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201208126
<br /> DEED OF TRUST
<br /> Loan No: 872058755 (Co12t[nued) Page 3
<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 I�nsurance, if available, for the maximum amount of Trustor's
<br /> credit line and the fuli unpaid principal balance of any prior liens on the property seeuring 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 Yhe 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 of loss if Trustor fiails to do so within fifteen ('15) days of the casualiy. Whether or not Lender's
<br /> security is impaired, Lender may, at Lender's election, receiv� and retain the pcoceeds 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. Ifi Lender elects to apply the proceeds to restoration and repair, Trustor shall repair or
<br /> replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfactory proof ofi sucn expenditure, pay or reimburse Trustor from the proceeds fior the reasonable cost of
<br /> repair or restoration if Trustor is not in default under tnis Deed of Trust. Any proceeds which have not been
<br /> disbursed witnin 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 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 /> Compliance with Existeng Indebtedness. During ihe period in which any Existing Indebtedness described below is
<br /> in efiFect, compliance with the insurance provisions contained in the i�nstrument evidencing such Exfsting
<br /> Indebtedness shall constitute compliance with the insurance provisions under this Deed of Trust, to the extent
<br /> compliance with the�terms ofi this Deed. of Trust would constitiute a duplicaiion of insueance 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 firee of all taxes, liens, security interests,
<br /> encumbrances, and other daims, (B) to provide any required insurance on the Property, (C) to make repairs 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 commenced that would materialiy affect Lender's inierests 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 /> appropYiate io protect Lender's interests. All expenses incurred or paid by Lender for such purposes will then bear
<br /> interest at the rate 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 ofi the Indebiedness and, at Lender's option, will (A) be
<br /> payable on demand; (B) be added to the balance of the Credit Agreement and be apportioned among and be payable
<br /> with any installment payments to become due during either ('I) 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 Agreement's maturity. The Deed of Trust also will secure payment of these amounts. The rights provided for in
<br /> this paragraph shall be in addition ro any other rights or any remedies to which Lender may be entitled on account of
<br /> any default. Any such action by Lender shalf not be construed as curing the defauit so as to bar Lender firom any
<br /> remedy that it otherwise would have had.
<br /> WARRANTV; DEFENSE OF TITLE. The following provisions relating to ownersfiip of 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 of all tiens 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 ihis Deed of Trust, and (b) Trustor has the €ull 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 defend the
<br /> title to the Property against the lawfiul daims 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 shafl defiend the
<br /> action at Trustor's expense. Trustor may be the nominal party in such proceeding, but Lender shall 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 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 Property and Trustor's use of the Property complies witn 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 full force
<br /> and efifect until such time as Trustor's Indebtedness is paid in full.
<br /> EXISTING INDEBTEDNESS. The fiollowing provisions concerning Existing Indebtedness are a part ofi ihis 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. Trustor expressly covenants and agrees to pay, or see to the payment of, the Exisvng Indebtedness
<br /> and to prevent any defiaulY on such indebtedness, any default under tne instruments evidencing such indebtedness,
<br /> or any default under any security documents fior such indebtedness.
<br /> No Modification. Trustor shall not enter i�nto any agreement with the holder of any mortgage, deed of trust, or
<br /> other security ag�eemeirt which has priority over this Deed of Trust by which that agreemant is modifiied,
<br /> amended, extended, or renewed without the prior written consent of Lender. Trustor shall neitFxer request nor
<br /> accept any future advances under any such secu�ity agreement without the prior written consenY of Lender.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part ofi 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 such ste�ps as may be necessary to defiend 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 tne proceeding by counsel of its own choice, and Trustor will deliver or cause to 6e 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. Ifi all or any part of the Property is condemned by eminent domain proceedings or by
<br /> any proeeeding or purchase in lieu of condemnation, Lender m�ay at its election require tnat alI or any portion of tne
<br /> net proceeds of ttie 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 /> incurred by Trustee or Lender in connection with tne condemnation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES_ The following provisions relating
<br /> to governmental taxes, fees and charges are a part of this Deed of Trusi:
<br /> CurrenY 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 by Lende�to perfiect and continue Lender's lien on
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