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201210322
<br /> DEED OF TRUST
<br /> Loan No: 872056453 (Continued) Page 3
<br /> in any way by any act, omission or defiauk 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 ptincipal balance of any ptior liens on the properiy securing the loan, up to the
<br /> maximum policy Iimits set under the Nationai Flood Insurance Program, or as otherwise required by Lender, and to
<br /> maintain such insurance for the term ofi the Ioan.
<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 fifiteen (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-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 satisfiactory to Lender. Lender shall, upon
<br /> satisfactory proof ofi 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 ofi Trust. Any proceeds which have not been
<br /> disbursed within "180 days af[er their receipt and whicn Lender has not committed to the repair or restoration ofi
<br /> the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued
<br /> interesi, and Yhe remainder, if any, shall be applied to the p�incipal 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 /> LENDER'S EXPENDITURES_ If Trustor fails (A) to keep the Property free of all taxes, liens, security interests,
<br /> encumbrances, and other claims, (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 thaY would materially affect 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 inte�ests. All expenses incurred or paid by Lender for such purposes will
<br /> then bear interest at the rate charged under tne Gredit Agreernent firom 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, wi❑ (A)
<br /> be payable on demand; (B) be added to the balance of the Credit Agreement and be apportioned among and be
<br /> payable with any installment payments to become due during either ("1) the term of any applicable insurance policy; or
<br /> (2) tne remaining term of the Credit Agreement; or (C) be treated as a balloon paymenf whicn will be due and payable
<br /> at the Credit AgreemenYs maturity. The Deed of Trust also will secure payment of these amounts. The rights provided
<br /> for in this paragraph shall be in addition to any other rights or any remedies to wf�ich Lender may be entitled on account
<br /> of any defauR. 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 Property are a part of this Deed
<br /> of Trust:
<br /> Tifle. Trustor warrants that: (a) Trustor holds good and marketable title of record to the Property in fee simple,
<br /> free and clear of all liens and encumbrances other than 'those set forth in the Real Property description or in any
<br /> title insurance policy, title report, or fiinal title opinion 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, Trustor warrants and wifl forever defend the
<br /> title to the Property against the Iawful claims of all persons. In the event any action or proceeding is commenced
<br /> that questions Trustor's title or the interesY 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 eniitled to
<br /> participate in the proceeding and to be represented in the proceeding by counsel of LendePs own choice, and
<br /> Trustor will deliver, or cause to be delivered, to Lender such insvuments as Lender may request from time to time
<br /> to permit such participation.
<br /> Compliance With Laws. Trustor warrants that the Property and TrustaPs use of the Property camplies with 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 tnis Deed ofi Trust, shall be continuing in nature and shall remain in full force
<br /> and effect until such time as Trustor's Indebtedness is paid in full.
<br /> CONDEMNATION. Tne following provisions relating to condemnation proceedings are a part of this Deed of Trust:
<br /> Proceedings. If any proceeding in condemnation is filed, Trustor shal:l promptly notifiy Lender in writing, and
<br /> Trustor shall promptly take such steps as may be necessary Yo defend the aci�on 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 6e
<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 alI or any portion of the
<br /> net proceeds ofi the award be applied to the Indebtedness or the repai�r 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 GOVERNMENTAL AUTHORITIES. The fiollowing provisions relating
<br /> to governmental taxes, fees and charges are a part ofi this Deed of Trust:
<br /> Current Taxes, Fees and Charges. Upon request by Lender, Trustor shaq execute such documents in addition to
<br /> this Deed ofi Trust and take whatever other action is requested by Lender to perfect and continue Lender's Iien on
<br /> the Real Property. Trustor shall reimburse Lender fior all taxes, as described below, together with all expenses
<br /> incurred in recording, perfecting or continuing this Deed ofi Trust, induding without limitation alI taices, fees,
<br /> documentary stamps, and other charges for recording or registering this Deed of Trust.
<br /> Taxes. The fiollowing shall constitute taxes to which this section applies: (1) a specific tax upon this type of
<br /> Deed of Trusi or upon all or any part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on
<br /> Trustor which Trustor is authorized or required to deduct from payments on tne Indebtedness secured by this type
<br /> of Deed of Trust; (3) a tax on this type of Deed of Trust chargeable against 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 ofi principal and
<br /> interest made by Trustor.
<br /> Subsequent Ta�ces. If any tax to which this section applies is enacted subsequent to the date of tnis Deed of
<br /> Trust, this event shall have the same effect as an Event of Defiault, and Lender may exercise any or all of its
<br /> available remedies for an Event of Default as provided below unless Trustor either (1) pays the tax before it
<br /> becomes delinquent, or (2) contests the tax as provided above in the Taxes and Liens section and deposits with
<br /> Lender cash or a sufficienY corpoYate surety bond or other security satisfactory to Lender.
<br /> SEGURITY AGREEMENT; FINANCWG STATEMENTS. The following provisions relating 2o this Deed ofi Trust as a
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