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20000iss �
<br /> 2. Payment of/ndebtedness. Tiustor shall pro/np�ly�ay�or cause to be paid when due the Obligations and all other indebtedness. The ,
<br /> Trustor shall also promptly and f�Ytiifs�lly obs�Fve a l'ofyts�obligations under any other deed of t�ust encumbering all or part of the T�ust
<br /> Properiy and, if applicable, any pr�omisso��3�note, guaraniy, or other term of contractual indebtedness secured by such other deed of trust,
<br /> whether junior o�senior to the lien of this Deed of Trust, and any other obligations secured by a lien on the Trust Property, whether arising
<br /> consensually or by operation of law.
<br /> 3. Construction of/mprovements. Trustor shall complete in good and workmanlike manner any buildings, improvemenis or repairs relating
<br /> the�eto which may be begun on ihe Trust Property or contemplated by the OBligations secured he�eby, to pay when due all costs and
<br /> liabilities incuned therefo�, and not to permit any construction lien against such Trust Property. ln the event construction of buildings,
<br /> improvements or�epairs are contemplated, Trustor also agrees, anything in this Deed of Trust to the contrary no[withstanding; (a) to
<br /> promptly commence any such wo�k and to complete the proposed imp�ovements promptly, (bl to complete the same in accordance with the
<br /> plans and specifications as approved by Beneficiary, (c/ to comply with a!l the terms of a building loan agreement, if any, between Trustor
<br /> and Beneficiary, the terms of which a�e incorporated herein by�eference and made a part hereof, (dJ to allow Beneficiary to inspect the Trust
<br /> Property at all times during construction, and(e/ to replace any work o�materials unsatisfactory to Beneficiary within fifteen (15) days after
<br /> written notice from Beneficiary of such fact.
<br /> 4. Funds for Paymeni of Charges. lf requested ai any time or f�om time to time by the Beneficiary, Trustor shall pay to Beneficiary on the
<br /> fi�st day of each month, or such other date each month as may be specified by Beneficiary, until the Obligations a�e paid in full, a sum
<br /> (hereinafter the "Funds") equal to 1/12th of the yearly taxes and assessments which may attain priority over this Deed of Trust and g�ound
<br /> rents on rhe Trust Property, if any,plus 1/12th of the yea�/y premium insta//ments for hazard insurance,plus 1/12th of the year/y premium
<br /> insta/Iments for mortg�e insurance3�a� t/l is reasonab/y estimated initia//y and from time to time by Beneficiary on the basis of
<br /> assessments and bills end ieasahab)e�s�Yhn�a'tes thereof. The Funds shall be held in an institution, the deposits or accounts of which are
<br /> insured or guaranteed by a federa/or state agency inc/uding Beneficiary. Beneficiary sha//app/y the Funds to pay said taxes, assessments,
<br /> insurance premiums and ground rents. Beneficia�y shall not be required to pay T�ustor any rnterest or earnings on the Funds. Beneficiary sha!!
<br /> give to Trustor, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each
<br /> debit to the Funds was made. The Funds are pledged as additiona/security for the Obligations secured by this Deed of Trust. lf the amount
<br /> of the Funds held by Beneficiary, togethe�with the�uture monthly installments of Funds payable p�io�to the due dates of taxes,
<br /> assessments, rnsurance premiums and ground�ents, shall ex�ceed the amount re�auired to pay said taxes, assessments, insurance premiums
<br /> and ground rents as they fall due, such excess shall be, at 7;rustor's option, either prornptly�epaid to Trustor o�credited to Trustor against
<br /> future monthly installments of Funds. 1f the amount of the Funds held by Beneficiary shall not be sufficient to pay taxes, assessments,
<br /> insurance premiums and ground rents as they fall due, Trustor shall pay to Beneficiary any amount necessary to make up the deficiency
<br /> within thirty days f�om the date notice is mailed by Beneficiary to Tiustor requesting payment thereof. Upon payment in full of all
<br /> Obligations, Beneficiary shall promptly refund to Trusto�any Funds held by Beneficiary. lf the Tiust Property is sold under the power of sale
<br /> or the Trust Property is otherwise acquired by Beneficiary, Beneficiary shall apply, immediately prior to the sale of the Tiust Property or its
<br /> acquisition by Beneficiary, any Funds held by Beneficiary at the time of application as a credit against ihe Obligations. lf Beneficia�y executes
<br /> a written waiver of Trustor's obligations under this Section, T�ustor covenants and agrees to pay, before the same become delinquent, all
<br /> taxes, assessments, insurance premiums, g�ound rents, and all other charges whatsoever levied upon or assessed,placed o�made against
<br /> the Trust P�operty. Trustor further ag�ees, upon written request by Beneficiary, to promptly deliver to Beneficiary all receipts for ihe payment
<br /> of such charges. T�ustor likewise agrees to pay all taxes, assessments and other charges levied upon or assessed,placed or made against,
<br /> or measured by, this Deed of Trust or the reco�dation hereof.
<br /> 5. App/ication of Payments. All payments received by Beneficiary as to any debt, liability or obligation owed to Beneficiary by T�ustor may
<br /> be applied by Beneficiary to the payment of the Obligations in any order o�manner of application which Beneficiary, in its absolute discretion,
<br /> deems appropriate.
<br /> 6. Charges;Liens. Trusior will keep the Trust Property free from all liens and encurrrbrances, whether prior or subordinare to this Deed of
<br /> Trust, other than the/ien of current rea/estate taxes and insta//ments of officia/assessme�nts with respect to which no pena/ty is yei
<br /> payable;provided, however, that Trustor need not discharge any such lien so long as Trustor shall agree, in writing, to pay the obligarion
<br /> secured by such lien in a manner acceptable to Beneficiary and shall in good faith contest such lien by appropriate legal proceedings effective
<br /> to prevent the enforcement of the lien or the loss of any inierest in o�part of the T�ust Property, and shall also give such reasonable secu�ity
<br /> to Beneficiary as may be demanded by Beneficiary to insure compliance therewith. The Beneficiary may in its sole discretion defend the lien
<br /> of this Deed of Trust and al!costs and attorneys'fees incurred by Beneficiary in said defense shall be�eimbursed by Trustor or added to the
<br /> Obliga tions.
<br /> 7. Hazard/nsurance. Trustor shall keep the buildings and other improvements now existing or hereafter erected on the Trust Property
<br /> insured by insurance carriers satisfactory to Beneficiary against/oss by fire, haza�ds included in the term "extended cove�age"and such
<br /> oiher hazards, casualties and contingencies, including war damage insurance, as may be required by Beneficia�y, in such amounts and for
<br /> such periods as may be required by Beneficiary. The policy of insurance shall be in form acceptable to Beneficiary and shall not contain a
<br /> defense based on coinsu�ance, and shall contain the standard provision that no act of the Beneficiary or of the Beneficiary's agents or
<br /> representatives will render the policy void as to the Beneficiary or affecr the Beneficiary's right to recover in case of loss, and the policy o�
<br /> oolicies Shal!p.rovide th,at l�h�same may nor ae canceled or modified without fifteen 1151 days prior written notice to Beneficiary, and have
<br /> loss payable provisions in favor of and in form acceptable to Beneficiary.All premiums on insurance policies shall be paid in the manner
<br /> provided unde�the Seciion entitled "Funds for Payment of Cha�ges"herein or, if not paid in such manner, by Trusto�making payment at
<br /> least fifteen I15/days p�ior to the due date, di�ecily to ihe insurance carrier. Beneficiary shall have the right to hold the policies and renewals
<br /> thereof and Trustor shall p�omptly furnish to Beneficiary all renewal notices and all paid premium receipts received by it. ln no event shall
<br /> Beneficiary or Trustee be he/d responsib/e for fai/ure to pay insu�ance p�emiums or for any/oss or damage arising out of a defect in any
<br /> policy or arising out of any failure of any insurance company to pay for any loss or damage insured against or for failure by Trustor to effect
<br /> the insurance required hereunder. ln the event of loss, Trustor shall give prompt notice by mail to the insurance carrier and Beneficiary.
<br /> Beneficiary may make proof of loss if not made p�omptly or in prope�form by Trustor. All policies of insurance and any and all refunds of
<br /> unearned premiums are he�eby assigned to Beneficiaiy as additional security for the payment of the Obligations. ln the event of Beneficiary's
<br /> exercise of the power of sale contained herein, or in the event of forec%sure, all right„title and interest of Trustor in and to any insurance
<br /> policy then in force shall pass to the purchaser ai the trustee's sale or fo�eclosure sale. ln case of any loss, the insurance proceeds may, at
<br /> the option of Beneficiary, be applied by Beneficia�y upon the Obligations, o�any part thereof, and in such orde�and amount as Beneficia�y
<br /> may determine;or said insurance proceeds, at the option of Beneficiary, may either be used in repJacing or restoring the Trust Property
<br /> partially or totally destroyed to a condition satisfactory to Beneficiary,•or said insurance proceeds, or any portion thereof, may be released to
<br /> Trusto�. Unless Beneficiary and Trusto�othe�wise agree in writing, any such application of insu�ance proceeds shall not extend or postpone
<br /> the due date of any note or agreement evidencing the Obligations, or any installments called for therein, or change the amount of such
<br /> installments. lf the T�ust Property is acquired by Beneficiary pu�suant to the exe�cise of the power of sale or other foreclosure, all right, title
<br /> and interest of Trustor in and to any insurance proceeds payable as a result of damage to the Trust Propeity prior to the sale or acquisition
<br /> shall pass to Beneficiary and sha//be applied first to ihe costs and expenses, including attorneys'fees, incurred in collecting such proceeds,
<br /> then in the manner and in the order provided herein. Notwithstanding anything contained in this Section to the contrary, if this Deed of Trust
<br /> is on a condominium or a town house and there is a master insurance policy in force covering the common areas and facilities and all
<br /> condominiums and town houses located in that development, then, unless otherwise notified in writing by the Beneficiary, the Trustor shall
<br /> have no obligation to maintain the insurance required hereunder, and will assign all benefits and proceeds received thereon to the Beneficiary
<br /> and, in the Beneficia�y's sole discretion, name the Beneficiary as the named insured on said policy. Whenever such insu�ance is in force
<br /> (rega�dless of whether requested by the Beneficiaiy or not) the Trustor hereby authorizes the Beneficiary to cancel such insurance whenever
<br /> the Beneficiary determines that such insurance does not adequately protect the Beneficia�y's interest.
<br /> 8. Preservation and Maintenance of Tiust Property. Trustor will keep the buildings and other improvements now or he�eafter e�ecied on the
<br /> Trust Property in good�epair and condition, ordinary depreciation excepted, and shall provide all vtility services necessary for the operation
<br /> and preservation of the Trust Property. T�ustor will not commit or permit waste, will not alter the design or structu�al character constituting
<br /> any building now o�hereafte�erected on and constituting the_Trust Propefty_.without thp prior written consent of Beneficiary, will not do any
<br /> act or thing which would unduly impair or dep�eciate the va7ue of the Trust Prope�ty and will not abandon the Trust Properiy. Trustor will not
<br /> remove any fixtures constituting the Trust P�operty unless the same are immediately replaced with like property subject to the lien and
<br /> security interest of this Deed of Trust and of at/east equa/va/ue and uti/ity. Trustor wi//comp/y with a//present and future ordinances,
<br /> �egulations and�equiremenrs of any governmental body which are applicable to the T�ust Property and to the occupancy and use thereof. lf
<br /> this Deed of Trust is on a unit in a condominium or a planned unit deve%pment, Trustor shall perform all of Trusto�'s obligations under the
<br /> declarations or covenants creating or governing the condominium or the planned unit development, the bylaws and regulations of the
<br /> condominium o�planned unit development, and the constituent documents.
<br /> 9. /nspection. Beneficiary or its agents may, at all reasonable times, enter upon ihe Trust Property for the purpose of inspeciion including,
<br /> but not limited to environmental testing. Beneficiary shall have no duty to make such inspection and shall not be liable to Trustor or to any
<br /> person in possession if it makes or fails to make any such inspection.
<br /> 10. Protection of Secuiity. lf Trustor fails to perform any of the covenants and agreements contained in this Deed of Trusi, or if any action
<br /> or proceeding is commenced which does or may adversely affect the Trust P�operty oi the interest of Trustor or Beneficiary therein or the
<br /> title of Trustor thereto, then Beneficiary, at its option, may perform such covenants and agreements, make such appea�ances, defend against
<br /> and/or investigate such action or proceeding and take such other action as Beneficiary deems necessary to protect its interest including, but
<br /> not limired to, disbursement of reasonab/e attorneys'fees and entry upon the Trust Property to make repairs. Any amounts disbursed or
<br /> incuned by Beneficiary pursuant to this Section, including, but not limited to, reasonable attorneys'fees, with inferest thereon, shall
<br /> constitute additional Obligations secured by this Deed of Tiust. Beneficiary is hereby given an inevocable power of aitorney lwhich power is
<br /> coupled with an inte�est for purposes of securityJ to enter upon the Trust Property as ihe Trustor's agent and in the Trustor's name to
<br /> perform any and all covenants and agreements to be performed by the Trustor as heiein provided. Unless Trustor and Bene£icia�y agree to
<br /> other terms of payment, such amounis sha//be payab/e upon notice from Beneficiary to Trustor requesting payment thereof, and sha//bear
<br /> interest from the date of disbursement or the date incuned at the�ate set forth in the Note or the rate provided in the most recent obligation
<br /> covered by the Guaranty, unless payment of interest at such rate would be contrary to applicable law, in which event such amounts shall
<br /> bear interest at the highest rate permitted by applicab/e law. Nothing contained in this paragraph shall require Beneficiary to incur any
<br /> expense or take any action hereunder. Beneficiary sha!l, at its option, be subrogated to any encumbrance, lien, claim or demand and to all
<br /> rights and securities for the paymeni thereof paid or discharged by Beneficiary under the provisions hereof and any such subrogation rights
<br /> shall be additiona/and cumu/ative securitv for this Deed of Trust. o..,.,. � ,.,� .�
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