|
201208578
<br /> DEED OF TRUST
<br /> Loan No: 872058819 (Coeltinued) Page 3
<br /> insurance policy also shall indude 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. 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 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 of the loan.
<br /> Application o4 Proceeds. Trustor shall promptly notifiy Lender of any loss or damage to the Property. Lender may
<br /> make proof of 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 ofr 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. If 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 Lenoler. Lsnder shall, u.pon
<br /> satisfiactory proof of such expenditure, pay or reimburse Trustor firom the proceeds for tne reasonable cost o#
<br /> repair or restoration if Trustor is not in default under this Deed of Trust. Any proceeds which have not been
<br /> disbursed within 1 SO days afiter the�ir receipt and whicn Lender nas not committed to the repai.r or restoration of
<br /> Yhe Property shall be used first to pay any amount owing to Lender under th.is Deed ofi Trust,then to pay accrued
<br /> interesY, and the remainder, if any, shall be applied to tne principal balance of the Indebtedness. Ifi Lender holds
<br /> any proceeds after payment in fiull ofi the Indebtedness, such proceeds shall be paio1 to Trustor as Trustor's
<br /> interests may appear.
<br /> LENDER'S EXPENDITURES. If Trusto:r fails (A) to keep the Property free of all taxes, liens, security iMerests,
<br /> encumbrances, and other daims, (B) to provide any required insurance on the Property, or (C) to make repairs to the
<br /> Property then Lender may do so. If any action or proceeding is commenced that would materially afifect 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 interest aY 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 tne balance ofi the Credit Agreement and be apportioned. among and be
<br /> payable with any installment payments to become due during eitner (1) tne term of any applicable insurance poLicy; or
<br /> (2) the remaining term of the Credit Agreement; or (C) be treated as a balloon paymeM which will be due and payable
<br /> at the Credit Agreement's maiurity. The Deed of Trust also will secure payment of these amounts. The rights provided
<br /> for in this paragtaph shall be in addition to any oiher rights or any remedies to which Lender rnay 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 foflowing provisions relating to ownership of ihe Property are a part of this Deed
<br /> of Trust:
<br /> Title. Trustor warrants Yhat: (a) Trustor holds good and marketable title ofi record to the Property in fee simple,
<br /> free and clear ofi all liens and encumbrances other Yhan those set forth in the Real PropeYty description or in any
<br /> title insurance policy, titie report, or final title opini�on issued in favor of, 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 above, Ttustor warrants and will forever defend the
<br /> title to the Property against the lawful claims of aII 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 shall defend 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 �th 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 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 fiull force
<br /> and effect until such time as Trustor's Indebtedness is paid in fiull.
<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 not�fy Lender in writing, and
<br /> Trustor shall promptly take such steps as may be necessary to defend the action and obtain the award. Trustor
<br /> may be the nominai party in such proceeding, buY Lender shall be entitled to participate in the proceeding and to be
<br /> represented in the proceeding by counsel of its own cnoice, 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 eminent domain proceedings or by
<br /> any proceeding or purchase in lieu of condemnation, Lender may aY its election require that all or any portion of the
<br /> net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net
<br /> proceeds ofi the award shall rnean the award after payment of aIl reasonable costs., expenses, and attomeys' fees
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br /> tMPOSITION OF TAXES� FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The fiollowing provisions relating
<br /> to governmental taxes,fees and cnarges are a part of this Deed of TrusY:
<br /> Current 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 Lender to pe�rfect and continue Lender's lien on.
<br /> the Real Property. Trustor shall reimburse Lende�r for all taxes, as described below, mgether with all expenses
<br /> incurred in recording, perfecting or continuing this Deed of Trust, including without limitation all taxes, fees,
<br /> documentary stamps, and otner charges for recording o�registering this Deed of Trust.
<br /> Taaces_ The following shall constitute taxes to wnich this section applies (1? a specific tax upon this type of
<br /> Deed of Trust or upon all or any part ofi the Indebtedness secured by this Deed of Trustt (2) a specifiic tax on
<br /> Trusior 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 of Deed ofi Trust cha�geable agai.nst 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 /> inierest made by Trustor.
<br /> Subsequent Taxes_ Ifi any tax to which this section applies is enacted subsequent to the date ofi this Deed of
<br /> Trust, this event shall have the same efifect as an Event of Defiault,. and Lender may exercise any or all of its
<br /> available remedies for an Event of Defiault as provided below unless Trustor either (1) pays the tax befiore it
<br /> becomes delinquent, or (2) contests tne 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 satisfactory to Lender.
<br />
|