2007/01/03 Council Agenda Packet

9 periodically verify compliance with this Section and may request that Grantor perform certain maintenance on the Property. 2. To pay when due all amounts now or hereafter owing on the Note, and to perform all of its obligations secured by any deed of trust, mortgage or other lien on the Property that is the subject of this Deed of Trust, whether or not such lien has priority over this Deed of Trust. Grantor shall keep the Property free of all liens, charges and encumbrances unless consented to in writing by Beneficiary. Upon any breach of the obligations of this Section, Beneficiary shall have the right, without notice or demand, to declare all amounts secured hereby immediately due and payable. 3. If this Deed of Trust is on a unit in a condominium or a planned unit development, Grantor shall perform all of Grantor's obligations under the declaration or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and other constituent documents. If a condominium or planned unit development rider is executed by Grantor and recorded together with this Deed of Trust, the covenants and agreements of such rider are incorporated into, amend and supplement the covenants and agreements of this Deed of Trust. 4. To keep the improvements now existing or hereafter erected on the Property continuously insured against loss by fire and such other hazards as Beneficiary may require. This insurance shall be in such amounts (including deductible levels) as Beneficiary may require from time to time; provided, that Beneficiary shall not require that the amount of such coverage exceed that amount of coverage required to pay (a) the sums secured by this Deed of Trust and all debt obligations secured by prior liens; or (b) the maximum insurable value of the improvements on the Property, whichever shall be less. All insurance policies and renewals thereof shall be in form acceptable to Beneficiary and shall include a standard mortgagee clause in favor of and in form acceptable to Beneficiary. Beneficiary shall have the right to hold the policies and renewals thereof, and Grantor shall promptly furnish to Beneficiary all renewal notices and all receipts of paid premiums. In the event of loss, Grantor shall give prompt notice to the insurance carrier and Beneficiary. Beneficiary may make proof of loss if not made promptly by Grantor. If Grantor fails to maintain any of the coverages described above, Beneficiary may obtain insurance coverage, at Beneficiary's option and Grantor's expense. Beneficiary is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Beneficiary, but might or might not protect Grantor, Grantor's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Grantor acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Grantor could have obtained. Any amounts disbursed by Beneficiary under this Section 4, with interest at the rate of twelve percent (12%) per year or the highest rate allowed by law, whichever shall be less, shall become additional debt of Grantor secured by this Deed of Trust. Grantor shall cause the amount collected under any insurance policy to be applied upon any indebtedness hereby secured in such order as the Beneficiary shall determine. Unless Beneficiary and Grantor otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments on the Note or any other indebtedness secured hereby or change the amount of such installments. Such ADDI Agreement between D - 2 City of Everett and Snohomish County