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201207253
<br /> • � DEED OF TRUST
<br /> Loan No: 872056227 (Continued) 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 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 the maximum amount of Trustor's
<br /> credit line and the full unpaid principal. balance of any prior Iiens on the property securing the loan, up to tne
<br /> maximum policy limits set under the Nati�onal 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_ Trusior shall promptly notify Lender of any loss or damage to the Property. Lender may
<br /> make proof of loss if Trusto[ fails Yo do so within fifteen (1.5) 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 affecting the Property, or the restoration
<br /> and repair of the Praperty. If Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or
<br /> replace tne damaged or destroyed Improvementis in a manner satisfacto�y to Lender. Lender shall, upon
<br /> satisfactory proof ofi such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br /> repair or restoration ifi Trustor is not in defiault under this 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 accPued
<br /> interest, and the remainder, if any, shall be applied to the princi�pal balance of the Indebtedness. If Lender nolds
<br /> any proceeds after paymeni in full of the Indebtedness, such proceeds shall be paid to T�ustor as Trustor's
<br /> interests may appear.
<br /> LENDER'S EXPENDITURES. If TrusYor fails (A) to keep the P�operty free of alI taxes, Iiens, security interests,
<br /> encumbrances, and other claims, (B) to provide any required insurance on the Property, or (C) to make repairs to tne
<br /> Property then Lender may do so. If any action or proceeding iS commenced that would materially affect Lender's
<br /> interests in the Property, then Lender on Trustor's behalf may, but is not required to, take any action that Lender
<br /> believes to be appropriate to protect Lender's interests. All expenses incurred or paid by Lender for such purposes will
<br /> then.bear i�nterest ai the rete��charged under the Credit AgreemenY firom the date incurred or paid by Lender to the date
<br /> of repayment by Trustor. All such expenses will become a part of the fndebtedness 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 during either (1) the term of any applicable insurance policy; or
<br /> (2) the rema.ining 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 this paragraph 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 Yhat: (a) Trustor holds good and marketable title of record to the Property in fee simple,
<br /> free a�nd clear of all liens and encumbrances other than those set forth in the Real 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 /> 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_ Subject to the exception in the paragraph a6ove, Trustor warrants and wi�ll forever defend the
<br /> title to the Property against the Iawfiul claims of all persons. In the event any action or proceeding is commenced
<br /> that q'uestions Trustor's titfe or the interest ofi 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 sucn proceeding, but Lender shall be entitled to
<br /> participate in the proceeding and to be represented in the proceeding by counsel ofi Lender's owrt choice, and
<br /> Trustor will deFiver, or cause to be delivered, to Lender sucn instruments as Lender may request from time to time
<br /> to permit such participation.
<br /> Compliance With Laws. Trustor warrants that the Property and Trustor's use of the Property complies with all
<br /> existing applicable laws,ordinances, and regulations of governmental authoriiies.
<br /> Survival of Promises. All promises, agreements, and� statements Trustor has made in ihis Deed of Trust shall
<br /> survive the execution and de�livery of this Deed of Trust, shall be continuing in nature and shall rema�in �n full 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 i�� condemnation is filed, Trustor shall promptly notiiy Lender in writing, and
<br /> Trustor shatl 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 5hall 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 tirne to permit such
<br /> participation.
<br /> Application 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 condemnaYion, Lender may at its election require that all or any portion of the
<br /> net proceeds of the award be appLied Yo the Indebtedness or Yhe repair or restoration of the Property. The net
<br /> proceeds ofi 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� FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. TFie fiollowing provisi�ons relating
<br /> to governmental taxes,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 addiYion 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 shall reimburse Lender fior all taxes, as described below, together with all expenses
<br /> incurred in recording, perfecting or continuing ihis Deed of Trust, induding without limitation a❑ taxes, fees,.
<br /> documentary stamps, and other charges for recording or registering this Deed of Trust.
<br /> Ta�ces. The following sFiall constitute taxes to which this section applies: (7) a specific tax upon this type of
<br /> Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on
<br /> Trustor which Trustor is authorized or required to deduct from payments on ihe Indebtedness secured by this type
<br /> of Deed ofi Trust; (8) a tax o�this type of Deed of Trust chargeable against the Lender or the holder of the Credit
<br /> Agreement; and (4) a specific tax on all 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 this section applies is enacted subsequent to the date of this Deed of
<br /> Trust, this event shall have the same effect as an Event of Default, and Lender may exeecise any or all of its
<br /> available remedies for an Event of Default as provided be�low unless Trustor eitner (1) pays the tax before it
<br /> becomes delinquent, 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 saiisfactory to Lender.
<br /> SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Deed of Trust as a
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