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the sale of the Property or its acquisition by Lenders, any Funds held by Lenders at the time of
<br />application as a credit against the sums secured by this Deed of Trust.
<br />7. Liens. Borrower shall not create, permit to accrue or suffer to exist upon any of the
<br />Property, any security interest, judgment lien, mechanic's or materialman's lien, or any other lien,
<br />encumbrance, charge, retention or reservation of title, pledge, hypothecation or assignment as security,
<br />and shall promptly pay, when the same shall become due, all claims and demands of contractors,
<br />subcontractors, mechanics, materialmen, laborers and others which claims, if unpaid, might result in or
<br />permit the creation of a lien upon the Property, and Borrower shall cause any such lien to be promptly
<br />paid and discharged, whether by payment, bonding or otherwise, within sixty (60) days after the filing
<br />of same. Borrower shall have the right to contest in good faith the validity of any such lien,
<br />encumbrance or charge, provided Borrower shall first deposit with Lenders a bond or other security
<br />satisfactory to Lenders in such amounts as Lenders shall reasonably require, and provided further, that
<br />Borrower shall thereafter diligently proceed to cause such lien, encumbrance or charge to be removed
<br />and discharged. Lenders may require Borrower to obtain an endorsement, in form satisfactory to the
<br />Lenders, to the mortgagee's title insurance policy unconditionally insuring against any loss incurred in
<br />connection with liability for such lien encumbrance or charge if such endorsement is available for
<br />purchase. If Borrower shall fail to discharge any such lien, encumbrance, or charge, then, in addition
<br />to any other right or remedy of Lenders, Lenders may, but shall not be obligated to, discharge the same,
<br />either by paying the amount claimed to be due, or by procuring the discharge of such lien by depositing
<br />in court a bond for the amount claimed or otherwise giving security for such claim, or in such manner
<br />as is or may be prescribed by law.
<br />892675/5/COLUMBUS
<br />065439.00076
<br />8. Insurance.
<br />a. Maintenance of Insurance. Borrower shall at all times keep in full force and
<br />effect the insurance policies required by the Loan Agreement.
<br />b. Insurance Reserves. After the occurrence and continuance of an Event of
<br />Default, Lenders may require Borrower to maintain with Lenders or Lenders' agent reserves
<br />for payment of insurance premiums, which reserves shall be funded by monthly payments from
<br />Borrower sufficient, in Lenders' estimation, to fund the next successive premium by a date that
<br />is at least fifteen (15) days before the premium due date. If Lender sat any time deem the
<br />reserve funds to be insufficient, Borrower shall, upon demand pay any deficiency to Lenders.
<br />The reserve funds shall be held by Lenders as a general deposit and shall constitute a non-
<br />interest- bearing account which Lenders may satisfy by payment of the insurance premiums
<br />required to be paid by Borrower as they become due. If insurance reserves are required,
<br />Lenders shall not hold the reserve funds in trust for Borrower, and Lenders will not be deemed
<br />the agents of Borrower for payment of the insurance premiums required to be paid by
<br />Borrower. The responsibility for the payment of premiums shall be and remain Borrower's
<br />sole responsibility.
<br />c. Application of Insurance Proceeds. Borrower shall promptly notify Lenders of
<br />any loss or damage to the Property if the estimated cost of repair or replacement exceeds Five
<br />Percent (5 %) of the then- outstanding principal balance of the Notes. Lenders may make proof
<br />of such loss or damage if Borrower fails to do so within fifteen (15) days after the casualty.
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