptly take such steps es may be necessary to defend the action end obtain the award. Trustor
<br />may be the nominal party in such proceeding, but Lender shell 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 be delivered to
<br />Lender such instruments and documentation as may be requested by Lender from time to time to permit such
<br />participation.
<br />Applicetion of Net Proceeds. If all or any part of the Prope�rty is condemned by eminent domain proceedings or by
<br />any proceeding or purchase in lieu of condemnation, Lendet, may at its election require that all or any portion of the
<br />net proceeds of the award be applied to the Indebtednes� or the repair or restoration of the Property. The net
<br />proceeds of the awerd shall mean the award after peyment of all reasonable costs, expenses, and attorneys' fees
<br />incurred by Trustee or Lender in connection with the condednnation.
<br />
|