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9 9 110 8 4 2 DEED OF TRUST �r : . �� f� 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 shell constitute compliance with the irtsurance 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 trom the insurance become payable on loss, the provisions in this Deed of Trust for division of procc�teds 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 /> Property, Lender on Grantor's behaff may, upon notice to Grantor, but shall not be required to,take any ection that Lender deems appropriate. Any
<br /> amount thet Lender expends in so doing will bear interest at the rate charged under the Credit Agreement irom the date incuned or paid by Lender to
<br /> the date of repayment by Grentor. All such expenses,at Lender's option,will (a)be payable on demand,or (b)be added to the bfllance 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 of the default. Any such action by Lender shall not be construed as Curing the default so as
<br /> to bar Lender from any remedy that it otherwise would have had.
<br /> 12. WARRANT1h DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed ot Trust.
<br /> Title. Grantor warrants that: (a)Grantor holds good and marketable title of record to the Property(including a leasehold interest,if any),free and
<br /> clear 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 /> Detenx of Title. Subject to the exception in the paragraph above, Grantor warranl5 and will forever defend the title to the Property against the
<br /> lawful claims of ell person5. In the event any action or proceeding is commenced that questions Grentor's title or the interest ot Trustee w Lender
<br /> under this Deed of Trust,Grantor shall defend the ection at Granlor'&expense. Grantor rnay 6e the"nominal per#y ia st�ch p►�ceediag:bt�4-tesuler
<br /> shall be enritled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice,and Grantor will deliver,w
<br /> cause to be delivered,to Lender such instruments as Lender may request(rom time to time to permit such participation.
<br /> Complfance With L.ews. Grantor warrants that the Property and Grantor's use oi 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 /> E�dstiny Lien. The lien of this Deed oi Trust securing the Indebtedness may be secondary and inferior to an exisfing 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 defauft on such
<br /> indebtedness, any defauli 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 egreement with the holder of any mortgage, deed of trust, a other security agreement which
<br /> has pnority 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 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 ot Net Prxeeds. 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 priority over this Deed of Trust. The net proceeds of the award shall mean the award atter payment of alt reasonable
<br /> costs,expenses,and ettorneys'fees necessarily paid or incurred by Grantor,Trustee or Lender in connection with the condemnetion.
<br /> Proceedinps. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in wriring,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 /> 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 trom 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 /> Ct�RMt Texes, Fees and Chatpes. Upon request by i.ender, Grs�tor shsll execwe such docurte�ts in 8dditi�n to tttis Deed of Tr�st and take
<br /> whatever other action is requested by Lender to perfect and continue Lender's lien on the ReAI Property. Grantor shall reimburse Lender for all
<br /> teues,as described below,together with all expenses incurred 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 paR
<br /> of the Indebtedness secured by this Deed of Trust; (b)a specific tax on Grantor which Grantor is authorized 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 ot
<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. Fl1RTHER ASSURANCES. The following provisions relating to further assurances are a pa�i of this Deed oi Trust.
<br /> FuRher Assurences. Upon request of Lender,Grantor wil�make,execute and detiver,or will cause to be mede,executed or delivered,to Lender
<br /> or to Lender's designee,and when requested by Lender,cause to be filed,recorded,refiled,or rerecorded,8s the case may be,at suCh times and
<br /> in such oifices and places as Lender may deem appropriate,any and all such mortgages, deeds of trust, 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 eriectuate,complete,pertect,continue, or preserve (a)the oblpa6ons 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 of Trust on the Property.
<br /> Unless prohibited by lew 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 reterred to in this paragraph.
<br /> t7. Ft�.L PERFORMANCE. Ii Grantor pays all the Indebtedness when due, terminates the credit line account, and otherwise pertorms 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 /> ta. DEFAI�T. Each of the following, at the option of Lender,shall constitute an event of defautt("Event of Defautt") under this Deed of Trust: (a)
<br /> Grantor commits traud or makes a material misrepresentation at any time in connection with the credit line account. This can include,for example,e
<br /> false statement about Grantors income, assets, liabilities, or any other aspects of Grantor's financial condition. (b) Grantor does not meet the
<br /> repayment terms of the credit line account. (c)Grantor's action or inaction adversely affects the collateral for the cxedit fine account or Lenders rights in
<br /> the cdlateral. This can include,for example,failure to maintain required insurance,waste or destructive use of the dwelling,failure to pay taxes,death
<br /> ot all persons liable on the accouni,transfer of title or sale of the dwelling, creation of a lien on the dwelling without our permission,toreclosure by the
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