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<br />87- 10'7406
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<br />they become due and payable so long as no event of default exists
<br />hereunder), (vi) all royalties, mineral, oil and gas rights and pro-
<br />fits, water, water rights and water stock, (vii) all tenements, here-
<br />ditaments, privileges and appurtenances belonging, used or enjoyed in
<br />connection therewith, and (viii) all proceeds of conversion, voluntary
<br />or involuntary, of any of the foregoing into cash or liquidated claims
<br />(including, without limitation, proceeds of insurance and condemnation
<br />awards), all of which is hereinafter collectively called the "Trust
<br />Property".
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<br />TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR COVENANTS AND
<br />AGREES AS FOLLOWS:
<br />
<br />1. Title. Trustor covenants, warrants and agrees with Beneficiary,
<br />its successors and assigns, that Trustor owns the Trust Property
<br />free from any pr ior lien or encumbrance, except those 1 iens and
<br />encumbrances of record: that this Deed of Trust' is and will
<br />remain a valid and enforceable lien on the Trust Property, sub-
<br />ject to liens and encumbrances of record, that Trustor, at its
<br />expense, will preserve such title and will maintain this Deed of
<br />Trust as a first and paramount lien upon the Trust Property and
<br />will forever warrant and defend the validity and priority of the
<br />lien hereof against the claims of all persons and parties whomso-
<br />ever. Trustor, at its expense, will cause this Deed of Trust,
<br />and each amendment or supplement hereto, to be filed and recorded
<br />as a mortgage of the Trust Property in such manner and in such
<br />place and will take such action as in the opinion of Trustee may
<br />be required by any present or future law in order to perfect,
<br />maintain and protect the lien of this Deed of Trust, as the same
<br />may be amended or supplemented from time to time. Trustor will
<br />make such further assurance or assurances to perfect its title to
<br />the Trust Property as may be required by Beneficiary. Trustor
<br />hereby relinquishes all right of dower and homestead in and to
<br />the Trust Property.
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<br />2. parment of Indebtedness. Trustor shall punctually pay the
<br />prlncipal of and interest on the Indebtedness secured hereby.
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<br />3. Construction of Improvements. Trustor shall complete in good and
<br />workmanllke manner any builaings, improvements or repairs rela-
<br />ting thereto which may be begun on the Trust Property or contem-
<br />plated by the loan evidenced by the Note secured hereby, to pay
<br />when due all costs and liabilities incurred therefore, and not to
<br />permit any construction lien against such Trust Property. In the
<br />event construction of buildings, improvements or repairs are
<br />contemplated, Trustor also agrees, anything in this Deed of Trust
<br />to the contrary notwi thstanding; (a) to promptly commence any
<br />such work and to complete the proposed improvements promptly, (b)
<br />to complete the same in accordance with the plans and specifica-
<br />tions as approved by the Beneficiary, (c) to comply with all the
<br />terms of a building loan agreement, if any, between Trustor and
<br />Beneficiary, the terms of which are incorporated herein by refer-
<br />ence and made a part hereof, (d) to allow Beneficiary to inspect
<br />the Trust Property at all times dur ing construction, and (e) to
<br />replace any work or materials unsatisfactory to Beneficiary with-
<br />in fifteen (15) days after written notice from Beneficiary of
<br />such fact.
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<br />4. Funds for Payment of Charges. Subject to applicable law or to a
<br />written waiver by Beneficiary, Trustor shall pay to Beneficiary
<br />on the first day of each month, or such other date each month as
<br />may be specified by Beneficiary, until the Indebtedness is paid
<br />in full, a sum (hereinafter called the "Funds") equal to 1/12th
<br />of the yearly taxes and assessments which may attain priority
<br />over this Deed of Trust and ground rents on the Trust Property,
<br />if any, plus 11 12th of the yearly premium installments for hazard
<br />insurance, plus 1/12th of the yearly premium installments for
<br />mortgage insurance, if any, all as reasonably estimated initially
<br />and from time to time by Beneficiary on the basis of assessments
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