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� �9 108259
<br /> herein; and (d) all present and future indebtedness and obligations of Borrower (or any of
<br /> them if more than one) to Lender whether direct, indirect, absolute or contingent and
<br /> whether arising by note, guaranty, overdraft or otherwise. The Note, this Deed of Trust
<br /> and any and all other documents that secure the Note or otherwise executed in connection
<br /> therewith, including without limitation guarantees, security agreements and assignments
<br /> of leases and rents, shall be referred to herein as the "Loan Instruments".
<br /> TRUSTOR COVENANTS AND AGREES WITH LENDER AS FOLLOWS:
<br /> 1. Payment of Indebtedness. All indebtedness secured hereby shall be paid when
<br /> due.
<br /> 2. ��. Trustor is the owner of the Property, has the right and authority to con-
<br /> vey the Property and warrants that the lien created hereby is a first and prior lien on the
<br /> Property and the execution and delivery of the Deed of Trust does not violate any con-
<br /> tract or other obligation to which Trustor is subject.
<br /> 3. Ta�ces, Assessments. To pay, before delinquent, all taxes, special assessments
<br /> and all other charges against the Property now or hereafter levied.
<br /> 4. Insurance. To keep the Property insured against damage by fire hazards
<br /> included with the term "extended coverage" and such other hazards as Lender may
<br /> require in amounts and with companies acceptable to Lender, naming Lender as an addi-
<br /> tional named insured with loss payable to the Lender. In case of loss under such policies,
<br /> the Lender is authorized to adjust, collect and compromise all claims thereunder and shall
<br /> have the option of applying all or part of the insurance proceeds (i) to any indebtedness
<br /> secured hereby and in such order as Lender may determine, (ii) to the Trustor to be used
<br /> for the repair or restoration of the Property , or (iii) for any other purpose or object satis-
<br /> factory to Lender without affecting the lien of this Deed of Trust for the full amount
<br /> secured hereby before such payment ever took place. Any application of proceeds to
<br /> indebtedness shall not extend or postpone the due date of any payments under the Note,
<br /> or cure any default thereunder or hereunder.
<br /> 5. Escrow. Upon written demand by Lender, Trustor shall pay to Lender, in such
<br /> manner as Lender may designate, sufficient sums to enable Lender to pay as they become
<br /> due one or more of the following: (i) all taxes, assessments and other charges against the
<br /> Property: (ii) the premiums on the property insurance required hereunder, and (iii) the
<br /> premiums on any mortgage insurance required by Lender.
<br /> 6. Maintenance, Re�airs and Com�liance with Laws. Trustor shall keep the
<br /> Property in good condition and repair; shall promptly repair, or replace, any improvement
<br /> which may be damaged or destroyed; shall not commit or permit any waste or deteriora-
<br /> tion of the Property; shall not remove, demolish or substantially alter any of the
<br /> improvements on the Property; shall not commit, suffer or permit any act to be done in or
<br /> upon the Property in violation of any law, ordinance or regulation; and shall promptly
<br /> discharge at Trustor's cost and expense all liens, encumbrances and charges levied,
<br /> imposed or assessed against the Property or any part thereof.
<br /> 7. Eminent Domain. Lender is hereby assigned all compensation, awards, dam-
<br /> ages and other payments or relief(hereinafter "Proceeds") in connection with condemna-
<br /> tion or other taking of the Property or part thereof, or for conveyance in lieu of condem-
<br /> nation. Lender shall be entitled at its option to commence, appear in and prosecute in its
<br /> own name any action or proceedings, and shall also be entitled to make any compromise
<br /> or settlement in connection with such taking or damage. In the event any portion of the
<br /> Property is so taken or damaged, Lender shall have the option, it its sole and absolute dis-
<br /> cretion, to apply all such Proceeds, after deducting therefrom all costs and expenses
<br /> incurred by it in connection with such Proceeds, upon any indebtedness secured hereby
<br /> and in such order as Lender may determine, or to apply all such Proceeds, after such
<br /> deductions, to the restoration of the Property upon such conditions as Lender may
<br /> determine. Any application of Proceeds to indebtedness shall not extend or postpone the
<br /> due date of any gayments under the Note, or cure any default thereur�der or hereunder.
<br /> Any unapplied funds shall be paid to Trustor.
<br /> 8. Performance b,y Lender. Upon the occurrence of an Event of Default hereun-
<br /> der, or if any act is taken or legal proceeding commenced, which materially affects
<br /> Lender's interest in the Property, Lender may in its own discretion, but without obligation
<br /> to do so, and without notice to or demand upon Trustor and without releasing Trustor
<br /> from any obligation, do any act which Trustor has agreed but fails to do and may also do
<br /> any other act it deems necessary to protect the security hereof. Trustor shall, immediately
<br /> upon demand therefor by Lender, pay to Lender all costs and expenses incurred and sums
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