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�01f04912 Section 1.3 Security Interest. Trustor hereby grants to Beneficiary a security interest in a11 of the Mortgaged Properiy which consritutes personal property subject to Article 9 of the Uniform Commercial Code or fixtures as defined therein (herein sometimes collectively called the "Collateral"). In addition to its rights hereunder or otherwise, Beneficiary shall have all of the rights of a secured party under Article 9 of the Uniform Commercial Code in force in any state to the extent the same is applicable law. Section 1.4 Purpose. This Deed of Trust and the Obligarions are executed and incurred for business or agricultural purposes and not for personal, household or family purposes. Section 1.5 Future Advances and Expenses. This Deed of Trust also secures the repayment of all advances that Beneficiary may extend to Trustor under the Loan Agreement and the other Credit Documents. In addition this Deed of Trust secures the repayment of all amounts expended by Beneficiary to perform Trustor's covenants under this Deed of Trust or maintain, preserve, or dispose of the Mortgaged Property, together with interest thereon from date of expenditure until repaid. Section 1.6 Advances. This Deed of Trust is subject to the terms of the Loan Agreement, which is a loan agreement between Trustor and Beneficiary. Trustor acknowledges that in the event the Loan will be used for the purchase of the Mortgaged Property, Lender may impose any reasonable restrictions or conditions in order to insure that this Deed of Trust remains senior in priority to a11 other liens and encumbrances, including, but not limited to mechanics' and materialmen's liens. The Loan represented by the Credit Documents matures on the dates indicated in the recitals above. The Note and Loan Agreement requires Trustor to make payments to Beneficiary on the terms provided therein. ARTICLE 2- REPRESENTATIONS, WARRANTIES AND COVENANT5 Section 2.1 Trustor represents, warrants, and covenants as follows: (a) Payment and Performance. Tntstor will make due and punctual payment of the Obligations. Trustor will timely and properly perform and comply with a11 of the covenants, agreements, and conditions imposed upon it by this Deed of Trust and the other Credit Documents and will not permit a default to occur hereunder or thereunder. Time shall be of the essence in this Deed of Trust. (b) Title and Permitted Encumbrances. Trustor has, in Trustor's own right, and Trustor covenants to maintain, good, valid and merchantable title to the Mortgaged Property, free and cleaz of all liens, charges, claims, security interests, and encumbrances except for Permitted Encumbrances. Trustor, and Trustor's successors and assigns, will warrant and forever defend title to the Mortgaged Properly, subject as aforesaid, to Beneficiary against the claims and demands of all persons claiming or to claim the same or any part thereof. Trustor will punctually pay, perForm, observe aad keep all covenants, obligations and conditions in or pursuant to any Pertnitted Encumbrance and will not modify or permit rnodification of any Permitted Encumbrance without the prior written consent of Beneficiary. Inclusion of any matter as a Permitted Encumbrance does not constitute approval or waiver by Beneficiary of any e�cisting or future violation or other breach thereof by Trustor, with respect to the Mortgaged Properiy or otherwise. No part of the Mortgaged Property constitutes all or any part of the homestead of Trustor. If any right or interest of Beneficiary in the Mortgaged Properiy or any part thereof sha11 be endangered or questioned or shall be attacked directly or indirectly, Beneficiary (whether or not named as a party to legal proceedings with respect thereto) is hereby authorized and empowered to ta.ke such steps as in its discretion may be proper for the defense of any such legal proceedings or the protection of such right or interest of Beneficiary, including but not limited to the ernployment of independent counsel, the prosecution or defense of litigation, and the compromise or discharge of adverse claitns. All expenditures so made of every kind and character shall be an Obligation (which Obligation Trustor hereby promises to pay on demand of Beneficiary) owing by Trustor to Beneficiary, and Beneficiary shall be subrogated to all rights of the person receiving such payment. (c) Taaes and Other Impositions. Trustor will pay, or cause to be paid, all taxes, assessments and other charges or levies imposed upon or against or with respect to the Mortgaged Properly or the ownership, use, occupancy or enjoyment of any portion thereof, or any utility service thereto, as the same become due and payable, including but not lunited to ad valorem ta�ces assessed against the Mortgaged Property or any part thereof, and sha11 deliver promptly to Beneficiary such evidence of the payment thereof as Beneficiary may require. Notwithstanding the foregoing, Trustor shall have the right to contest any such charges and any such contest shall not be considered a DOCS/1045495.1