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<br />200600862
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<br />All casualty insurance policies shall contain an endorsement or agreement by the insurer in form satisfactory to
<br />Lender that any loss shall be payable in accordance with the terms of such policy notwithstanding any act of negligence
<br />of Borrower and the further agreement of the insurer waiving rights of subrogation against Lender, and rights of set-off,
<br />counterclaim or deductions against Borrower.
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<br />All insurance policies shall be in form, provide coverages, be issued by companies and be in amounts
<br />satisfactory to Lender. At least 30 days prior to the expiration of such policy, Borrower shall furnish Lender with
<br />evidence satisfactory to Lender that such policy has been renewed or replaced. All such policies shall provide that the
<br />policy will not be canceled or materially amended without at least 30 days prior written notice to Lender. In the event
<br />Borrower fails to provide, maintain, keep in force and furnish to Lender the policies of insurance in such amounts, at such
<br />premium, for such risks and by such means as Lender chooses, then Lender may procure such insurance at Borrower's
<br />sole cost and expense, provided Lender shall have no responsibility to obtain any insurance, but if Lender does obtain
<br />insurance, Lender shall have no responsibility to assure that the insurance obtained shall be adequate or provide any
<br />protection to Borrower.
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<br />In the event of a foreclosure of the Security Instrument or other transfer of title to the Property in extinguishment
<br />in whole or in part of the Debt, all right, title and interest of Borrower in and to the Policies then in force concerning the
<br />Property, to the extent assignable, and all proceeds payable thereunder shall thereupon vest in Lender or the purchaser at
<br />such foreclosure or other transferee in the event of such other transfer of title.
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<br />Section 3.4.
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<br />PAYMENT OF TAXES, Ere.
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<br />(a) Borrower shall promptly pay by their initial due date all taxes, assessments, water rates, sewer rents
<br />and other governmental impositions, including, without limitation, vault charges and license fees for the use of vaults,
<br />chutes and similar areas adjoining the Land, now or hereafter levied or assessed or imposed against the Property or any
<br />part thereof (the "Taxes") not paid from the Escrow Fund (defined in Section 3.5), all ground rents, maintenance charges
<br />and similar charges, now or hereafter levied or assessed or imposed against the Property or any part thereof (the "Other
<br />Charges"), and all charges for utility services provided to the Property as same become due and payable. Borrower will
<br />deliver to Lender, promptly upon Lender's request, evidence satisfactory to Lender that the Taxes, Other Charges and
<br />utility service charges have been so paid or are not then delinquent. Borrower shall not suffer and shall promptly cause to
<br />be paid and discharged any lien or charge whatsoever which may be or become a lien or charge against the Property.
<br />Except to the extent sums sufficient to pay all Taxes and Other Charges have been deposited with Lender in accordance
<br />with the terms of this Security Instrument, Borrower shall furnish to Lender paid receipts for the payment of the Taxes
<br />and Other Charges prior to the date the same shall become delinquent.
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<br />(b) After prior written notice to Lender, Borrower, at its own expense, may contest by appropriate legal
<br />proceeding, promptly initiated and conducted in good faith and with due diligence, the amount or validity or application
<br />in whole or in part of any of the Taxes, provided that (i) no Event of Default has occurred and is continuing under the
<br />Note, this Security Instrument or any of the Other Security Documents, (ii) Borrower is permitted to do so under the
<br />provisions of any other deed of trust, mortgage or deed to secure debt affecting the Property, (iii) such proceeding shall
<br />suspend the collection of the Taxes from Borrower and from the Property or Borrower shall have paid all of the Taxes
<br />under protest, (iv) such proceeding shall be permitted under and be conducted in accordance with the provisions of any
<br />other instrument to which Borrower is subject and shall not constitute a default thereunder, (v) neither the Property nor
<br />any part thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or lost and (vi)
<br />Borrower shall have deposited with Lender adequate reserves for the payment of the Taxes, together with all interest and
<br />penalties thereon, unless Borrower has paid all of the Taxes under protest, or Borrower shall have furnished the security
<br />as may be required in the proceeding, or as may be reasonably requested by Lender to insure the payment of any
<br />contested Taxes, together with all interest and penalties thereon, taking into consideration the amount in the Escrow Fund
<br />available for payment of Taxes.
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<br />Section 3.5. ESCROW FUND. In addition to the initial deposits with respect to Taxes and Insurance Premiums
<br />made by Borrower to Lender on the date hereof to be held by Lender in escrow, Borrower shall pay to Lender on the first
<br />day of each calendar month (a) one-twelfth of an amount which would be sufficient to pay the Taxes payable, or
<br />estimated by Lender to be payable, during the next ensuing twelve (12) months and (b) one-twelfth of an amount which
<br />would be sufficient to pay the Insurance Premiums due for the renewal of the coverage afforded by the Policies upon the
<br />expiration thereof (the amounts in (a) and (b) above shall be called the "Escrow Fund"). Borrower agrees to notify
<br />Lender immediately of any changes to the amounts, schedules and instructions for payment of any Taxes and Insurance
<br />Premiums of which it has or obtains knowledge and authorizes Lender or its agent to obtain the bills for Taxes directlyafrom the appropriate taxing authority. The Escrow Fund and the
<br /> payments of interest or principal or both, payable
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