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1 89-400516 1 5• �OtTERAGES. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage ", and such other hazards as Lender nay require, in the amount equal to the loan balance or for not less than 100% of the full replacement value of the improvements (80% co- insurance clause permitted), whichever is greater, as established by a competent insurance appraiser. Comprehensive general public liability insurance will also be obtained, with a company acceptable to the Lender, for an amount not less than $500,000 combined single limit. Business interruption insurance for an amount equal to at least 50% of the annual gross income of the Subject Property, as estimated by Beneficiary, shall also be carried throughout the term of the loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Under; provided that such approval shall not be unreasonably withheld. 11E:is required that the insurance carrier hold a Policyholders Rating o at "Mm"' Dr as set forth in the most current issue of Best's Key Rating Guide for property and casualty companies. All premiums on insurance policies shall be paid in the manner provided under'Paragraph 2 hereof, or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. In the event any policy is not renewed on or before ten (10) days Of its expiration, the Lender,. to protect its interest ma insurance on the improvementp„ pay the Y Procure become immediately due and payable with interest at the rate set forth in said Note until paid and shall be ser»ra.a thi* ; C Deed vi Trust. railure by Borrower to comply may, at the option"of Lender, constitute a default under the terms of this Deed of Trust. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a loss payable endorsement in favor of and in form acceptable to Lender. Lender shall have the' right to. hold the policies .'and renewals thereof, and Borrower shall PrOmPtly furnish to %ender 41.1 renewal notices and all receipts of said premiums. In the event. of loss, Borrower shall give notice to the imsu ance carrier and Lender. Lender may make prompt loss if not made promptly Y Proof of by Borrower. Unless Lender and-,Borrower otherwise agree in writing, insurance Proceeds shall -be applied t6 restoration or re data ed pair of the Property g , provided such restoration or repair is -"- economically feasible and the security of this Deed of Trust is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Deed of Trust would be impaired, the insurance Proceeds shall be applied to the sums secured by this Deed of Trust, w.i:Ch the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within thirty (30) days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Deed of Trust. Unless Lender and Borrower otherwise agree in writing,. any such application of proceeds to principal shah. not extend or postpone the due date of the monthly installments referred to in Paragraphs 1 and 2 hereof or change the _ amount of such installments. If under Paragraph 19 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance the proceeds thereof resulting from damage to the pro ert in and to the sale or acquisition shall pass to Lender to the extent of prior he sums secured by this Deed of Trust immediately acquisition. prior to such sale or 3