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<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. All insurance policies and renewals
<br />thereof shall be in a form acceptable to Lender and shall include a standard mortgage clause in favor of and
<br />in a form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, subject
<br />to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over
<br />this Deed of Trust.
<br />In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may
<br />make proof of loss if not made promptly by Borrower.
<br />If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days
<br />from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for
<br />insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either
<br />to restoration or repair of the Property or to the sums secured by this Deed of Trust.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit
<br />Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit
<br />impairment or deterioration of the Property and shall comply with the provisions of any lease if this Deed of
<br />Trust is on a leasehold. If this Deed of Trust is on a unit in a condominium or a planned unit development,
<br />Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or
<br />governing the condominium or planned unit development, the by -laws and regulations of the condominium
<br />or planned unit development, and constituent documents.
<br />7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements
<br />contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects
<br />Lender's interest in the Property, then Lender, at Lender's option, upon notice to Borrower, may make such
<br />appearances, disburse such sums, including reasonable attorneys' fees, and take such action as is necessary to
<br />protect Lender's interest. If Lender required mortgage insurance as a condition of making the loan secured
<br />by this Deed of Trust, Borrower shall pay the premiums required to maintain such insurance in effect until
<br />such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's
<br />written agreement or applicable law.
<br />Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, at the Note rate,
<br />shall become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and
<br />Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to
<br />Borrower requesting payment thereof. Nothing contained in this paragraph 7 shall require Lender to incur
<br />any expense or take any action hereunder.
<br />8. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the
<br />Property, provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable
<br />cause therefor related to Lender's interest in the Property.
<br />9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in
<br />connection with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu
<br />of condemnation, are hereby assigned and shall be paid to Lender, subject to the terms of any mortgage,
<br />deed of trust or other security agreement with a lien which has a priority over this Deed of Trust.
<br />10. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for
<br />payment or modification of amortization of the sums secured by this Deed of Trust granted by Lender to any
<br />successor in interest of Borrower shall not operate to release, in any manner, the liability of the original
<br />Borrower and Borrower's successors in interest. Lender shall not be required to continence proceedings
<br />against such successor or refuse to extend time for payment or otherwise modify amortization of the sums
<br />secured by this Deed of Trust by reason of any demand made by the original Borrower and Borrower's
<br />successors in interest. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise
<br />afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy.
<br />11. Successors and Assigns Bound; Joint and Several Liability; Co- signers. The covenants and
<br />agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and
<br />assigns of Lender and Borrower, subject to the provisions of paragraph 16 hereof. All covenants and
<br />agreements of Borrower shall be joint and several. Any Borrower who co -signs this Deed of Trust, but does
<br />not execute the Note, (a) is co- signing this Deed of Trust only to grant and convey that Borrower's interest
<br />in the Property to Trustee under the terms of this Deed of Trust, (b) is not personally liable on the Note or
<br />under this Deed of Trust, and (c) agrees that Lender and any other Borrower hereunder may agree to extend,
<br />modify, forbear, or make any other accommodations with regard to the terms of this Deed of Trust or the
<br />Note, without that Borrower's consent and without releasing that Borrower or modifying this Deed of Trust
<br />as to that Borrower's interest in the Property.
<br />12. Notice. Except for any notice required under applicable law to be given in another manner, (a) any
<br />notice to Borrower provided for in this Deed of Trust shall be given by delivering it or by mailing such
<br />notice by certified mail addressed to Borrower at the Property Address or at such other address as Borrower
<br />may designate by notice to Lender as provided herein, and (b) any notice to Lender shall be given by
<br />certified mail to Lender's address stated herein or to such other address as Lender may designate by notice to
<br />Borrower as provided herein. Any notice provided for in this Deed of Trust shall be deemed to have been
<br />given to Borrower or Lender when given in the manner designated herein.
<br />13. Governing Law; Severability. The state and local laws applicable to this Deed of Trust shall be
<br />the laws of the jurisdiction in which the Property is located. The foregoing sentence shall not limit the
<br />applicability of Federal law to this Deed of Trust. In the event that any provision or clause of this Deed of
<br />Trust or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Deed of
<br />Trust or the Note which can be given effect without the conflicting provision, and to this end the provisions
<br />of this Deed of Trust and the Note are declared to be severable. As used herein, "costs," "expenses" and
<br />"attorneys' fees" include all sums to the extent not prohibited by applicable law or limited herein.
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