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<br />200701960
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<br />3. Taxes, Assessments. To pay before delinquent all taxes, special assessments and all
<br />other charges against the Property now or hereafter levied.
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<br />4. Insurance. To keep the Property insured against damage by fire hazards included with
<br />the term "extended coverage" and such other hazards as Lender may reasonably require in
<br />amounts and with companies acceptable to Lender, naming Lender as an additional named
<br />insured with loss payable to the Lender. In case of loss lmder such policies, the Lender is
<br />authorized to adjust, collect and compromise all claims thereunder and shall have the option of
<br />applying all or part of the insurance proceeds (i) to any indebtedness secured hereby and in such
<br />order as Lender may determine, (ii) to the Trustor to be used for the repair or restoration of the
<br />Property, or (iii) for any other purpose or object satisfactory to Lender without affecting the lien
<br />of this Deed of Trust for the full amount secured hereby before such payment ever took place.
<br />Any application of proceeds to indebtedness shall not extend or postpone the due date of any
<br />payments under the Note, or cure any default thereunder or hereunder. So long as no Event of
<br />Defhult shall exist, Lender shall permit such insurance proceeds to be utilized in the repair or
<br />restoration ofthe Property if Trustor shall so request.
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<br />5. Escrow. If required by Lender, after an Event of Default hereunder, Trustor shall pay
<br />to Lender, in such manner as Lender may designate, sufficient sums to enable Lender to pay as
<br />they become due in respect to all taxes, assessments and other charges against the Property.
<br />Further, upon written demand by Lender, Trustor shall pay to Lender, in such manner as Lender
<br />may designate, sufficient sums to enable Lender to pay as they become due, one or more of the
<br />following: (i) the premiums on the property insurance required hereunder, (ii) the premiums on
<br />any mortgage insurance required by Lender, and (iii) the premiums for flood insurance as may be
<br />required.
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<br />6. Maintenance. Reoairs and Compliance with Laws. Tmstor shall keep the Property in
<br />good condition and repair; shall promptly repair, or replace, any improvement which may be
<br />damaged or destroyed; shall not commit or permit any voluntary waste or deterioration of the
<br />Property; shall not removc, demolish or substantially alter any of the improvements on the
<br />Property, except if such improvements are replaced using equal or better material; shall not
<br />commit, suffer or permit any act to be done in or upon the Property in violation of any applicable
<br />law, ordinance or regulation; and shall promptly dischargc at Tmstor's cost and expense all liens,
<br />encumbrances and charges levied, imposed or assessed against the Property or any part thereof,
<br />after Tmstor's actual knowledge of such liens, encumbrances, or charges.
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<br />7. Eminent Domain. Lender is hereby assigned all compensation, awards, damages and
<br />other payments or relief (hereinafter "Proceeds") in connection with condemnation or other
<br />taking of the Property or part thereof, or for conveyance in lieu of condcmnation. Lender shall
<br />be entitled at its option to commence, appear in and prosecute in its own name any action or
<br />proceedings, and shall also be entitled to make any compromise or settlement in connection with
<br />such taking or damage. In the event any portion of the Property is so taken or damaged, Lender
<br />shall have the option, it its sole and absolute discretion, to apply all such Proceeds, after
<br />deducting therefrom all costs and expenses incurred by it in cotUlection with such Proceeds, upon
<br />any indebtedness secured hereby and in such order as Lender may determine, or to apply all sUl:h
<br />Proceeds, after such deductions, to the restoration of the Property upon such conditions as
<br />Lender may determine. So long as no Event of Default shall exist, Lender shall permit Trustor to
<br />utilize such Proceeds for restoration of the Property if reasonably possible to do so in a manner
<br />that will pemlit such Property to remain functional for Trustor's use made of the Property
<br />immediately prior to such taking or damage. Any application of Proceeds to indebtedness shall
<br />not extend or postpone the due date of any payments under the Note, or cure any default
<br />thereunder or hereunder. Any unapplied funds shall be paid to Trustor.
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<br />8. Performance by Lender. Upon the occurrence of an Event of Default hcreunder, or if
<br />any act is taken or legal proceeding co=enced, which materially affects Lender's interest in the
<br />Property, Lender may in its own discretion, but without obligation to do so, after giving written
<br />notice to Trustor and without releasing Trustor from any obligation, do any act which Trustor has
<br />agreed but fails to do and may also do any other act it deems necessary to protect the security
<br />hercof. Trustor shall, within ten (10) days upon demand therefor by Lender, pay to Lendcr all
<br />costs and expenses incurred and sums expended by Lender in connection with the exercise by
<br />Lender of the foregoing rights, together with interest thereon at the default rate provided in the
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