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<br /> benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's
<br /> option, either to restoration or repair of the property or to the sums secured by this Trust
<br /> Deed. If the Lender acquires title to the Property by exercising its power of sale,
<br /> foreclosure or otherwise, in satisfaction of the indebtedness secured hereby, in whole or
<br /> in part, then all right, title and interest of the Borrower in and to such insurance policy or
<br /> policies shall pass to the Lender.
<br /> 6. Actions Affecting Trust Estate. Borrower shall appear in and contest any action or
<br /> proceeding purporting to affect the security hereof or the rights or powers of Lender or Trustee, and shall
<br /> pay all costs and expenses, including cost of evidence of title and attorney's fees, in any such action or
<br /> proceeding in which Lender or Trustee may appear. If Borrower fails to:
<br /> A. Maintain or pay the premiums far the required insurance on the Property; or
<br /> B. Pay taxes and assessments before delinquency; or
<br /> C. Pay any amount due under a ground lease, prior mortgage, trust deed or lien before
<br /> delinquency; or
<br /> D. Maintain the property in good repair; ar
<br /> E. Perform any of the covenants or agreements of this Trust Deed,
<br /> then the Lender and/or Trustee, each in its own discretion, without obligation so to do and without notice
<br /> to or demand upon Borrower and without releasing Borrower from any obligation, may make or do the
<br /> same in such manner and to such extent as either may deem necessary to protect the security hereo£ If
<br /> any action or proceeding is commenced which materially affects Lender's interest in the property, then
<br /> Lender, at Lender's option, upon notice to Borrower,may make such appearance, disburse such sums and
<br /> take such action as is necessary to protect Lender's interests, including, but not limited to, disbursement
<br /> of reasonable attorney's fees and entry upon the property to make repairs. Borrower shall, immediately
<br /> upon demand therefor by Lender, pay all costs and expenses incurred by Lender in connection with the
<br /> exercise by Lender of the foregoing rights. Any amount disbursed by lender pursuant to this paragraph,
<br /> with interest thereon, shall become additional indebtedness of Borrower secured by this Trust Deed. Any
<br /> such costs and expenses not paid within ten(10)days or written demand shall draw interest at the default
<br /> rate provided in the Note. Nothing contained in this paragraph shall require Lender to incur any
<br /> expenses or take any action hereunder.
<br /> 7. Eminent Domain.
<br /> A. If all or a portion of the Property is taken or damaged by reason of any public
<br /> improvement or condemnation proceeding, or in any other manner including deed in lieu of
<br /> Condemnation ("Condemnation"), or should Borrower receive any notice ar other information
<br /> regarding such proceeding, Borrower shall give prompt written notice to Lender. Lender shall be
<br /> entitled to all compensation, awards and other payments, distribution to be made in accordance
<br /> with Paragraph C hereof. The Lender shall be entitled, at its option, to commence, appear in and
<br /> prosecute in its own name any action or proceedings. Lender shall also be entitled to make any
<br /> compromise or settlement in connection with such taking or damage.
<br /> B. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that
<br /> the condemner offers to make an award or settle a claim for damages, Borrower fails to respond
<br /> to Lender within thirty (30) days after the date such notice is mailed, Lender is authorized to
<br /> collect and apply the proceeds to the sums secured by this Trust Deed:
<br /> C. Condemnation proceeds or awards shall be credited to the last maturity installments of
<br /> the indebtedness secured and shall not extend or postpone the due date of the monthly
<br /> installment referred to in the Note and under Paragraph 2 hereof, or change the amount of such
<br /> installments. If the proceeds pay off all sums due and owing, the excess shall be paid to the
<br /> Borrower.
<br /> 8. Additional Costs. If Lender, either voluntarily or involuntarily, becomes a party to any
<br /> suit or legal proceeding relating to the Property, Note of this Trust Deed, then Borrower will reimburse
<br /> the Lender for all costs and reasonable attorneys fees incurred by the Lender relating to such suit or legal
<br /> proceedings and said sums shall constitute additional indebtedness secured by this Trust Deed and bear
<br /> interest at the rate payable under the Note until paid.
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