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2. Payment of/ndebtedness. Trustor shall promptly pay or cause to be paid when due the Obligations and all other indebtedness. Th& !
<br /> Trustor shall also p�omptly and faithfully observe all of its obligations under any othe�deed of trust encumbering all or part of the Trust
<br /> Property and, if applicable, any promissoiy note, guaranty, or other term of contractual indebtedness secured by such other deed of trust,
<br /> whether junior or 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, improvements or repairs relating
<br /> thereto which may be begun on the Trust P�operty or contemplated by the Obligations secured he�eby, to pay when due all costs and
<br /> liabilities incurred therefor, and not to pe�mit any construction lien against such Trust P�opeity. ln the event const�uction of buildings,
<br /> improvements or repairs a�e contemplated, Trustor also agrees, anything in this Deed of Trust to ihe contrary notwithsianding; (a/ to
<br /> � promptly commence any such wo�k and to complete the proposed improvements prompily, (bJ to complete the same in accordance with the
<br /> � plans and specifications as approved by Beneficia�y, (c1 to comply with all the te�ms of a building loan agreement, if any, between Trusto�
<br /> � and Beneficiary, the terms of which are incorporated herein by reference 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 or materials unsatisfactory to Beneficiary within fifieen (151 days after
<br /> �„Q wriiten notice from Beneficiary of such fact.
<br /> � 4. Funds for Payment of Charges. lf requested at any time or from time to time by the Beneficiary, Trustor shall pay to Beneficia�y on the
<br /> �""� first day of each month, oi such other date each month as may be specified by Beneficiaiy, unti/the Ob/igations are paid in fu//, a sum
<br /> (hereinafter the "Funds"J equa/to 1/12th of the year/y taxes and assessments which may attain priority over this Deed of Trust and g�ound
<br /> � rents on the Trust Property, if any,p/us 1/12th of the year/y premium insta//ments for hazard insurance,p/us 1/12th of the year/y premium
<br /> installmenis for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Beneficiary on the basis of
<br /> � assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution, the deposits or accounts of which are
<br /> insured or guaranteed by a federal or state agency including Beneficiary. Beneficiary shall apply ihe Funds to pay said taxes, assessments,
<br /> insurance premiums and g�ound�enis. Beneficiary shall not be required to pay Trustor any interest or earnings on the Funds. Beneficiary shall
<br /> give to Trustor, without charge, an annua/accouniing 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 a�e pledged as additional security for the Obligations secured by this Deed of T�ust. lf the amount
<br /> of the Funds held by Beneficiary, together with the future monihly installments of Funds payable p�io�to the due dates of taxes,
<br /> assessments, insurance premiums and ground�ents, sha//exceed the amount required to pay said taxes, assessments, insurance premiums
<br /> and ground�ents as they fall due, such excess shall be, at Trustor's option, either promptly repaid fo Trusror o�credited to Trusto�against
<br /> future month/y insta//ments of Funds. /f the amouni of the Funds he/d by Beneficiary sha//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 from the date notice is mailed by Beneficiary to T�ustor requesting payment thereof. Upon payment in full of all
<br /> Ob/igations, Beneficiary sha//prompt/y refund to Trusto�any Funds he/d by Beneficiary. /f the Trust Property is so/d under the powe�of sa/e
<br /> o�the Trust Prope�ty is otherwise acquired by Beneficiary, Beneficiary shall apply, immediately p�ior to the sale of the Trust Prope�ty or its
<br /> acquisition by Beneficia�y, any Funds held by Beneficiary at the time of application as a credit against the Obligations. lf Beneficiary executes
<br /> a written waiver of Trustor's ob/igations under this Section, Trustor covenants and agrees to pay, before the same become de/inquent, a//
<br /> taxes, assessments, insurance premiums, g�ound rents, and all othe�charges whatsoever levied upon or assessed,placed or made against
<br /> the Trust P�operfy. Trustor further agrees, upon written request by Beneficiary, to promptly deliver to Beneficiary all receipts for the payment
<br /> of such charges. Trustor 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 recordation he�eof.
<br /> 5. App/ication of Payments.All payments received by Beneficiary as to any debt, liability or obligation owed to Beneficiary by Trustor may
<br /> be applied by Beneficiary to the payment of the Obligations in any order o�manner of application which Beneficia�y, in its absolute disc�etion,
<br /> deems appropriate.
<br /> 6. Charges;Liens. Trustor will keep the Trust P�operty free fiom all liens and encumbrances, whether prior o�subo�dinate to this Deed of
<br /> Trust, other than the lien of current real estate taxes and installments of official assessments with respect to which no penalty is yet
<br /> payable;provided, howeve� that Trustor need not discharge any such lien so long as Trusto�shall agree, in writing, io pay the obligation
<br /> secured by such lien in a manner acceptable to Beneficiary and shall in good faith contest such lien by approp�iate legal proceedings effective
<br /> to prevent the enforcement of the lien or the loss of any interest in or part of the T�ust Property, and shall also give such reasonable security
<br /> to Beneficiary as may be demanded by Beneficiary to insure compliance therewiih. The Beneficiary may in its sole discretion defend the lien
<br /> of this Deed of Trust and all costs and attorneys'fees incurred by Beneficiary in said defense shall be�eimbu�sed by Trustor or added to the
<br /> Obliga tions.
<br /> 7. Hazard/nsurance. Trustor shall keep the buildings and other improvements now existing o�hereafter erected on the Trust Property
<br /> insured by insurance carriers satisfactory to Beneficiary against loss by fire, hazards included in the term "extended coverage"and such
<br /> other hazards, casualties and contingencies, including war damage insurance, as may be required by Beneficiary, in such amounts and for
<br /> such periods as may be requi�ed by Beneficia�y. The policy of insurance shall be in form acceptable to Beneficiary and shall not contain a
<br /> defense based on coinsurance, and sha//contain the standard provision that no act of the Beneficiary o�of the Beneficiary's agents or
<br /> representatives will render the policy void as to the Beneficiary or affect the Beneficiary's right to�ecover in case of loss, and ihe policy o�
<br /> policies shall provide that the same may not be canceled or modified without fifteen /151 days p�ior w�itten notice to Beneficiary, and have
<br /> /oss payable p�ovisions in favor of and in form acceptab/e to Beneficiary. A//premiums on insu�ance po/icies sha//be paid in ihe manner
<br /> p�ovided unde�the Section entitled "Funds for Payment of Charges"herein or, if not paid in such manner, by Trustor making payment at
<br /> least fifteen (15/days prior to the due date, directly to the insurance canier. Beneficiary shall have the right to hold the policies and renewals
<br /> thereof and Trustor shall promptly furnish to Beneficiary all renewal notices and all paid premium receipts received by it. ln no event shall
<br /> Beneficiary o� Trustee be held responsible for failure to pay insurance premiums o�for any loss o�damage arising out of a defect in any
<br /> po/icy or arising out of any fai/ure of any insurance company to pay for any/oss or damage insured against or for fai/ure by Trustor to effect
<br /> the insurance requi�ed hereunder. ln the event of loss, Trustor shall give prompt notice by mail to the insurance canie�and Beneficiary.
<br /> Beneficiary may make proof of loss if not made promptly or in propei form by Trustoi. All policies of insurance and any and all refunds of
<br /> unearned premiums are hereby assigned to Beneficiary as additional security for the payment of the Obligations. ln the event of Beneficiary's
<br /> exercise of the power of sale contained herein, o�in the event of foreclosu�e, all right, title and interest of Trustor in and to any insurance
<br /> policy then in force shall pass to the purchaser at the trustee's sale or foreclosure sale. ln case of any loss, the insurance p�oceeds may, at
<br /> the option of Beneficiary, be applied by Beneficiary upon the Obligations, or any pa�t thereof, and in such order and amount as Beneficiary
<br /> may determine;or said insurance p�oceeds, at the option of Beneficiary, may eithe�be used in�eplacing or restoring the Trust Property
<br /> partially or totally destroyed to a condition satisfactory to Beneficiary;or said insurance proceeds, or any po�tion thereof, may be released to
<br /> Trustor. Unless Beneficiary and Trustor otherwise ag�ee in writing, any such application of insurance 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 P�ope�ty is acquired by Beneficiary pursuant to the exercise of the powe�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 P�operty prior to the sale o�acquisirion
<br /> shall pass to Beneficiary and shall be applied first to the 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 cont�ary, if this Deed of Trust
<br /> is on a condominium o�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/ocated in that deve/opment, then, un/ess otherwise notified in wrifing by the Beneficiary, the Trustor sha//
<br /> have no obligation to maintain the insurance required hereunde�, and will assign all benefits and proceeds�eceived the�eon to the Beneficia�y
<br /> and, in the Beneficia�y's sole disc�etion, name the Beneficiary as the named insured on said policy. Whenever such insurance is in force
<br /> (regardless of whethe��equested by the Beneficiary or not) the Trusior he�eby authorizes the Beneficiary to cancel such insu�ance whenever
<br /> the Beneficiary determines that such insurance does not adequately protect the Beneficia�y's inte�est.
<br /> 8. Preservation and Mainienance of Trust Property. Trustor will keep the buildings and other improvements now or hereafter erected on the
<br /> Trusi Property in good repair and condition, ordinary depreciation excepted, and shall provide all utility services necessary for the operation
<br /> and preservation of the Trust P�operty. Trustor will not commit o�permit waste, will not alter the design or structural character constituting
<br /> any building now or hereafter erected on and constituting the Trust P�operty without the prior written consenf of Beneficiary, will not do any
<br /> act or thing which would unduly impair or depreciate the value of the Trust Property and will not abandon ihe Trust Property. Trustor will not
<br /> remove any fixtures constituting the Tiust Property unless the same are immediately replaced with like property subject to the lien and
<br /> security inte�est of ihis Deed of Trust and of at/east equa/va/ue and uti/ity. Trustor wi//comp/y with a//present and future ordinances,
<br /> �egu/ations and requirements of any governmenta/body which are app/icab/e to the Trust Property and to the occupancy and use thereof. /f
<br /> this Deed of Trust is on a unii in a condominium or a planned unit development, Trustor shall pe�form all of Trustor's obligations under the
<br /> declarations or covenants creating oi governing the condominium or the planned unit developmeni, the bylaws and regulations of the
<br /> condominium or planned unit development, and the constitueni documents.
<br /> 9. /nspection. Beneficiary or its agents may, at a//reasonab/e times, enter upon the Trust Property for the purpose of inspection inc/uding,
<br /> bui 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 /> pe�son in possession if it makes or fails to make any such inspection.
<br /> 10. Protection of Security. lf Trustor fails to perform any of the covenants and agreements contained in this Deed of Trust, or if any action
<br /> or proceeding is commenced which does or may adversely affect the Trust Prope�ty or the interest of Trustor or Beneficiary the�ein or the
<br /> title of Trustor ihereto, then Beneficiary, at its option, may perform such covenants and agreements, make such appearances, defend against
<br /> and/or investigate such action or proceeding and take such other action as Beneficiary deems necessary to p�otect its interest including, but
<br /> not limited to, disbursement of reasonable attorneys'fees and entry upon the Trust Property to make repairs. Any amounts disbursed or
<br /> incurred by Beneficiary pu�suant to this Section, including, but noi limited to, reasonable attorneys'fees, with interest thereon, shall
<br /> constitute additional Obligations secured by ihis Deed ofi Trust. Beneficia�y is hereby given an irrevocable power of attorney(which power is
<br /> coupled with an interest for purposes of securityl to enter upon the Trust Property as the Trusior's agent and in the Tiustor's name to
<br /> perform any and all covenants and agreements to be performed by the Trustor as herein p�ovided. Unless T�ustor and Beneficiary ag�ee to
<br /> other terms of payment, such amounis shall be payable upon notice from Beneficiary to T�ustor requesting payment thereof, and shall bear
<br /> interest f�om the date of disbursement or the date incur�ed at the rate set forth in ihe Note or the rate provided in the most recent obligation
<br /> covered by the Guaranty, unless payment of interest at such rate would be conirary to applicable law, in which event such amounts shall
<br /> bear interest at the highest rate pe�mitied by applicable law. Nothing contained in this parag�aph shall require Beneficiary to incur any
<br /> expense or take any aciion hereunder. Beneficiary shall, at its option, be subrogated to any encumbrance, lien, claim or demand and to all
<br /> riqhts and secu�ities for the payment ihereof paid o�discharged by Beneficiary unde�the provisions hereof and any such sub�ogation rights
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