|
<br />08.06.2008
<br />
<br />200807161
<br />
<br />File No. 16-471
<br />
<br />Loan Documents and as otherwise satisfactory to Beneficiary. All policies of insurance shall
<br />name Beneficiary as an additional insured, and shall have attached thereto a lender's loss
<br />payable endorsement for the benefit of Beneficiary, which endorsement indicates that all
<br />insurance proceeds are payable directly to Beneficiary, and shall be otherwise in form
<br />satisfactory to Beneficiary. Trustor shall furnish Beneficiary with an original or certified copy of
<br />all policies of required insurance.
<br />
<br />Fifteen (15) days prior to the expiration of each such policy, Trustor shall furnish
<br />Beneficiary with evidence satisfactory to Beneficiary of the reissuance of a policy continuing
<br />insurance in force as required by this Deed of Trust. All such policies shall contain a provision
<br />that such policies will not be canceled or materially amended in any manner, including, without
<br />limitation, amended to reduce the scope or limits of coverage, without thirty (30) days' prior
<br />written notice to Beneficiary and shall provide that no claims shall be paid thereunder without at
<br />least ten (10) days prior written notice to Beneficiary. In all cases, Trustor shall immediately
<br />give notice to Beneficiary of any notice received by Trustor of any expiration, cancellation or
<br />modification of, or material reduction of coverage under, any such policy.
<br />
<br />In the event Trustor fails to provide, maintain, keep in force or deliver and furnish to
<br />Beneficiary the policies of insurance required by this Deed of Trust or make the deposits
<br />required hereunder, Beneficiary may procure such insurance or single-interest insurance for
<br />such risks covering Beneficiary's interest, and Trustor will pay all premiums thereon promptly
<br />upon demand by Beneficiary, and until such payment is made by Trustor the amount of all such
<br />premiums, together with interest thereon at the Default Rate provided by the Promissory Note,
<br />shall be secured by this Deed of Trust.
<br />
<br />Trustor shall deposit with Beneficiary on the first business day of each and every
<br />calendar month, until all Secured Obligations are paid in full, a non-interest.bearing amount
<br />equal to one-twelfth of the estimated aggregate annual insurance premiums on all policies of
<br />insurance required by this Deed of Trust. Trustor further agrees to cause all bills, statements or
<br />other documents relating to the foregoing insurance premiums to be sent or mailed directly to
<br />Beneficiary. Upon receipt of such bills, statements or other documents, and provided Trustor
<br />has deposited sufficient funds pursuant to this Section 1.06, Beneficiary shall pay such amounts
<br />as may be due thereunder out of the funds so deposited. If at any time and for any reason the
<br />funds so deposited are or will be insufficient to pay such amounts as may then or subsequently
<br />be due, Beneficiary may notify Trustor and Trustor shall immediately deposit an amount equal to
<br />such deficiency with Beneficiary. Notwithstanding the foregoing, nothing contained herein shall
<br />cause Beneficiary to be deemed a trustee of such funds or to be obligated to expend any
<br />amounts in excess of the amount of funds so deposited, pursuant to this Section 1.06. In its
<br />sole discretion, Beneficiary may waive Trustor's obligation to comply with the deposit
<br />requirements of this Section 1.06, provided that Beneficiary may, at any time thereafter, in its
<br />sole discretion, rescind such waiver by notice, whereupon Trustor shall resume depositing such
<br />amounts in the manner required hereunder. If Beneficiary waives Trustor's obligation to deposit
<br />amounts in the manner described above, Trustor shall pay all insurance premiums at least thirty
<br />(30) days prior to their due dates and shall, within ten (10) days of such payment, deliver proof
<br />thereof to Beneficiary.
<br />
<br />Beneficiary may, at any time at Beneficiary's option, apply any sums or amounts
<br />received pursuant hereto, or as rents or income of the Mortgaged Property or otherwise, upon
<br />any Secured Obligation in such manner and order as Beneficiary may elect. The receipt, use or
<br />application of any such sums by Beneficiary hereunder shall not be construed to affect the
<br />maturity of any Secured Obligation or any of the rights or powers of Beneficiary under the terms
<br />of the Loan Documents or any of the obligations of Trustor or any guarantor under the Loan
<br />Documents.
<br />
<br />Section 1.07. Insurance Proceeds. After the occurrence of any casualty to the
<br />Mortgaged Property, or any part thereof, Trustor shall give prompt written notice thereof to
<br />Beneficiary and each insurer and promptly submit a claim to insurer for payment of insurance
<br />proceeds; Trustor shall provide Beneficiary with a copy of such claim.
<br />
<br />(a) All proceeds of insurance paid or payable under any insurance policy (the
<br />"Insurance Proceeds") with respect to the Mortgaged Property shall be paid to
<br />Beneficiary; each insurer is hereby authorized and directed to make payment for any
<br />such loss directly to Beneficiary instead of payment to Trustor. Any Insurance Proceeds
<br />shall be applied first to the payment of all costs and expenses incurred by Beneficiary in
<br />obtaining such proceeds. Provided no Event of Default has occurred hereunder, or an
<br />event which, with the passage of time or the giving of notice, would constitute an Event
<br />of Default hereunder, the balance of the proceeds, if any, shall be (i) applied by
<br />
<br />Deed of Trust, Security Agreement and Assignment of Rents, Page 5
<br />#553480-v1
<br />
|