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201206110
<br /> D�ED OF TRUST
<br /> Loan No: 872058667 (COntlnl,leCd) Page 3
<br /> in any way by any act, omission or default of Trustor or any other person. Should the Real Property be located in
<br /> an area designated by the Direcior of the Federal Ernergency Management Agency as a special flood hazard are.a,
<br /> Trustor agrees to obiain and mainiain Federal Flood Insurance, if available, for the maximum amount of Trustor's
<br /> credit I�ne and the full unpaid principal bafance of any prior liens on the property securing the loan, up to the
<br /> maximum policy limits set under tne 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 notifiy Lender of any loss or damage to the Property, Lender may
<br /> make proofi ofi loss if Trustor fails to do so within fifteen ('15) 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 ofi the Indebtedness, payment ofi 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 shall repair or
<br /> replace the damaged or destroyed Improvemenis in a manner satisfactory to Lender. Lender shalf, upon
<br /> satisfactory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable� cost of
<br /> repair or restoration ifi Trustor is noi in default under this Deed of Trust. Any proceeds which have not been�
<br /> disbursed within 'I80 days after their receipt and which Lender has not commitied 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 accrued
<br /> interest, and the remainder, if any, shall be applied to the principal balance of the Inde6tedness. If Lender nolds
<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 /> Compliance with Existing Indebtedness. During the period in which any F�cisting Indebtedness described below is
<br /> in effect, compliance with the insurance provisions contained in the instrument evidencing such Existing
<br /> Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trusi, Yo the estent
<br /> compliance with the terms of this Deed of Trust would� constitute a duplication ofi insurance requirement. If any
<br /> proceeds from the insurance become payable.on loss,the provisions irt 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_ ff Trustor fails (A) to keep tne Property free of all t�es, liens, security interests,
<br /> encumbrances, and other claims, B) to provide any required insurance on the Property, (C) to make repai'rs to the
<br /> P�operty or to comply with any obligation to maintain F�cisting Indebtedness in good standing as required below, then
<br /> Lender may do so_ If any action or proceeding is commeneed that wouid 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 Lendee for such purposes will then bear
<br /> interest at the raYe charged under the Credit Agreement from the date incurred or paid by Lender to the date of
<br /> repayment by Trustor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be
<br /> payable on demand; (B) be added to the balance of the Gredit Agreement and be apportioned among and be payable
<br /> with any installment 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 a balloon payment which will be due and payable at the
<br /> Credit AgreemenYs maturity. The Deed of Trust also will secure payment ofi these amounts. The rignts provided fior in
<br /> this paragraph shall be in addition to any other rights or any remed�ies to which Lender may be entitled on account of
<br /> any defiault. 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 ofi this Deed
<br /> of Trust:
<br /> TitiO. Trustor warrants that: (a) Trustor holds good and marketable iitle ofi record to the P�operty i'n fee simple,
<br /> free and clear of all liens and encumbrances other than those set forth in the Real Property description or in the
<br /> Existing Indebtedness section below or in any title insurance policy,title report, or final title opinion issued in favor
<br /> of, and accepted by, Lender in connection with this Deed of Trust,. and (b) Trustor has the full right, power, and
<br /> authority to execute and deliver this Deed of 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 under this Deed of Trust,Ttustor shall defend the
<br /> action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shall be enfitled to
<br /> participate in the 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 ti�me
<br /> to permit such parti�cipation_ �
<br /> Compliance With Laws. Trustor warrants that the Property and� Trustor's use of the Property complies with alI
<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 full force
<br /> and effect until such time as Trustor's Indebtedness is paid in full.
<br /> EXISTING INDEBTEDNESS. The following provisions concerning 6cisting Indebtedness are a part ofi this Deed of Trust:
<br /> Existing Lien. The lien ofi this Deed ofi Trust securing the Indebtedness may be secondary and inferior to an
<br /> existing lien. Trustor expressly covenants and agrees to pay, or see to the payment ofi, tne 6cisting Indebtedness
<br /> and to prevent any default on such indebtedness, any defauit under the instruments evidencing such inde6tedness,
<br /> or any defauk under any security documents fior sucn indebfedness.
<br /> No Modification�. Trustor shall not enter into any agreement with the holder of any mortgage, deed of trust, or
<br /> other security agreement which has priority over this Deed of Trust by which tnat agreement is modified,
<br /> amended, exeended, or renewed without the prior written consent of Lender. Trustor shall neither reguest nor
<br /> accept any future advances under any such security agreement wiihout the prior written consent ofi Lender.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br /> Proceedings_ Ifi any proceeding in condemnation is filed, Trusior shail promptly notify Lender in writing,. and
<br /> Trustor shall promptly take such steps as may be necessary to defiend the action and obtain tfie award. Trustor
<br /> may be the nominal party i:n such proceeding, but Lender shall be enYitled 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 /> Application of Net Proceeds_ If all or any part of the Property is condemned by eminenY domain proceedings or by
<br /> any proceeding or purchase in lieu of condemnation, Lender may at its election require that alI or any portion of the
<br /> net proceeds of the award be applied to the Indebtedness or the repair or restoration of tne Property. The net
<br /> proceeds of the award shall mean the award after payment ofi all reasonable costs, expenses, and attorneys' fees
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES, FEE$ AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br /> to govemmental taxes,fees and charges are a part of this Deed of Trust:
<br /> Current Taxes. Fees and Charges. Upon request by Lender, Trustor snall execute such documents in addition to
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