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� �, '�� �,i��'� 4 DEED OF TRUST Page 4
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<br /> Compifance witA Existing Indebtedness. During the period in which any Existing indebtedness described below is in effect,compliance with the
<br /> insurence provisions contained in the instrument evidencing such Existing Indebtedness shell constitute compliBnCe with the insuranCe provisions
<br /> under this Deed ot Trust,to the extent compliance with the terms of this Deed of Trust would constitute a duplica6on of insurance requiremeni. If
<br /> any proceeds trom the insurance become payable on loss, the provisions in this Deed of Trust for division of proc�eds shall apply only to that
<br /> portion of the proceeds not payable to the holder of the Existing Indebtedness.
<br /> 11. DCPENDITURES BY LENDER. tf 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 maferially affect Lender's interesls in the
<br /> Property Lender on Grantor's behalf may, 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 at the rate charged under the Credit Agreement hom the date incurred or paid by Lender to
<br /> the dale of repayment by Grantor. 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 witl secure payment of these amounts. The rights provided for in this paragr8ph shflll be in addirion 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 trom any remedy that it otherwise would have had.
<br /> 12. WARRANTIh DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust.
<br /> Title. Grantw warrants that: (a)Grantor holds good and marketable title of record to the Property(includirp 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 /> Deiense of 71t1e. Subject to the exception in the paragraph above,Grantor warrants and wlll forever defend the title to the Property against the
<br /> lawtul claims of all persons. tn 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 Grentor'S expense. Grantor may be tMe nominal party in such prnCaeding,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 from time to time to permit such paRicipation.
<br /> Compliance With Lews. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws,
<br /> ordinences,and regulations ot governmental authorities.
<br /> 13. DCISTING INDEBTEDNESS. The following provisions concerning existing indebtedness (the"Existing tndebtedness")are e p8rt of this Deed of
<br /> Trust.
<br /> E�dstfnp Lien. The lien of this Deed oi Trust securing the Indebtedness may be secondary and inferior to an enisting 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 detault under any security documents for such
<br /> indebtedness.
<br /> No ModlriGatfon. Grantor shall not enter into any agreement with the holder of any mortgage, deed of hust, or other security agreement which
<br /> has pnority over this Deed of Trust by which that agreement is modified, amended, exfended, 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 oi
<br /> Lender.
<br /> 14. CONDEMNATION. The following provisions relating to proceedings in condemnation are a part of this Deed of Trust.
<br /> Applftatfon ot Net Proceeds. If alI 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 oi any moRgage 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 /> Proceedin�s. If any proc;eeding in condemnation is filed, Grantor shall promptly noHfy Lender in writing,and Grantor shall promptly take such
<br /> steps as may be necessary to defend the action and obtain th�award. Grantor may be the nominal party in such proceeding,but Lender shall be
<br /> endtled to paAicipate 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 requesied 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 a part of this Deed of Trust:
<br /> Current Ttixes, Fees and Charges. 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 lien on the Rea(PropeRy. Grantor shall reimburse Lender for alt
<br /> taxes,as described below,together with all expenses incurred in recording,pertecting or continuing this Deed of Trust,includinp without limitation
<br /> all taxes,fees,documentary stamps,and other cherges 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 w any part
<br /> of the Indebtedness secured by this Deed of Trust; (b)a specific tex on Grantor which Grantor is authorized w required to deduct from payments
<br /> on the Indebtedness secured by this type of Deed of Trust; (c)a tax on this type ot Deed of Trust chargeable against the Lender or the holder of
<br /> the Credit Agreement;and (d)a speci8c tax on all or any portion of the Indebtedness or on payments of pnncipal flnd interest mede by Grantor.
<br /> 16. FURTHER ASSURANCES. The following provisions relating to further assurances are a part of ihis Deed oi Trust.
<br /> FuRher Assurances. Upon request of Lender,Grantor will make,execute and deliver,or wi�l cause to be made,executed or delivered,to Lender
<br /> or to Lende�'s 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 oifices and places as Lender may deem appropriate,any and all such mortgages, deeds of trust, secunty deeds, security agreements,
<br /> financing statements,continuation statements, instruments of further assurance,ceRificates, and other dxuments as may, in the sole opinion of
<br /> Lender, be necessary or desirable in order to effectuate,complete,pertect,continue, or p�eserve (a)the oblpatlons of Grantor under the Credit .
<br /> Ayreement,this Deed oi Trust,and the Related Dxuments,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 reterred to in this paragraph.
<br /> 17. FLLL PERFORMANCE. If 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 /> 1s. DEFAI�T. Each of the fdlowinp,at the option of Lender,shall constitute an event of defautt ("Event of Detault") under this Deed of Trust: (a)
<br /> Grantor commits traud or rt►akes e material misrepresentation at eny time in connection with the cr�t line aCCOUnt. This can include,for example,a
<br /> }alse statement about Grantors income, assets, liebilities, or any other aspect5 of Grantor's financial condidon. (b) Grantor does not meet the
<br /> repayment terms of the credft line account. (c)Grentor's acdon or inaction adversely aftects the cdleteral tor the cxedit(ine 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,tailure to pay t8ues,death
<br /> ot atl 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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