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84 ---~ ~ ~; ~J'719 TRUSTOR FURTHER COVENANTS AND AGREES AS FOLLOSiS: I 1. Application of Payments. 911 payments received by Lender as to any indebtedness or as to any other debt, liability or obligatian owed to Lender by Borrower may be applied by Lender to the payment of the Indebtedness or to any such other debt, liability or obligation, in nay order or manner of application which Lender, in its absolute discretion, deems appropriate. Unless otherwise elected by Leader, any such payment shall be deemed applied first to the payment of any debt, liability or obligatian other than the Note. 2. Taxes; Charges; Liens. Trustor will gay all taxes and assessments be £o re the same become delinquent and will otherwise keep the property free from all liens not subordinate t.o this Trust Deed and upon written demand of Leader, will promptly pay and procure the release of any lien, whether arising prior or subsequent to the execution of this Trust Deed, which in any way may, in the judgment of Lender, have priority over, or parity with, ar impair the security of, this Trust Deed but Trustor need not discharge any such lien so long as Trustor shall agree, in writing, to pay the obligation secured by such lien in a manner acceptable to Lender and shall in good faith contest such lien by appropriate legal proceedings effective to prevent *_he enforcemen*_ of the lien and the loss at any of the Property. Trustor will duly and punctually pay nay existing mortgage ar lien identified hereinbelow according to its terms. Receipts evidencing payments required under this Paragraph 2 shall be promptly furnished to Lender. 3. Hazard Insurance. Trustor will keep the buildings and other improve^ menu now existing ar hereafter erected on the Property insured by insurance carriers satisfactory to Lender against loss by fire, hazards included in the term "extended coverage" and such other hazards, casualties and contingencies as may be required by Lender, in such amounts and for such periods as may be required by Lender. The policy of insurance shall he in form acceptable to Lender, shall have a replacement cost endorsement, and shall have loss payable provisions .in favor of and in form acceptable to Lender. All premiums on insurance policies shall be paid by Trustor making payment, at least ten (20} days prior to Ghe due date, directly to the insur- ance carrier. Lender shall have the right to hold the policies and renewals thereof aad Trustor shall promptly furnish to Lender all renewal notices and all paid premium receipts received by it. In no event shall Lender be held responsible for failure to pay for any insurance or for any loss or damage arising out of a defect in any policy or arising out of any failure of any insurance company to pay for any loss or damage insured against or for failure by Trustor to effect the insurance required hereunder, I^ the event of loss, Trustor shall give prompt notice by mail to the insurance carrier and Lender. Lender may make proof of loss if not made promptly or in proper farm by Trustor. All policies of insurance and any and all refunds of unearned premiums are hereby assigned to Lender as additional security far the payment of the Indebtedness. In the event of Lender"s exercise of the power of sale contained herein, or in the event of foreclosure, all right, title and interest of Trustor in and to any insurance policy thou in force shall pass to the purchaser at the trustee's sale ar foreclosure sale. Unless Lender and 'Lrustar otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the property damaged, provided such restoration or repair is economically feasible and the security of this Trust Deed is not thereby impaired. if such restoration or repair is not economically feasible or if the security of this Trust Deed would be impaired, insurance proceeds shall be applied to the Indebtedness, with the excess, if any, paid to Trustor. If the Prop- erty is abandoned by Trustor, or if 'Prustor fails to respond to Lender within thirty t30) days from the date notice is mailed by Lender to Trustor that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds, at Lender's option, either to restoration or repair of the Property ar [o the Tndebteduess. If, under paragraph 15 hereof, the Property is acquired by Lender, all right, tftle and interest of Trustor in and to any insurance proceeds payable as a result of damage to the Property prior to the sale or acquisition shall pass to Lender and shall be applied first to the costs and expenses, including attorney fees, incurred in collecting such proceeds, then in ttie manner and in tlxe order provided at paragraph 15 hereof.