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Documents, the Beneficiary, after at least seven (7) days prior notice to Trustor, may (but shall be <br />under no obligation to) take out the required policies of insurance and pay the premiums on the same <br />or may make such repairs or replacements as are necessary and provide for payment thereof; and all <br />amounts so advanced therefor by the Beneficiary shall become an additional obligation of the <br />Trustor to the Beneficiary (together with interest as set forth below) and shall be secured hereby, <br />which amounts the Trustor agrees to pay on the demand of the Beneficiary, and if not so paid, shall <br />bear interest from the date of the advance at the lesser of ten percent (10%) per annum or the <br />maximum rate permitted by law. <br />ARTICLE IV <br />DAMAGE, DESTRUCTION OR CONDEMNATION <br />4.1 Awards and Damages. Subject to the rights of senior lenders, all judgments, awards <br />of damages, settlements and compensation made in connection with or in lieu of (1) taking of all or <br />any part of or any interest in the Property by or under assertion of the power of eminent domain, (2) <br />any damage to or destruction of the Property or in any part thereof by insured casualty, and (3) any <br />other injury or damage to all or any part of the Property ("Funds") are hereby assigned to and shall <br />be paid to the Beneficiary by a check made payable to the Beneficiary. The Beneficiary is <br />authorized and empowered (but not required) to collect and receive any funds and is authorized to <br />apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order <br />and manner as the Beneficiary shall determine at its sole option. The Beneficiary shall be entitled to <br />settle and adjust all claims under insurance policies provided under this Deed of Trust and may <br />deduct and retain from the proceeds of such insurance the amount of all expenses incurred by it in <br />connection with any such settlement or adjustment. All or any part of the amounts so collected and <br />recovered by the Beneficiary may be released to Trustor upon such conditions as the Beneficiary <br />may impose for its disposition. Application of all or any part of the Funds collected and received by <br />the Beneficiary or the release thereof shall not cure or waive any default under this Deed of Trust. <br />The rights of the Beneficiary under this Section 4.1 are subject to the rights of any senior mortgage <br />lender. Notwithstanding the provisions of this Section, the Beneficiary shall release the Funds to <br />Trustor to be used to reconstruct the improvements on the Property provided that Beneficiary <br />reasonably determines that Trustor has sufficient funds to rebuild. <br />ARTICLE V <br />AGREEMENTS AFFECTING THE PROPERTY; FURTHER <br />ASSURANCES; PAYMENT OF PRINCIPAL AND INTEREST <br />5.1 Other Agreements Affecting Property. The Trustor shall duly and punctually perform <br />all terms, covenants, conditions and agreements binding upon it under the Loan Documents and any <br />other agreement of any nature whatsoever now or hereafter involving or affecting the Security or any <br />part thereof. <br />5.2 Agreement to Pay Attorneys' Fees and Expenses. In the event of any Event of <br />Default (as defined below) hereunder, and if the Beneficiary should employ attorneys or incur other <br />expenses for the collection of amounts due or the enforcement of performance or observance of an <br />obligation or agreement on the part of the Trustor in this Deed of Trust, the Trustor agrees that it <br />2220130.1 Page 28 <br />