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the insurable value of the Property or(b) an amount sufficient to pay the sums secured by this Deed of Trust as well as any prior
<br /> encumbrances on the Property. All of the foregoing shall be known as "Property Insurance". The insurance carrier providing the
<br /> insurance shall be qualified to write Property Insurance in Colorado and shall be chosen by Borrower subject to Lender's right to
<br /> reject the chosen carrier for reasonable cause. All insurance policies and renewals thereof shall include a standard mortgage clause
<br /> in favor of Lender, and shall provide that the insurance carrier shall notify Lender at least ten (10) days before cancellation,
<br /> termination or any material change of coverage. Insurance policies shall be furnished to Lender at or before closing.Lender shall
<br /> have the right to hold the policies and renewals thereof. In the event of loss, Borrower shall give prompt notice to the insurance
<br /> carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Insurance proceeds shall be applied to
<br /> restoration or repair of the Property damaged,provided such restoration or repair is economically feasible and the security of this
<br /> Deed of Tntst is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Deed of
<br /> Trust would be impaired,the insurance proceeds shall be applied to the sums secured by this Deed of Trust,with the excess,if any,
<br /> paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> date notice is given in accordance with § 16 (Notice)by Lender to Borrower that the insurance carrier offers to settle a claim for
<br /> insurance benefits, Lender is authorized to collect and apply the insurance proceeds, at Lender's option, either to restoration or
<br /> repair of the Property or to the sums secured by this Deed of Trust. Any such application of proceeds to principal shall not extend
<br /> or postpone the due date of the installments referred to in§§4 (Payment of Principal and Interest)and 23 (Escrow Funds to Taxes
<br /> and Insurance) or change the amount of such installments. Notwithstanding anything herein to the contrary, if under § 18
<br /> (Acceleration; Foreclosure; Other Remedies)the Property is acquired by Lender,all right, title and interest of Borrower in and to
<br /> any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisition shall
<br /> pass to Lender to the extent of the sums secured by this Deed of Trust immediately prior to such sale or acquisition, All of the
<br /> rights of Borrower and Lender hereunder with respect to insurance carriers, insurance policies and insurance proceeds are subject
<br /> to the rights of any holder of a prior deed of trust with respect to said insurance carriers,policies and proceeds.
<br /> 8. Preservation and Maintenance of Property. Borrower shall keep the Property in good repair and shall not
<br /> commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Deed
<br /> of Trust is on a leasehold. Borrower shall perform all of Borrower's obligations under any declarations,covenants,by-laws,rules,
<br /> or other documents governing the use,ownership or occupancy of the Property.
<br /> 9. Protection of Lender's Security. Except when Borrower has exercised Borrower's rights under § 6 above, if the
<br /> Borrower fails to perform the covenants and agreements contained in this Deed of Trust,or if a default occurs in a prior lien, or if
<br /> any action or proceeding is commenced which materially affects Lender's interest in the Property,then Lender, at Lender's option,
<br /> with notice to Borrower if required by law, may make such appearances, disburse such sums and take such actions as is necessary
<br /> to protect Leader's interest,including,but not limited to:
<br /> 9.1. any general or special taxes or ditch or water assessments levied or accruing against said Property;
<br /> 9.2. the premiums on any insurance necessary to protect any improvements comprising a part of such Property;
<br /> 9.3. sums due on any prior lien or encumbrance on such Property;
<br /> 9.4. if the Property is a leasehold or is subject to a lease,all sums due under such lease;
<br /> 9.5. the reasonable costs and expenses of defending,protecting,and maintaining the Property and Lender's interest in the
<br /> Property, including repair and maintenance costs and expenses, costs and expenses of protecting and securing the Property,
<br /> receiver's fees and expenses, inspection fees,appraisal fees,court costs attorney fees and costs,and fees and costs of an attorney in
<br /> the employment of the Lender or holder of the certificate of purchase;
<br /> 9.6. all other costs and expenses allowable by the evidence of debt or this Deed of Trust;and
<br /> 9.7.such other costs and expenses which may be authorized by a court of competent jurisdiction.
<br /> Borrower hereby assigns to Lender any right Borrower may have by reason of any prior encumbrance on the Property or
<br /> by law or otherwise to cure any default under said prior encumbrance.
<br /> Any amounts disbursed by Lender pursuant to this § 9, with interest thereon, shall become additional indebtedness of
<br /> Borrower secured by this Deed of Trust. Such amounts shall be payable upon notice from Lender to Borrower requesting payment
<br /> thereof, and Lender may bring suit to collect any amounts so disbursed plus interest specified in § 2.2 (Note; Other Obligations
<br /> Secured).Nothing contained in this§9 shall require Lender to incur any expense or take any action hereunder.
<br /> 10. Inspection. Lender may make or cause to be made reasonable entries upon and inspection of the Property,
<br /> provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefore related to
<br /> Lender's interest in the Property.
<br /> 11. Condemnation. The proceeds of any award or claim for damages,direct or consequential, in connection with any
<br /> condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and
<br /> shall be paid to Lender as herein provided. However, all of the rights of Borrower and Lender hereunder with respect to such
<br /> proceeds are subject to the rights of any holder of a prior deed of trust. In the event of a total taking of the Property,the proceeds
<br /> shall be applied to the sums secured by this Deed of Trust, with the excess, if any, paid to Borrower. In the event of a partial
<br /> taking of the Property,the proceeds remaining after taking out any part of the award due any prior lien holder(net award)shall be
<br /> divided between Lender and Borrower,in the same ratio as the arnount of the sums secured by this Deed of Trust immediately prior
<br /> to the date of taking bears to Borrower's equity in the Property immediately prior to the date of taking. Borrower's equity in the
<br /> Property means the fair market value of the Property less the amount of sums secured by both this Deed of Trust and all prior liens
<br /> (except taxes) that are to receive any of the award, all at the value immediately prior to the date of taking. If the Property is
<br /> abandoned by Borrower or if after nntiri-t,.,t _A_f�n...�•,�-.r..,.+r,- ---A — _ - -
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