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<br />89-101934
<br />sale contained herein, or in the event of foreclosure, all right,
<br />title and interest of Trustor in and to any insurance policy then
<br />in force shall pass to the purchaser at the Trustee's sale or
<br />foreclosure sale. in case of any loss, the insurance proceeds may,
<br />at the option of Beneficiary, be applied by Beneficiary upon the
<br />indebtedness secured hereby, or any part thereof,•and in such order
<br />and amount as Beneficiary may determine;.or.-said insurance proceeds
<br />may, at the option of Beneficiary, either be used in replacing or
<br />restoring the Trust Property partially or totally destroyed to a
<br />condition satisfactory to beneficiary; or.said insurance proceeds
<br />or any portion thereof may., at the option-of Beneficiary, be
<br />released to Trustor; provided that, if Beneficiary elects to have
<br />the insurance proceeds applied upon the indebtedness secured
<br />hereby, then Beneficiary hereby agrees that Trustor shall have.e
<br />right to replace or restor4..the Trust Prbta.&aty and to place a l
<br />or liens on the Trust Property, junior •aAd :inferior to the lienc� c:f
<br />this Deed of Trust, as security. for any Ioin or loans used •to
<br />finance such replacement or restoration. Unless Beneficiary ait.d
<br />Trustor otherwise agree in writinT.;:any such application of
<br />insurance proceeds shall not.exteftd.or postpone the due date of the
<br />Mote, or any-'installments called for therein, or change the amount
<br />of such insta-Iments. If the Trust Property is acquired by
<br />Beneficiary pursuant to the exercise of the power of sale or other
<br />foreclosure, 4.11 right, title and interest of Trustor in and to any
<br />insurance proceeds payable as a result of damage to the Trust
<br />Property prior to the sale or acquisition shall pass t& Beneficiary
<br />and shall be,applied first to the costs and expenses, indluding
<br />attorneys' fees, incurred in collecting such proceeds, then in the
<br />manner and in 'the order provided in this deed of Trust.
<br />(g) Trustor shall promptly reiri-burse Beneficiary upon
<br />demand for all of Beneficiary's expenses incurred in connection
<br />with the collection of the insurance proceeds, including, but not
<br />limited to, reasonable attorneys' fees, and all such expenses shall
<br />be additional amounts secured by this Deed of Trust.
<br />17. optional Fund for Taxes, Special A$seasments and
<br />lnsuranee.• If now or hereafter demanded by Beneficiary or Trustee
<br />following Trustoe's failure to pay any property taxes, special
<br />assessments or insurance premiums prior to the applicable
<br />delinquency dates thereof, Trustor agrees that there shall
<br />automatically be added to each monthly payment required to be made
<br />hereunder an amount equal to one - twelfth (1 /12th) of the total
<br />amount of the estimated property taxes, special assessments and
<br />insurance premiums'which will become due and payable during the
<br />twelve (12) month period beginning on the first day of the month
<br />after demand is made, except that if Beneficiary determines there
<br />will be a deficiency on the due date, it shall not be prohibited
<br />from requiring additional monthly deposits of pro rata portions of
<br />the deficiency corresponding to the number of months from the date
<br />of the Beneficiary's determination of such deficiency to the date
<br />upon which such property taxes, special assessments and insurance
<br />premiums become due and payable. Such funds shall be held in Trust
<br />by Beneficiary.for the benefit of Trustor. No interest shall be
<br />payable to Trustor in respect thereof. Upon demand by Beneficiary,
<br />Trustor shall deliver to Beneficiary such additional sums of money
<br />as are necessary to make up any deficiency in the amounts necessary
<br />to enable Beneficiary to pay any of the foregoing items.
<br />18. Condemnation. The proceeds of any award or claim for
<br />damages, direct or consequential, in connection with any
<br />condemnation or other taking of the Trust Property, or any part
<br />thereof, or for conveyance in lieu of or in anticipation of
<br />condemnation, are hereby assigned to and shall be paid to
<br />Beneficiary. Trustor shall file and prosecute, in good faith and
<br />with due diligence, its claim for any such award or payment, and
<br />shall cause the same to be collected and paid to Beneficiary, and,
<br />should it fail to do so, Trustor irrevocably authorizes and
<br />empowers Beneficiary, in the name of Trustor or otherwise, to file,
<br />prosecute, settle or compromise any such claim and to collect,
<br />D:\L0AND0C\HEAMH-D0T
<br />April 10, 1989 9
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