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<br />2. Payment of Indebtedness. Trustor shall promptly pay or cause to be paid when
<br />due the Obligations and all other indebtedness. The Trustor shall also promptly and faithfully
<br />observe all of its obligations under any other deed of trust encumbering all or part of the Trust
<br />Property and, if applicable, any promissory note, guaranty, or other term of contractual
<br />indebtedness secured by such other deed of trust, whether junior or senior to the lien of this
<br />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 Improvements. Trustor shall complete in good and
<br />workmanlike manner any buildings, improvements or repairs relating thereto which may be
<br />begun on the Trust Property or contemplated by the Obligations secured hereby, to pay when
<br />due all costs and liabilities incurred therefore, and not to permit any construction lien against
<br />such Trust Property. In the event construction of buildings, improvements or repairs are
<br />contemplated, Trustor also agrees, anything in this Deed of Trust to the contrary
<br />notwithstanding; (a) to promptly commence any such work and to complete the proposed
<br />improvements promptly, (b) to complete the same in accordance with the plans and
<br />specifications as approved by Beneficiary, (c) to comply with all the terms of a building loan
<br />agreement, if any, between Trustor and Beneficiary, the terms of which are incorporated herein
<br />by reference and made a part hereof, (d) to allow Beneficiary to inspect the Trust Property at all
<br />times during construction, and (e) to replace any work or materials unsatisfactory to Beneficiary
<br />within fifteen (15) days after written notice from Beneficiary of such fact.
<br />4. Funds for Payment of Charges. If requested in writing at any time or from time
<br />to time by Beneficiary, and subject to any payments made by Trustor of the taxes and insurance
<br />identified in this paragraph 4 to the holder of a lien on the Trust Property granted in connection
<br />with the Wells Bond Financings, Trustor shall pay to Beneficiary on the first day of each month,
<br />or such other date each month as may be specified by Beneficiary, until the Obligations are paid
<br />in full, a sum (hereinafter the "Funds ") equal to 1/12th of the yearly taxes and assessments
<br />which may attain priority over this Deed of Trust and ground rents on the Trust Property, if any,
<br />plus 1/12th of the yearly premium installments for hazard insurance, plus 1/12th of the yearly
<br />premium installments for mortgage insurance, if any, all as reasonably estimated initially and
<br />from time to time by Beneficiary on the basis of assessments and bills and reasonable estimates
<br />thereof. The Funds shall be held in an institution, the deposits or accounts of which are insured
<br />or guaranteed by a federal or state agency including Beneficiary. Beneficiary shall apply the
<br />Funds to pay said taxes, assessments, insurance premiums and ground rents. Beneficiary shall
<br />not be required to pay Trustor any interest or earnings on the Funds. Beneficiary shall give to
<br />Trustor, without charge, an annual accounting of the Funds showing credits and debits to the
<br />Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as
<br />additional security for the Obligations secured by this Deed of Trust. If the amount of the Funds
<br />held by Beneficiary, together with the future monthly installments of Funds payable prior to the
<br />due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the
<br />amount required to pay said taxes, assessments, insurance premiums and ground rents as they
<br />fall due, such excess shall be, at Trustor's option, either promptly repaid to Trustor or credited to
<br />Trustor against future monthly installments of Funds. If the amount of the Funds held by
<br />Beneficiary shall not be sufficient to pay taxes, assessments, insurance premiums and ground
<br />rents as they fall due, Trustor shall pay to Beneficiary any amount necessary to make up the
<br />deficiency within thirty days from the date notice is mailed by Beneficiary to Trustor requesting
<br />payment thereof. Upon payment in full of all Obligations, Beneficiary shall promptly refund to
<br />Trustor any Funds held by Beneficiary. If the Trust Property is sold under the power of sale or
<br />DOCS 146876.8 1582098
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