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201209308
<br /> DEED OF T�€1.➢ST
<br /> Loan No: 8720b885'I (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 /> T�ustor agrees to obtain and maintain Federal Flood Insurance�,. if avai.lable, fior the maximum amount ofi Trusto:r's
<br /> credit line and the fiull 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 otnerwise 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 the Property. Lender may
<br /> make proof of loss if Trustor fails to do so within fifteen (15) days of Yhe 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 reduciion ofi 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 sha❑ repair or
<br /> replace �the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon
<br /> satisfactory proofi of such expenditure, pay or reimburse Trustor from the proceeds for tne reasonable cost of
<br /> repair or restoration if Trustor is not in default under this Deed of Trust. Any proceeds wnich. have not been
<br /> disbursed witnin 7 80 days after tneir receipt and which Lender has not committed to the repair or restoration ofi
<br /> the Property shall be used fiirst to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br /> interest, and tne remaindet, if any, shall be applied to tne principal balanae of the Indebtedness. If Lender holds
<br /> any proceeds after payment in full of tne Indebtedness,. such proceeds shall be pa�id to Trustor as Trustor's
<br /> interests may appear.
<br /> Compliance with Existing Indebtedness. During the period in which any Existing Indebtedness described below is
<br /> in effect, compliance with the insurance provisions contained in the insttument evidencing such Existing
<br /> Indebtedness shall constitute compliance with the insurance provisions under this Deed of T[ust, to the extent
<br /> compliance with the terms of this Deed of Trust would constitute a duplication of insurance 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 ihe proceeds not payable to the holder of the Existing Indebtedness.
<br /> LENDER'S EXPENDITURES. If Trustor fails (A) to keep the Property free ofi all taxes, liens, security interests,
<br /> encumbrances, and other claims, (B) to provide any required insurance on the Pro�perty, (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 tV�at would materially affect Lender's interests in the
<br /> Property, then Lender on Trustor's behalfi may, but is not required to, take any action that Lender believes to be
<br /> appropriate 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 /> repayrnent by Trustor. All such expenses will become a part of 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 installment payments to become due during either ('I) tFn.e 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 tihese amounts. The rights provided for in
<br /> this paragraph shall be in addition to any other righis or any remed.ies to which Lender may be entitled on account of
<br /> any defiault. Any such action by Lentler shall not be construed as curing the default so as to bar Lender firom any
<br /> remedy that it otherwise would have had.
<br /> WARRANTY;DEFENSE OF TITLE. The foilowing provisions relating to ownership of the Property are a part of this Deed
<br /> of Trust:
<br /> Title. Trustor warrants that: (a) Trustor fiolds good and ma�rketable title of record to tne Property in fee simple,
<br /> free and clear of aIl liens 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 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 Iawfiul claims ofi all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's title o�the interest of Trustee or Lender under tnis Deed of Trust,Trustor sFiall defend tne
<br /> action aY 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 delive�, 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 authorities.
<br /> Survival of Promises. AII promises, agreements, and statements Trustor has made in this Deed ofi Trust shall
<br /> survive 2he execution and delivery of this Deed of Trust, shal9 be continuing in natu�e and shall remain in full force
<br /> and effect until 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 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 Existing Indebtedness
<br /> and to prevent any default on such indebtedness, any default under the.inst�umerns evidencing such indebtedness,
<br /> or any default under any security documents for such i.ndebtedness.
<br /> No Modification. Trustor shall not enter into any agreemeni with the holder of any mortgage, deed of trust, or
<br /> other security agreement which has priority over ihis Deed of Trust by which tnat agreement is modifiied,
<br /> amended, extended, or renewed without the prior written conseni of Lender. Trustor shall neither request nor
<br /> accept any future advances under any such securiiy agreement without the prior written consent of Lender.
<br /> CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed ofi Trust:
<br /> Proceedings. If any proceeding in condemnation 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 obYain the award. T�ustor
<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 wilf deliver or cause to be delivered to
<br /> Lender such instruments and documentation as may be requested by Lender from time to time to petmit 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 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 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 the condemnation.
<br /> IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMEN�AL AUTHORITIES. The following provisions retating
<br /> io govemmental taxes,fees and charges are a part of this Deed ofi Trust:
<br /> Current Taxes,. Fees and Charges_ Upon request 6y Lender, Trustor shall execute such documents in addition to
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