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<br />20130030;
<br />Beneficiary toward altering, restoring or rebuilding the Mortgaged Property or such
<br />portion thereof that may have been altered, damaged or destroyed, and (ii) the balance
<br />against sums secured hereby, in such order as Beneficiary may in its absolute discretion
<br />elect. Such damage or destruction shall not affect the lien of this Deed of Trust or the
<br />obligations of Trustor hereunder, and Beneficiary is authorized at Beneficiary's option to
<br />compromise and settle all loss claims on said policies if not adjusted promptly by Trustor.
<br />The application of Insurance Proceeds in the manner set forth above shall be conditional
<br />upon Trustor first depositing with Beneficiary such amount as Beneficiary may, in its
<br />reasonable discretion, determine to be required beyond the Insurance Proceeds to
<br />complete the altering, restoring or rebuilding of the Mortgaged Property, or such portion
<br />thereof as may have been altered, damaged or destroyed ( "Additional Funds ").
<br />Disbursement of Insurance Proceeds, together with the Additional Funds, if any, required
<br />to be so deposited by Trustor with Beneficiary shall be in accordance with Beneficiary's
<br />then current construction loan procedures. If, however, an Event of Default has occurred
<br />which was not cured within the applicable cure period, if any, or Trustor has failed to
<br />provide the deposit of the Additional Funds within thirty (30) days following the date of
<br />receipt of the Insurance Proceeds, then the balance of the proceeds, if any, may be
<br />applied at the option of Beneficiary, (i) toward altering, restoring or rebuilding the
<br />Mortgaged Property or such portion thereof that may have been altered, damaged or
<br />destroyed, or (ii) against sums secured hereby in such order as Beneficiary may in its
<br />absolute discretion elect.
<br />(b) Notwithstanding the application of Insurance Proceeds to the payment of a
<br />portion of the Secured Obligations, any unpaid portion of the Secured Obligations shall
<br />remain in full force and effect, and Trustor shall not be excused in the payment thereof;
<br />provided, however, such unpaid portion shall be reamortized over the remaining term of
<br />the Loan. If any act or occurrence of any kind or nature on which insurance was not
<br />obtained or obtainable shall result in damage to or loss or destruction of the Mortgaged
<br />Property, Trustor shall give immediate notice thereof to Beneficiary and, unless
<br />otherwise so instructed by Beneficiary, shall promptly, at Trustor's sole cost and expense,
<br />whether or not the Insurance Proceeds are adequate to cover such cost and expense,
<br />restore, repair, replace and rebuild the Mortgaged Property as nearly as reasonably
<br />practicable to its value, condition and character immediately prior to such damage, loss or
<br />destruction, in accordance with plans and specifications submitted to and approved by
<br />Beneficiary.
<br />(c) Except as provided below, nothing contained in this Deed of Trust shall be
<br />deemed to excuse Trustor from repairing or maintaining the Mortgaged Property as
<br />provided in Section 1.04 hereof. The application or release by Beneficiary of any
<br />Insurance Proceeds shall not cure or waive any Event of Default or notice of default
<br />under this Deed of Trust or invalidate any act done pursuant to such notice. If
<br />Beneficiary elects not to so apply the Insurance Proceeds to the restoration, rebuilding or
<br />repair of the Mortgaged Property pursuant to Section 1.07(a) hereof, Trustor shall not be
<br />required to restore, rebuild or repair the portion of the Mortgaged Property damaged or
<br />destroyed, and the failure to do so shall not constitute an Event of Default under this
<br />Deed of Trust.
<br />Section 1.08. Assignment of Policies Upon Foreclosure. In the event of the
<br />foreclosure of this Deed of Trust, or other transfer of title to the Mortgaged Property, or any part
<br />thereof, by nonjudicial foreclosure sale or deed in lieu of foreclosure, the purchaser of the
<br />Mortgaged Property, or such part thereof, shall succeed to all of Trustor's rights, including any
<br />rights to unexpired insurance and unearned or returnable premiums, in and to all insurance
<br />policies required by Section 1.05, subject to limitations on assignment of blanket policies, and
<br />limited to such rights as relate to the Mortgaged Property or such part thereof. If Beneficiary
<br />acquires title to the Mortgaged Property, or any part thereof, in any manner, it shall thereupon (as
<br />between Trustor and Beneficiary) become the sole and absolute owner of the insurance policies,
<br />and all proceeds payable thereunder with respect to the Mortgaged Property, or such part thereof,
<br />required by Section 1.05, with the sole right to collect and retain all unearned or returnable
<br />premiums thereon with respect to the Mortgaged Property, or such part thereof, if any.
<br />Section 1.09. Indemnification: Subrogation; Waiver of Offset.
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