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DEED OF TRUST 9 9 ,1 Q 9��� Page 4
<br /> (Continued) ` �
<br /> Compliance with Existin9lndebtedness. 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 compliBnCe with the insurence provisions
<br /> under this Deed of Trust,to the extent compliance with the terms of this Deed of Trust would constitute a duplication ot 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 /> portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br /> 11. DCPENDITURES BY LENDER. If Grantor fails to comply with any provision of 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 Lender's interests in the
<br /> Properly, Lender on Grantor's behalt may, upon notice to Grantor, but shall not be required to,take any action that Lender deems appropriflte. 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 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 balance 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 entitled on account oi the default. Any such action by Lender shall not be conshued as curing the default so as
<br /> to bar Lender from any remedy that it otherwise would have had.
<br /> 12. WARRANTY;DEFENSE OF TITLE. The foilowing provisions relating to ownership of the Property are a paA of this Deed of Trust.
<br /> TIUe. Grantor warrants that: (a)Grantor holds good and marketable title of record to the Property(including a leasehdd interest,if any),hee and
<br /> clea�of all liens and encumbrances except those oi record, and (b)Grantor has the full riflht, power, and authority to e�cecute and deliver this
<br /> Deed of Trust to Lender.
<br /> Defenx of Tftle. Subject to the exception in the paragraph above, Grantor warcants and will forever defend the title to the Property against the
<br /> lawful ctaims 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 ai Grantor's expense. Grantw 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 wilf 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 Lews. Grantor warrants that the Property and Grantor's use ot the Property complies with all existing appliCable laws,
<br /> ordinances,and regulations of governmental authorities.
<br /> 13. DCISTING INDEBTEDNESS. The following provisions concerning existing indebtedness (the"Existing Indebtedness")are a part of this Deed of
<br /> Trust.
<br /> Exlsriny Lien. The lien of this Deed oi Trust securing the Indebtedness may be secondary and inferior to an existing lien,if there is such a lien.
<br /> Grantor expressly covenants 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 instruments evidencing such indebtedness, or any default under any security doCUments for such
<br /> indebtedness.
<br /> No ModfflCatfon. Grantor shall not enter into any agreement with the holder of any mortgage, deed of trust, or other security agreement which
<br /> has priority over this Deed of Trust by which fhat 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 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 /> Application of Net Proceeds. If all or any paA of the Property is condemned,Lender may at its election require that all or any pafion 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 shatl mean the award after payment of alI reasonable
<br /> costs,expenses,and attorneys'fees necessarily paid or incurred by Grantor,Trustee or Lender in connection with the condemnafion.
<br /> Proceedinps. If any proceeding in condemnation is filed, Grantor shall promptly norify Lender in writing,and Grantor shall promptly take such
<br /> steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding,but Lender shall be
<br /> enHtled to participate in the proceeding and to be represented in the proceeding by counsel of its own chace,and Grantor will deliver or cause to
<br /> be delivered to Lender such instruments as may be requested by it f�om 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 a part of this Deed of Trust:
<br /> Current Taxes, Fees and Char�es. 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 fw all
<br /> taxes,as described below,together with all expenses incurred in recording,perteCting or continuing this Deed of Trust,includirp without limitation
<br /> alt taxes,tees,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 Trust; (b)a specific tax on Grantor which Grantor is authori�ed or required to deduct hom payments
<br /> on the Indebtedness secured by this type of Deed of Trust; (c)a tax on this type of Deed oi Trust chargeable against the Lender or the holder of
<br /> the Credit Agreement;and (d)a specific ta�c on etl 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 e part of this Deed of Trust.
<br /> FuRher AssuranCea. Upon request of Lender,Grantor will make,execute and deliver,or will ceuse 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,at such times and
<br /> in such offices end places as Lender may deem appropriate,any and all such mortgages, deeds of trust, securify deeds, security agreements,
<br /> financing statements,continuation statements, instruments oi fuRher assurance,certificates, and other documents as may,in the sole opinion oi
<br /> Lender,be necessary or desirable in order to effectuate,complete, perfect,continue, or preserve (a)the obfipatiorts of Grantor under the Credit .
<br /> Apreement,this Deed of Trust,and the Related Documents,and (b)the liens and security interests created by this Deed ot 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 expenses incurred in
<br /> connection with the matters referred to in this paragraph.
<br /> 17. FU1 PERFORMANCE. If Grentor pays all the Indebtedness when due, terminates the credit line acCOUnt, and otherwise performs all the
<br /> obligations imposed upon Grantor under this Deed of Trust,Lender shall execute and deliver to Trustee a request for full reconveyance.
<br /> 16. DEFAI�T. Each of the following,at the option of Lender,shall constitute an event of defautt ("Event oi DefaulP) under this Deed of Trust: (a)
<br /> Grantor commits fraud or makes a material misrepresentation at any time in connection with the Credit line BCCOUnt. This can include,for ezample,e
<br /> fatse statement about Grantors income, assets, liebilities, or any other aspects of Grantor's financial condition. (b) Granta does not meet the
<br /> repayment terms of the credN line account. (c)Grantors acction or inaction adversely affects the collateral for the cxedif line account or Lender's rights in
<br /> the cdlateral. This can include,for example,faiture to meintain required insurance,waste or destructive use of the dwelling,tailure to pay texes,death
<br /> ot all persons liable on the account, transfer of title or sale of the dwelling, creation of a tien on the dwelling without our permission,foreclosure by the
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