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200508354
<br />and in form and substance satisfactory to Beneficiary. Neither Beneficiary nor Trustee, by reason of
<br />accepting, rejecting, approving or obtaining insurance, shall incur any liability for: (a) the existence,
<br />nonexistence, form or legal sufficiency thereof; (b) the solvency of any insurer; or (c) the payment of
<br />losses. All policies and certificates of insurance shall name Beneficiary as loss payee, and shall provide
<br />that the insurance cannot be terminated as to Beneficiary except upon a minimum of ten (10) days' prior
<br />written notice to Beneficiary. Immediately upon any request by Beneficiary, Trustor shall deliver to
<br />Beneficiary the original of all such policies or certificates, with receipts evidencing annual prepayment of
<br />the premiums.
<br />4.6 Tgx, and Insurance_lmnounds_ At Beneficiary's option and upon its demand, Trustor shall, until all
<br />Secured Obligations have been paid in full, pay to Beneficiary monthly, annually or as otherwise directed
<br />by Beneficiary an amount estimated by Beneficiary to be equal to: (a) all taxes, assessments, levies and
<br />charges imposed by any public or quasi - public authority or utility company which are or may become a
<br />lien upon the Subject Property and will become due for the tax year during which such payment is so
<br />directed; and (b) premiums for fire, other hazard and mortgage insurance next due. If Beneficiary
<br />determines that amounts paid by Trustor are insufficient for the payment in full of such taxes,
<br />assessments, levies and /or insurance premiums, Beneficiary shall notify Trustor of the increased amount
<br />required for the payment thereof when due, and Trustor shall pay to Beneficiary such additional amount
<br />within thirty (30) days after notice from Beneficiary. All amounts so paid shall not bear interest, except to
<br />the extent and in the amount required by law. So long as there is no Default, Beneficiary shall apply said
<br />amounts to the payment of, or at Beneficiary's sole option release said funds to Trustor for application to
<br />and payment of, such taxes, assessments, levies, charges and insurance premiums. If a Default exists,
<br />Beneficiary at its sole option may apply all or any part of said amounts to any Secured Obligation and /or
<br />to cure such Default, in which event Trustor shall be required to restore all amounts so applied, as well
<br />as to cure any Default not cured by such application. Trustor hereby grants and transfers to Beneficiary
<br />a security interest in all amounts so paid and held in Beneficiary's possession, and all proceeds thereof,
<br />to secure the payment and performance of each Secured Obligation. Upon assignment of this Deed of
<br />Trust, Beneficiary shall have the right to assign all amounts collected and in its possession to its
<br />assignee, whereupon Beneficiary and Trustee shall be released from all liability with respect thereto.
<br />The existence of said impounds shall not limit Beneficiary's rights under any other provision of this Deed
<br />of Trust or any other agreement, statute or rule of law. Within ninety -five (95) days following full
<br />repayment of all Secured Obligations (other than as a consequence of a foreclosure or conveyance in
<br />lieu of foreclosure of the liens and security interests securing any Secured Obligation), or at such earlier
<br />time as Beneficiary in its discretion may elect, the balance of all amounts collected and in Beneficiary's
<br />possession shall be paid to Trustor, and no other party shall have any right of claim thereto.
<br />4.7 Damages: Insurance and Condemnation Proceed§._.
<br />a) (i) All awards of damages and all other compensation payable directly or indirectly by reason of a
<br />condemnation or proposed condemnation (or transfer in lieu thereof) for public or private use
<br />affecting the Subject Property; (ii) all other claims and awards for damages to or decrease in value
<br />of the Subject Property; (iii) all proceeds of any insurance policies payable by reason of loss
<br />sustained to the Subject Property; and (iv) all interest which may accrue on any of the foregoing,
<br />are all absolutely and irrevocably assigned to and shall be paid to Beneficiary. At the absolute
<br />discretion of Beneficiary, whether or not its security is or may be impaired, but subject to applicable
<br />law if any, and without regard to any requirement contained in any other Section hereof, Beneficiary
<br />may apply all or any of the proceeds it receives to its expenses in settling, prosecuting or defending
<br />any such claim and apply the balance to the Secured Obligations in any order, and release all or
<br />any part of the proceeds to Trustor upon any conditions Beneficiary may impose. Beneficiary may
<br />commence, appear in, defend or prosecute any assigned claim or action, and may adjust,
<br />compromise, settle and collect all claims and awards assigned to Beneficiary; provided however,
<br />that in no event shall Beneficiary be responsible for any failure to collect any claim or award,
<br />regardless of the cause of the failure.
<br />b) At its sole option, Beneficiary may permit insurance or condemnation proceeds held by Beneficiary
<br />to be used for repair or restoration but may impose any conditions on such use as Beneficiary
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