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<br />Bk Vol P9
<br />05020201 OPR 2726 530
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<br />proceeds of available insurance, Holder shall not unreasonably refuse the application of insurance
<br />proceeds to the repair and restoration of the improvements on the Mortgaged Property.
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<br />5.5 At the request of Holder, Grantor shall create a fund or reserve for the payment of all
<br />insurance premiums, taxes, and assessments against the Mortgaged Property by paying to Holder,
<br />contemporaneously with each installment of principal and interest on the Note, a sum equal to the
<br />premiums that will next become due and payable on the hazard insurance policies covering the
<br />Mortgaged Property, or any part thereof, plus taxes and assessments next due on the Mortgaged Property,
<br />or any part thereof, as estimated by Holder, less all sums paid previously to Holder therefor, divided by
<br />the number of months to elapse before one month prior to the date when such premiums, taxes and
<br />assessments will become delinquent, such sums to be held by Holder, with interest, for the purposes of
<br />paying such premiums, taxes, and assessments. Any deficiency shall be paid by Grantor to Holder on or
<br />before the date when such premiums, taxes, and assessments, shall become delinquent. Transfer of legal
<br />title to the Mortgaged Property shall automatically transfer title in all sums deposited under the provisions
<br />of this section.
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<br />5.6 This instrument is one of the "Loan Documents" referred to in the Loan Agreement, and
<br />the provisions relating to Loan Documents set forth therein are incorporated herein by reference, the same
<br />as if set forth herein verbatim.
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<br />5.7 Holder may now have or may hereafter acquire estates or interests in all or portions of the
<br />Mortgaged Property in addition to the Liens hereof. Grantor expressly agrees that, without the express
<br />written consent and agreement of Holder, none of such estates or interests and the Liens hereof shall ever
<br />merge, but shall always remain separate, notwithstanding that such estates, interests, or Liens should be
<br />owned by or vested in the same party or parties at the same time, by purchase, foreclosure, or otherwise.
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<br />5.8 Grantor hereby waives all rights of marshaling in event of any foreclosure of the Liens
<br />hereby created. GRANTOR HEREBY WAIVES THE PROVISIONS OF TEXAS PROPERTY
<br />CODE SECTION 51.003(B)-(D), AS MAY BE AMENDED.
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<br />5.9 Certain of the Accessories are or are to become fixtures related to the Land, and with
<br />respect thereto this instrument shall be effective as a fmancing statement filed as a fixture filing from the
<br />date of its filing in the real estate records in Hays County, Texas. For purposes thereof, Grantor is the
<br />debtor and Mortgagee is the secured party, and the addresses of both are set forth above.
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<br />5.10 Holder shall have all of the rights of a secured party, including, without limitation, the
<br />authority to file a financing statement to perfect its security interest under the UCC, or under the Uniform
<br />Commercial Code in force in any state to the extent the same is applicable law.
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<br />5.11 This instrument has simultaneously been executed in a number of identical counterparts,
<br />each of which, for all purposes, shall be deemed an original for all purposes and all of which constitute,
<br />coUectively, one instrument.
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<br />5.12 This instrument shall be binding on Grantor and Grantor's successors and assigns and
<br />shall inure to the benefit of Holder and Holder's heirs, legal representatives, successors, and assigns, and
<br />Trustee and Trustee's successors or substitutes in this trust and his and their respective assigns. Until this
<br />agreement shall be released by Holder in accordance with the terms hereof, the covenants and promises of
<br />this instrument shall be covenants running with the Land, and each and every subsequent owner of any
<br />part of the Mortgaged Property covenants and agrees that such owner will perform, observe, and comply
<br />with each and every covenant and condition hereof Grantor may not, without the prior written consent of
<br />Holder, assign any Rights, duties, or obligations hereunder. In the event of an assignment of all or part of
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<br />CITY OF SAN MARcos-JQH DEED OF TRUST
<br />779100.6
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