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200504312
<br />assessments, taxes, fees, levies and charges be included within the definition of
<br />real property taxes for the purposes of this Deed of Trust;
<br />(b) any assessment, tax, fee, levy or charge allocable to the operation of or measured
<br />by the area of the Subject Property, including, without limitation, any gross
<br />income tax or excise tax levied in lieu of real property taxes by the state, city, or
<br />federal government, or any political sub - division thereof, with respect to the
<br />possession, leasing, operating, management, maintenance, alteration, repair, use
<br />or occupancy of the Subject Property, or any portion thereof; and
<br />(c) any assessment, tax, fee, levy or charge, upon the indebtedness secured by this
<br />Deed of Trust or any document creating or transferring any interest or an estate
<br />in the Subject Property.
<br />3. INSURANCE COVERAGES. Trustor shall keep the improvements now existing or hereafter erected
<br />on the Subject Property insured against loss by fire, hazards included within the term "extended
<br />coverage ", and such other hazards as Beneficiary may require, in an amount equal to the full
<br />replacement value of the improvements or the Note indebtedness, whichever is greater, as
<br />established by a competent insurance appraiser. During the period of construction, Trustor will
<br />maintain builder's risk insurance, written on the so- called "builder's risk - completed value basis ",
<br />in an amount not less than $1,372,000.00 and with coverage available on the so- called "all risk ",
<br />non - reporting form of policy. Comprehensive general public liability insurance will also be
<br />obtained, with a company acceptable to the Beneficiary, for an amount not less than
<br />$3,000,000.00 combined single limit. The Subject Property, if located in a 100 -year flood plain,
<br />shall also be covered, until the Note is paid in full, by flood insurance in an amount at least equal
<br />to the outstanding principal balance of the Note, or the maximum limit of coverage made
<br />available with respect to this particular type of property, whichever is less.
<br />The insurance carrier providing the insurance shall be chosen by Trustor subject to approval by
<br />Beneficiary; provided that such approval shall not be unreasonably withheld. It is required that
<br />the insurance carrier hold a Policyholders Rating of at least B+ as set forth in the most current
<br />issue of Best's Key Rating Guide for property and casualty companies. All premiums on
<br />insurance policies shall be paid in the manner provided under Paragraph 2, Page 2 of this Deed of
<br />Trust, or, if not paid in such manner, by Trustor making payment, when due, directly to the
<br />insurance carrier.
<br />In the event any policy is not renewed on or before ten (10) days of its expiration, the
<br />Beneficiary, to protect its interest, may procure insurance on the improvements, pay the
<br />premiums and such sums shall become immediately due and payable with Interest at the rate set
<br />forth in the Note until paid and shall be secured by this Deed of Trust. Failure by Trustor to
<br />comply may, at the option of Beneficiary, constitute a default under the terms of this Deed of
<br />Trust.
<br />All insurance policies and renewals thereof shall be in form acceptable to Beneficiary and shall
<br />include a Beneficiary's loss payable endorsement/standard mortgagee clause in favor of and in
<br />form acceptable to Beneficiary, shall provide that the policies may not be canceled, modified, or
<br />not renewed except upon the giving of at least thirty (30) days prior written notice to Beneficiary,
<br />and shall also provide that any losses shall be payable to Beneficiary and Trustor, as their
<br />respective interest may appear, notwithstanding (i) any act, failure to act or negligence contained
<br />in such policy by any named insured, (ii) the occupation or use of the Subject Property for
<br />purposes more hazardous than permitted by the terms thereof, (iii) any foreclosure or other action
<br />or proceeding taken by Beneficiary or foreclosure pursuant to any provision of this Deed of
<br />Trust, or (iv) any change in title or ownership of the Subject Property. Beneficiary shall have the
<br />right to hold the policies and renewals thereof, and Trustor shall promptly furnish to Beneficiary
<br />all renewal notices and all receipts of said premiums. In the event of loss, Trustor shall give
<br />prompt notice to the insurance carrier and Beneficiary. Beneficiary may make proof of loss if
<br />not made promptly by Trustor.
<br />Unless Beneficiary and Trustor otherwise agree in writing, insurance proceeds shall be applied to
<br />restoration or repair by Trustor of the Subject Property damaged, provided such restoration or
<br />repair is economically feasible and the security of this Deed of Trust is not thereby impaired. In
<br />the event of restoration or repair, the insurance proceeds shall be held in escrow by Beneficiary
<br />and disbursed to Trustor as construction is completed and Trustor's contractors are paid. If such
<br />restoration or repair is not economically feasible or if the security of this Deed of Trust would be
<br />impaired, the insurance proceeds shall be applied to the sums secured by this Deed of Trust, with
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