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200505595
<br />documents evidencing, securing and /or guaranteeing the Note (collectively referred to as the
<br />"Loan Documents ").
<br />2. Warranty of Title. Subject only to those exceptions to title, if any, specifically set
<br />forth in the title policy, if any, issued or to be issued to Beneficiary and insuring the lien of this
<br />Deed of Trust, Grantor warrants the title to the Premises, the Improvements, and the balance of
<br />the Trust Property.
<br />3. Insurance. Grantor shall keep the Trust Property insured in accordance with the
<br />provisions of the Security Agreement. If Beneficiary shall receive and retain such insurance
<br />proceeds, the lien of this Deed of Trust shall be reduced only by the amount thereof received and
<br />retained by Beneficiary and actually applied by Beneficiary in reduction of the Debt.
<br />Notwithstanding the foregoing and anything else to the contrary in the Loan Documents, all
<br />casualty insurance proceeds shall be paid to and used by Grantor to rebuild, restore and replace
<br />the Trust Property, unless an Event of Default exits and is continuing. If an Event of Default
<br />exits and is continuing, Lender may apply such casualty proceeds at the discretion of
<br />Beneficiary.
<br />4. Payment of Taxes, _etc. Grantor shall pay all taxes, assessments, water rates,
<br />sewer rents, utility charges and other charges, including vault charges and license fees for the use
<br />of vaults, chutes and similar areas adjoining the Premises, now or hereafter levied or assessed
<br />against the Trust Property (hereinafter referred to as the "Taxes ") prior to the date upon which
<br />any fine, penalty, interest or cost may be added thereto or imposed by law for the nonpayment
<br />thereof, provided, however, that nothing contained in this paragraph shall require Borrower to
<br />pay and discharge, or cause to be paid and discharged, any such tax, assessment, charge, levy or
<br />claim so long as Borrower in good faith shall contest the validity thereof and shall set aside on its
<br />books adequate reserves with respect thereto. Grantor shall deliver to Beneficiary, upon request,
<br />receipted bills, cancelled checks and other evidence satisfactory to Beneficiary evidencing the
<br />payment of the Taxes prior to the date upon which any fine, penalty, interest or cost may be
<br />added thereto or imposed by law for the nonpayment thereof.
<br />S. Condemnation. Notwithstanding any taking by any public or quasi - public
<br />authority through eminent domain or otherwise, Grantor shall continue to pay the Debt at the
<br />time and in the manner provided for its payment in the Note, the Security Agreement and this
<br />Deed of Trust and the Debt shall not be reduced until any award or payment therefor shall have
<br />been actually received and applied by Beneficiary to the discharge of the Debt. Beneficiary may
<br />apply the entire amount of any such award or payment to the discharge of the Debt whether or
<br />not then due and payable in such order, priority and proportions as Beneficiary in its discretion
<br />shall deem proper. If the Trust Property is sold, through foreclosure or otherwise, prior to the
<br />receipt by Beneficiary of such award or payment, Beneficiary shall have the right, whether or not
<br />a deficiency judgment on the Note shall have been sought, recovered or denied, to receive such
<br />award or payment, or a portion thereof sufficient to pay the Debt, whichever is less. Grantor
<br />shall file and prosecute its claim or claims for any such award or payment in good faith and with
<br />due diligence and cause the same to be collected and paid over to Beneficiary. Grantor hereby
<br />irrevocably authorizes and empowers Beneficiary and Trustee, in the name of Grantor or
<br />otherwise, to collect and receipt for any such award or payment and to file and prosecute such
<br />CLT 837349vl
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