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201000943
<br />debt, liability or obligation, in any order or manner of application which Beneficiary, in its absolute discretion, deems
<br />appropriate. Unless otherwise elected by Beneficiary, any such payment shall be deemed applied first to the payment
<br />of any debt, liability or obligation other than the Note.
<br />5. Charges; Liens. Trustor will keep the Trust Property free from all liens and encumbrances which in
<br />arty way may, in the judgment of Beneficiary, have priority over, or impair the security of this Deed of Trust but
<br />Trustor need not discharge any such lien so long as Trustor shall agree, in writing, to pay the obligation secured by such
<br />lien in a manner acceptable to Beneficiary and shall in good faith contest such lien by appropriate legal proceedings
<br />effective to prevent the enforcement of the lien and the loss of any interest in or part of the Trust Property. Trustor shall
<br />maintain a reasonable cash reserve for any obligation contested in good faith, if requested by Beneficiary.
<br />6. I,~„~~~an~e. Trustor shall keep the buildings and other improvements now existuag ar hereafter
<br />erected on the Trust Property insured by insurance carriers satisfactory to Beneficiary against loss by fire, hazards
<br />included in the term "extended coverage" and such other hazards, casualties and contingencies as may be required by
<br />Beneficiary, in such amounts and for such periods as may be requixed by Beneficiary, but in na event less than an
<br />eighty percent (80%) coinsurance basis. The policy of insurance shall be in form acceptable to $eneficiary, provide
<br />that the same may not be canceled ar modified without fifteen (15) days prior written notice to Beneficiary, and shall
<br />have loss payable provisions in favor of and in form acceptable to Beneficiary. Trustor shall make payarxtent prior to
<br />the due date, directly to the insurance carrier. Tnistar shall deliver a certificate of insurance to Beneficiary.
<br />Beneficiary shall have the right to hold the policies and renewals thereof and, upon request of Beneficiary, Trustor shall
<br />promptly furnish to Beneficiary all renewal notices and all paid premium receipts received by it. Iu no event shall
<br />Beneficiary or Trustee be held responsible for failure to pay insurance premiums or for any loss or damage arising out
<br />of a defect in any policy or arising out of any failure of arty insurance company to pay far any loss or damage insured
<br />against or far failure by Trustor to effect the insurance required hereunder. In the event of loss, Trustar shall give
<br />prompt notice by mail to the insurance carrier and Beneficiary. Beneficiary may make proof of loss if not made
<br />promptly or in proper form by Trustor. All policies of insurance and any and all refunds of unearned premiums are
<br />hereby assigned to Beneficiary as additional security for the payment of the Indebtedness. In the event of Beneficiary's
<br />exercise of the power of sale contained herein, or in the event of foreclosure, all right, title and interest of Trustor in
<br />and to any insurance policy then in force shall pass to the purchaser at the trustee's sale ar foreclosure sale, Incase of
<br />arty loss, the insurance proceeds may, at the option of Beneficiary, be applied by Beneficiary upon the Indebtedness,
<br />or any part thereof, and in such order and amount as Beneficiary may determine; or said insurance proceeds, at the
<br />option of Beneficiary, may either be used in replacing or restoring the Trust Property partially or totally destroyed to
<br />a condition satisfactory to Beneficiary; or said insurance proceeds, or any portion thereof may be released to Trustor.
<br />Trustor shall have no right to insurance proceeds while Trustor is in default. Unless Beneficiary and Trustor otherwise
<br />agree in waiting, any such application of insurance proceeds shall not extend or postpone the due date of the Note, or
<br />any installments called for therein, ar change the amount of such installments. If the Trust Property is acquired by
<br />Beneficiary pursuant to the exercise of the power of sale or other foreclosure, all right, title and interest of T'rustor in
<br />and to any insurance proceeds payable as a result of damage to the Trust Property prior to the sale or acquisition shall
<br />pass to Beneficiary and shall be applied first tp the costs and expenses, including atwrney fees, intoned in collecting
<br />such proceeds, then in the manner and in the order provided herein.
<br />7. Preservsrtion and Maintenance of Trust Pmnerty. Trustor will keep the buildings and other
<br />improvements now or hereafter erected on the Trust Property in good repair and condition and will not commit or
<br />permit waste, will not alter the design or structural character constituting any building now or hereafter erected on and
<br />constituting the Trust Property without the prior written consent of Beneficiary, will not do any act ar thing which
<br />would unduly impair or depredate the value of the Trust Property and will not abandon the Trust Property. Trustor
<br />will not remove any fixtures constituting the Trust Property unless the same are immediately replaced with like property
<br />subject to the lien and security interest of this Deed of Trust and of at least equal value and utility. Trustor will comply
<br />with all present and future ordinances, regulations and requirements of any governmental body which are applicable
<br />to the Trust Property and to the occupancy and use thereof. If this Deed of Trust is on a unit in a condominium or a
<br />planned unit development, Tnistor sliall perform all of Tnistor's obligations under the declarations ar covenants creating
<br />or governing the condominium or the planned unit development, the bylaws and regulations of the condominium or
<br />planned unit development, and the constituent documents.
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