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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 po risiods contained in the Instrument evidencing such Existing Indebtedness shell constitute compliance with the insurance prowwons
<br />under this Dead of Trust, to the ardent compliance with the terms of this Deed of Trust would constitute a duplication of insurance requirement. It
<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. EXPENDITURES BY LENDER. If Grantor fails to comply with any provision of this Dead of Trust, including any obligation to maintain Existing
<br />Indebtedness in good standing as required below, or if any action or proceeding is commanded that would materially affect Landeh interests in the
<br />Property, Lender on Grantors behalf may, upon notice to Grantor, but shall not be required to. lake any action that Lander deems appropriate. Any
<br />amount that Lender expends in so doing will bear interest at the rate charged under the Credit Agreement from the dale incurred or paid by Lender to
<br />IM date of repayment by Grantor. All such expenses, at Lenders whon, will (a) be payable on demand, or (b) be added to the balance of the credit
<br />line. The Dead of Trust also will secure payment of ideas amounts. The rights provided for in this paragraph shat be In addition to any other rights or
<br />any remedies W which Lender may be entitled on account of the default. Any such action by Lender shall not be conshued as cunng the default so as
<br />W bar Lender from any remedy that It otherwise would have had.
<br />12 WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a Pert of this Dead of Trust.
<br />Title. Grantor warrants that: (a) Grantor holds good and marketable title of word to the Property (including a leasehold interest. If any), free and
<br />clear of all fiBns and encumbrances except those of record, and (b) Grantor has the full right, power, and authority to execute and deliver this
<br />Dead of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Properly against the
<br />III claims of all persons. In the even) any action or proceeding is commenced that questions Grantor's title or the interest of Trust" or Lender
<br />under the Dead of Trust, Grantor shall defend the action at Grantor's expanse. Grantor may be the nominal party in such proceeding. but Lander
<br />shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel M 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 parrot such participation.
<br />Compliance With Laws. Grantor warrants that the Property and Grantors use of the Property complies with all existing applicable laws,
<br />ordinances, and regulations of governmental authorities.
<br />la. EXISTING INDEBTEDNESS. The following pmvisions concerning existing indebtedness (the'Exisling Indebteddial are a pan of this Dead o'
<br />Trust.
<br />E Meting Lien. The lien of this Dead of Trust securing the indebtedness may be Secondary and interior to an existing lien. H there Is such a lien.
<br />Grantor expressly covenants and agrees to pay, m see to the payment of, the Existing Indebtedness and to prevent any default on such
<br />indabledrwsa any default under the instruments evidencing such indebtedness, or any default under any Security documents for such
<br />indebtedness.
<br />No MoEMnation. Grantor shall not enter into any agreement with the holder of any mortgage, dead of trust, or other security agreement which
<br />has priority Over the Dead of Trust by which that agreement is modified, amended, extended, or renewed without the prom wished consent of
<br />Lender. Grantor shall neither request nor swept any future advances under any such Security agreement without the prior written consent of
<br />Lentler.
<br />ta. CONDEMNATION. The following provisions relating to proceedings in condemnation are a pad d this Deed of Trust.
<br />Application of Net Proceeds. 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 LOANLINERIS Home Equity Plan, subject to the terms of any mortgage or dead of
<br />trust with a led which has priority over this Dead of Trust. The net proceeds of the award shall mean the award after payment Of all reasonable
<br />coals, expenses, and aborneys' fees necessarily paid or incurred by Grantor, Trustee or Lender in connection with the condemnation.
<br />Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lentler 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 />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 dairered 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 />tees and charges ere a pad of this Dead of Trust:
<br />Current Taxes, Fees and Charges. Upon request by Lender. Grantor shall execute such documents in addition to the 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 />taxes, as described below, together with all expenses inwrred in recording, Perfecting or continuing this Dead of Trust, including without Itmilation
<br />all faxes, lees, documentary stamps, and other charges for recording or registering this Dead of Trust.
<br />Taxes. The following shall constitute taxes to which this Section applies: (a) a specific ta< upon this type of Deed of Trust or upon all Or any part
<br />of the Indebtedness secured by this Dead of Trust; (b) a specific lax on Grantor which Grantor is authorized or required to deduct from payments
<br />on the Indebtedness secured by this type of Dead of Trust; (c) a tax on this type of Dead of Trust chargeable against the Lender or the holder of
<br />the Credit Agreement; and (d) a specific tax on all or any portion of the Indebtedness on on payments of principal and interest made by Grantor.
<br />16. FURTHER ASSURANCES. The following provisions relating to further assurances are a part of this Deed of Trust.
<br />Further Assurances. Upon request of Lender, Grantor will make, execute anti delivep or will cause 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 and places as Lender may deem appropriate, any and all Such mortgages, oseds of trust, security deeds, Security agneaments,
<br />financing statements, continuation statements, instrument of further assurance, certificates, and other documents as may, in the We opinion of
<br />Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (a) the mitigations of Grantor under the CTecit
<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 low 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. FULL PERFORMANCE. If Grantor pays ell the Indebtedness when due, terminates the credit line account, and otherwise performs all the
<br />obligations Imposed upon Grantor under this Dead of Trust, Lender shall execute and Still to Trustee a request for full reconveyance.
<br />1e. DEFAULT. Each of the following, at the option Of Lender, shall constitute an event of defauff ('Event of Default') under this Dead! of Trust: (a)
<br />Gmudor commfts baud a makes a material misrepresentation at any time In connection with the credit line amount. This can include, for example, a
<br />false statement about Granter's income, assets, liabilities, or any other aspects of Grantors financial condition. (b) Grantor does not meet the
<br />repayment lemma of the credit line account. (c) Grantors action or inaction adversely effects the collateral for the credit line amount ar Lenders tights in
<br />the collateral. This can hibude, for example, failure to maintain required insurance, waste or destructive s
<br />e use of the dwelling, failure to pay tak, death
<br />of all parsons 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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