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A. To protect the security of this Deed of Trust, Trustor agrees: <br />(1) To keep the Property in good condition and repair and not to remove or demolish any building; to complete orrestore promptly <br />and in good and workmanlike manner any building which may be constructed, damaged or destroyed and to pay when due all claims <br />for labor performed and materials furnished; to comply with all laws affecting the Property or requiring any alterations or improvements <br />to be made; not to commit or permit waste; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character <br />or use of the Property may be reasonably necessary. <br />(2) To maintain hazard insurance against loss by fire, hazards included with the term "extended coverage," and any other hazards <br />for which Beneficiary requires insurance. The insurance carrier and the insurance policy shall be acceptable to Beneficiary and include <br />loss payable,in favor of Beneficiary and 30 days' prior notice to Beneficiary before the policy is modified or terminated. The amount <br />collected under any fire or other insurance policy may be applied by Beneficiary upon indebtedness secured hereby and in such order <br />as Beneficiary may determine, or at the option of Beneficiary the entire amount so collected or any part thereof may be released to <br />Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant <br />to such notice. <br />(3) To appear in and defend any action or proceeding purporting to affect the security or the rights or powers of Beneficiary or <br />Trustee; and to pay all costs and expenses, including costs of evidence of title and attorneys' fees, in any such action or proceeding in <br />which Trustee or Beneficiary may appear, and in any suit brought by Beneficiary to foreclose this Deed of Trust, <br />(4) To pay, at least 10 days before delinquency, all taxes and assessments affecting the Property, including water stock <br />assessments; to pay when due, all encumbrances, charges and liens, with interest, on the Property, which are or appear to be prior or <br />superior to this Deed of Trust; and to pay all costs, fees and expenses of this Deed of Trust. <br />If Trustor fails to do any act provided for in this Deed of Trust, then Beneficiary or Trustee may, without obligation to do so, and <br />with or without notice to or demand upon Trustor, and without releasing Trustor from any obligation under this Deed of Trust: (a) make <br />or do the same in such manner and to such extent as either may deem necessary to protect the security, Beneficiary or Trustee being <br />authorized to enter upon the Property for such purposes; (b) appear in or commence any action or proceeding purporting to affect the <br />security, or the rights or powers of Beneficiary or Trustee; (c) pay, purchase, contest or settle any encumbrance, charge or lien which in <br />the judgment of either appears to be senior to this Deed of Trust, and (d) in exercising any such powers, pay allowable expenses, <br />including attorneys' fees. <br />(5) To pay immediately all sums expended by Beneficiary or Trustee provided for in this Deed of Trust or allowed by law, with <br />interest from date of expenditure at the maximum rate allowed by law. <br />B. Trustor, Trustee and Beneficiary mutually agree: <br />(1) Subject to prior liens and assigaments: that any award of damages in connection with any condemnation for public useof or <br />injury to the Property, or for a third party's injury to the Property, is hereby assigned and shall be paid to Beneficiary who may apply or <br />release such moneys received by him in the same manner and with the same effect as above provided for disposition of hazard insurance <br />proceeds. <br />(2) That upon written request of Beneficiary stating that all obligations secured hereby have been satisfied, and upon surrender of <br />this Deed of Trust and said note or notes to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion <br />may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals of <br />such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The grantee in such reconveyance may <br />be described as "the person or persons legally entitled thereto." <br />(3) If Truster sells, contracts to sell, gives an option to purchase, conveys, leases with an option to purchase, encumbers, or alienates <br />the Property, or any interest in it, or suffers its title to, or any interest in the Property to be divested, whether voluntarily or involuntarily, <br />or if Trustor changes or permits to be changed the character or use of the Property in contravention of Article 2.1 of the Affordability <br />Agreement, or drills or extracts or enters into any lease for the drilling or extracting of oil, gas, or other hydrocarbon substances or any <br />Ai t v/Aran/m1/.092/MIDPEN-LIVEMOVES-REDWOOD FAMILY HOUSE <br />REV: 06-06-17 JS <br />