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200316184
<br />This Deed of Trust shall secure (a) the payment of the principal sum and interest evidenced by a promissory note(s) oe'credit
<br />agreement(s) as follows:
<br />Date of
<br />Note(s)
<br />Maker(s) of Note(s)
<br />DECEMBER 17, 2003 MIKE & PATRICIA PANOWICZ
<br />Original Principal Maturity
<br />Amount(s) Date(s)
<br />$ 395,000.00 NOVEMBER 15, 2004
<br />and any and all modifications, extensions and renewals thereof and thereto and any and all future advances and readvances to
<br />Borrower (or any of them if more than one) hereunder pursuant to one or more promissory notes or credit agreements (herein called
<br />"Note "); (b) the payment of other sums advances by Lender to protect the security of the Note; (c) the performance of all covenants and
<br />agreements of Trustor set forth herein; and (d) all present and future indebtedness and obligations of Borrower (or any of them if more
<br />than one) to Lender whether direct, indirect, absolute or contingent and whether arising by note, guaranty, overdraft or otherwise. The
<br />Note, this Deed of Trust and any and all other documents that secure the Note or otherwise executed in connection therewith, including
<br />without limitation guarantees, security agreements and assignments of leases and rents, shall be referred to herein as the "Loan
<br />Instruments ".
<br />Trustor covenants and agrees with Lender as follows:
<br />1. Payment of Indebtedness. All indebtedness secured hereby shall be paid when due.
<br />2. Title. Trustor is the owner of the Property, has the right and authority to convey the Property, and warrants that the lien
<br />created hereby is a first and prior lien on the Property, except for liens and encumbrances set forth by Trustor in writing and delivered to
<br />Lender before execution of this Deed of Trust, and the execution and delivery of this Deed of Trust does not violate any contract or
<br />other obligation to which Trustor is subject.
<br />3. Taxes, Assessments. To pay before delinquency all taxes, special assessments and all other charges against the
<br />Property now or hereafter levied.
<br />4. Insurance. To keep the Property insured against damage by fire, hazards included within the term "extended coverage ", and such
<br />other hazards as Lender may require, in amounts and with companies acceptable to Lender, naming Lender as an additional named
<br />insured, with loss payable to the Lender. In case of loss under such policies, the Lender is authorized to adjust, collect and
<br />compromise, all claims thereunder and shall have the option of applying all or part of the insurance proceeds (i) to any indebtedness
<br />secured hereby and in such order as Lender may determine, (ii) to the Trustor to be used for the repair or restoration of the Property or
<br />(iii) for any other purpose or object satisfactory to Lender without affecting the lien of this Deed of Trust for the full amount secured
<br />hereby before such payment ever took place. Any applications of proceeds to indebtedness shall not extend or postpone the due date
<br />of any payments under the Note, or cure any default thereunder or hereunder.
<br />5. Escrow. Upon written demand by Lender, Trustor shall pay to Lender, in such manner as Lender may designate, sufficient
<br />sums to enable Lender to pay as they become due one or more of the following: (i) all taxes, assessments and other charges against
<br />the Property, (ii) the premiums on the property insurance required hereunder, and (iii) the premiums on any mortgage insurance
<br />required by Lender.
<br />6. Maintenance, Repairs and Compliance with Laws. Trustor shall keep the Property in good condition and repair; shall
<br />promptly repair, or replace any improvement which may be damaged or destroyed; shall not commit or permit any waste or
<br />deterioration of the Property; shall not remove, demolish or substantially alter any of the improvements on the Property; shall not
<br />commit, suffer or permit any act to be done in or upon the Property in violation of any law, ordinance, or regulation; and shall pay and
<br />promptly discharge at Trustor's cost and expense all liens, encumbrances and charges levied, imposed or accessed against the
<br />Property or any part thereof.
<br />7. Eminent Domain. Lender is hereby assigned all compensation, awards, damages and other payments or relief
<br />(hereinafter "Proceeds ") in connection with condemnation or other taking of the Property or part thereof, or for conveyance in lieu of
<br />condemnation. Lender shall be entitled at its option to commence, appear in and prosecute in its own name any action or proceedings,
<br />and shall also be entitled to make any compromise or settlement in connection with such taking or damage. In the event any portion of
<br />the Property is so taken or damaged, Lender shall have the option in its sole and absolute discretion, to apply all such proceeds, after
<br />deducting therefrom all costs and expenses incurred by it in connection with such Proceeds, upon any indebtedness secured hereby
<br />and in such order as Lender may determine, or to apply all such Proceeds, after such deductions, to the restoration of the Property
<br />upon such conditions as Lender may determine. Any application of Proceeds to indebtedness shall not extend or postpone the due
<br />date of any payments under the Note, or cure any default thereunder or hereunder. Any unapplied funds shall be paid to Trustor.
<br />8. Performance by Lender. Upon the occurrence of an Event of Default hereunder, or if any act is taken or legal proceeding
<br />commenced which materially affects Lender's interest in the Property, Lender may in its own discretion, but without obligation to do so,
<br />and without notice to or demand upon Trustor and without releasing Trustor from any obligation, do any act which Trustor has agreed
<br />but failed to do and may also do any other act it deems necessary to protect the security hereof. Trustor shall, immediately upon
<br />demand therefor by Lender, pay to Lender all costs and expenses incurred and sums expended by Lender in connection with the
<br />exercise by Lender of the foregoing rights, together with interest thereon at the default rate provided in the Note, which shall be added
<br />to the indebtedness secured hereby. Lender shall not incur any liability because of anything it may do or omit to do hereunder.
<br />9. Hazardous Materials. Trustor shall keep the Property in compliance with all applicable laws, ordinances and regulations
<br />relating to industrial hygiene or environmental protection (collectively referred to herein as "Environmental Laws "). Trustor shall keep
<br />the Property free from all substances deemed to be hazardous or toxic under any Environmental Laws (collectively referred to herein as
<br />"Hazardous Materials "). Trustor hereby warrants and represents to Lender that there are no Hazardous Materials on or under the
<br />Property. Trustor hereby agrees to indemnify and hold harmless Lender, its directors, officers, employees and agents, and any
<br />successors to Lender's interest, from and against any and all claims, damages, losses and liabilities arising in connection with the
<br />presence, use, disposal or transport of any Hazardous Materials on, under, from or about the Property. THE FOREGOING
<br />WARRANTIES AND REPRESENTATIONS, AND TRUSTOR'S OBLIGATIONS PURSUANT TO THE FOREGOING INDEMNITY,
<br />SHALL SURVIVE RECONVEYANCE OF THIS DEED OF TRUST.
<br />10. Assignment of Rents. Trustor hereby assigns to Lender, and grants Lender a security interest in, and all present, future
<br />and after arising rents, issues and profits of the Property; provided that Trustor shall, until the occurrence of an Event of Default,
<br />hereunder, have the right to collect and retain such rents, issues and profits as they become due and payable. Upon the occurrence of
<br />an Event of Default, Lender may, either in person or by agent, with or without bringing any action or proceeding, or by a receiver
<br />appointed by a name or in the name of the Trustee, and do any acts which it deems necessary or desirable to preserve the value,
<br />marketability or rentability of the Property, or any part thereof or interest therein, or to increase the income therefrom or protect the
<br />security hereof and, with or without taking possession of the Property, sue for or otherwise collect the rents, issues and profits thereof,
<br />including those past due and unpaid, by notifying tenants to make payments to Lender. Lender may apply rents, issues and profits,
<br />less costs and expenses of operation and collection including attorney's fees, to any indebtedness secured hereby, all in such order as
<br />Lender may determine. The entering upon and taking possession of the Property, the collection of such rents, issues and profits, and
<br />the application thereof as aforesaid shall not cure or waive any default or notice of default hereunder or invalidate any act done in
<br />response to such thereof as aforesaid shall not cure or waive any default or notice of default hereunder or invalidate any act done in
<br />response to such default or pursuant to such notice of default and, notwithstanding the continuance in possession of the property or the
<br />collection, receipt and application of rents, issues or profits, Trustee and Lender shall be entitled to exercise every right provided for in
<br />any of the Loan Instruments or by law upon occurrence of any Event of Default, including without limitation the right to exercise the
<br />power of sale. Further, Lender's rights and remedies under this paragraph shall be cumulative with, and in no way a limitation on,
<br />Lender's rights and remedies under any assignment of leases and rents recorded against the Property. Lender, Trustee and the
<br />receiver shall be liable to account only for those rents actually received.
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