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<br />200704080
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<br />payable to the Lender. In case of loss under such policies, the Lender is authorized to adjust,
<br />collect and compromise all claims thereunder and shall have the option of applying all or part of
<br />the insurance proceeds (i) to any indebtedness secured hereby and in such order as Lender may
<br />determine, (ii) to the Trustor to be used for the repair or restoration of the Property, or (iii) for
<br />any other purpose or object satisfactory to Lender without affecting the lien of this Deed of Trust
<br />for the full amount secured hereby before such payment ever took place. Any application of pro-
<br />ceeds to indebtedness shall not extend or postpone the due date of any payments under the Note,
<br />or cure any default thereunder or hereunder.
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<br />5. Escrow. Upon written demand by Lender, Trustor shall pay to Lender, in such
<br />manner as Lender may designate, sufficient sums to enable Lender to pay as they become due
<br />one or more of the following: (i) all taxes, assessments and other charges against the Property:
<br />(ii) the premiums on the property insurance required hereunder, and (iii) the premiums on any
<br />mortgage insurance required by Lender.
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<br />6. Maintenance. Repairs and Compliance with Laws. Trustor 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 waste or deterioration of the Property;
<br />shall not remove, demolish or substantially alter any of the improvements on the Property; shall
<br />not commit, suffer or permit any act to be done in or upon the Property in violation of any law,
<br />ordinance or regulation; and shall promptly discharge at Trustor's cost and expense all liens,
<br />encumbrances and charges levied, imposed or assessed against the Property or any part thereof.
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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 condemnation. 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, at its sole and absolute discretion, to apply all such Proceeds, after
<br />deducting therefrom all costs and expenses incurred by it in connection with such Proceeds, upon
<br />any indebtedness secured hereby and in such order as Lender may determine, or to apply all such
<br />Proceeds, after such deductions, to the restoration of the Property upon such conditions as
<br />Lender may determine. Any application of Proceeds to indebtedness shall not extend or
<br />postpone the due date of any payments under the Note, or cure any default thereunder or
<br />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 hereunder, or if
<br />any act is taken or legal proceeding commenced, which materially affects Lender's interest in the
<br />Property, Lender may in its own discretion, but without obligation to do so, and without notice to
<br />or demand upon Trustor and without releasing Trustor from any obligation, do any act which
<br />Trustor has agreed but fails to do and may also do any other act it deems necessary to protect the
<br />security hereof. Trustor shall, immediately upon demand therefor by Lender, pay to Lender 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
<br />Note, which shall be added to the indebtedness secured hereby. Lender shall not incur any liabil-
<br />ity because of anything it may do or omit to do hereunder.
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<br />9. Hazardous Materials. Trustor shall keep the Property in compliance with all
<br />applicable laws, ordinances and regulations relating to industrial hygiene or environmental
<br />protection (collectively referred to herein as "Environmental Laws"). Trustor shall keep the
<br />Property free from all substances deemed to be hazardous or toxic under any Environmental
<br />Laws (collectively referred to herein as "Hazardous Materials"). Trustor hereby warrants and
<br />represents to Lender that there are no Hazardous Materials on or under the Property. Trustor
<br />hereby agrees to indemnify and hold harmless Lender, its directors, officers, employees and
<br />agents, and any successors to Lender's interest, from and against any and all claims, damages,
<br />losses and liabilities arising in connection with the presence, use disposal or transport of any
<br />Hazardous Materials on, under, from or about the Property. THE FOREGOING
<br />WARRANTIES AND REPRESENTATION, AND TRUSTOR'S OBLIGATIONS PURSUANT
<br />TO THE FOREGOING INDEMNITY, SHALL SURVIVE RECONVEYANCE OF THIS
<br />DEED OF TRUST.
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<br />10. Assignment of Rents. Trustor hereby assigns to Lender the rents, issues and profits
<br />of the Property, provided that Trustor shall, until the occurrence of an Event of Default here-
<br />under, have the right to collect and retain such rents, issues and profits as they become due and
<br />payable. Upon the occurrence of an Event of Default, Lender may, either in person or by agent,
<br />with or without bringing any action or proceeding, or by a receiver appointed by a court and
<br />without regard to the adequacy of its security, enter upon and take possession of the Property, or
<br />any part thereof, in its own name or in the name of the Trustee, and do any acts which it deems
<br />necessary or desirable to preserve the value, marketability or rentability of the Property, or any
<br />part thereof, or interest therein, increase the income therefrom, or protect the security thereof,
<br />and, with or without taking possession of the Property, sue for, or otherwise collect, the rents,
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