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201208639
<br /> � ' DEED OF TRUST
<br /> Loan No: 872058827 (Continued) Page 3
<br /> � in any way by any act,omission or default of Trustor or any otner person. Should the Real Property be located in
<br /> an area designated by the Directo�of the Federal Emergency Management Agency as a special flood hazard area,
<br /> Trustor agrees to obtain and maintain Federal Flood Insurance, if available, fior the maximum amount of Trustor's
<br /> credit line and the full unpaid principal balance ofi 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 of Proceeds. Trustor shall promptly notify Lender of any loss or damage to ghe Property. Lender may
<br /> make proof of loss if Trustor fails to do so withi� fifteen ("15) days of the casualty. Whether or not Lender's
<br /> securiiy is impaired, Lender may, at Lender's election, receive and retain the proceeds ofi any insurance and apply
<br /> the proceetls to the reduction of ihe Indebtedness, payment of any lien affecting the Property, or the resCoration
<br /> and repai.r of the Property. Ifi Lender elects to apply the proceeds to testoration and repair, Trustor shall repair or
<br /> replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfiantory proof of such expenditure, pay or reimburse Trustor from the proceeds for the reasonable cost of
<br /> repair or restoration if Trustor is not 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 committed to tF�e repair or restoration of
<br /> the Property shall be used first to pay any amouni owing to Lender under this Deed of Trust, then to pay accrued
<br /> interest, and tne remai:nder, ifi any, shall be applied to the principal balance of the Indebtedness_ Ifi Lender holds
<br /> any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Trustor as Trusror's
<br /> interests may appear.
<br /> Compliance witFi Existing Indebtedness. During the period in which any Existing Indebtedness described below is
<br /> in effect, compliance with the insurance provisions contained in the instrument evidencing such 6cisting
<br /> Indebtedness shall constitute compliance witn the insurance provisions under this Deed of T�ust, to the extent
<br /> compliance with the terms ofi this beed of Trust would constitute a duplication of insurance requirement. ff 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 ihat por[ion of the proceeds not payable to the holder of the Existing Indebted�ness.
<br /> LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free of all taxes, liens, security interesis,
<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. Ifi any action or proceeding is commenced 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 at the rate charged under the Credit Agreement from the date incurred or paid by Lender to the date ofi
<br /> repayment by Trustor. AII such expenses wfll become a part of the 4ndebtedness and, at Lender's option, wifl (A) be
<br /> payable on demand; (B) be added to the balance of the Credit Agreement and be apporiioned arnong and be. paya6le
<br /> with any installment payments to become due during either ('I) the term of any applicable insurance policy; or (2) the
<br /> temaining tePm ofi the Credit Agreement; or (C) be treated as a balloon payment which wiPl me 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 to any other rights or any remedies to which Lender may be entitled on account of
<br /> any default_ Any such action by Lende� shall not be construed as curing the default so as to bar Lender firom any
<br /> remedy that it otherwise would have had.
<br /> WARRANTYt.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 that: (a) Trustor holds good and marketable title of record to the Property in fee simple,
<br /> free and dear of all liens and encumbrances oiher than those set fiorth in the Real Property description or in the
<br /> Existing Indebtedness section below or in any title insurance policy,title report, or final totle opinion issued in favor
<br /> of, and accepted by, Lender in connection with this Deed ofi 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 defend the
<br /> title to the Property against the Iawful claims ofi all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's title or tne interest of Trustee or Lender undet this Deed ofi 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 /> partic.ipate 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 sucn instruments as Lender may request from time to time
<br /> to permit such participation.
<br /> Compliance With Laws. Trustor warraMs that the Property and Trustor's use of the Property complies with all
<br /> existing appticable laws;ordinances, and regulations of governmental authorities.
<br /> Survivat of Promises. All promises, agreements, and statements Trustor has made in this Deed of Trust shall
<br /> survive the execution and delive�ry of this Deed of Trust, shall be continuing in nature and shall remain in full force
<br /> and effect until such ti.me as Trustor's Indebtedness is paid in full.
<br /> EXISTING INDEBTEDNESS. The following provisions concerning 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. Trustor expressly covenants and agrees to pay, or see to the payment ofi, the Existing Indebtedness
<br /> and to prevent any default on such indebtedness, any default under the instruments evidencing such indebtedness,
<br /> or any default under any security documents for such indebtedness.
<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 tfiis Deed of Trust by which that agreement is modified, �
<br /> amended, extendetl, or tenewed without the prior written consent of Lender. Trustor shall neither request nor
<br /> accept any future advances under any such security agreement withoat the prior written consent of Lender.
<br /> CONDEMNATION. The foFlowing provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br /> Proceedings. If any proceeding in condemnaYion is filed, Trustor shall promptly notify Lender in writing, and
<br /> Trustor shall promptly take such steps as may be necessary to defend the action and obiain the award. Trustor
<br /> may be the nomin�al party in such proceeding, but Lender shall be�.entitled Yo�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 eminent domain proceedings or by
<br /> any proceeding or purchase in lie.0 of condemnation, Lender may at 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 of the award snall mean the award after payment of all reasonable costs, expenses, and attomeys' fees
<br /> incurred by Trustee or Lender in.connection with the condemnation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AU7HORITIES_ The following provisions refating
<br /> to governmental taxes, fees and charges are a part of this Deed of Trust:
<br /> Current Taxes. Fees and Charges_ Upon requesi by Lender, TYustor shall execute such documents in addition to
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