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x;02206890
<br />1.09 Subrogation. Beneficiary shall be subrogated for the full amount,
<br />notwithstanding their release of record at a discount, to any construction, mechanic's
<br />or vendor's lien or liens, superior titles, mortgages, deeds of trust, liens, encumbrances,
<br />rights, equities and charges of all kinds heretofore or hereafter existing on the Property,
<br />to the extent that the same are paid or discharged by the Beneficiary.
<br />1.10 Release of Liability or Performance. Without affecting the liability of Trustor or
<br />of any other person who is or shall become bound by the terms of this Deed of Trust or
<br />who is or shall become liable for the performance of any obligation secured hereby,
<br />Beneficiary may, in such manner, upon such terms and at such times as it deems best
<br />and without notice or demand, release any party now or hereafter liable for the
<br />performance of any such obligation, extend the time for such performance, accept
<br />additional security therefor, and alter, substitute or release any property securing such
<br />performance. No exercise or nonexercised by Beneficiary of any of its rights under this
<br />Deed of Trust, no dealing by Beneficiary with any person, firm or corporation and no
<br />change, impairment, loss or suspension of any right or remedy of Beneficiary shall in
<br />any way affect any of the obligations of Trustor hereunder or any security furnished by
<br />Trustor, or give Trustor any recourse against Beneficiary, except with respect to
<br />Beneficiary's gross negligence or willful misconduct.
<br />1.11 Insurance. Fire and Casualty Insurance: Trustor shall keep such property
<br />insured against loss or damage by fire and other risk or risks which, in the opinion of
<br />the Beneficiary should be insured against, under policies of insurance with loss payable
<br />to Beneficiary in form, amount, and companies acceptable to Beneficiary; provide, that
<br />the amount of such insurance coverage shall not be less than the fair market value of
<br />any improvements located or hereinafter constructed upon the property. Said policies
<br />shall be delivered to and remain in possession of Beneficiary as further security for the
<br />faithful performance of these obligations, which delivery shall constitute an assignment
<br />by the Trustor to Beneficiary of any policy or policies renewing or extending any expiring
<br />insurance, with a receipt showing premiums paid at least thirty (30) days before
<br />expiration. If Trustor fails to so deliver any renewal policies, Beneficiary shall not be
<br />responsible for obtaining or maintaining such insurance. Beneficiary, from time to time,
<br />may furnish to any insurance agency or company, or any other person, any information
<br />contained in or extracted from any insurance policy theretofore delivered to the
<br />Beneficiary pursuant hereto and any information concerning the loan secured hereby.
<br />In no event and whether or not default hereunder has occurred shall Beneficiary, by the
<br />fact of approving, accepting or obtaining such insurance, incur any liability for the
<br />amount of such insurance, the form or legal sufficiency of insurance contracts, solvency
<br />of insurers, or payment of losses by insures, and Trustor hereby expressly assumes full
<br />responsibility, if any, thereunder. In the event of loss, Trustor shall give immediate
<br />written notice to Beneficiary, and Beneficiary may, but is not obligated to, make proof
<br />of loss if not made promptly by Trustor. In case of any loss the amount collected under
<br />any policy of insurance on such property may, at the option of the beneficiary, be applied
<br />by Beneficiary upon any indebtedness and/or obligation secured hereby and in such
<br />order and amount as Beneficiary may determine; or said amount or any portion thereof
<br />may, at the option of the Beneficiary, either be used in replacing or restoring the
<br />improvements partially or totally destroyed to a condition satisfactory to said
<br />Beneficiary, or said amount or any portion thereof may be released to the Trustor. In
<br />any event, neither the Trustee nor the Beneficiary shall be obligated to see the proper
<br />application thereof; nor shall the amount so released or used be deemed a payment on
<br />any indebtedness secured hereby. Such application, used, and/or released shall not
<br />cure or waive any default or notice of default hereunder or invalidate any act done
<br />pursuant such notice. Any unexpired insurance and all returnable insurance premiums
<br />shall inure to the benefit of and pass to the purchaser of the property covered thereby
<br />at any Trustee's sale held hereunder. If said prosperity is sold pursuant to the power of
<br />the sale contained herein or pursuant to any decree of foreclosure, all right, title and
<br />interest of Trustor in and to the proceeds of fire and other insurance policies for damage
<br />prior to the sale, which proceeds are not received prior to the date of said sale, shall
<br />belong to the Beneficiary.
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