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200402041
<br />installments for the insurance required to be maintained pursuant hereto, all as reasonably estimated
<br />initially and from time to time by Lender on the basis of assessments and bills or other reasonable estimates
<br />thereof.
<br />The Funds shall be held by Lender and commingled with the Lender's other funds and, further,
<br />Lender shall not be liable to Borrower for interest on such Funds. Lender shall apply the Funds to pay said
<br />taxes, assessments, insurance premiums and ground rents. The Funds are pledged as additional security for
<br />the sums secured by this Deed of Trust.
<br />If at any point during the term hereof, the amount of the Funds held by Lender shall exceed the
<br />amount required to pay the taxes, assessments, insurance premiums and ground rents as they fall due
<br />during the next consecutive twelve -month period, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on future monthly payments of Funds. If the amount
<br />of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums, and
<br />ground rents as they fall due during the next consecutive twelve -month period, Borrower shall pay to
<br />Lender any amount necessary to make up the deficiency within thirty (30) days from the date notice is
<br />mailed by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Deed of Trust, Lender shall promptly refund to
<br />Borrower any Funds held by Lender. If under Paragraph 23 herein the Property is sold or the Property is
<br />otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the
<br />Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit
<br />against the sums secured by this Deed of Trust.
<br />3. APPLICATION OF PAYMENTS. Unless applicable law provides otherwise, all payments
<br />received by Lender under the Note and Paragraphs 1 and 2 hereof shall be applied by Lender (i) first to
<br />interest payable on the Note, (ii) then in payment of amounts payable to Lender by Borrower under
<br />Paragraph 2 hereof, and (iii) then to the Principal of the Note.
<br />4. CHARGES; LIENS. Borrower shall pay all taxes, assessments and other charges, fines and
<br />impositions attributable to the Property which may attain a priority over this Deed of Trust, and leasehold
<br />payments or ground rents, if any, in the manner provided under Paragraph 2 hereof, or, if not paid in such
<br />manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly
<br />furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make
<br />payments directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Deed of Trust; provided, that
<br />Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the
<br />payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith
<br />contest such lien by, or defend such enforcement of such lien in, legal proceedings which operate to prevent
<br />the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. INSURANCE COVERAGES. Borrower shall keep the improvements now existing or
<br />hereafter erected on the Property insured against loss by fire, hazards included within the term "extended
<br />coverage ", and such other hazards as Lender may require, in an amount equal to the full replacement value
<br />of the improvements (80% co- insurance clause permitted), as established by a competent insurance
<br />appraiser. Comprehensive general public liability insurance will also be obtained, with a company
<br />acceptable to the Lender, for an amount not less than $2,000,000.00 combined single limit. Business
<br />Interruption Insurance for an amount not less than $300,000.00 for each restaurant location, shall also be
<br />carried throughout the term of the loan. The Property, if located in a 100 -year flood plain, shall also be
<br />covered, for the term of the loan, by flood insurance in an amount at least equal to the outstanding principal
<br />balance of the loan, or the maximum limit of coverage made available with respect to this particular type of
<br />property, whichever is less.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by
<br />Lender; provided that such approval shall not be unreasonably withheld. It is required that the insurance
<br />carrier hold a Policyholders Rating of at least B+ as set forth in the most current issue of Best's Key Rating
<br />Guide for property and casualty companies. All premiums on insurance policies shall be paid in the
<br />manner provided under Paragraph 2 hereof, or, if not paid in such manner, by Borrower making payment,
<br />when due, directly to the insurance carrier.
<br />In the event any policy is not renewed on or before ten (10) days of its expiration, the Lender, to
<br />protect its interest, may procure insurance on the improvements, pay the premiums and such sums shall
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