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200608119
<br />8714801
<br />Borrower under paragraph 2 hereof, (ii) interest payable on the Note; (iii) principal of the Note; (iv) interest payable on advances
<br />made pursuant to paragraph 8 hereof; (v) principal of advances made pursuant to paragraph 8 hereof; (vi) interest payable on any
<br />Future Advance, provided that if more than one Future Advance is outstanding, Lender may apply payments received among the
<br />amounts of interest payable on the Future Advances in such order as Lender, in Lender's sole discretion, may determine; (vii)
<br />principal of any Future Advance, provided that if more than one Future Advance is outstanding, Lender may apply payments
<br />received among the principal balances of the Future Advances in such order as Lender, in Lender's sole discretion, may determine;
<br />and (viii) any other sums secured by this Instrument in such order as Lender, at Lender's option may determine; provided, however,
<br />that Lender may, at Lender's option, apply any sums payable pursuant to paragraph 8 hereof prior to interest on and principal of the
<br />Note, but such application shall not otherwise affect the order of priority of application specified in this paragraph 3.
<br />4. CHARGES; NO ADDITIONAL DEBT; NO LIENS. Borrower shall pay all water and sewer rates, rents, taxes, assessments,
<br />premiums, and Other Impositions attributable to the Property at Lender's option in the manner provided under paragraph 2 hereof
<br />or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof, or in such other manner as
<br />Lender may designate in writing. Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall
<br />promptly discharge any lien which has, or may have, priority over or equality with, the lien of this Instrument, and Borrower shall
<br />pay, when due, the claims of all persons supplying labor or materials to or in connection with the Property. Without Lender's prior
<br />written permission, Borrower shall not allow any lien inferior to this Instrument to be perfected against the Property.
<br />Without Lender's prior written permission, Borrower shall not allow any lien (other than the liens granted to Lender by this Deed of
<br />Trust) to be perfected against the Property and shall not otherwise execute any mortgage, security agreement, assignment of leases
<br />and rents or other agreement granting a lien (other than the liens granted to Lender by this Deed of Trust) with respect to the
<br />Property. Borrower shall be in default and breach under this Mortgage if Borrower is in default with respect to any debt other than
<br />the indebtedness under the Note and such default is declared and is not cured within the time provided in any agreement governing
<br />that debt.
<br />5. HAZARD INSURANCE. Borrower shall keep the improvements now existing or hereafter erected on the Property insured by
<br />carriers at all times satisfactory to Lender against loss by fire, hazards included within the term "extended coverage ", rent loss and
<br />such other hazards, casualties, liabilities and contingencies as Lender (and, if this Instrument is on a leasehold, the ground lease)
<br />shall require and in such amounts and for such periods as Lender shall require. All premiums on insurance policies shall be paid, at
<br />Lender's option, in the manner provided under paragraph 2 hereof, or by Borrower making payment, when due, directly to the
<br />carrier, or in such other manner as Lender may designate in writing.
<br />All insurance policies and renewals thereof shall be in a form acceptable to Lender and shall include a standard deed of
<br />trust clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies, and Borrower shall
<br />promptly furnish to Lender all renewal notices and all receipts of paid premiums. At least thirty days prior to the expiration date of a
<br />policy, Borrower shall deliver to Lender a renewal policy in form satisfactory to Lender. If this Instrument is on a leasehold,
<br />Borrower shall furnish Lender a duplicate of all policies, renewal notices, renewal policies and receipts of paid premiums if, by
<br />virtue of the ground lease, the originals thereof may not be supplied by Borrower to Lender.
<br />In the event of loss, Borrower shall give immediate written notice to the insurance carrier and to Lender. Borrower hereby
<br />authorizes and empowers Lender as attorney -in -fact for Borrower to make proof of loss, to adjust and compromise any claim under
<br />insurance policies, to appear in and prosecute any action arising from such insurance policies, to collect and receive insurance
<br />proceeds, and to deduct therefrom Lender's expenses incurred in the collection of such proceeds; provided however, that nothing
<br />contained in this paragraph 5 shall require Lender to incur any expense or take any action hereunder. Borrower further authorizes
<br />Lender, at Lender's option, (a) to hold the balance of such proceeds to be used to reimburse Borrower for the cost of reconstruction
<br />or repair of the Property or (b) to apply the balance of such proceeds to the payment of the sums secured by this Instrument,
<br />whether or not then due, in the order of application set forth in paragraph 3 hereof (subject, however, to the rights of the lessor
<br />under the ground lease if this Instrument is on a leasehold).
<br />If the insurance proceeds are held by Lender to reimburse Borrower for the cost of restoration and repair of the Property,
<br />the Property shall be restored to the equivalent of its original condition or such other condition as Lender may approve in writing.
<br />Lender may, at Lender's option, condition disbursement of said proceeds on Lender's approval of such plans and specifications of
<br />an architect satisfactory to Lender, contractor's cost estimates, architect's certificates, waivers of liens, sworn statements of
<br />mechanics and materialmen and such other evidence of costs, percentage completion of construction, application of payments, and
<br />satisfaction of liens as Lender may reasonably require. if the insurance proceeds are applied to the payment of the sums secured by
<br />this Instrument, any such application of proceeds to principal shall not exceed or postpone the due dates of the monthly installments
<br />referred to in paragraphs 1 and 2 hereof or change the amounts of such installments. If the Property is sold pursuant to paragraph 27
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