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DEED OF TRUST 2 ~ i Q 0 4 ~ s 4
<br />Loan No. 131995 (Continued) Page 2
<br />to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Trustor shall also procure
<br />and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Trustee and Lender
<br />being named as additional insureds in such liability insurance policies. Additionally, Trustor shall maintain such other insurance,
<br />including but not limited to hazard, business interruption, and bailer insurance, as Lender may reasonably require. Policies shall be
<br />written in form, amounts, coverages and basis reasonably acceptable to Lender and issued by a company nr companies reasonably
<br />acceptable to Lender. Trustor, upon request of Lender, will deliver to Lender from time to time the policies or certificates pf insurance
<br />in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten 11 Q) days
<br />prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will
<br />not be impaired in any way by any act, omissipn or default of Trustor or any other person. Should the Real Property be located in an
<br />area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to
<br />obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal balance of the loan and any prior liens nn the
<br />property securing the Ipan, up tp the maximum policy limits set under the National Flood Insurance Program, or as otherwise required
<br />by Lender, and to maintain such insurance for the term of the loan.
<br />LENDER'S EXPENDITURES. If any action or proceeding is commenced that wpuld materially affect Lender's interest in the Property or if
<br />Trustor fails to comply with any provision of this Deed of Trust or any Related ^nouments, including but not limited to Trustor's failure to
<br />comply with any obligation to maintain Existing Indebtedness in good standing as required below, or to discharge or pay when due any
<br />amounts Trustor is required to discharge. or pay under this Deed of Trust or any Related Documents, Lender on Trustor's behalf may (but
<br />shall not be obligates tol take any actinn that Lender deems apprppriate un 'the Preperty and paying all costs for insuring, maintaining and
<br />preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged
<br />under the Npte from the date incurred or paid by Lender to the date of repayment by Trustor. All such expenses will become a part of the
<br />Indebtedness and, at Lender's option, will (AI be payable on demand; IB- be added to the balance of the Note and be apportioned among
<br />and be payable with any installment payments to become due during either 111 the term of any applicable insurance policy; or 121 the
<br />remaining term pf the Note; or ICI be treated as a balloon payment which will be due and payable at the Note's maturity.
<br />WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Deed of Trust
<br />Title. Trustor warrants that: lal Trustor holds good and marketable title of record to the Property in fee simple, free and clear of all
<br />liens and encumbrances ether than those set forth in the Real Property description or in the Existing Indebtedness section below or in
<br />any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Deed of
<br />Trust, and (b) Trustor has the full right, power, and authprity to execute and deliver this Deed of Trust to Lender.
<br />Defense of Title. Subject to the exception in the paragraph above, Trustor warrants and will forever defend the title to the Property
<br />against the lawful claims of all persons.
<br />EXISTING INDEBTEDNESS. The following provisions concerning Existing Indebtedness are a part of this heed of Trust:
<br />Existing Lien. The lien of this Deed of Trust securing the Indebtedness may be secondary and inferior to an existing lien. Trustor
<br />expressly covenants and agrees to pay, or see 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 />EVENTS OF DEFAULT. Each of the following, at Lender's option, shall constitute an Event of Default under this Deed of Trust:
<br />Payment Default. Trustor fails to make any payment when due under the Indebtedness.
<br />Other Default. Trustor fails to comply with any other term, obligation, covenant or condition contained in this Deed of Trust or in any
<br />of the Related Documents.
<br />Compliance Default. Failure to comply with any other term, obligation, epvenant or condition contained in this Deed of Trust, the Nnte
<br />or in any of the Related Documents.
<br />. .
<br />Default on Other Payments. Failure of Trustor within the time required by this Deed of Trust to make any payment for taxes or
<br />insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien.
<br />Death or Insolvency. The death of Trustor nr the dissolution or termination of Trustor's existence as a going business, the insolvency
<br />of Trustor, the appointment of a receiver for any part of Trustor's property, any assignment for the benefit of creditors, any type of
<br />creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Trustor.
<br />Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation
<br />party of any of the Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or
<br />revokes nr disputes the validity of, pr liability under, any Guaranty of the Indebtedness.
<br />Adverse Change. A material adverse change occurs in Trustor's financial condition, or Lender believes the prospect of payment or
<br />performance of the Indebtedness is impaired.
<br />Insecurity. Lender in good faith believes itself insecure.
<br />Existing Indebtedness. The payment of any installment of principal or any interest on the Existing Indebtedness is not made within the
<br />time required by the promissory note evidencing such indebtedness, or a default occurs under the instrument securing such
<br />indebtedness and is not cured during any applicable grace period in such instrument, or any suit or other action is commenced to
<br />foreclose any existing lien pn the Property.
<br />Right to Cure. If any default, other than a default in payment is curable and if Trustor has not been given a notice of a breach of the
<br />same provision of this Deed of Trust within the preceding twelve 1121 months, it may be cured if Trustor, after Lender sends written
<br />notice to Trustor demanding cure of such default: 111 cures the default within fifteen 1151 days; or 121 if the cure requires more than
<br />fifteen (15) days, immediately initiates steps which Lender deems in Lender's sale discretion to be sufficient to cure the default and
<br />thereafter continues and completes all reasonable and necessary steps sufticient to produce compliance as soon as reasonably
<br />practical.
<br />RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default under any indebtedness, or should Trustor fail to
<br />comply with any of Trustor's obligations under this Deed of Trust, Trustee or Lender may exercise any one or more of the following rights
<br />and remedies:
<br />Acceleration Upon Default; Additional Remedies. If any Event of Default occurs as per the terms of the Note secured hereby,
<br />Lender may declare all Indebtedness secured by this Deed of Trust to be due and payable and the same shall thereupon become
<br />due and payable without any presentment, demand, protest or notice of any kind. Thereafter, Lender may:
<br />(a) Either in person or by agent, with nr without bringing any actinn nr proceeding, or by a receiver appointed by a court and
<br />without regard to the adequacy of its security, enter upon and take possession of the Property, or any part thereof, in its
<br />own name or in the name of Trustee, and do any acts which it deems necessary or desirable to preserve the value,
<br />marketability or rentability of the Property, or part of the Property or interest in the Property; increase the income from the
<br />Property or protect the security of the Property; and, with or without taking possession of the Property, sue for or otherwise
<br />cpllect the rents, issues and profits of the Property, including those past due and unpaid, and apply the same, less costs and
<br />expenses of operation and collection attorneys' fees, to any indebtedness secured by this Deed of Trust, 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
<br />profits, and the application thereof shall oat cure or waive any default or notice of default under this Deed of Trust or
<br />invalidate any act done in response to such default nr pursuant to such notice pf default; and, notwithstanding the
<br />continuance in possession of the Property or the collection, receipt and application of roots, issues nr profits, Trustee or
<br />Lender shall be entitled to exercise every right provided for in the Note or the Related Documents or by law upon the
<br />occurrence of any event of default, including the right to exercise the power of sale;
<br />(6) Commence an action to foreclose this Deed of Trust as a mortgage, appoint a receiver nr specifically enforce any of the
<br />covenants hereof; and
<br />(c- Deliver to Trustee a written declaration of default and demand for sale and a written notice of default and election to
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