|
2109229
<br />agreements of Trustor set forth herein; and (d) all present and future indebtedness and
<br />obligations of Borrower to Lender, whether direct, indirect, absolute, or contingent and whether
<br />arising by note, guaranty, overdraft, or otherwise. The Note, this Deed of Trust, and any and all
<br />other documents securing the Note or otherwise executed in connection therewith, including
<br />without limitation guarantees, security agreements, and assignments of leases and rents, shall be
<br />referred to herein as the "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 the
<br />Property, and warrants that the lien created hereby is a first and prior lien on the Property and
<br />that the execution and delivery of this Deed of Trust does not violate any contract or other
<br />obligation to which Trustor is subject.
<br />3. Taxes, Assessments. Trustor shall pay, before delinquent, all taxes, special
<br />assessments, and all other charges against the Property now or hereafter levied.
<br />4. Insurance. Trustor shall keep the Property insured against damage by fire hazards
<br />included with the term "extended coverage" and such other hazards as Lender may require, with
<br />companies and in amounts acceptable to Lender, naming Lender as an additional named insured
<br />with loss payable to the Lender. In case of loss under such policies, Lender is authorized to
<br />adjust, collect, and compromise all claims thereunder and shall have the option of applying all or
<br />part of the insurance proceeds (i) to any indebtedness secured hereby and in such order as Lender
<br />may determine, (ii) to the Trustor to be used for the repair or restoration of the Property, or (iii)
<br />for any other purpose or object satisfactory to Lender without affecting the lien of this Deed of
<br />Trust for the full amount secured hereby before such payment ever took place. Any application
<br />of proceeds to indebtedness shall not extend or postpone the due date of any payments under the
<br />Note, or cure any default thereunder or hereunder.
<br />5. Escrow. If required by Lender, Trustor shall pay to Lender, in such manner as
<br />Lender may designate, sufficient sums to enable Lender to pay all taxes, assessments, and other
<br />charges against the Property as they become due. Further, upon written demand by Lender,
<br />Trustor shall pay to Lender, in such manner as Lender may designate, sufficient sums to enable
<br />Lender to pay as they become due, one or more of the following: (i) the premiums on the
<br />property insurance required hereunder, and (ii) the premiums on any mortgage insurance
<br />required by Lender.
<br />6. Maintenance, Repairs, and Compliance with Laws. Trustor shall keep the Property
<br />in good condition and repair; shall promptly repair or replace any improvement that may be
<br />damaged or destroyed; shall not commit or permit any waste or deterioration of the Property;
<br />shall not remove, demolish, or substantially alter any of the improvements on the Property; shall
<br />not commit, suffer, or permit any act to be done in or upon the Property in violation of any law,
<br />ordinance, or regulation; and shall promptly discharge at Trustor's cost and expense all liens,
<br />encumbrances, and charges levied, imposed, or assessed against the Property or any part thereof.
<br />7. Eminent Domain. Lender is hereby assigned all compensation, awards, damages,
<br />and other payments or relief (herein "Proceeds") in connection with condemnation or other
<br />taking of all or any part of the Property, or for conveyance in lieu of condemnation. Lender shall
<br />be entitled, at its option, to commence, appear in, and prosecute in its own name any action or
<br />proceeding, and shall also be entitled to make any compromise or settlement, in connection with
<br />such taking or damage. In the event that any portion of the Property is so taken or damaged,
<br />Lender shall have the option, in its sole and absolute discretion, to apply all such Proceeds, after
<br />Page 2 of 8
<br />
|