|
<br />I.;' H II I
<br />
<br />. ~
<br />
<br />DEED OF TRUST
<br />(Continued)
<br />
<br />200710071
<br />
<br />Page 4
<br />
<br />Compliance with Exlsllng Indebtedness. During the period in which any Existing Indebtedness described below is in effect, compliance with the
<br />insurance provisions 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 Deed Of Trust would constitute a duplication of insurance requirement. II
<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 />
<br />11. EXPENDITURES BY LENDER. II Grantor fails to comply with any provision of this Deed 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 Lender's 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 Lender deems appropriate. Any
<br />amount that Lender expends in so doing will bear interest at the rate charged under the Credit Agreement from the date incurred or paid by Lender to
<br />the date of repayment by Grantor. All such expenses, at Lender's option, will (a) be payable on demand, or (b) be added to the balance of the credit
<br />line. This Deed 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 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 />
<br />12. WARRANTY; DEFENSE OF Tln.E. The following provisions relating to ownership of the Property are a part of this Deed of Trust.
<br />
<br />TItle. Grantor warrants that: (a) Grantor holds good and marketable title of record to the Property (including a leasehold interest, If any), free and
<br />clear of all liens and encumbrances except 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 />
<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 of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Trustee or Lender
<br />under this Deed of Trust, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender
<br />shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of 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 permit such participation.
<br />
<br />Compliance With Lews. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws,
<br />ordinances, and regulations of governmental authorities.
<br />
<br />13. EXISTING INDEBTEDNESS. The following provisions concerning existing indebtedness (the "Existing Indebtedness') are a part of this Deed of
<br />Trust.
<br />
<br />existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an existing lien, if there is such a lien.
<br />Grantor expressly covenants and agrees to pay, or see to the payment of, the Existing Indebledness and to prevent any default on such
<br />indebtedness, any defaull under the instruments evidencing suCh indebtedness, or any default under any security documents for such
<br />indebtedness.
<br />
<br />No ModIfication. 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 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 written consent of
<br />Lender.
<br />
<br />14. CONDEMNATION. The following provisions relating to proceedings in condemnation are a part of this Deed Of Trust.
<br />
<br />AppIlClltlon 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 LOANLlNER@ Home Equity Plan, subject to the terms of any mortgage or deed of
<br />trust 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 attorneys' fees necessarily paid or incurred by Grantor, Trustee or Lender in connection with the condemnation.
<br />
<br />Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notlty Lender 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 delivered to Lender such instruments as may be requested by it from time to time to permi! such participation.
<br />
<br />15. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions reiating to governmental taxes,
<br />tees and charges are a part of this Deed Of Trust:
<br />
<br />Current Taxes, Fees and Charges. Upon req"uest by Lender, Grantor shall execule suchd6cuments In addition to this 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 descrlbed below, together with all expenses incurred in recording, perfecting or continuing this Deed of Trust, including without limitation
<br />an taxes, fees, documentary stamps, and other charges for recording or registering this Deed of Trust.
<br />
<br />Taxes. The following shall constitute taxes to which this section applies: (a) a specific tax upon this type of Deed 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 authorized or required to deduct from payments
<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 />the 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 />
<br />16. FURTHER ASSURANCES. The following provisions relating to further assurances are a part of this Deed of Trust.
<br />
<br />Further Assurances. Upon request of Lender, Grantor will make, execute and deliver, or wltl cause to be made, executed or delivered, to Lender
<br />or to Lender's designee, and when requested by Lender, cause 10 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, deedS of trust, security deeds, security agreements,
<br />financing statements, continuation statements, instruments 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 under the Credit
<br />Agreemenf, this Deed of Trust. and the Related Documents, and (b) the liens and security interesls created by this Deed of Trust on the Property.
<br />Unless prohibited by law 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 />
<br />17. Fl.Ll PERFORMANCE. If Grantor pays all the Indebtedness when due, terminates the credit line account, and otherwise performs all the
<br />obligations imposed upon Grantor under this Deed of Trust, Lender shall execute and deliver to Trustee a request for full reconveyance.
<br />
<br />18. DEFALL T. Each of the following, at the option of Lender, shall constitute an event of default ("Event of Defaulr) under this Deed of Trust: (a)
<br />Grantor commits fraud or makes a material misrepresentation at any lime In connection with the credit line account. This can include, for example, a
<br />false statement about Grantor's income, assets, liabilities, or any other aspects of Grantor's financial condition. (b) Grantor does not meet the
<br />repayment terms .of the credit line account. (c) Grantor's aclion or inaction adversely affects 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 or destructive use of the dwelling, failure to pay taxes. death
<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
<br />
|