WILLIAMS OR A CHILD OF
CLAYTON W. WILLIAMS, JR.
NO SUBORDINATE MORTGAGES. GRANTOR WILL NOT CREATE, PLACE, OR PERMIT TO BE
CREATED OR PLACED, OR THROUGH ANY ACT OR FAILURE TO ACT, ACQUIESCE IN THE
PLACING OF, OR ALLOW TO REMAIN ANY SUBORDINATE MORTGAGE REGARDLESS OF WHETHER
SUCH SUBORDINATE MORTGAGE IS EXPRESSLY SUBORDINATE TO THE LIENS OR SECURITY
INTERESTS OF THE LOAN DOCUMENTS WITH RESPECT TO THE MORTGAGED PROPERTY, OTHER
THAN THE PERMITTED EXCEPTIONS.
ADDITIONAL OBLIGATIONS. GRANTOR SHALL NOT GUARANTEE, ENDORSE OR OTHERWISE BECOME
CONTINGENTLY LIABLE IN CONNECTION WITH ANY OBLIGATIONS OF ANY OTHER PERSON OR
ENTITY, AND SHALL NOT CREATE OR INCUR ANY ADDITIONAL
Deed of Trust - Page 14
LIABILITY, WHETHER CONTINGENT OR NON-CONTINGENT, WITH RESPECT TO EITHER GRANTOR
OR THE MORTGAGED PROPERTY, EXCEPT AS SPECIFICALLY ALLOWED OR CONTEMPLATED
PURSUANT TO THE LOAN DOCUMENTS.
BUSINESS CHANGE. GRANTOR SHALL NOT MAKE OR PERMIT TO OCCUR OR EXIST A MATERIAL
CHANGE IN THE CHARACTER OF ITS BUSINESS ACTIVITIES AS SUCH EXISTED ON THE DATE
HEREOF, WITHOUT BENEFICIARY'S PRIOR WRITTEN CONSENT.
EVENTS OF DEFAULT
The term "Event of Default," as used herein and in the Loan Documents, shall
mean the occurrence or happening, at any time and from time to time, of any one
or more of the following:
PAYMENT OF INDEBTEDNESS. GRANTOR SHALL FAIL, REFUSE, OR NEGLECT TO PAY, IN FULL,
ANY INSTALLMENT OR PORTION OF THE INDEBTEDNESS AS AND WHEN THE SAME SHALL BECOME
DUE AND PAYABLE, WHETHER AT THE DUE DATE THEREOF STIPULATED IN THE LOAN
DOCUMENTS, UPON ACCELERATION OR OTHERWISE, AND SUCH FAILURE CONTINUES FOR A
PERIOD OF TEN (10) DAYS AFTER THE DATE THE SAME IS DUE; PROVIDED, HOWEVER, THAT
IF SUCH INSTALLMENT OR PORTION OF THE INDEBTEDNESS BECOMES DUE AND PAYABLE AS A
RESULT OF BENEFICIARY'S ACCELERATING THE MATURITY OF THE INDEBTEDNESS IN
ACCORDANCE WITH THE LOAN DOCUMENTS, THE TEN (10) DAY PERIOD FOR PAYMENT SET
FORTH IN THIS SECTION SHALL NOT APPLY TO THE ACCELERATED DUE DATE.
PERFORMANCE OF OBLIGATIONS. GRANTOR SHALL FAIL, REFUSE OR NEGLECT OR CAUSE THE
FAILURE, REFUSAL, OR NEGLECT TO COMPLY WITH, PERFORM AND DISCHARGE FULLY AND
TIMELY AS AND WHEN REQUIRED ANY OF THE OBLIGATIONS OTHER THAN A FAILURE, BREACH
OR DEFAULT REFERRED TO IN SECTIONS 6.1, 6.3, 6.5, 6.6, 6.8 AND 6.9, (INCLUSIVE)
AND SUCH FAILURE, BREACH OR DEFAULT SHALL EITHER NOT BE CURABLE OR, IF CURABLE,
SHALL REMAIN UNCURED FOR A PERIOD OF THIRTY (30) DAYS AFTER THE EARLIER TO OCCUR
OF (I) THE DATE BENEFICIARY (OR TRUSTEE) GIVES WRITTEN NOTICE THEREOF TO GRANTOR
OR (II) THE DATE UPON WHICH GRANTOR HAD ACTUAL KNOWLEDGE OF THE TERM TO BE
PERFORMED; PROVIDED, HOWEVER, THAT IF SUCH FAILURE, BREACH OR DEFAULT IS CURABLE
BUT REQUIRES WORK TO BE PERFORMED, ACTS TO BE DONE OR CONDITIONS TO BE REMEDIED
WHICH, BY THEIR NATURE, CANNOT BE PERFORMED, DONE OR REMEDIED, AS THE CASE MAY
BE, WITHIN SUCH THIRTY (30) DAY PERIOD, NO EVENT OF DEFAULT SHALL BE DEEMED TO
HAVE OCCURRED IF GRANTOR COMMENCES SAME WITHIN SUCH THIRTY (30) DAY