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DEED OF TRUST Page a
<br />200206345 (Continued)
<br />Complience with Existing Indebtedness. During the period In which any Existing Indebtedness deacribed below s in efled, Compliance wile the
<br />insurance ennxions contained in the instrument evidencing such Existing Indebtedness Shall constitute compliance with the insurance provisions
<br />under this Deed of Trust, to the extent compliance with the terms of this Dead 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. It 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 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 Lander deems appropriate. Any
<br />amount that Lander expends in so dying will bear interest at the rate charged under the Credit Agreement from the date mooned or paid by Lender to
<br />the date of repsymlud by Grantor. All such expenses, at Lenders option, will (a) be payable on demand, or (b) be added to the balance of the credit
<br />line. This Dead of Trust also will secure payment of these amount. The nghis 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 WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust.
<br />Title. Grantor warrants that (a) Grantor holds good and marketable fiber of record to the Property (including a leasehold interest, if any), free and
<br />Clear of all lands and encumbrances except those of record, and (b) Grantor has the full right, power, and authonty to execute and deliver this
<br />Deed of Trust to Lander.
<br />Defense of Title. Subject to the exception in the paragraph above. Grantor warrants and will forever defend the title to the Property against the
<br />lawful claims 0 all persons. In the event any action or proceeding is commenced that questions Grantor's htie or the interest of Trustee or Lender
<br />under this Dead of Trust, Grantor shall defend the action at Grantors expense. Grantor may the the nominal party in such proceeding, but Lender
<br />shall be embed to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Gmnlor will delryeq 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 Laws. Grantor warrants that the Property and Grantors use of the Property complies with all "sting applicable laws.
<br />ordinances, and regulations of governmental authorities.
<br />13. EXISTING INDEBTEDNESS. The following provisions concerning existing indebtedness (the'Exisling Indebtedness") are a pad of this Deed of
<br />Tout.
<br />Existing Lien. The lien Of this Dead of Trust securing the Indebtedness may be secondary and interior to an existing lien, R 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 />indebtedneu, any default under the Instruments evidencing such indebtedness, or any default under any secunly documents for such
<br />indebtedness.
<br />No ModmCailon. Grantor shall not enter into any agreement with the holder of any mortgage, dead of trust, or other Security agreement which
<br />has pnomy over In* 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 whiled consent of
<br />Lender.
<br />la. CONDEMNATION, The following provisions relating to proceedings in condemnation are a pad of has Deed of Trust.
<br />Application of Net Proceeds. If all or any pan 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 LOANLINERO Home Equity Plan, subject to the terms of any mortgage or dead of
<br />rust 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, expenses, and aborneys'tees nature my paid or Incurred by Grantor, Trustee or Lender in connection with the condemnafon.
<br />Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notity Lender in wining, and Grantor shall promptly take such
<br />Sol as may be necessary to defend the action and obtain the award. Grantor may be the nominal pang' m such proceeding, but Lender shall be
<br />antitletl to participate in the proceeding and no be represented in Ina 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 from time to time to permit such participation.
<br />15. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provsions relating to governmental taxes,
<br />lees and charges are a pad of this Deed of Trust:
<br />Comment Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such document in addition to this Deed of Trust and take
<br />whatever otter action is requested by Lender to perfect and continue Lender's lien on the Real Property. Grantor shall reimburse Lander for ell
<br />taxes, as described below, together with all expenses incurred In recording, pemecting or continuing this Dead of Trust, Including without limitation
<br />an taxes, teas, documentary stamps, and other charges for recording or registering this Deed of Trust.
<br />Taxes. The hollowing shall constitute taxes to which this section applies: (a) a specific tax upon this type of Dead 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 allthonmd or required to detluct from payment
<br />on the Indebtedness secured by this type of Deed of Trust; (C) a tax on this type of Deed of Trust chargeable against the Lender or the holder of
<br />MO 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. FURTHER ASSURANCES. The following provisions relating to further assurances are a pad of this Deed of Trust „
<br />Further Assurances. Upon request of Lentler. Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lander
<br />or to Lenders designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the use may ee, at such fines and
<br />in such offices and places as Lander may deem appropriate, any and all such mortgages, heads of trust, security deeds, security agreements,
<br />financing statements, continuation statement, Instrument of further assurance, Certificates, and Other documents as may, in the sole opinion of
<br />Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (a) the obligations of Grantor untler the Credit
<br />Agreement, this Deed of Trust, and the Related Document, 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 cost and expenses incurred in
<br />connection with the matters referred to in this paragraph.
<br />17. FULL. PERFORMANCE. If Grantor pays all the Indebtedness when due, terminates the credit line account, and otherwise performs all the
<br />obipabom imposed upon Gmnlor under this Deed of Trust, Lender shall execute and deliver to Trustee a request for full reconveyance.
<br />16. DEFALUT. Each of the following, at the option of Lander, shall constitute an event of default (Event of Defaults under this Dead of Trust: (a)
<br />Grants commits fraud n makes a material misrepresentation at any time in connection with the Credit line account. This Can include, for example, a
<br />false statement about Chi income, assets, liabilities, or any other aspect of Grantor's financial condition. (b) Grantor opera not meal the
<br />repsymard tares of Ira crei line account (c) Grantors action or inaction adversely affect the Collateral for the credit line account or Lender's rights in
<br />the collateral, This Can include, for example, failure to maintain required insurance, waste ot destructive use of the dwelling, failure to pay taxes, dash
<br />of all 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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