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200504312
<br />the excess, if any, paid to Trustor. If the Subject Property is abandoned by Trustor, or if Trustor
<br />fails to respond to Beneficiary within thirty (30) days from the date notice is mailed by
<br />Beneficiary to Trustor that the insurance carrier offers to settle a claim for insurance benefits,
<br />Beneficiary is authorized to collect and apply the insurance proceeds at Beneficiary's option
<br />either to restoration or repair of the Subject Property or to the sums secured by this Deed of
<br />Trust.
<br />Unless Beneficiary and Trustor 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
<br />1 and 2 of this Deed of Trust or change the amount of such Installments. If under Paragraph
<br />B.2(e) hereof the Subject Property is acquired by Beneficiary, all right, title and interest of
<br />Trustor in and to any insurance policies and in and to the proceeds thereof resulting from damage
<br />to the Subject Property prior to the sale or acquisition shall pass to Beneficiary to the extent of
<br />the sums secured by this Deed of Trust immediately prior to such sale or acquisition.
<br />4. LIENS AND ENCUMBRANCES. Trustor shall pay or cause to be paid at or prior to maturity, all.
<br />obligations secured by or reducible to liens and encumbrances which shall now or hereafter
<br />encumber or appear to encumber the Subject Property or any part thereof, all claims for work or
<br />labor performed, or materials or supplies furnished, in connection with any work of demolition,
<br />alteration, improvement of or construction upon the Subject Property. Beneficiary hereby
<br />expressly reserves the right to advance any and all funds necessary to cure any and all such
<br />obligations, and/or claims.
<br />5. CONDEMNATION. Trustor shall promptly provide Beneficiary with notice of any condemnation,
<br />eminent domain, change of grade or other proceedings with respect to the Subject Property. All
<br />moneys and awards payable as damages and/or compensation for the taking of title to or
<br />possession of, or for damage to, or on account of change of grade affecting, any portion of the
<br />Subject Property by reason of any condemnation, eminent domain, change of grade, or other
<br />proceeding shall, at the option of the Beneficiary, be paid to the Beneficiary, and such moneys
<br />and awards are hereby assigned to Beneficiary, and judgment therefor shall be entered in favor of
<br />Beneficiary, and when paid shall be used at its option toward the payment of any indebtedness,
<br />taxes, assessments, repairs or other items for the payment of which this Deed of Trust is given as
<br />security, whether the same be then due or not and in such order or manner as Beneficiary may
<br />determine, or for the restoration or repair of the Subject Property, and any amount not so used
<br />shall be released by the Beneficiary to the Trustor. Such application or release shall not cure or
<br />waive any default or notice of default hereunder or invalidate any act done pursuant to such
<br />notice.
<br />Unless Beneficiary and Trustor 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
<br />1 and 2 of this Deed of Trust or change the amount of such Installments.
<br />6. MAINTENANCE AND PRESERVATION OF THE SUBJECT PROPERTY. Trustor covenants: (i) to
<br />keep the Subject Property in good condition and repair; (ii) not to remove or demolish the
<br />Subject Property or any part thereof; (iii) to complete or restore promptly and in good and
<br />workmanlike manner the Subject Property or any part thereof which may be damaged or
<br />destroyed, whether or not the loss is insured; (iv) to comply with and not suffer violations of (a)
<br />all laws, ordinances, regulations, standards, and (b) all covenants, conditions, restrictions and
<br />equitable servitudes, whether public or private, of every kind and character, and (c) all
<br />requirements of insurance companies and any bureau or agency which establishes standards of
<br />insurability, which laws, covenants or requirements affect the Subject Property and pertain to
<br />acts committed or conditions existing thereon, including (but without limitation) such work or
<br />alteration, improvement or demolition as such laws, covenants or requirements mandate; (v) not
<br />to commit or permit waste thereof; (vi) to do all other acts which from the character or use of the
<br />Subject Property may be reasonably necessary to maintain, preserve and enhance its value; (vii)
<br />to perform all obligations required to be performed in the Loan Documents to be executed
<br />pursuant hereto, and all other obligations of Trustor pertaining to the Subject Property, including,
<br />but not limited to any and all leases or subleases of which Trustor is or shall be the lessor or
<br />sublessor (and in the event of default all right, title and interest of Trustor under any such leases
<br />or subleases and any and all other agreements affecting the Subject Property in which Trustor
<br />shall have an interest shall be and hereby are automatically assigned to Beneficiary hereunder,
<br />together with any deposits made in connection therewith), (viii) to execute and where
<br />appropriate, acknowledge and deliver such further instruments as Beneficiary or Trustee deems
<br />necessary or appropriate to preserve, continue, perfect and enjoy the security provided for herein,
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