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<br />200600614
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<br />4.5 Insurance. Trustor shall insure the Subject Property against loss or damage by fire and such other
<br />risks as Beneficiary shall from time to time require. Trustor shall carry public liability insurance, flood
<br />insurance as required by applicable law and such other insurance as Beneficiary may reasonably
<br />require, including without limitation, business interruption insurance or loss of rental value insurance.
<br />Trustor shall maintain all required insurance at Trustor's expense, under policies issued by companies
<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
<br />provide that the insurance cannot be terminated as to Beneficiary except upon a minimum of ten (10)
<br />days' prior written notice to Beneficiary. Immediately upon any request by Beneficiary, Trustor shall
<br />deliver to Beneficiary the original of all such policies or certificates, with receipts evidencing annual
<br />prepayment of the premiums.
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<br />4.6 Tax and Insurance Impounds. 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
<br />directed by Beneficiary an amount estimated by Beneficiary to be equal to: (a) all taxes, assessments,
<br />levies and charges imposed by any public or quasi-public authority or utility company which are or may
<br />become a lien upon the Subject Property and will become due for the tax year during which such
<br />payment is so directed; and (b) premiums for fire, other hazard and mortgage insurance next due. If
<br />Beneficiary determines that amounts paid by Trustor are insufficient for the payment in full of such
<br />taxes, assessments, levies and/or insurance premiums, Beneficiary shall notify Trustor of the increased
<br />amount required for the payment thereof when due, and Trustor shall pay to Beneficiary such additional
<br />amount within thirty (30) days after notice from Beneficiary. All amounts so paid shall not bear interest,
<br />except to the extent and in the amount required by law. So long as there is no Default, Beneficiary
<br />shall apply said amounts to the payment of, or at Beneficiary's sole option release said funds to Trustor
<br />for application to and payment of, such taxes, assessments, levies, charges and insurance premiums.
<br />If a Default exists, Beneficiary at its sole option may apply all or any part of said amounts to any
<br />Secured Obligation and/or to cure such Default, in which event Trustor shall be required to restore all
<br />amounts so applied, as well as to cure any Default not cured by such application. Trustor hereby
<br />grants and transfers to Beneficiary a security interest in all amounts so paid and held in Beneficiary's
<br />possession, and all proceeds thereof, to secure the payment and performance of each Secured
<br />Obligation. Upon assignment of this Deed of Trust, Beneficiary shall have the right to assign all
<br />amounts collected and in its posseSSion to its assignee, whereupon Beneficiary and Trustee shall be
<br />released from all liability with respect thereto. The existence of said impounds shall not limit
<br />Beneficiary's rights under any other provision of this Deed of Trust or any other agreement, statute or
<br />rule of law. Within ninety-five (95) days following full repayment of all Secured Obligations (other than
<br />as a consequence of a foreclosure or conveyance in lieu of foreclosure of the liens and security
<br />interests securing any Secured Obligation), or at such earlier time as Beneficiary in its discretion may
<br />elect, the balance of all amounts collected and in Beneficiary's possession shall be paid to Trustor, and
<br />no other party shall have any right of claim thereto.
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<br />4.7 Damages: Insurance and Condemnation Proceeds..
<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
<br />applicable law if any, and without regard to any requirement contained in any other Section hereof,
<br />Beneficiary may apply all or any of the proceeds it receives to its expenses in settling, prosecuting
<br />or defending any such claim and apply the balance to the Secured Obligations in any order, and
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