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This Deed of Trust shall secure (a) the payment of the principal sum and interest evidenced by a promissory note(s) or credit
<br />agreement(s) as follows: Original
<br />Principal Maturity
<br />Dale of
<br />Note(s) Maker(s) of Note(s) Amount(s) Date(s)
<br />3 -15 -00 JAMES D RIELY & SHARON RILEY
<br />$70,000.00 3 -15 -03
<br />and any and all modifications, extensions and renewals thereof or thereto and any and all future advances and readvances to
<br />Borrower (or any of them if more than one) hereunder pursuant to one or more promissory notes or credit agreements (herein called
<br />"Note ", whether one or more); (b) the payment of other sums advanced by Lender to protect We security of the Note; (c) the
<br />performance of all covenants and agreements of Trustor set forth herein; and (d) all present and future indebtedness and obligations
<br />of Borrower (or any of them if more than one) to Lender whetter direct, indirect, absolute or contingent and whetter arising by
<br />note, guaranty, overdraft or otherwise. The Note, this Deed of Trust and any and all other documents that secure the Note or
<br />otherwise executed in connection therewith, including without limitation guarantees, security agreements and assignments of leases
<br />and rents, shall be referred to herein as We "Loan Instruments ".
<br />Trustor covenants and agrees with Lender as follows:
<br />1. Payment of Indebtedness. All Indebtedness secured hereby shall be paid when due.
<br />2. Title. Trustor is the owner of the Property, has the right and authority to convey tie Property, and warrants that the lien
<br />created hereby is a first and prior lien on the Property, except for liens and encumbrances' set forth by Trustor in writing and
<br />delivered to Lender before execution of this Deed of Trust, and the execution and delivery of this Deed of Trust does not violate any
<br />contract or other obligation to which Trustor is subject.
<br />3. Taxes, Assessments. To pay before delinquency all taxes, special assessments and all other charges against die Property now
<br />or hereafter levied.
<br />4. insurance. To keep the Properly Insured against damage by fire, hazards Included within the term "extended coverage ",
<br />and such other hazards as Lender may require, fit amounts and with companies acceptable to Lender, naming Lender as an
<br />additional named insured, with loss payable to the Lender. In case of loss under such policles,'tle Lender Is authorized to adjust,
<br />collect and compromise, all claims thereunder and shall have the option of applying all or part of the'Insurance proceeds (1) to any
<br />Indebtedness secured hereby and in such order as Lender piny determine, (11) to the Trustor to -be used for tine repair or restoration
<br />of the Property or (€11) for any other purpose or object satisfactory to Lender without affecting lice lien of this Deed of Trust for tine
<br />full amount secured hereby before such payment ever took place. Any application of proceeds to Indebtedness shall not extend or
<br />postpone the due date of any payments under We Note, or cure any default thereunder or hereunder.:
<br />5. Escrow. Upon written demand by Lender, Trustor shall pay to Lender, In such manner as Lender may designate, sufficient
<br />sums to enable Lender to pay as they become due one or more of the following: (1) all taxes,, assessments and other charges against
<br />rise Property, (ii) the premiums on the property insurance required hereunder, and (€€€) the premiums on any mortgage insurance
<br />required by Lender.
<br />6. Maintenance, Repairs and Compliance with Laws. Trustor shall keep the Property hl good condition and repair; small
<br />promptly repair, or replace" any improvement which may be damaged or destroyed; shall not commit or permit any, waste or
<br />deterioration of the Property; shall not remove, demolish or substantially alter any of the improvements on the Property; shall not
<br />commit, suffer or permit any act to be done in or upon the Property in violation of any law, ordinance, or regulation; and shall pay
<br />and alL Imposed ssessed a ainst the
<br />Property or any part thereof.
<br />7. Eminent Domain. Lender is hereby assigned all compensation, awards, damages and other payments or relief (hereinafter
<br />"Proceeds ") in comnection with condemnation or other taking of the Property or part thereof, or for conveyance in lieu of
<br />condemnation. Lender shall be entitled at its option to commence, appear in and prosecute in its own name any action or
<br />proceedings, and shall also be entitled to make any compromise or settlement in connection with such taking or damage. In the
<br />event any portion of the Property is so taken or damaged, Lender shall have the option, in Its sole and absolute discretion, to apply
<br />all such Proceeds, after deducting therefrom all costs and expenses incurred by it in connection with such Proceeds, upon any
<br />indebtedness secured hereby and in such order as Lender may determine, or to apply all such Proceeds, after such deductions, to the
<br />restoration of the Property upon such conditions as Lender may determine. Any application of Proceeds to Indebtedness shall not
<br />extend or postpone tine due date of any payments under tine Note, or cure any default thereunder or hereunder. Any unapplied funds
<br />shall be paid to Trustor.
<br />8. Performance by Lender. Upon the occurrence of all Event of Default hereunder, or If any act ,is,taken or legal proceeding
<br />commenced which materially affects Lender's interest in the Property, Lender may In Its own discretion, but without obligation to
<br />do so, and without notice to or demand upon Trustor and without releasing Trustor from any obligation do any act which Trustor
<br />has agreed but fails to do and may also do any other act It deer its necessary, to protect the security hereof. Trustor shall,
<br />immediately upon demand therefor by Lender, pay to Lender all costs and expenses Incurred and sums expended by Lender in
<br />connection with tie exercise by Lender of the foregoing rights, together with interest thereon at die default rate provided in tine
<br />Note, which shall be added to the Indebtedness secured hereby. Lender shall not Incur any liability because of anything It may do or
<br />omit to do hereunder.
<br />9. Ilazardous Materinls. Ttustor shall keep lire Property ht compliance will, all applicable laws, ordinances and regulaticins
<br />relating to industrial hygiene or environmental protection (collectively referred to herein as'. "Environmental Laws"). 11 Ttustor shall
<br />keep the Property free from all substances deemed to be hazardous or toxic under any Environmental Laws (collectively referred to,
<br />herein as "hazardous Materials "). 'Trustor liere4y warrants and represent& to Lender that there are no Hazardous Materials on or
<br />under the Property. Trustor hereby agrees to Indemnify and `hold harmless Lender, Its directors, officers, employees and agents,
<br />and any successors to Lender's inter, IM1111111 al d
<br />with the presence, use, disposal or transport of any Hazardous Materials on, under, from or or about fine Property, THE FOREGO
<br />WARRANTIES AND REPRESENTATIONS, AND TRUSTOR'S OBLIOATIONS PURSUANT JO •TIIE - FOREGOING'
<br />INDEMNITY, SHALL SURVIVE RECONVEYANCE OF THIS DEED OF TRUST,
<br />10. Assignment of Rents. Trustor hereby assigns to Lender, and grants Lender a security Interest in, all present, future and
<br />after- arising rents, issues and profits of the Property; provided that Trustor shall, until the occturrence of an Event of Default
<br />hereunder, have tine right to collect and retain such rents, issues and profits as they become due and payable:i Upon the occurrence
<br />of an Event of Default, Lender may, either in person or by agent, with or without bringing any action or proceeding, or by a
<br />receiver appointed by a court and without regard to the adequacy of Its security, enter upon and take possession of file Property, or
<br />any part thereof, in its own name or in the name of tine Trustee, and do any acts which it deems necessary, or. desirable to preserve .
<br />the value, marketability or rentability of the Property, or any part thereof or interest therein, or to increase the Income therefrom or
<br />protect the security hereof and, with or without taking possession of die Property, sue for or otherwise collect the rents, Issues and
<br />profits thereof, including those past due and unpaid, by notifying tenants to make payments to Lender, Lender may apply rents,
<br />issues and profits, less costs and expenses of operation and collection including attorneys' fees, to any Indebtedness secured hereby,
<br />all in such order as Lender may determine. The entering upon and taking possession of rte Property, the collection of such rents,
<br />issues and profits, and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or
<br />invalidate any act done in response to such default or pursuant to such notice of default and, notwithstanding the continuance h,
<br />possession of tie Property or die collection, receipt and application of rents, Issues or profits, Trustee and Lender shall be entitled to
<br />exercise every tight provided for in any of file Loan Instruments or by law upon occurrence of any Event-of Default, including.
<br />wrdhout limitation the right to exercise. the power of sale. Further, Lender's rights and remedies under this paragraph shall be
<br />cumulati-e wit,, and in no way a limitation on, Lender's rights and remedies under any assignment of leases and rents recorded
<br />0ae1ner mp_ Prnneriv. lender. Trustee and the receiver shall be liable to account only for those rents actually. received,
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