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87 -- 10
<br />84- 006168
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<br />H••tu L•'. . - a h. serve vet -hrdi 'p Lvlgr 1 nt 1,1, Unea , In
<br />lirnrfirinr:• nc Curt her securltc for the repayment of the indr!:!edness
<br />evldeneed by the Promissory Note and the observance and performance
<br />of all the terms, conditions and provisions of the Deed of Trust and the
<br />other Security Instruments. In the event that Truster desires to
<br />replace any of the collateral for which the reserve replacement account is
<br />maintained, Truster shall present to Beneficiary an invoice detailing the
<br />cost of such proposed replacement Items and identifying the particular
<br />unit within the Improvements in which the replacement Item is to be
<br />located. Upon inspection and written approval of- Beneficiary.
<br />Beneficiary will authorize the withdrawal of funds from the replacement
<br />reserve account in the approved amount. Withdrawals from the reserve
<br />replacement account to less than a balance of $50,000.00 shall require
<br />Immediate reinstatement of the $1,000.00 monthly deposits until the
<br />minimum amount is again attained. At such time as the Indebtedness
<br />secured by this Deed of Trust Is reduced to $029,000.00 by payments
<br />other then those resulting from an involuntary conversion, application of
<br />Insurance proceeds or other payment resulting from diminution in value
<br />of the security, and provided that no Event of Default has - occurred and
<br />is continuing under the terms. conditions and provisions of the
<br />Promissory Note, Beneficiary shall authorize disbursement of the balance
<br />of the replacement reserve account to the Truster.
<br />That as further additional security if this be a construction loan,
<br />Truster hereby transfers and assigns to Beneficiary during continuance
<br />of these Trusts, all right, title and interest to any and all monies
<br />deposited by Truster or deposited on behalf of Truster with any city,
<br />county, public body or agency, sanitary district, gas and/or electric
<br />companv. telephone company and any other body or agency, for the
<br />installation or to secure the installation of any utility by Truster,
<br />pertaining to such property.
<br />8. Failure of Truster to Comply with Deed of Trust: Should
<br />Truster fall to ma�ayment. or to do any act as provided in this
<br />Deed of Trust, or fail to perform any obligation undertaken under or
<br />secured by this Deed of Trust. or do anv act Trustor agreed not to do,
<br />Truster shall be in default under this Decd of Trust. Renefciary, but
<br />without obligation so to do and without notice to or demand upon Truster
<br />and without releasing Trustor from any obligation hereof and without
<br />contesting the validity or amount of the same, may (a) make or do the
<br />same in such manner and to such extent as it may deem necessary to
<br />protect the security hereof. Beneficiary being authorized to enter upon
<br />such property for such purposes, and (b) pay, purchase, contest or
<br />compromise any encumbrance, charge or lien, which in its judgment is or
<br />appears to be prior or superior hereto, and (c) In exercising any such
<br />power, pay necessary expenses, employ counsel and pay his reasonable
<br />fees. Trustor agrees to repay any amount so expended on demand of
<br />Beneficiary.
<br />IT IS MUTUALLY AGREED THAT:
<br />9. Litigation: Trustor shall defend this Trust in any action or
<br />proceeding purporting to affect such property, whether or not it affects
<br />:hr —trity hereof, or purporting to affect the rights or powers of
<br />Renefic•u,rc- or Trustee, and shalt file and prosecute all necessary claims
<br />—e a. -tions to prevent or recover for any damage to or destruction of
<br />surh Property. and either Trustee or Beneficiary is hereby authorized,
<br />without .,Wlt-tion so to do. to commence, appear in or defend any such
<br />seta.,, whether brought by or against Trustor. Beneficiary or Trustee,
<br />or wl,h rr without suit, to exercise or enforce any other right, remedy
<br />or ; war — 1!.h1r or conferred hereunder, whether or not Judgment be
<br />enter.•d to anv action or proceeding; and Trustor or Beneficiary may
<br />appear er '.�ervrne in anv action or proceeding, and retain counsel
<br />tb. nin; anr, �sc� —ch action therein, as either may be advised and may
<br />settle, cor,pr,• -1— or pay the same or any other claims and, in the
<br />hehalf nn.! '. .,. amid purpoatrs. may expend and advance such sums
<br />of monev nav .ern necessary. N:hether or not Trustor so
<br />appears or r!etrnrc, Triictor on Armond shall pay all costs and expenses
<br />of Reneficlary Aral Tr—tee. Including enstn of evidence of title and
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