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<br />Property and the execution and delivery of the Deed of Trust does not violate any con-
<br />tract or other obligation to which Trustor is subject.
<br />3. Taxes, Assessments. To pay, before delinquent, all taxes, special assessments
<br />and all other charges against the Property now or hereafter levied.
<br />4. Insurance. To keep the Property insured against damage by fire hazards
<br />included with the term "extended coverage" and such other hazards as Lender may
<br />require in amounts and with companies acceptable to Lender, naming Lender as an
<br />additional named insured with loss payable to the Lender. In case of loss under such
<br />policies, the Lender is authorized to adjust, collect and compromise all claims thereunder
<br />and shall have the option of applying all or part of the insurance proceeds (i) to any
<br />indebtedness secured hereby and in such order as Lender may determine, (ii) to the
<br />Trustor to be used for the repair or restoration of the Property , or (iii) for any other
<br />purpose or object satisfactory to Lender without affecting the lien of this Deed of Trust
<br />for the full amount secured hereby before such payment ever took place. Any application
<br />of proceeds to indebtedness shall not extend or postpone the due date of any payments
<br />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
<br />manner as Lender may designate, sufficient sums to enable Lender to pay as they become
<br />due one or more of the following: (i) all taxes, assessments and other charges against the
<br />Property: (ii) the premiums on the property insurance required hereunder, and (iii) the
<br />premiums on any mortgage insurance required by Lender.
<br />6. Maintenance, Repairs and Compliance with Laws. Trustor shall keep the
<br />Property in good condition and repair; shall promptly repair, or replace, any improvement
<br />which may be damaged or destroyed; shall not commit or permit any waste or deteriora-
<br />tion of the Property; shall not remove, demolish or substantially alter any of the
<br />improvements on the Property; shall not commit, suffer or permit any act to be done in or
<br />upon the Property in violation of any law, ordinance or regulation; and shall promptly
<br />discharge at Trustor's cost and expense all liens, encumbrances and charges levied,
<br />imposed or assessed against the Property or any part thereof.
<br />7. Eminent Domain. Lender is hereby assigned all compensation, awards,
<br />damages and other payments or relief (hereinafter "Proceeds ") in connection with con-
<br />demnation or other taking of the Property or part thereof, or for conveyance in lieu of
<br />condemnation. Lender shall be entitled at its option to commence, appear in and
<br />prosecute in its own name any action or proceedings, and shall also be entitled to make
<br />any compromise or settlement in connection with such taking or damage. In the event
<br />any portion of the Property is so taken or damaged, Lender shall have the option, it its
<br />sole and absolute discretion, to apply all such Proceeds, after deducting therefrom all
<br />costs and expenses incurred by it in connection with such Proceeds, upon any indebt-
<br />edness secured hereby and in such order as Lender may determine, or to apply all such
<br />Proceeds, after such deductions, to the restoration of the Property upon such conditions as
<br />Lender may determine. Any application of Proceeds to indebtedness shall not extend or
<br />postpone the due date of any payments under the Note, or cure any default thereunder or
<br />hereunder. Any unapplied funds shall be paid to Trustor.
<br />8. Performance by Lender. Upon the occurrence of an Event of Default here-
<br />under, or if any act is taken or legal proceeding commenced, which materially affects
<br />Lender's interest in the Property, Lender may in its own discretion, but without obligation
<br />to do so, and without notice to or demand upon Trustor and without releasing Trustor
<br />from any obligation, do any act which Trustor has agreed but fails to do and may also do
<br />any other act it deems necessary to protect the security hereof. Trustor shall, immediately
<br />upon demand therefor by Lender, pay to Lender all costs and expenses incurred and sums
<br />expended by Lender in connection with the exercise by Lender of the foregoing rights,
<br />together with interest thereon at the default rate provided in the Note, which shall be
<br />added to the indebtedness secured hereby. Lender shall not incur any liability because of
<br />anything it may do or omit to do hereunder.
<br />9. Hazardous Materials. Trustor shall keep the Property in compliance with all
<br />applicable laws, ordinances and regulations relating to industrial hygiene or environ-
<br />mental protection (collectively referred to herein as "Environmental Laws "). Trustor
<br />shall keep the Property free from all substances deemed to be hazardous or toxic under
<br />any Environmental Laws (collectively referred to herein as "Hazardous Materials ").
<br />Trustor hereby warrants and represents to Lender that there are no Hazardous Materials
<br />on or under the Property. Trustor hereby agrees to indemnify and hold harmless Lender,
<br />its directors, officers, employees and agents, and any successors to Lender's interest, from
<br />and against any and all claims, damages, losses and liabilities arising in connection with
<br />the presence, use disposal or transport of any Hazardous Materials on, under, from or
<br />about the Property. THE FOREGOING WARRANTIES AND REPRESENTATION,
<br />AND TRUSTOR'S OBLIGATIONS PURSUANT TO THE FOREGOING
<br />INDEMNITY, SHALL SURVIVE RECONVEYANCE OF THIS DEED OF TRUST.
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