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2 0 0 0 0 U �s 9 DEED OF TRUST Page 4
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<br /> � Compllance with Existing Indebtedness. During the period in which any Ewsting Indebtedness described below is in effect,compliance with the
<br /> insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compli8nc8 with the insurance provisions
<br /> under this Deed of Trust,to the extenf compliance with the terms of this Deed of Trust would constitute a duplication of insurance requirement. If
<br /> any proceeds from the insurance become payable on loss, the provisions in this Deed of Trust for division of proceeds shall apply only to that
<br /> portion of the proceeds not payable io the holder of the Existing Indebtedness.
<br /> 11. DCPENDITURES BY LENDER. If Grantor fails to comply with any provision of this Deed of Trust, including any obligallon to maint8in Existing
<br /> Indebtedness in good standing as required below, or ii any action or proceeding is commenced that would materially affect Lender's interests in the
<br /> Property Lender on Grantor's behalf may, upon notice to Grantor, but shall not be required to,take any action that Lender deems appropriate. Any
<br /> amount thet Lender expends in so doing will bear interest at the rate charged under the Credit Agreement from the date incurred or paid by Lender to
<br /> the d8te of repayment by Grantor. All such expenses,at Lender's option,will (a)be payable on demand,or (b)be added to the balance of the credit
<br /> line. This Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or
<br /> any remedies to which Lender may be entitled on account of the default. Any such action by Lender shall not be construed as cunng the default so as
<br /> to bar Lender from any remedy that it otherwise would have had.
<br /> 12. WARRANT1f;DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a paA of this Deed of Trust.
<br /> TIUe. Grantor warrants that: (a)Grantor holds good and marketable title of record to the Property(including a leasehold interest,if any),hee and
<br /> dear of all liens and encumbrances except those oi record, and (b) Grantor has the full right, power, and authority to execute and deliver this
<br /> Deed of Trust to lender.
<br /> Detense of Tltle. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the
<br /> tawful ciaims of aIl p�sons. In the event any action w proceeding is commenced that ques6ons Grantor's title or the interest of Trustee or Lender
<br /> under this Deed oi Trust,Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding,but Lender
<br /> shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice,and Grantor will deliver,or
<br /> cause to be delivered,to Lender such instruments as Lender may request from time to fime to permit such participation.
<br /> Complfance Wlth Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing appliceble laws,
<br /> ordinances,and regulations of governmentAl authorities.
<br /> 13. DCISTING INDEBTEDNESS. The following provisions concerning existing indebtedness(the"Existing Indebtedness")flre a part of this Deed of
<br /> Trust
<br /> Exlatiny Lien. The lien of this Deed oi Trust securing the Indebtedness may be secondary and inferior to an existing lien, if there is such a lien.
<br /> Grantor expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any defeult on such
<br /> indebtedness, any default under the instruments evidencing such indebtedness, or any default under any security documents for such
<br /> indebtedness.
<br /> No MOdfflcatfOn. Grantor shall not enter into any agreement with the holder of any mo�tgage, deed of trust, or other security agreement which
<br /> has priority over this Deed of Trust by which that agreement is modified, amended, extended, or renewed without the pnor written consent of
<br /> lender. Grantor shall neither request nor accept any future advances under any such security agreement without the prior wntten consent of
<br /> Lender.
<br /> t4. CONDEMNATION. The following provisions relating to proceedings in condemnation are a part of this Deed of Trust.
<br /> Applicatfon of Net Prxeeds. If all or any part of the Property is condemned,Lender may at its election require that all or any portion of the net
<br /> proceeds of the award be applied to the Indebtedness under the LOANLINER�Home Equity Plan,subject to the terms of any mortgage or deed of
<br /> trust with a lien which has priority over this Deed of Trust. The net proceeds of the award shall mean the award after payment of all reasonable
<br /> costs,expenses,end attomeys'fees necessarily paid or incurred by Grantor,Trustee or Lender in connection with the condemnation.
<br /> Proceedinpa. If any proceeding in condemnation is filed, Granbr shall prompUy notify Lender in writing,and Grantor shall prompdy take such
<br /> steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding,but Lender shall be
<br /> entiUed to pa�icipate in the proceeding and to be represented in the procceding by counsel of its own choice,and Grantor will deliver or cause to
<br /> be delivered to Lender such instruments as may be requested by it irom time to time to permit such participation.
<br /> 15. IMPOSITION OF TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORIT�ES. The following provisions relating to governmental taxes,
<br /> tees and charges are a part of this Deed of Trust:
<br /> Curtent Truces,Fses and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Deed of Trust and take
<br /> whatever other action is requested by Lender to pe�fect end continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all
<br /> taxes,as described below,together with all expenses incurred in recording,perfecting or continuing this Deed of Trust,including without limitation
<br /> a�l taxes,fees,documentary stamps,and other charges for recording or registering this Deed of Trust.
<br /> Taxes. The following shall constitute taxes to which this section applies: (a)a specific tax upon this type of Deed of Trust or upon all or any part
<br /> of the Indebtedness secured by this Deed of Trust; (b)a specific tax on Grantor which Grantor is authorized or required to deduct from payments
<br /> on the Indebtedness secured by this type of Deed of Trust; (c)a tax on this type of Oeed of Trust chargeable against the Lender or the holder of
<br /> the Credit Agreement;and (d)a specific tax on all or any portion of the Indebtedness or on paymenis of pnncipal end interest made by Grantor.
<br /> 16. FURTHEF ASSURANCES. The following provisions relating to further assurances are a part of this Deed of Trust.
<br /> FuRher Assurances. Upon request of Lender,Grantor will make,execute and deliver,or will cause to be made,executed or delivered,to Lender
<br /> or to Lenders designee,and when requested by Lender,cause to be filed,recorded,refiled,or rerecorded,as the case may be,at such Hmes and
<br /> in such offices and places as Lender may deem appropriate,any and all such mo�tgages, deeds of trust, security deeds, secunty agreements,
<br /> financing statements,continuation statements, instruments of further assurance,certificates,and other documents as may,in the sole opinion of
<br /> Lender,be necessery or desirable in wder to effectuate,complete,perfect,continue, or p�eserve (a)fhe obliyations of Grantor under the Credit
<br /> Apreement,this Deed of Trust,and the Retated Documents,and (b)the lierts and security interests created by this Deed of Trust on the Property.
<br /> Unless prohibited by law or agreed to the contrary by Lender in wnting, Grantor shall reimburse Lender for all costs and ezpenses incurred in
<br /> connection with the matters referred to in this paragraph.
<br /> 1T. FUl PERFORMANCE. Ii Grantor pays all the Indebtedness when due, terminates the credit line account, and otherwise pertorms all the
<br /> obligations imposed upon Grantor under this Deed of Trust,Lender shall execute and deliver to Trustee a request for full reconveyance.
<br /> 1a. DEFAI�T. Each of the following,at the option of Lender, shall constitute an event of defautt("Event of DefaulY') under this Deed of Trust: (a)
<br /> Grantor commits traud or makes a material misrepresentation at any time in connection with the credit line account. This can include, for example,a
<br /> false statement about Grantors income, assets, Iiabilities, or any other aspects of Grantor's financial condition. (b) Grantor does not meet the '
<br /> repayment terms of the credit line account. (c)Grantor's action or inaction adversely afiects the collateral for the credit line account or Lender's rights in
<br /> the cdlateral. This can incfude,for example,tailure to maintain required insurance,waste or destructive use of the dwelling,failure to pay taxes, death
<br /> of all persons liable on the account, transfer of title or sale of the dwelling, creation of a lien on the dwelling without our permission, foreclosure by the
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