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All of the rights of Grantor and Grantee hereunder with respect to insurance carriers, insurance policies and
<br /> insurance proceeds are subject to the rights of any holder of a prior deed of trust with respect to said insurance carriers,
<br /> policies and proceeds.
<br /> 8. Preservation and Maintenance of Property. Grantor shall keep the Property in good repair and shall
<br /> not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any
<br /> lease if this Deed of Trust is on a leasehold. Grantor shall perform all of Grantor's obligations under any
<br /> declarations, covenants, by-laws, rules, or other documents governing the use, ownership or occupancy of the
<br /> Property. Given that a portion of the Property is being leased back to a principal of Grantee, for a period of time,
<br /> Grantee shall be responsible for all obligations relating to the Property under the Lease.
<br /> 9. Protection of Grantee's Security. Except when Grantor has exercised Grantor's rights under§6 above,
<br /> if Grantor fails to perform the covenants and agreements contained in this Deed of Trust,or if a default occurs in a
<br /> prior lien beyond any applicable notice and/or cure period, or if any action or proceeding is commenced which
<br /> materially and adversely affects Grantee's interest in the Property,then Grantee,at Grantee's option,with notice to
<br /> Grantor if required by law,may make such appearances,disburse such sums and take such action as is necessary to
<br /> protect Grantee's interest,including,but not limited to:
<br /> 9.1. any general or special taxes or ditch or water assessments levied or accruing against the Property;
<br /> 9.2. the premiums on any insurance necessary to protect any improvements comprising a part of the
<br /> Property;
<br /> 9.3. sums due on any prior lien or encumbrance on the 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
<br /> Grantee's interest in the Property, including repair and maintenance costs and expenses, costs and expenses of
<br /> protecting and securing the Property, receiver's fees and expenses, inspection fees, appraisal fees, court costs,
<br /> attorney fees and costs,and fees and costs of an attorney in the employment of Grantee or holder of the certificate of
<br /> 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 /> Grantor hereby assigns to Grantee any right Grantor may have by reason of any prior encumbrance on the
<br /> Property or by law or otherwise to cure any default under said prior encumbrance.
<br /> Any amounts disbursed by Grantee pursuant to this §9, with interest thereon, shall become additional
<br /> indebtedness of Grantor secured by this Deed of Trust. Such amounts shall be payable upon notice from Grantee to
<br /> Grantor requesting payment thereof, and Grantee may bring suit to collect any amounts so disbursed plus interest
<br /> specified in§2.2(Note: Other Obligations Secured).Nothing contained in this §9 shall require Grantee to incur any
<br /> expense or take any action hereunder.
<br /> 10. Inspection. Grantee may make or cause to be made reasonable entries upon and inspection of the
<br /> Property,provided that Grantee shall give Grantor notice prior to any such inspection specifying reasonable cause
<br /> therefore related to Grantee's interest in the Property.
<br /> 11. Condemnation. The proceeds of any award or claim for damages,direct or consequential,in connection
<br /> with any condemnation or other taking of the Property, or part thereof,or for conveyance in lieu of condemnation,
<br /> are hereby assigned and shall be paid to Grantee as herein provided. However, all of the rights of Grantor and
<br /> Grantee hereunder with respect to such proceeds are subject to the rights of any holder of a prior deed of trust.
<br /> In the event of a total taking of the Property,the proceeds shall be applied to the sums secured by this Deed of
<br /> Trust,with the excess,if any,paid to Grantor.In the event of a partial taking of the Property,the proceeds remaining
<br /> after taking out any part of the award due any prior lien holder(net award) shall be divided between Grantee and
<br /> Grantor,in the same ratio as the amount of the sums secured by this Deed of Trust immediately prior to the date of
<br /> taking bears to Grantor's equity in the Property immediately prior to the date of taking. Grantor'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
<br /> all prior liens (except taxes)that are to receive any of the award, all at the value immediately prior to the date of
<br /> taking.
<br /> If the Property is abandoned by Grantor or if, after notice by Grantee to Grantor that the condemnor offers to
<br /> make an award or settle a claim for damages,Grantor fails to respond to Grantee within 30 days after the date such
<br /> notice is given,Grantee is authorized to collect and apply the proceeds,at Grantee's option,either to restoration or
<br /> repair of the Property or to the sums secured by this Deed of Trust.
<br /> Any such application of proceeds to principal shall not extend or postpone the due date of the installments
<br /> referred to in§4(Payment of Principal and Interest)nor change the amount of such installments.
<br /> 12. Intentionally Omitted.
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