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.' � i; �� 4` i���I 318 DEED OF TRUST Page 4
<br /> (Continued)
<br /> Complfance wlth Existfng Indebtedness. During the penod in which any Existing IndebtBdness descnbed below is in eAect,compliance with the
<br /> insurance provisions contained in the instrument evidencing such Existing Indebtedness shall constitute compliance with the insurance provisiorts
<br /> under this Deed of Trust,to the extent compliance with the terms of this Deed of Trust would constitute a duplication of insurance requirement. If
<br /> any proceeds hom the insurance become payable on loss, the provisions in this Deed of Trust for division of proceeds shall apply only to that
<br /> porlion of the proceeds not payable to the holder of the Existing Indebtedness. •
<br /> 11. DCPQlDITURES BY IENDER. If Grantor fails to comply with any provision oi this Deed of Trust, including any obligation to maintain Existing
<br /> Indebtedness in good standing as required below, or if any action or proceeding is commenced that would materially affect Lenders interests in the
<br /> Properiy, 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 that Lender expends in so doing will bear interest at the rate charged under the Credit Agreement from the date incurred or p8id by Lender to
<br /> the date 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 ctedit
<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 entitted on account of the default. Any such action by Lender shall not be construed as curinfl the default 5o as
<br /> to bar Lender hom any remedy that it otherwise would have had.
<br /> 12. WARRANTY;DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust.
<br /> TIUe. Grantor warrants that: (a)Grantor holds good and marketable title of record to the Property(includinq a teasehold interest,if any),free and
<br /> clear of all liens and encumbrances except those oi record, and (b) Grantor hes the full right, power, and authority to execute and deliver this
<br /> Deed of Trust to Lender.
<br /> Defenx of Tltle. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the
<br /> lawful claims of all persons. In the event any action or proceeding is commenced that question5 Grantor's title or the interest of Trustee or Lepder
<br /> under this Deed of Trust,Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding,but Lender
<br /> shall be entitted to pa�ticipate 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 time to permit such participation.
<br /> Compliance With Laws. Grantor warrants that the Property and Grantor'S use of the Property complies with all existing applicable laws,
<br /> ordinances,and regulations of governmental authorities.
<br /> 19. DCISTING INDEBTEDNESS. The following provisions concerning existing indebtedness (the"Existing Indebtedness")are a part of this Deed of
<br /> Trust
<br /> E�dstfny Llen. The Iien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an existing lien,if there is such a lien.
<br /> Grentor expressly covenanls and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any default on such
<br /> indebtedness, any default under the instrumenM, evidencing such indebtedness, or any default under any security documents for suCh
<br /> indebtedness.
<br /> No ModiflCation. Grantor shall not enter into any agreement with the holder of any mo�tgage, deed of trust, or other security agreement which
<br /> has pnonty over this Deed of Trust by which that agreement is modified, amended, extended, or renewed without the prior 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 /> 14. CONDEMNATION. The following provisions relating to proceedings in condemnation are a part of this Deed of Trust.
<br /> Applicatlon of Net Proceeds. 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 prioriry over this Deed of Trust. The net proceeds oi the award shall mean the award after payment of all reasonable
<br /> costs,expenses,end attorneys'fees necessarily paid or incuned by Grantor,Trustee or Lender in connection with the condemnation.
<br /> Proceedinps. If any prxeeding in condemnation is filed, Grantor shall promptly notity Lender in writing,and Grantor shall prompdy take such
<br /> steps as may be necessary to defend the acGon and obtain the award. Grantor may be the nominel party in such proceeding,but Lender shall be
<br /> entitled to participate in the proceeding and to be represented in the proceeding 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 hom time to time to permit such partiCipation.
<br /> 15. IMPOSITION OF TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relafing to governmental taxes,
<br /> fees and charges are a part of this Deed of Trust: - -
<br /> Current Taxes, Fees and Charyes. Upon request by Lender, Grantor shall execute such documents in addition to this Deed of Trust and take
<br /> whatever other action is requesied by Lender to perfect and continue Lender's Iien on the Real Properly. Grentor shall reimburse Lender tor all
<br /> taxes,as described below,together with all expenses incuRed in recording,pertecting or continuing this Deed of Trust,including without limitation
<br /> all 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 Trusi; (b)a specific tax on Grantor which Grantor is authorized or required to deduct kom payments
<br /> on the Indebtedness secured by this type of Deed of Trust; (c)a tax on this type of Deed 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 payments of principal and interest made by Grantor.
<br /> 16. FURTHEA ASSURANCES. The following provisions relating to turther assurances are a part of this Deed of Trust.
<br /> Furthet 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,ef such times and
<br /> in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of hvst, security deeds, security agreements,
<br /> financing statements,continuation statements, instruments of further assurance,ceRificates, and other documents as may,in the sole opinion of
<br /> Lender, be necessary or desirable in order to effectuate,complete, perfect,continue, or preserve (a)the oblipadons of Grantor under the Credit
<br /> Apreement,t�is Deed of Trust,and the Related Documents,and {b)t�e liens 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 writing, Grantor shall reimburse Lender for all costs and exper�ses incurred in
<br /> connection with the matters referred to in this paragraph.
<br /> 1T. FU1 PERFORMANCE. If Grantor peys atl the Indebtedness when due, terminates the c�edit line account, and otherwise pertorms all the
<br /> obligations imposed upon Grantor unde�this Deed of Trust,Lender shall execute and deliver to Trustee a request for full reconveyance.
<br /> 1s. DEFAU.T. Each o(the following, at the option of Lender, shall constitute an event of defautt("Event of Default'� under this Deed of Trust: (a)
<br /> Grantor cammits iraud or makes a material misrepresentation at any time in connection with the ctedit line account. This can include, tor example,a
<br /> false statement about Grantor's income, assets, liabilities, or any other aspeC� of Grantor's financial condition. (b) Grantor does not meat the
<br /> repayment terms of the credit line account. (c)Grantors action or inaclion adversely affects the cdlateral for the credit line acCOUnt or Lenders right5 in
<br /> the collateral. This can include, for example,tailure to maintain required insurance, waste or destructive use of the dwelling, tailure to pay taxes, death
<br /> cf all perso^5 liable on !he accoun!, ±;a^Sfer of title or sa�e o!!he dwe!I�nq. -reaticn �f a lien on the dwelling w�!hout our oe��^!ss�on, forecfosure Cv the
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