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<br />200901609
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<br />that Grantor possesses or receives possession of any instruments or other remittances with respect to the indebtedness following the giving of
<br />such notification or if the instruments or other remittances constitute the prcpayment of any indebtedness or the payment of any insurance or
<br />condcmnation proceeds, Grantor shall hold such instruments and other remittances in trust for Lender apart from its other property, endorse the
<br />instruments and other remittances to Lender, and immediately provide Lender with possession of the instruments and other remittances. Lender
<br />shall be entitled, but not required, to collect (by legal proceedings or otherwise), extend the time for payment, compromise, exchange or release
<br />any obligor or collateral, or otherwise settle any of the Indebtedness whether or not an Event of Default exists under this Deed of Trust, Lender
<br />shall not be liable to Grantor for any action, error, mistake, omission or delay pertaining to the actions described in this paragraph or any
<br />damages resulting therefrom. Notwithstanding the foregoing, nothing herein shall cause Lender to be deemed a mortgagee-in-possession.
<br />8. llSE AND MAINTENANCE OF PROPERTY. Grantor shall take all actions and make any repairs needed to maintain the Property in
<br />good condition. Grantor shall not commit or permit any waste to be committed with respect to the Property. Grantor shall use the Property solely in
<br />compliance with applicable law and insurance policies. Grantor shall not make any alterations, additions or improvements to the Property without
<br />Lender's prior written consent. Without limiting the foregoing, all alterations, additions and improvements made to the Property shall be subject to
<br />the beneficial interest belonging to Lender, shall not be removed without Lender's prior written consent, and shall be made at Grantor's sole expense.
<br />9. LOSS OR DAMAGE. Grantor shall bear the entire risk of any loss, theft, destruction or damage (cumulatively "Loss or Damage") to
<br />the Property or any portion thereof from any cause whatsoever. In the event of any Loss or Damage, Grantor shall, at the option of Lender, repai r
<br />the affected Property to its previous condition or payor cause to be paid to Lender the decrease in the fair market value of the affected Property,
<br />10. INSURANCE. The Property will be kept insured for its full insurable value (replacement cost) against all hazards including loss or
<br />danlage caused by flood, earthquake, tornado and fire, theft or other casualty to the extent required by Lender. Grantor may obtain insurance on thc
<br />Property from such companies as are acceptable to Lender in its sole discretion. The insurance policies shall require the insurance company to
<br />provide Lender with at least 30 days' written notice before such policies are altered or cancelled in any manner. The insurance
<br />policies shall name Lender as a loss payee and provide that no act or omission of Grantor or any other person shall affect the right of Lender to be
<br />paid the insurance proceeds pertaining to the loss or damage of the Property. In the event Grantor fails to acquire or maintain insurance, Lender
<br />(after providing notice as may be required by law) may in its discretion procure appropriate insurance coverage upon the Property and the insurance
<br />cost shall be an advance payable and bearing interest as described in Paragraph 23 and secured hereby. Grantor shall furnish Lender with evidence
<br />of insurance indicating the required coverage. Lender may act as attorney-in-fact for Grantor in making and settling claims under insurance policies.
<br />cancelling any policy or endorsing Grantor's name on any draft or negotiable instrument drawn by any insurer. All such insurance policies shall be
<br />immediately assigned, pledged and delivered to Lender as further security for the Obligations. in the event of loss, Grantor shall immediately give
<br />Lender written notice and Lender is authorized to make proof of loss. Each insurance company is directed to make payments directly to Lendcr
<br />instead of to Lender and Grantor. Lender shall have the right, at its sole option, to apply such monies toward the Obligations or toward the cost of
<br />rebuilding and restoring the Property. Any amounts may at Lender's option be applied in the inverse order of the due dates thereof.
<br />1 J. ZONING AND PRIVATE COVENANTS. Grantor shall not initiate or eonsent to any change in the zoning provisions or private
<br />covenants affecting the use of the Property without Lender's prior written consent. If Grantor's use of the Property is or becomes a
<br />nonconforming use under any zoning provision, Grantor shall not cause or permit such use to be discontinued or abandoned without the prior
<br />written consent of Lender. Grantor will immediately provide Lender with written notiee of any proposed changes to the zoning provisions or
<br />private covenants affccting the Property.
<br />12. CONDEMNATION. Grantor shall immediately provide Lender with written notice of any actual or threatened condemnation or
<br />emincnt domain proceeding pertaining to the Property. All monies payable to Grantor from such condcmnation or taking are hereby assigned
<br />to Lender and shall be applied first to the payment of Lender's attorneys' fees, legal expenses and other costs (including appraisal tecs) in
<br />connection with the condemnation or eminent domain proceedings and then, at the option of Lender, to the payment of the Obligations or the
<br />restoration or repair of the Property.
<br />13. LENDER'S RIGHT TO COMMENCE OR DEJ;'END LEGAL ACTIONS. Grantor shall immediately provide Lender with written
<br />notice of any actual or threatened action, suit, or other proeecding affecting the Property. Grantor hereby appoints Lender.~its attorney-in-fuct to-
<br />commence, intervene in, and defend such actions, suits, or other legal proceedings and to compromise or settle any claim or controversy pertaining
<br />thereto. Lender shall not be liable to Grantor for any action, error, mistake, omission or delay pertaining to the actions described in this paragraph or
<br />any damages resulting therefrom. Nothing contained herein will prevent Lender from taking the actions described in this paragraph in its own name.
<br />14. INDEMNIFICATION. Lender shall not assume or be responsible for the performance of any of Grantor's obligations with respect
<br />to the Property under any circumstances. Grantor shall immediately provide Lender with written notice of and indemnify and hold Lender
<br />and its shareholders, directors, officers, employees and agents harmless from all claims, damages, liabilities (including attorneys' fee~ and
<br />legal expcnses), causcs of action, actions, suits and other legal proceedings (cumulatively "Claims") pertaining to the Property (including, but
<br />not limited to, those involving Hazardous Materials). Grantor, upon the rcquest of Lender, shall hire legal counsel, acceptable to Lendcr, to
<br />defcnd Lcnder from such Claims, and pay the attorneys' fees, legal expenses and other costs incurred in connection therewith. In the
<br />altcrnative, Lender shall be entitled to employ its own legal counsel to dcfcnd such Claims at Grantor's cost. Grantor's obligation to
<br />indemnify Lender under this paragraph shall survive the termination, release or foreclosure of this Deed of Trust.
<br />15. TAXES AND ASSESSMENTS. Grantor shall pay all taxes and assessments relating to thc Propcrty when due and immediately
<br />provide Lender evidence of payment of same. Upon the request of Lender, Grantor shall deposit with Lender each month one-twelfth (1/12)
<br />of the estimated annual insurance premium, taxes and assessments pertaining to the Property. So long as there is no default, these amounts
<br />shall be applied to the payment of taxes, assessments and insurance as required on the Property. In the event of default, Lender shall have the
<br />right, at its sole option, to apply the funds so held to pay any taxes or against the Obligations. Any funds applied may, at Lender's option. be
<br />applicd in reverse order of the due datc thereof.
<br />16. INSPECTION OF PROPERTY, BOOKS, RECORDS AND REPORTS. Grantor shall allow Lendcr or its agents to examine and
<br />inspcct the Property and examine, inspect and make copies of Grantor's books and records pertaining to the Property from time to time. Grantor
<br />shall provide any assistancc required by Lender for these purposcs. All of the signatures and information contained in Grantor's books and records
<br />shall be genuine, true, accurate and complete in all respects. Grantor shall note the existence of Lender's beneficial interest in its books and records
<br />pertaining to the Property. Additionally, Grantor shall report, in a form satisfactory to Lender, such information as Lender may request regarding
<br />Grantor's financial condition or the Property. The information shall be for such periods, shall reflect Grantor's records at such time, and shall be
<br />rendered with such frequency as Lender may designate. All information furnished by Grantor to Lender shall be true, accurate and complete in all
<br />respects, and signed by Grantor if Lender requests.
<br />17. ESTOPPEL CERTIFICATES. Within ten (10) days after any request by Lender, Grantor shal! deliver to Lender, or any intended
<br />transferee of Lender's rights with respcct to thc Obligations, a signed and acknowledged statement specifying (a) the outstanding balance on the
<br />Obligations; and (b) whether Grantor possesses any elaims, defenses, set-offs or counterclaims withre~peet to the Obliglltions and, if so, the naturc
<br />of such claims, defenses, set-offs or counterclaims. Grantor will be conclusively bound by any,representation that Lender may make to the
<br />intended transferee with respect to these matters in the event that Grantor fails to provide the requested statement in a timely manner.
<br />18. EVENTS OF DEFAULT. An Event of Default shall occur under this Deed of Trust and the Trustee's power shall become operative
<br />in the event that Grantor, Borrower or any guarantor of any Obligation:
<br />(a) commits traud or makes a material misrepresentation at any time in connection with the Obligations or this Deed of Trust;
<br />(b) fails to meet the repayment terms of the Obligations for any outstanding balance; or
<br />(c) by any action or inaction, adversely affects the Property, or any right of Lender in such Propcrty, including, but not limited to, transter
<br />of title to or sale of the Property without the permission of Lender, failure to maintain required insurance or to pay taxes on thc Propcrty,
<br />allowing the filing of a lien scnior to that held by Lender, death of the sole Borrower obligated under the Obligations, allowing the taking
<br />of the Property through eminent domain, or allowing the Property to be foreclosed by a lienholder other than Lcndcr. In addition, an
<br />Event of Default shall occur if, as a result of any of the following, the property, or any right of the Lender in the Property, is adversely
<br />affected: the Borrower, Grantor or any guarantor of any Obligation commits waste or otherwise destructively uses or fails to maintain the
<br />Property, uses the property in an illegal manner which may subject the Property to seizure, or moves from thc Property; a judgmcnt is
<br />filed against the Borrower, Grantor or any guarantor of any Obligation; or one of two Borrowers obligated under the Obligations dies,
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<br />ITEM 1275L3 (0504)
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<br />LPNE5168C <0 Harland Financial Solution.. Inc, (9/15/98)
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<br />(Page 3 of 7 page.)
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