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<br />C. Hazard Insurance. We shall, at our cost, keep the improvements now existing or later erected on the Property
<br />insured.: against loss by fire, by hazards included within the term "extended coverage," and by such other hazards (collectively
<br />referred to as "Hazards ") as Merrill Lynch may require. We shall maintain Hazard insurance for the entire term of the Agreement, or as
<br />long as Merrill Lynch may require, in an amount equal to the lesser of (a) the maximum insurable value of the Property or (b) the
<br />maximum amount of the Account plus the outstanding amount of any obligation prior to this Deed of Trust, but in no event shall such
<br />amounts be less than the amount necessary to satisfy the coinsurance requirement contained in the insurance policy.
<br />We may choose the insurance company subject to approval by Merrill Lynch, provided that such approval may not be
<br />unreasonably withheld. All insurance policies, including renewals, must be in a form acceptable to Merrill Lynch and must include a
<br />standard mortgagee clause in favor of and in a form acceptable to Merrill Lynch. Merrill Lynch shall have the right to hold the
<br />policies and renewals, subject to the terms of any mortgage, deed of trust or other security agreement which is prior to this Deed of
<br />Trust. If we pay the premiums directly, we shall promptly furnish to Merrill Lynch all renewal notices and, if requested by Merrill
<br />Lynch, all receipts of paid premiums. If policies and renewals are held by any other person, we shall supply copies of them to
<br />Merrill Lynch within ten (10) calendar days after they are issued.
<br />In the event of loss, we shall give prompt notice to the insurance company and Merrill Lynch. Merrill Lynch may make
<br />proof of loss if not made promptly by us.
<br />Subject to the rights and terms of any mortgage, deed of trust or other security agreement which is prior to this Deed of
<br />Trust, the amounts collected by us or Merrill Lynch under any Hazard insurance policy may, at Merrill Lynch's sole discretion,
<br />either be applied to the sums secured by this Deed of Trust (after payment of all reasonable costs, expenses and attorneys' fees
<br />necessarily paid or incurred by Merrill Lynch and us in this connection) and in whatever order Merrill Lynch may determine or be
<br />released to us for use in repairing or reconstructing the Property. Merrill Lynch has the authority to do any of the above.
<br />Regardless of any application or release by Merrill Lynch, as described above, this shall not cure or waive any default or notice of
<br />default under this Deed of Trust or invalidate any act done pursuant to such notice.
<br />If the Property is abandoned by us, or if we fail to respond to Merrill Lynch in writing within thirty (30) calendar days
<br />from the date notice is given to us by Merrill Lynch that the insurance company offers to settle a claim for insurance benefits,
<br />Merrill Lynch shall have the authority to settle the claim and to collect and apply the insurance proceeds at Merrill Lynch's sole
<br />option either to restoration or repair of the Property or to the sums secured by this Deed of Trust.
<br />If the Property is acquired by Merrill Lynch, all of our right, title and interest in and to any insurance proceeds resulting
<br />from damage to the Property prior to such acquisition shall become the property of Merrill Lynch to the extent of the sums secured by
<br />this Deed of Trust immediately prior to such acquisition.
<br />5. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments We shall:
<br />(a) use, improve and maintain the Property in compliance with applicable laws, statutes, ordinances, orders, requirements, decrees or
<br />regulations; (b) keep the Property in good condition and repair, including the repair or restoration of any improvements on the
<br />Property which may be damaged or destroyed, and shall pay when due all claims for labor performed and materials furnished
<br />therefore; (c) not commit or permit waste or permit impairment or deterioration of the Property; and (d) fully and promptly comply
<br />with the provisions of any lease if this Deed of Trust is on a leasehold.
<br />If this Deed of Trust is on a unit in a condominium project or a planned unit development, we shall promptly perform
<br />all of our obligations under the declaration or covenants creating or governing the condominium project or planned unit
<br />development, and the by -laws, regulations and other documents of the condominium project or planned unit development, including
<br />any amendments. If a condominium or planned unit development rider is executed by us and recorded together with this Deed of
<br />Trust, the covenants and agreements of that rider shall become a part of this Deed of Trust as if the rider were included in this
<br />document itself.
<br />6. Protection of Merrill Lunch's Security. We shall appear in and defend any action or proceeding purporting to affect
<br />the security of this Deed of Trust or the rights or powers of Merrill Lynch or Trustee under this Deed or Trust.
<br />If we fail to do what is required of us in this Deed of Trust or the persons who sign the Agreement fail to do what is
<br />required of them under the Agreement, or if any action or proceeding is commenced naming Merrill Lynch as a party or affecting
<br />Merrill Lynch's interest in the Property or the rights or powers of Merrill Lynch or Trustee, then Merrill Lynch or Trustee without
<br />demand upon us but upon notice to us as provided in paragraph 11 below, may, without releasing us from any obligation under this
<br />Deed of Trust, do whatever Merrill Lynch or Trustee believes is necessary, including any disbursement of funds, to protect the
<br />security of this Deed of Trust.
<br />If Merrill Lynch has required mortgage insurance as a condition of opening the Account, we shall pay the premiums
<br />required to maintain that insurance in effect until it is no longer required by Merrill Lynch or applicable law.
<br />Any amounts disbursed by Merrill Lynch or Trustee pursuant to this paragraph 6, with interest at the variable interest
<br />rate in effect under the Agreement from time to time, shall be paid by us and are secured by this Deed of Trust. Unless we agree, in
<br />writing, with Merrill Lynch to other terms of payment, such amounts shall be payable upon request of Merrill Lynch. Neither
<br />Merrill Lynch nor Trustee are ever required to incur any expense or take any action under this Deed of Trust and any action taken
<br />shall not release us from any obligation in this Deed of Trust.
<br />7. Inspection. Merrill Lynch may make or cause to be made reasonable entries upon and inspections of the Property.
<br />Unless it is an emergency, Merrill Lynch shall give us notice (see paragraph 11 below) prior to an inspection specifying reasonable
<br />cause for the inspection.
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