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� 2000004 $ 4
<br /> - 3. Taxes, Assessments. All taxes, special assessments and all other charges against the
<br /> Property now or hereafter levied shall be paid before delinquent.
<br /> 4. Insurance. Trustorshall keep the Property insured againstdamage by fire,hazards included
<br /> within the term "extended coverage", and such other hazards as Lender may require, in amounts and with
<br /> companies acceptable to Lender, naming Lender as an additional named insured, with loss payable to the
<br /> Lender. Such insurance shall specifically provide that such coverage cannot be canceled without at least 30
<br /> days prior notice to Lender. Proof of such insurance shall be furnished to Lender upon request. In case of
<br /> loss under such policies, the Lender is authorized to adjust, collect and compromise all claims thereunder.
<br /> After deducting from such insurance proceeds the expenses, if any, incurred by Lender in the collection or
<br /> handling thereof,the proceeds shall be used to replace,repair,restore or rebuild the Property in a diligent and
<br /> expeditious manner with materials and workmanship of substantially the same quality as existed before the
<br /> loss,damage or destruction,with any proceeds not so used being applied to reduce the indebtednesssecured
<br /> hereby, in such order as Lender may determine. Any application of proceeds to indebtedness shall not extend
<br /> or postpone the due date of any payment under the Note, or cure any default thereunder or hereunder.
<br /> 5. Escrow. Upon written demand by Lender, Trustor shall pay to Lender, in such manner as
<br /> Lender may designate, su�cient sums to enable Lender to pay as they become due one or more of the
<br /> following: (i) all taxes, assessments and other charges against the Property; and (ii) the premiums on the
<br /> property insurance required hereunder.
<br /> 6. Maintenance, Repairs and Compliance with Laws. Trustor shall: (i) keep the Property
<br /> in good condition and repair; (ii) promptly repair or replace any improvement which may be damaged or
<br /> destroyed; (iii)not commit or permit any waste or deterioration of the Property; (iv) not remove, demolish or
<br /> substantially alter any of the improvementson the Property;(v)not commit,suffer or permit any act to be done
<br /> in or upon the Property in violation of any law, ordinance or regulation; and (vi) pay and promptly discharge
<br /> at Trustor'scost and expense all liens,encumbrancesand charges levied, imposed or assessed against the
<br /> Property or any part thereof.
<br /> 7. Eminent Domain. Lender is hereby assigned all compensation,awards,damages and other
<br /> payments or relief(hereinafter"Proceeds") in connection with condemnation or other taking of the Property
<br /> or part thereof, or for conveyance in lieu of condemnation. Lender shall be entitled, at its option, to
<br /> commence, appear in and prosecute in its own name any action or proceeding, and shall also be entitled to
<br /> make any compromise or settlement in connection with such taking or damage. In the event any portion of
<br /> the Property is so taken or damaged,Lender shall have the option,in its sole and absolute discretion,to apply
<br /> all such Proceeds, after deducting therefrom all costs and expenses incurred by it in connection with such
<br /> Proceeds, to any indebtedness secured hereby and in such order as Lender may determine, or to apply all
<br /> such Proceeds,after such deductions,to the restoration of the Property upon such conditions as Lender may
<br /> determine. Any application of Proceeds to indebtedness shall not extend or postpone the due date of any
<br /> payment under the Note,or cure any default thereunder or hereunder. Any unapplied funds shall be paid to
<br /> Trustor.
<br /> 8. Performance by Lender. Upon the occurrence of an Event of Default hereunder, or if any
<br /> act is t�ken or legal proceeding commenced which materially affects Lender's interest in the Property,Lender
<br /> may in its own discretion, but without obligation to do so, and without notice to or demand upon Trustor and
<br /> without releasing Trustor from any obligation,do any act which Trustor has agreed but fails to do and may also
<br /> do any other act it deems necessary to protect the security hereof. Trustor shall, immediately upon demand
<br /> therefor by Lender, pay to Lender all costs and expenses incurred and sums expended by Lender in
<br /> connection with the exercise by Lender of the foregoing rights, together with interest thereon at the default
<br /> rate provided in the Note,which shall be added to the indebtedness secured hereby. Lender shall not incur
<br /> any liability because of anything it may do or omit to do hereunder, unless caused by the intentional or willful
<br /> misconduct or gross negligence of Lender or its duly authorized agents.
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