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200402041
<br />become immediately due and payable with Interest at the rate set forth in the Note until paid and shall be
<br />secured by this Deed of Trust. Failure by Borrower to comply may, at the option of Lender, constitute a
<br />default under the terms of this Deed of Trust.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include
<br />a Lender's loss payable endorsement/standard mortgagee clause in favor of and in form acceptable to
<br />Lender, shall provide that the policies may not be canceled, modified, or not renewed except upon the
<br />giving of at least thirty (30) days prior written notice to Lender, and shall also provide that any losses shall
<br />be payable to Lender and Borrower, as their respective interest may appear, notwithstanding (i) any act,
<br />failure to act or negligence contained in such policy by any named insured, (ii) the occupation or use of the
<br />Property for purposes more hazardous than permitted by the terms thereof, (iii) any foreclosure or other
<br />action or proceeding taken by Lender or foreclosure pursuant to any provision of this Deed of Trust, or (iv)
<br />any change in title or ownership of the Property. Lender shall have the right to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of said
<br />premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender.
<br />Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to
<br />restoration or repair by Borrower of the Property damaged, provided such restoration or repair is
<br />economically feasible and the real and personal property covered by this Deed of Trust is not thereby
<br />impaired. In the event of restoration or repair, the insurance proceeds shall be held in escrow by Lender
<br />and disbursed to Borrower as construction is completed and Borrower's contractors are paid. If such
<br />restoration or repair is not economically feasible or if the real and personal property covered by this Deed
<br />of Trust would be impaired, the insurance proceeds shall be applied to the sums secured by this Deed of
<br />Trust, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower
<br />fails to respond to Lender within thirty (30) days from the date notice is mailed by Lender to Borrower that
<br />the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply
<br />the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums
<br />secured by this Deed of Trust.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to
<br />Principal shall not extend or postpone the Due Date of the Installments referred to in Paragraphs 1 and 2
<br />hereof or change the amount of such Installments. If under Paragraph 23 hereof the Property is acquired
<br />by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the
<br />proceeds thereof resulting from damage to the Property prior to the sale or acquisition shall pass to Lender
<br />to the extent of the sums secured by this Deed of Trust immediately prior to such sale or acquisition.
<br />6. PRESERVATION AND MAINTENANCE OF PROPERTY; LEASEHOLDS•
<br />CONDOMINIUMS; PLANNED UNIT DEVELOPMENTS. Borrower shall keep the Property in good
<br />repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply
<br />with the provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of Trust is on a unit in
<br />a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under
<br />the declarations or covenants creating or governing the condominium or planned unit development, the
<br />by -laws and regulations of the condominium or planned unit development, and constituent documents. If a
<br />condominium or planned unit development rider is executed by Borrower and recorded together with this
<br />Deed of Trust, the covenants and agreements of such rider shall be incorporated into and shall amend and
<br />supplement the covenants and agreements of this Deed of Trust as if the rider were a part hereof.
<br />7. COMPLIANCE WITH LAWS; HAZARDOUS MATERIALS. Borrower shall keep the
<br />Property in compliance with any and all applicable federal, state and local laws, ordinances and regulations
<br />relating to industrial hygiene or to environmental conditions on, under or about the Property, including, but
<br />not limited to, soil and ground water conditions (collectively the "Environmental Laws "). Borrower shall
<br />not use, generate, release, manufacture, store or dispose of on, under or about the Property, or transport to
<br />or from the Property, any flammable explosive, radioactive materials, asbestos, petroleum or petroleum
<br />products, hazardous wastes, toxic substances or related materials, including, without limitation, any
<br />substances defined as or included in the definition of "hazardous substances ", "hazardous wastes ",
<br />"hazardous materials" or "toxic substances" under any Environmental Laws (collectively referred to
<br />hereinafter as "Hazardous Materials "). Nothing contained herein shall be construed so as to limit
<br />Borrower's ability to use and store janitorial and office supplies in reasonable quantities on the Property,
<br />provided such supplies are employed, stored and disposed of in accordance with all Environmental Laws.
<br />Borrower hereby warrants and represents to Lender, that there are no Hazardous Materials on or under the
<br />Property. Borrower hereby agrees to indemnify and hold harmless Lender, its directors, officers,
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