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5. Prior Mortgages and Deeds of Trust; Charges; Liens. Trustor shall perform all of <br />Trustor's obligations under any mortgage, deed of trust or other security agreement with a lien which <br />has priority over this Instrument, including Trustor's covenants to make payments when due. Trustor <br />will pay all taxes, assessments and other charges, fines and impositions attributable to the Security <br />which may attain a priority over this Deed of Trust, by Trustor malting any payment, when due, <br />directly to the payee thereof. Trustor will promptly furnish to the Beneficiary all notices of amounts <br />due under this paragraph, and in the event Trustor mattes payment directly, Trustor will promptly <br />discharge any lien which has priority over this Deed of Trust; provided that Trustor will not be <br />required to discharge the lien of the Deed of Trust securing any senior lender or any other lien <br />described in this paragraph so long as Trustor will agree in writing to the payment of the obligation <br />secured by such lien in a manner acceptable to the Beneficiary, or will, in good faith, contest such <br />lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the <br />enforcement of the lien or forfeiture of the Security or any part thereof. <br />6. Hazard Insurance. Trustor will peep the Security insured by such insurance policies <br />in such amounts and for such periods as called for in the Agreement. All insurance policies and <br />renewals thereof will include a standard mortgagee clause with standard lender's endorsement in <br />favor of the holder of any senior lender and the Beneficiary as their interests may appear and in a <br />form acceptable to the Beneficiary. The Beneficiary shall have the right to hold, or cause its <br />designated agent to hold, the policies and renewals thereof, and Trustor shall promptly furnish to the <br />Beneficiary, or its designated agent, the original insurance policies or certificates of insurance, all <br />renewal notices and all receipts of paid premiums. In the event of loss, Trustor will give prompt <br />notice to the insurance carrier and the Beneficiary or its designated agent. The Beneficiary, or its <br />designated agent, may make proof of loss if not made promptly by Trustor. The Beneficiary shall <br />receive 30 days' advance notice of cancellation of any insurance policies required under this Section. <br />Unless the Beneficiary and Trustor otherwise agree in writing, insurance proceeds, subject to <br />the rights of any senior lender, will be applied to restoration or repair of the Security damaged, <br />provided such restoration or repair is economically feasible and the security of this Deed of Trust is <br />not thereby impaired. If such restoration or repair is not economically feasible or if the security of <br />this Deed of Trust would be impaired, again, subject to the rights of any senior lender, the insurance <br />proceeds will be used to repay the grant under this Deed of Trust, with the excess, if any, paid to <br />Trustor. If the Security is abandoned by Trustor, or if Trustor fails to respond to the Beneficiary, or <br />its designated agent within 30 days from the date notice is mailed by either of them to Trustor that <br />the insurance carrier offers to settle a claim for insurance benefits, the Beneficiary, or its designated <br />agent, is authorized to collect and apply the insurance proceeds at the Beneficiary's option either to <br />restoration or repair of the Security or to repay the Loan. <br />If the Security is acquired by the Beneficiary, all right, title and interest of Trustor in and to <br />any insurance policy and in and to the proceeds thereof resulting from damage to the Security prior to <br />the sale or acquisition will pass to the Beneficiary to the extent of the sums secured by this Deed of <br />Trust immediately prior to such sale or acquisition subject to the rights of any senior lender. <br />7. Preservation and Maintenance of Security. Trustor will peep the Security in good <br />repair and will not commit waste or permit impairment or deterioration of the Security. <br />8. Protection of the Beneficiary's Security. If Trustor fails to perform the covenants and <br />agreements contained in this Deed of Trust or if any action or proceeding is commenced which <br />materially affects the Beneficiary's interest in the Security, including, but not limited to, default <br />DOCSOC/1475221 v5/200272-0004 <br />C-3 <br />