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t � ` " DEED OF TRUST Page 4
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<br /> Compiisnce with Existing Indebtedness. During the period in which any Existing Indebtedness described below is in effect,compliance with the
<br /> insurance provisions contained in the instrument evidencing such Existing Indebtedness shell constitute compiiance with the insuranoe provisions
<br /> under this Deed of Trust,to the extent compliance with the ierms 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 to the holder of the Existing Indebtedness.
<br /> 11. DCPENOITURES BY LENDER. If Grantor fails to comply with any provision of this Deed of Trust, including any obligation to maintein Existing
<br /> Indebtedness in good standing as required below, or if any action or proceeding is commenced that would materially affect Lender's interests in the
<br /> Property, Lender on Grantor's behalf iney, upon notice to Grantor, but shall not be required to,take any ection that Lender deems appropriate. Any
<br /> amount that Lender expends in so doing will bear interest ai the rate charged under the Credit Agreement trom the date incurred or paid 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 8dded to the bfllanCe of the credit
<br /> line. This Deed oi Trust also witl secure payment of these amounts. The rights provided for in this paragraph shatl 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 85 curing the default so 85
<br /> to bar Lender hom any remedy that ii otherwise would have had.
<br /> 12. WARRANT1h DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a paA of this Deed of Trust.
<br /> Tltle. Grantor warrants that: (a)Grantor holds good and marketable title of record to the Property(includin�a leasehold interest,if any),free and
<br /> dear of all liens and encumbrances except those of record, and (b) Grantor has the full ripht, power,and authority to execute and deliver this
<br /> Deed of Trust to Lender.
<br /> Defense of Tftle. 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 thst questions Grantor's title w the interest of Trustee or Lender
<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 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 irom time to time to permit such participation.
<br /> Compliance Wlth Lews. 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"E�cisting Indebtedness")are a paA of this Deed of
<br /> Trust.
<br /> Exfstinp Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an existing lien,if there is such a Iien.
<br /> Granior expressly covenants and agrees to pay, or see to the payment of, the Existing Indebtedness and to prevent any defaufl on such
<br /> indebtedness, any defautt under the instruments evidencing such indebtedness, or any default under any security documents for such
<br /> indebtedness.
<br /> No Modfflcation. Grantor shall not enter into any agreement with the holder of any moAgage, deed of trust, or other security agreement which
<br /> has pnority over this Deed of Trust by which that agreemeni is modified, amended, extended, or renewed without the prior written consent oi
<br /> Lender. Grantor shall neither request nor accept any future advances under any such security agreement without the prior writlen consent of
<br /> Lender.
<br /> 14. CONDEMNATION. The following provisions retating to proceedings in condemnation are a part of this Deed oi Trust.
<br /> Applicatfon of Net Prceeeds. 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 /> procseds 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,expe�,and attorneys'fees necessarily paid or incurred by Grantor,Trustee or Lender in connection with the condemnation.
<br /> Proceedinps. If any proceeding in condemnarion is filed, Grantor shall promptly notify Lender in writing,and Grentor shall promptly ffike such
<br /> steps as may be necessary to defend the action 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 w cause to
<br /> be delivered to Lender such instruments as may be requesied by it nom time to time to permit such participation.
<br /> 15. IMPOSITION OF TAXES,FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes,
<br /> fees and charges ere a part of this Deed of Trust:
<br /> Current Taxes, Fees and Charpes. Upon request by Lender, Grantor shall execute such documents in eddition to this Deed of Trust and take
<br /> whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender for all
<br /> tanes,as described below,together with alf expenses incuRed in recording,pertecting or continuing this Deed of Trust,includinq without limitation
<br /> all taxes,tees,documentary stemps,and other charges for reCOrding or registering this Deed of Trust.
<br /> Taxes. The following shatl 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 ot Trust; (b)a specifiC tax on Grantor which Grantor is authorized w required to deduct from payments
<br /> on the Indebtedness secured by this type of Deed oi 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 alt or any portion of the Indebtedness or on payments of principal and interest mede by Grantor.
<br /> 16. FURTHER ASSURANCES. The following provisions relating to further assurances are a part of this Deed oi 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 Lender's designee,and when requested by Lender,cause to be filed,recorded,refiled,or rereCOrded,as the case m8y be�at suCh fimes flnd
<br /> in such offices and places as Lender may deem appropriate,any and all such moRgages, deeds of trust, security deeds, security agreements,
<br /> financing statements,continuation statements, instruments oi fuRher assurance,certificates, and other documents as mey,in the sole opinion of
<br /> Lender,be necessary or desirable in order to effectuate,complete,pertect,continue, or preserve (a)the oblipations of Grantor under the Credit
<br /> Agreement,this Deed of Trust,and the Related Documents,and (b)the 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 experues incurred in
<br /> connection with the matters referred to in this paragraph.
<br /> 17. Ftil PERFORMANCE. If Grantor pays all the Indebtedness when due, terminates the credit line account, and otherwise pertorms alt the
<br /> obligations imposed upon Grantor under this Deed of Trust,Lender shall execute and deliver to Trustee a request for full reconveyance.
<br /> td. DEFAI�T. Each of the following,at the option of Lender,shall constitute an event of defauft ("Event oi Detault") under this Deed of Trust: (a)
<br /> Granta commits traud or makes a material misrepresentadon at eny time in connection with the credit line account. This can include, for example,a
<br /> false sffitement about GraMors income, assets, liabilities, or any other aspects of Grantor's financiel condition. (b) Grantor does not meet the
<br /> repayment terms of the credit line account. (c)Grantors action or inaCtion adversely affecfs the cdlateral for the credit line aCCOUnt or Lenders rights in
<br /> the cdlaterel. This can include,for example,failure 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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