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201208945
<br /> DEED OF TRUST
<br /> Loan No: 872058789 (Contint�eC!) Page 3
<br /> insurance policy also shall include 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 Iocated i�n
<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 tne 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 insu�ance 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 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 of any insurance and apply
<br /> the proceeds ta the reduction of the Indebtedness, payment of any Iien 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 Lender. Lender shall, 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 not in default under this Deed ofi Trust. Any proceeds which have not been
<br /> disbursed within 780 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 Existing Indebtedness_ During tFie period in wnich any Existing 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 tnis Deed ofi Ttust, to the extent
<br /> compliance with the terms of this Deed ofi Trust would constitute a duplication of insurance requirement. If any
<br /> proceeds from the insurance become payable on loss, the provisions in this Deed ofi Trust for division ofi proceeds
<br /> shall apply only to that portion of the proceeds not payable to the holder of the Existing Inde�btedness.
<br /> LENDER'S EXPENDITURES. Ifi Trustor fiails (A) to keep tne Property free of all taxes; liens, security interests,
<br /> encumbrances, and otner claims, (B) to provide any required insurance on the Property, (C1 to make repairs to tne
<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 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 beJieves to be
<br /> appropriate to protect Lender's interests. All expenses incurred or paid by Lender fior 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 Indebtedness 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 i�stallment payments io become due during either (1) the term of any applicable insurance poticy;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 maiurity. 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 defaulY. 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 ProperYy are a part of this Deed
<br /> of Trust:
<br /> Title. Trustor warrants that: (a) Trustor holds good and markeYable title of record to the Property in fee simple,
<br /> free and clear of alI Iiens 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 /> authoritiy to execute and deliver this Deed of Trust to Lender.
<br /> Defense of Title. Subject to the exception in the paragraph above, Trustor wartants and will forever defend the
<br /> title to the Property against the lawful claims of all persons: In the event any action or proceeding is commenced.
<br /> tnat questions Trustor's title or the interest of Trustee or Lender under this Deed of Trust,Trustor shall defe�.nd the
<br /> action at Trustor's expense. Trustor may be the nominal party in such proceedi�ng, 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 6e delivered,to Lender such instruments as Lender may request firom ti�me to time
<br /> to permif 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 goveYnmental authorities.
<br /> Survival of Promises. AII promises, agreements, and statements Trustor has made in this Deed of Trust shall
<br /> survive the execution and delivery of this Deed of Trust, snall be continuing in nature and shall remain in full force
<br /> and effect u�ntil such time as Trustor's Indebtedness is paid in full.
<br /> EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part ofi this Deed of Trustr�
<br /> F�cisting Lien_ The lien. of this Deed of Trust securing the Indebtedness may be secondary and inferior to an
<br /> existing lien. Trus[or expressly covenants and agrees to pay, or see to the payment of, tne 6cisting Indebtedness
<br /> and to prevent any default on such indebtedness, any defiault under the instruments evidencing such indebtedness,
<br /> or any default under any security documents for such indebtedness.
<br /> No Modification. Trustor sha❑ not enter into any agreement with the holder of a�ny mortgage, deed ofi trust, or
<br /> other security agreement which has priority over this Deed ofi Trust by which that agreement is modified,
<br /> amended, extended, or renewed without the prior written consent of Lender. Trustor snall neither request nor
<br /> accept any future advances under any such security agreement without tne prior written consent of Lender. �
<br /> CONDEMNATION. The fiollowing provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br /> Proceedings. If any proceed�ing in condemnation is filed, Ttustor shall promptly notify 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 nominal party in such proceeding, but Lender shall 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 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 at its election require that all or any portion of the
<br /> net proceeds of the award be applietl 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 attomeys' fees
<br /> incurred by Trustee or Lender in connection with the condemnation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating
<br /> to govemmental taxes,fees and charges are a part ofi this Deed ofi TrusY:
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