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<br />Bk Vol Ps
<br />05020201 OPR 2726 527
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<br />(i) Holder may surrender the insurance policies maintained pursuant to Section 2, or any part
<br />thereof, and receive and apply the unearned premiums attributable to the Mortgaged Property only as a
<br />credit on the Obligation, and, in connection therewith, Grantor hereby appoints Holder as the agent and
<br />attorney-in-fact for Grantor to collect such premiums.
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<br />G) Holder shall have and may exercise any and all other Rights which Holder may have at
<br />law or in equity, or by virtue of any other security instrument, or otherwise.
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<br />(k)
<br />Obligation.
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<br />Holder may apply reserves, if any, required by Section 5, toward payment of the
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<br />3.3 If Holder is the purchaser of any of the Mortgaged Property, at any sale thereof, whether
<br />such sale be under the power of sale hereinabove vested in Trustee, or upon any other foreclosure of the
<br />Liens hereof, or otherwise, Holder shall, upon any such purchase, acquire good title to the Mortgaged
<br />Property so purchased, free of the Liens of these presents.
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<br />3.4 Should any part ofthe Mortgaged Property come into the possession of Holder, whether
<br />before or after an Event of Default, Holder may use or operatc the Mortgaged Property for the purpose of
<br />preserving it or its value, pursuant to the order of a court of appropriate jurisdiction, or in accordance with
<br />any other Rights held by Holder in respect of the Mortgaged Property. Grantor covenants promptly to
<br />reimburse and pay to Holder, at the place where the Note is payable, or at such other place as may be
<br />designated by Holder in writing, the amount of all reasonable expenses (including the cost of any
<br />insurance, taxes, or other charges) incurred by Holder in connection with its custody, preservation, use, or
<br />operation of the Mortgaged Property, together with interest thereon from the date incurred by Holder at
<br />the highest lawful rate, and all such expenses, costs, taxes, interest, and other charges shall be a part of the
<br />Obligation. It is agreed, however, that the risk of accidental loss or damage to the Mortgaged Property is
<br />on Grantor, and Holder shall have no liability whatever for decline in value of the Mortgaged Property,
<br />nor for failure to obtain or maintain insurance, nor for failure to determine whether any insurance ever in
<br />force is adequate as to amount or as to the risks insured.
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<br />3.5 In case the Liens hereof shall be foreclosed by Trustee's sale, or by other judicial or
<br />non-judicial action, the purchaser at any such sale shall receive, as an incident to his ownership,
<br />immediate possession of the Mortgaged Property, or any part thereof, and, subsequent to foreclosure,
<br />Grantor and Grantor's successors shall be considered as tenants at sufferance of the purchaser at
<br />foreclosure sale, and anyone occupying the Mortgaged Property after demand made for possession thereof
<br />shall be guilty of forcible detainer and shall be subject to eviction and removal, forcible, or otherwise,
<br />with or without process of law, and all damages by reason thereof are hereby expressly waived.
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<br />3.6 The proceeds from any sale, lease, or other disposition made pursuant to this Section 3, or
<br />the proceeds from surrendering any insurance policies pursuant to this Section 3, or any Rental
<br />(hereinafter defined) collected by Holder pursuant to Section 4 or condemnation proceeds and similar
<br />sums, insurance proceeds (if Holder elects to apply same to the Obligation), and reserves received or
<br />required by Section 5, shall be applied by Trustee, or by Holder, as the case may be, as follows: First to
<br />the payment of the reasonable expenses of collection and enforcement and to reasonable attorney's fees
<br />and legal expenses incurred by Holder; second, to interest on the matured portion of the Obligation; third
<br />to principal on the matured portion of the Obligation; fourth, to prepayment of the unmatured portion, if
<br />any, of the Obligation applied to installments of principal in inverse order of maturity; fifth, to the
<br />satisfaction of obligations secured by any subordinate security interest in or other lien on the Mortgaged
<br />Property subject to the security interest or agricultural lien under which the collection or enforcement is
<br />made if Holder receives an authenticated demand for proceeds before distribution of the proceeds is
<br />completed and if the holder of a subordinate security interest or other lien furnishes reasonable proof of
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<br />CITY OF SAN MARcos-JQH DEED OF TRUST
<br />779100.6
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