|
DEED Ot nu RUST 2 063'0 3'0 9 911 page 3
<br />Application of Net Proceeds. To the extent permitted by applicable law, all judgments, decrees and awards for injury or damage to the Property,
<br />or any part of the Property, and awards pursuant to proceedings for condemnation of the Property, are hereby absolutely assigned to Lender, and
<br />if all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase in lieu of condemnation, Lender
<br />may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the
<br />Property. The net proceeds of the award, judgment or decree shall mean the award after payment of all reasonable costs, expenses, and
<br />attomeys' fees incurred by Trustee or Lender in connection with the condemnation.
<br />SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Deed of Trust as a security agreement are a part of
<br />this Deed of Trust:
<br />Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall
<br />have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time.
<br />Security Interest. Upon request by Lender, Grantor shall execute financing statements and take whatever other action is requested by Lender to
<br />perfect and continue Lender's security interest in the Personal Property. In addition to recording this Deed of Trust in the real property records,
<br />Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Deed of Trust as
<br />a financing statement.. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest. Upon default,
<br />Grantor shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property
<br />not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three
<br />(3) days after receipt of written demand from Lender to the extent permitted by applicable law.
<br />Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security interest
<br />granted by this Deed of Trust may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Deed of
<br />Trust.
<br />FURTHER ASSURANCES; ATTORNEY -IN -FACT. The following provisions relating to further assurances and attorney -in -fact are a part of this Deed
<br />of Trust:
<br />Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be
<br />made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or
<br />rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages,
<br />deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates,
<br />and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or
<br />preserve (1) Grantor's obligations under the Note, this Deed of Trust, and the Related Documents, and (2) the liens and security interests
<br />created by this Deed of Trust as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by
<br />law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters
<br />referred to in this paragraph.
<br />Attorney -in -Fact. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor
<br />and at Grantor's expense. For such purposes, Grantor hereby irrevocably appoints Lender as Grantor's attorney -in -fact for the purpose of
<br />making, executing, delivering, filing, recording, and doing all other things as may be necessary or desirable, in Lender's sole opinion, to
<br />accomplish the matters referred to in the preceding paragraph.
<br />FULL PERFORMANCE. If Grantor pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this
<br />Deed of Trust, Lender shall execute and deliver to Grantor a release of this Deed of Trust lien and suitable statements of termination of any financing
<br />statement on file evidencing Lender's security interest in the Rents and the Personal Property. However, it is agreed that the payment of all the
<br />Indebtedness and performance of such obligations shall not terminate this Deed of Trust unless the liens and interests created hereby are released by
<br />Lender by a proper recordable instrument. Any filing fees required by law shall be paid by Grantor, if permitted by applicable law.
<br />EVENTS OF DEFAULT. At Lender's option, Grantor will be in default under this Deed of Trust if any of the following happen:
<br />Payment Default. Grantor fails to make any payment when due under the Indebtedness.
<br />Break Other Promises. Grantor breaks any promise made to Lender or fails to perform promptly at the time and strictly in the manner provided in
<br />this Deed of Trust or in any agreement related to this Deed of Trust.
<br />Compliance Default. Failure to comply with any other term, obligation, covenant or condition contained in this Deed of Trust, the Note or in any of
<br />the Related Documents. If such a failure is curable, it may be cured (and no Event of Default will have occurred) if Grantor, after Lender sends
<br />written notice demanding cure of such failure: (a) cures the failure within twenty (20) days; or (b) if the cure requires more than twenty (20) days,
<br />immediately initiates steps sufficient to cure the failure and thereafter continues and completes all reasonable and necessary steps sufficient to
<br />produce compliance as soon as reasonably practical.
<br />Default on Other Payments. Failure of Grantor within the time required by this Deed of Trust to make any payment for taxes or insurance, or any
<br />other payment necessary to prevent filing of or to effect discharge of any lien.
<br />False Statements. Any representation or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Deed of Trust or the
<br />Related Documents is false or misleading in any material respect, either now or at the time made or furnished.
<br />Defective Collateralization. This Deed of Trust or any of the Related Documents ceases to be in full force and effect (including failure of any
<br />collateral document to create a valid and perfected security interest or lien) at any time and for any reason.
<br />Death or Insolvency. The death of Grantor, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's property, any
<br />assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency
<br />laws by or against Grantor.
<br />Taking of the Property. Any creditor or governmental agency tries to take any of the Property or any other of Grantor's property in which Lender
<br />has a lien. This includes taking of, garnishing of or levying on Grantor's accounts with Lender. However, if Grantor disputes in good faith whether
<br />the claim on which the taking of the Property is based is valid or reasonable, and if Grantor gives Lender written notice of the claim and furnishes
<br />Lender with monies or a surety bond satisfactory to Lender to satisfy the claim, then this default provision will not apply.
<br />Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender that is not remedied
<br />within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to
<br />Lender, whether existing now or later.
<br />Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any
<br />of the Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity
<br />of, or liability under, any Guaranty of the Indebtedness. In the event of a death, Lender, at its option, may, but shall not be required to, permit the
<br />guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure
<br />any Event of Default.
<br />Right to Cure. If such a failure is curable, it may be cured (and no Event of Default will have occurred) if Grantor, after Lender sends written
<br />notice demanding cure of such failure: (a) cures the failure within twenty (20) days; or (b) if the cure requires more than twenty (20) days,
<br />immediately initiates steps sufficient to cure the failure and thereafter continues and completes all reasonable and necessary steps sufficient to
<br />produce compliance as soon as reasonably practical.
<br />RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this Deed of Trust, at any time thereafter, Trustee or Lender may exercise
<br />any one or more of the following rights and remedies:
<br />Election of Remedies. All of Lender's rights and remedies will be cumulative and may be exercised alone or together. An election by Lender to
<br />choose any one remedy will not bar Lender from using any other remedy. If Lender decides to spend money or to perform any of Grantor's
<br />obligations under this Deed of Trust, after Grantor's failure to do so, that decision by Lender will not affect Lender's right to declare Grantor in
<br />default and to exercise Lender's remedies.
<br />Accelerate Indebtedness. Lender may declare the unpaid principal balance of the Indebtedness due and payable. In no event will Grantor be
<br />required to pay any unearned interest.
<br />Foreclosure. If Lender invokes the power of sale, Trustee, at the request of Lender, may sell all or any portion of the Property at public auction to
<br />the highest bidder for cash at the location within the courthouse designated by the County Commissioners Court, or if no such area has been
<br />designated, at the area designated in the notice of sale within the courthouse, between the hours of 10:00 A.M. and 4:00 P.M. on the first Tuesday
<br />of any month, after the Trustee or its agent has given notice of the time and place of sale and of the property to be sold as required by the Texas
<br />
|