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DEED OF TRUST 200207793 Page 4
<br />(Continued)
<br />Compliance with Existing In During the period in which any Existing Indebtedness described below is in effect, compliarxe with the
<br />Insurance provisions contained in the instrument evidencing such Exerting Indebtedness shall constitute compliance with the insurance provisions
<br />unclear this Dead 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 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 pmceetls 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 commenced that would materially stood Lenders interests In the
<br />Property, Lender on Grantors behalf may, upon notice to Grantor, but shall not be required to, take any action that Lender deems appropriate. Any
<br />amount that Lender expands in so doing will bear interest at the rate changed under the Credit Agreement from the dale 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, w lo) be added to the bakrce of the credit
<br />lire. This Dead 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 ramadows to which Lender may be entitled on account of the default. Any such action by Lender shall not ere construed as curing the defauti 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 pad of this Deed of Trust.
<br />Tine. Grantor warrant that: (a) Grantor holds good and marketable title of record to the Property (including a leasehold interest, it any), free and
<br />char of all lens and encumbrances excepl 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 />Defenx of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the
<br />lawhul claims of all persons. In the event any action or proceeding ts commenced that questions Grantor's title or the interest of Trustee or Lender
<br />under this Dead of Trust, Grantor shall defend the action at Grantors expense. Grantor may as the nominal party in such proceeding, but Lender
<br />shall be entitled to padicipate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver, or
<br />Cause to he delivered, to Lentler such Instruments as Lender may request from time to time to permit such participation.
<br />Compile be With Lewis. Grantor warrants that the Property and Grantors use of the Property complies with all existing applicable laws,
<br />mchnences, and regulations of governmental authorities.
<br />13. ESISTING INDEBTEDNESS. The following prov,sions concerning existing Indebtedness (the 'Existing Indebtedness') are a part of this Dead of
<br />Trust.
<br />Existing Lien. The lien of this Dead of Trust securing the Indebtedness may be secondary and interior to an existing lien, If two is such a lien.
<br />Grantor expressly covenants and agrees to pay, or sea 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 Modi6ratlon. 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 Inert agreement is modified, amended, extended, or renewed without the prior written consent of
<br />Lentler. Grantor shall neither request nor accept any future advanced under any such security agreement without the prior written consent of
<br />Lander.
<br />14. CONDEMNATION. The following provisions relating to proceedings in condemnation are a pan of this Dead of Trust.
<br />Application of Net Proceeds. If all or any pad 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 Inoebadmas under the LOANLINER® Home Equity Plan, subject to the terms of any mortgage or dead Of
<br />trim with a Ile, which has annuls, over this Deed of Trust. The net proceeds of the award shall mean the award after payment of all reasonable
<br />casts, expenses, and attorneys'teas necessanly 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 north, Lender in writing, and Grantor shall promptly take such
<br />slaps 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 prmeeding and to be represented in the prmeedmg 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 TARES, FEES AND CHARGES BY GOVERNMENTAL AUTHORI rIES. The following provisions relating to governmental toes,
<br />fees and charges are a pad of this Dead of Trust:
<br />Current Taxes, Fees and Charges. Upon request by Lander, Grantor shall execute such documents in addition to this Dead of Trust and take
<br />whatever other action is requested by Lender to perfect and continue Lender's lien on the Reel Property. Grantor shall reimourse Lender for all
<br />Was , as described below, together with all expenses incurred in recording, parading or continuing this Dead 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 lax upon this type of Dead of Trust or upon ail or any part
<br />Of the Indebtedness secured by this Dead of Trust; (b) a specific tax 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 />fre Credit Agreement; and (d) a soecific tax on all or any podion 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 Dead of Trust.
<br />Further Assurances. Upon request of Lender, Grantor will make, execute and deiiver, or will cause to be made, executed or delivered, to Lender
<br />Or to Lenders designee, and when requesled by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may De, at such times and
<br />in such offices and places as Lender may deem appropriate, any and all such mortgages, deetls of trust, security deeds, security agreements,
<br />financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, is the sole opinion of
<br />cea
<br />Lender, be re urry or desirable in order to effectuate, complete, perfect, continue, or preserve (a) the obligations of Grants under the Credit
<br />Agreement, this Dead of Trust, and the Related Documents, and (b) the liens and security interest created by this Dead of Trust on the Property.
<br />Unless prohibited by law or agreed to the contrary by Lander in writing, Grantor shall reimburse Lender for all opera and expenses incurred In
<br />connection with the maters referred to in this paragraph.
<br />17. FULL PERFORMANCE. if Grantor pays all the Indebtedness when due, terminalm the credit line account, and olhwwise performs all the
<br />obligations imposed upon Grantor under this Dead of Trust, Lender shall execute and deliver to Trustee a request for full reconveyarxe.
<br />18. DEFAULT. Each of the following, at the option of Lander, shall constitute an event of default (Event of Default") under this Deed of Trust: (a)
<br />Grantor commits fraud Or makes a malarial misrepresentation at any time in connection with the creoil lino account. This can include, for example, is
<br />fetes statement about Grantors income assets, liabilities, or any other aspects of Grantor's financial condition. (b) Grantor dons not meet the
<br />repayment terms of the Credit line amount. (c) Grantors action a inaction adversely affects the collateral for the credit lire account or Lenders rights In
<br />the collateral. This can Include, for example, failure to maintain required insurance, waste or destructive use of the dwelling, failure to pay razes, death
<br />ran
<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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