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<br /> 4. Hazard Insurance. We shall, at our cost, keep the improvements now ezisting or later erected on the Property
<br /> insured against loss by fire, by hazards included within the term "eztended coverage," and by such other hazards (collectively
<br /> refened to as"Hazards")as Menill Lynch may require. We shall maintain Hazazd insurance for the entire term of the Agreement,or as
<br /> long as Merrill Lynch may require, in an amount equal to the lesser of(a) the maximum insurable value of the Property or (b) the
<br /> mazimum amount of the Account plus the outstanding amount of any obligation prior to this Deed of Trust, but in no event shall such
<br /> amounts be less than the amount necessary to satisfy the coinsurance requirement contained in the insurance policy.
<br /> We may choose the insurance company subject to approval by Menill Lynch, provided that such approval may not be
<br /> unreasonably withheld. All insurance policies, including renewals, must be in a form acceptable to Merrill Lynch and must include a
<br /> standard mortgagee clause in favor of and in a form acceptable to Merrill Lynch. Menill Lynch shall have the right to hold the
<br /> policies and renewals, subject to the terms of any mortgage, deed of trust or other security agreement which is prior to this Deed of
<br /> Trust. If we pay the premiums directly, we shall promptly furnish to Merrill Lynch all renewal notices and, if requested by Merrill
<br /> Lynch, all receipts of paid premiums. If policies and renewals are held by any other person, we shall supply copies of them to
<br /> Merrill Lynch within ten(10)calendar days after they are issued. ,
<br /> In the event of loss,we shall give prompt notice to the insurance company and Menill Lynch. Merrill Lynch may make
<br /> proof of loss if not made promptly by us. '
<br /> Subject to the rights and terms of any mortgage, deed of trust or other security agreement which is prior to this Deed of
<br /> Trust, the amounts collected by us or Menill Lynch under any Hazard insurance policy may, at Menill Lynch's sole discretion,
<br /> either be applied to the sums secured by this Deed of Trust (after payment of all reasonable costs, expenses and attorneys' fees
<br /> necessarily paid or incuned by Merrill Lynch and us in this connection) and in whatever order Menill Lynch may determine or be
<br /> released to us for use in repairing or reconstructing the Property. Merrill Lynch has the authority to do any of the above.
<br /> Regazdless of any application or release by Menill Lynch, as described above, this shall not cure or waive any default or notice of
<br /> default under this Deed of Trust or invalidate any act done pursuant to such notice.
<br /> If the Property is abandoned by us,or if we fail to respond to Menill Lynch in writing within thirty (30)calendar days
<br /> from the date notice is given to us by Menill Lynch that the insurance company offers to settle a claim for insurance benefits,
<br /> Merrill Lynch shall have the authority to settle the claim and to collect and apply the insurance proceeds at Merrill Lynch's sole
<br /> option either to restoration or repair of the Property or to the sums secured by this Deed of Trust.
<br /> If the Property is acquired by Menill Lynch, all of our right, title and interest in and to any insurance proceeds resulting
<br /> from damage to the Property prior to such acquisition shall become the property of Merrill Lynch to the extent of the sums secured by
<br /> this Deed of Trust immediately prior to such acquisition.
<br /> 5.Preservation and Maintenance of Pro ert • Leaseholds•Condominiums•Planned Unit Develo ments.We shall:
<br /> (a)use, improve and maintain the Property in compliance with applicable laws, statutes,ordinances, orders, requirements, decrees or
<br /> regulations; (b) keep the Property in good condition and repair, including the repair or restoration of any improvements on the
<br /> Property which may be damaged or destroyed, and shall pay when due all claims for labor performed and materials fumished
<br /> therefore; (c)not commit or pemut waste or permit impairment or deterioration of the Property; and(d) fully and promptly comply
<br /> with the provisions of any lease if this Deed of Trust is on a leasehold.
<br /> If this Deed of Trust is on a unit in a condominium project or a planned unit development, we shall promptly perform
<br /> all of our obligations under the declazation or covenants creating or goveming the condominium project or planned unit
<br /> development, and the by-laws, regulations and other documents of the condominium project or planned unit development, including
<br /> any amendments. If a condominium or planned unit development rider is executed by us and recorded together with this Deed of
<br /> Trust, the covenants and agreements of that rider shall become a part of this Deed of Trust as if the rider were included in this
<br /> document itself.
<br /> 6.Protection of Merrill Lvnch's Securitv We shall appear in and defend any action or proceeding purporting to affect
<br /> the security of this Deed of Trust or the rights or powers of Menill Lynch or Trustee under this Deed or Tn�st.
<br /> If we fail to do what is required of us in this Deed of Trust or the persons who sign the Agreement fail to do what is
<br /> required of them under the Agreement, or if any action or proceeding is commenced naming Menill Lynch as a party or affecting
<br /> Merrill Lynch's interest in the Property or the rights or powers of Menill Lynch or Trusiee, then Menill Lynch or Trustee without
<br /> demand upon us but upon notice to us as provided in paragraph 11 below, may, without releasing us from any obligation under this
<br /> Deed of Trust, do whatever Merrill Lynch or Trustee believes is necessary, including any disbursement of funds, to protect the
<br /> security of this Deed of Trust.
<br /> If Menill Lynch has required mortgage insurance as a condition of opening the Account, we shall pay the premiums
<br /> required to maintain that insurance in effect until it is no longer required by Menill Lynch or applicable law.
<br /> Any amounts disbursed by Merrill Lynch or Trustee pursuant to this paragraph 6, with interest at the variable interest
<br /> rate in effect under the Agreement from time to time, shall be paid by us and are secured by this Deed of Trust. Unless we agree, in
<br /> writing, with Merrill Lynch to other terms of payment, such amounts shall be payable upon request of Menill Lynch. Neither
<br /> Merrill Lynch nor Trustee aze ever required to incur any ezpense or take any action under this Deed of Trust and any action taken
<br /> shall not release us from any obligation in this Deed of Trust.
<br /> 7. Insaection. Menill Lynch may make or cause to be made reasonable entries upon and inspections of the Property.
<br /> Unless it is an emergency, Menill Lynch shall give us notice (see paragraph 11 below)prior to an inspection specifying reasonable
<br /> cause for the inspection.
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