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86-- 102897
<br />1. Payment of Prin_ cipal and Interest. Borrower shall
<br />promptly pay when due the principal of and interest on, and anv
<br />fees or charges provided in, the Note or in this Deed of Trust.
<br />2. Title. Borrower is the owner of the Property, has
<br />the right and authority to convey the Property, and warrants that
<br />the lien created hereby is a first and prior lien on the
<br />Property, except as may otherwise be set forth herein, and the
<br />execution and delivery of this Deed or Trust does not violate any
<br />contract or other obligation to which Borrower is subject.
<br />3. Taxes, Assessments. To pay when due all taxes,
<br />special assessments and all other charges against the Property
<br />and, upon written demand by Lender, to pay to Lender such amount
<br />as may be sufficient to enable the Lender to pay such taxes,
<br />assessments or other charges as they become due.
<br />4. Insurance. To keep the Property insured against
<br />damage by fire, hazards included within the term "extended
<br />coverage ", and such other hazards as Lender may require, in
<br />amounts and with companies acceptable to the Lender, and with
<br />loss payable to the Lender. In case of loss under such policies,
<br />the Lender is authorized to adjust, collect and compromise, all
<br />claims thereunder and shall have the option of applying all or
<br />part of the insurance proceeds (i) to any indebtedness secured
<br />hereby and in such order as Lender may determine, (ii) to the
<br />Borrower to be used for the repai-_ or restoration of the Property
<br />or (iii) for any other purpose or object satisfactory to Lender
<br />without affecting the lien of this Deed of Trust for the full
<br />amount secured hereby before such payment ever took place. Any
<br />application of proceeds tc indebtedness shall not extend or
<br />postpone the due date of any payments under. the Note, or cure any
<br />default thereunder or hereunder.
<br />5. Mai.ntenar.ce Repairs and Compliance with Laws.
<br />Borrower shall keep the Property in good condition and repair;
<br />shall promptly repair, or replace any improvement which may be
<br />damaged or destroyed; shall not conunit or permit any waste or
<br />deterioration of the Property; shall not remove, demolish or
<br />substantially alter anv of the improvements on the Property;
<br />shall not commit., suffer or permit any act to be done in or upon
<br />the Property in violation of any law, ordinance, or regulation;
<br />and shall pay and promptly discharge at Borrower's cost and
<br />expense all liens, encumbrances and charges .levied, imposed or
<br />assessed against the Property or any part. thereof.
<br />6. Eminent Domain. Lender is hereby assigned all
<br />compensation, awards, damages and other payments or relief
<br />(hereinafter "Proceeds ") in connection with condemnation or other
<br />taking of the Property or part thereof, or for conveyance in lieu
<br />of condemnation. Lender shall be entitled at its option to
<br />commence, appear in and prosecute in its own name any action or
<br />proceedings, and shall also be entitled to make any compromise or
<br />settlement in connection with such taking or damage. In the
<br />event any portion of the Property is so taken or damaged, Lender
<br />shall have the option, in its sole and absolute discretion, to
<br />apply all such Proceeds, after deducting therefrom all costs and
<br />expenses incurred by it in connection with such Proceeds, upon
<br />any indebtedness secured hereby and in such order. as Lender may
<br />determine, or to apply all such Proceeds, after such deductions,
<br />to the restoration of the Property upon such conditions as Lender
<br />may determine. Any application of Proceeds to indebtedness shall
<br />not extend or postpone the due date of any payments under the
<br />Note, or cure any default thereunder or hereunder.
<br />7. Performance by Lender. 7n the event of Borrower's failure to perfocrr any of the (- ovenants herein or make any
<br />Payments required hereby, or' if any act is taker ()r' egaf
<br />proceeding commenced w',ict: mater �.��_;r affer� Letde.r's i ,serest
<br />in the Frc)perty, Lender may to it. ,awn riiy .t!,.:;;, i_)ut w: hollt
<br />Oblz(T a t I o n "c 411c, so, and w _t. i; r)111'.
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