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9 9 �, ��►9��t.�'�,•_� 'k�} DEED OF TRUST Page 4
<br /> (Continued)
<br /> Compliance 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 shall constitute CompliflnCe with the insurflnce provisions
<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 proc�eds shall apply only to thai
<br /> portion oi the proceeds not payable to the holder of the Existing Indebtedness.
<br /> 11. IXPENDITURES BY LENDER. If Grantor fails to comply with any provision of this Deed of Trust, including eny 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 /> Property, Lender on Grantor's behalf may, upon notice to Grantor, but shall not be required to,take any action that Lender deems appropriete. Any
<br /> amount thai Lender expends in so doing will bear interest at the rate charged under the Credit Agreement irom 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 added to the bal8nce 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 entitted on account of the default. Any such action by Lender shall not be construed as Curing the default so as
<br /> to bar Lender hom eny remedy that it othervvise would have had.
<br /> 12. WARRANTIf;DEFENSE OF TITLE. The foilowing provisions relating to ownership oi the Property are a paA of this Deed of Trust.
<br /> Tltle. Grentor wanants that: (a)Grantor holds good and marketable title of record to the Property(including a leasehold interest,if any),free and
<br /> dear of all liens and encumbrances except those of record, and (b) Grantor has the full right, power, and authority to execute and deliver this
<br /> Deed of Trust to Lender.
<br /> Defenx 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 that questions Grantor's title or 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,bu1 Lender
<br /> shall be entitled 10 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 time to permit such participation.
<br /> Compliance Wlth l.ews. Granlor warrants that the Property and Grantor's use of the Property complies wilh all existing appliCSble laws,
<br /> ordinances,and regulations of governmental authorities.
<br /> 13. DCISTING INDESTEDNESS. The following provisions concerning existing indebtedness (the"Existing Indebtedness")are a part of this Deed of
<br /> Trust.
<br /> E�dstfny Lien. The lien of this Deed of Trust securing the Indebiedness may be secondary and infe�or to an existing lien,if there is such a Iien.
<br /> Grantor expressly covenants and agrees to pay, or see 10 the payment of, the Existing Indebtedness and to prevent any default on such
<br /> indebtedness, any detautt under the instruments evidencing such indebtedness, or any default under eny security documents for such
<br /> indebtedness.
<br /> No ModiflCation. Grantor shall not enter into any agreement with the holder of any moRgage, deed oi trust, or other security agreement whiCh
<br /> has priority over this Deed of Trust by which that agreement is modifled, amended, extended, or renewed without the prior written consent of
<br /> Lender. Grantor shall neither requesl nor accept any future advances under any such security agreement without the prior written consent of
<br /> Lender.
<br /> 14. CONDEMNATION. The following provisions relating to proceedings in condemnation are a part of this Deed of Trust.
<br /> Applicatfon of Net Proceeds. If all or any paA 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 sha�l mean the award after payment ot all reasonable
<br /> costs,expenses,and attorneys'fees necessarily paid or incurred by Grantor,Trustee or Lender in connection with the condemnation.
<br /> Proceedinps. lf any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing,and Grantor shall promptly take such
<br /> steps as mey be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proc�eding,but Lender shall be
<br /> en6tled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice,and Grantor will deliver or cause io
<br /> be delivered to Lender such instruments as may be requested by it from 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 are e part of this Deed oi Trust:
<br /> Current Taxes, Fees and Charpes. 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 pertect and continue Lender's lien on the Real Property. Grantor shall reimburse Lender tor all
<br /> taxes,as described below,together with all expenses incurred in recording,perfecting 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 /> Tauces. The following shall constitute taxes to which this section applies: (a)a specific tex upon this type of Deed of Trust or upon all or any pa�t
<br /> of the Indebtedness secured by this Deed of Trust; (b)a specific iax on Grantor which Grantor is authorized or required to deduct irom payments
<br /> on the Indebtedness secured by this type of Deed of Trust; (c)a tex on this type of Deed of Trust Chargeable against the Lender or the holder of
<br /> the Credit Agreement;and (d)a specific tex on all or any portion of the Indebtedness or on payments of principal and interest made by Grantor.
<br /> 16, FURTHER ASSURANCES. The following provisions relating to further assurances are a pa�t of this Deed of Trust.
<br /> FuRher Assurencea. Upon request of Lender,Grantor will make,execute and deliver,or witl cause to be made,executed or delivered,to Lender
<br /> or to LendePs designee,and when requested by Lender,cause to be filed,recorded,refiled,or rerecorded,as the case may be,at such times end
<br /> in such otfic�s and places as Lender may deem appropriete, eny and all such moRgages, deeds of trust, security deeds, security agreements,
<br /> financing statements, continuation statements, instruments of further assurance,certificates, and other documents as may, in the sole opinion of
<br /> Lender, be necessary or desirable in order to etfectuate,complete, perfect,continue, or preserve (a)the obtpations oi Grantor under the Credit
<br /> Aqreement,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 aIl costs and expenses incurred in
<br /> connection with the matters referred to in this paragraph.
<br /> 1T, FU1 PERFORMANCE. If Grantor pays all the Indebtedness when due, terminates the credit line account, and otherwise performs all Me
<br /> obligations imposed upon Grantor under this Deed of Trust,Lender shall execute and deliver to Trustee a request for tull reCOnveyenCe.
<br /> 1i. DEFAI�T. Each of the following, at the option oi Lender,shall cons6tute an event of defautt ("Event oi Default") under this Deed of Trust: (a)
<br /> Grantor commits traud or makes e meterial misrepresentaHon at any time in connection with the credit line account. This can inGude, for example,a
<br /> false statement about Grantor's income, assets, liebilities, or any other aspects of Grantor's financial condition. (b) Grantor does not meet the
<br /> repayment terms of the credit line account. (c)Grantors action or inaction adversely affeCts the cdlateral for the credit line account or Lender's rights in
<br /> the cdlateral. This can include,for euample,failure to maintain required insurance,waste or destructive use of the dwelling,failure to pay texes,death
<br /> of atl persons liable on the account, transfer of title or sale of the dwelling, creation of a lien on the dwelting without our permission,foreclosure by the
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