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99 106539
<br /> 2. Payment of/ndebtedness. Trustor shall promptly pay or cause to be paid when due the Obligations and all other indebtedness. The �
<br /> Trustor shall also promptly and faithfully 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 coniractual indebtedness secured by such othe�deed of trusi,
<br /> whethe�junior or senior to ihe lien of this Deed of Tiust, and any other obligations secured by a lien on ihe Trust Property, whether arising
<br /> consensually or by ope�ation of law.
<br /> 3. Construction of/mprovemenis. Tiustor shall complete in good and workmanlike manner any buildings, improvements or repairs relating
<br /> the�eto which may be begun on the Trust Property or contemplated by the Obligations secured hereby, to pay when due all costs and
<br /> liabilities incuned therefor, and not to permit any construction lien against such Trust Property. ln the event const�uction of buildings,
<br /> improvements or repairs are contemplated, Trustor also agrees, anything in this Deed of Tiust to the contrary notwithstanding; lal to
<br /> promptly commence any such work and to complete the p�oposed improvements promptly, (bl to complete the same in acco�dance with the
<br /> plans and specifications as approved by Beneficiary, (cJ to comply with all the terms of a building loan agreement, if any, between Trustor
<br /> and Beneficiary, the te�ms of which are inco�porated herein by reference and made a part hereof, (dl 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 fifteen (15) days after
<br /> written notice from Beneficiary of such fact.
<br /> 4. funds for Payment of Charges. /f requested at any time or from time to time by the Beneficiary, Trustor sha//pay to Beneficiary on the
<br /> first day of each month, or such other date each month as may be specified by Beneficiary, until ihe Obligations a�e paid in full, a sum
<br /> (hereinafter ihe "Funds"J equa/to 1/12ih of the yea�/y taxes and assessments which may attain priority over this Deed of Trust and ground
<br /> rents on the Trust Property, if any,p/us 1/12ih of the yeai/y premium insta//ments for haza�d insurance,p/us 1/12th of the year/y premium
<br /> installments for mortgage insurance, if any, a!l as reasonably estimated initially and from time to time by Beneficiary on the basis of
<br /> assessments and bi//s and�easonab/e estimates ihereof. The Funds sha//be he/d in an institution, the deposits or accounts of which are
<br /> insu�ed or guaranteed by a federal or state agency including Beneficiary. Beneficiary shall apply the Funds to pay said taxes, assessments,
<br /> insurance p�emiums and ground rents. Beneficiary shall not be required to pay Trustor any interest or ea�nings on the Funds. Beneficiary shall
<br /> ive to Trusto� without char e an annual n '
<br /> , accou tin of the Funds sh wi
<br /> 9 , o n credits and debit h
<br /> 9 s to t e Funds and the ur f �
<br /> 9 9 ose o which each
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<br /> debit to the Funds was made. The Funds are pledged as additional security for the Obligations secured by this Deed of Trust. l!the amount
<br /> of the Funds held by Beneficia�y, together with ihe futu�e monthly installments of Funds payable p�ior to the due dates of taxes,
<br /> assessments, insu�ance premiums and ground rents, sha//exceed the amount requi�ed to pay said taxes, assessments, insurance p�emiums
<br /> , and ground rents as they fall due, such excess shall be, at T�usto�'s option, either promptly repaid to Trustor o�credited to Trustor against
<br /> future monthly installments of Funds. lf the amount of the Funds held by Beneficiary shall not be sufficient to pay taxes, assessments,
<br /> insurance premiums and ground rents as they fa//due, Tiustor sha//pay to Beneficiary any amount necessary to make up the deficiency
<br /> wirhin thirty days fiom the date notice is mai/ed by Beneficiary to Trustor requesting payment thereof. Upon payment in fu//of a//
<br /> Obligations, Beneficia�y shall promptly refund to T�ustor any Funds held by Beneficiary. lf the Trust Property is sold under the power of sale
<br /> o�the Trust Property is otherwise acquired by Beneficiary, Beneficiary shall apply, immediately prior to the sale of the Trust Property o�its
<br /> acquisition by Beneficiary, any Funds he/d by Beneficiary at the time of application as a credit against the Obligations. lf Beneficiary executes
<br /> a written waiver of T�ustor's ob/igations unde�this Seciion, Tiustor covenants and ag�ees to pay, before the same become de/inquent, a//
<br /> taxes, assessments, insurance premiums,g�ound rents, and all other charges whatsoever levied upon or assessed,placed or made against
<br /> the Trust P�operty. 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, assessmenis and othe�charges levied upon or assessed,placed or made against,
<br /> or measured by, this Deed of Trust or the recordation hereof.
<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 or manner of application which Beneficia�y, in its absolute discretion,
<br /> deems appropriate.
<br /> 6. Charges;Liens. Trustor wi//keep the Tiust Property free from a///iens and encumbrances, whether prior or subordinate to this�eed 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 T�ustor shall agree, in writing, to pay the obligation
<br /> secured by such lien in a manner acceptable to Beneficiary and shall in good faith contest such lien by appropriate legal proceedings effective i
<br /> to prevent the enforcement of the lien or the loss of any interest in or part of the Trust Prope�ty, and shall also give such reasonable security I
<br /> to Beneficia�y as may be demanded by Beneficiary to insure compliance therewith. The Beneficiary may in its so%discretion defend the lien
<br /> of this Deed of T�ust and all costs and attorneys'fees incur�ed by Beneficiary in said defense shall be reimbursed by Trustor or added to the
<br /> Obliga tions.
<br /> 7. Hazard/nsuiance. Trustor sha//keep the bui/dings and other improvements now existing or 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, casua/ties and contingencies, inc/uding war damage insu�ance, as may be required by Beneficiary, in such amounts and for
<br /> such periods as may be requi�ed by Beneficiary. The po/icy of insurance sha//be in fo�m acceptab/e to Beneficiary and sha//not contain a
<br /> defense based on coinsurance, and shall contain the standard p�ovision that no act of the Beneficiary or of the Beneficiary's agents or
<br /> �epresentatives will�ender the policy void as to the Beneficia�y or affect the Beneficiary's right to recover in case of loss, and the policy or
<br /> policies shall provide that the same may not be cance%d or modified without fifieen /151 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 under the Section entitled "Funds for Payment of Charges"herein or, if not paid in such manner, by Trusior making payment at
<br /> least fifteen (15)days prior to the due date, directly to the insurance ca��ier. Beneficiary shall have the right to hold the policies and renewals
<br /> thereof and Tiustor shal!p�omptly furnish to Beneficiary all renewal notices and all paid premium receipts received by it. ln no event shall
<br /> Beneficia�y o� Trustee be he/d responsib/e for fai/ure to pay insu�ance premiums 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 o�damage insu�ed against or for failure by Trustor to effect
<br /> the insurance required he�eunder. ln the event of loss, Tiustor shall give prompt notice by mail to the insurance canier and Beneficiary.
<br /> Beneficiary may make proof of loss if not made promptly or in proper form by Trustor. All policies of insurance and any and all refunds of
<br /> unearned premiums are hereby assigned to Beneficiary as additional security fo�the payment of the Obligations. ln the event of Beneficiary's
<br /> exercise of the power of sa/e contained herein, o�in the event of forec%su�e, a//right, tit/e and interesi 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 proceeds may, at
<br /> the option of Beneficiary, be applied by Beneficiary upon the Obligations, or any part thereof, and in such order and amount as Beneficiary
<br /> may determine;or said insurance proceeds, at the option of Beneficiary, may either be used in replacing or resto�ing the Trust P�operty
<br /> partially or totally destroyed to a condition satisfactory to Beneficia�y,•or said insurance proceeds, or any portion the�eof, may be�eleased to
<br /> Trustor. Un/ess Beneficiary and Tiustor otherwise agree in writing, any such app/ication of insu�ance proceeds sha//not eztend or postpone
<br /> the due date of any note or agreement evidencing the Obligations, or any installmenis ca!led for iherein, or change the amount of such
<br /> installments. lf the Trust Property is acqui�ed 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 p�oceeds payable as a resuli of damage to the T�ust Property prior to the sale or acquisition
<br /> shall pass fo Beneficiary and shall be applied first to the costs and expenses, including atto�neys'fees, incuned in collecting such proceeds,
<br /> then in the manner and in the order provided herein. Notwiihstanding 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 maste�insu�ance policy in fo�ce covering the common areas and facilities and all
<br /> condominiums and town houses located in that deve%pment, then, unless othe�wise notified in writing by the Beneficiary, the Trusto�shall
<br /> have no obligation to maintain the insurance required hereunder, and will assign al!benefits and proceeds received thereon to the Beneficia�y
<br /> and, in the Beneficiary's sole disc�etion,name the Beneficiary as the named insured on said policy. Whenever such insu�ance is in force
<br /> lregardless of whether requested by the Beneficiary or not/ the Trustor hereby authorizes the Beneficiary to cancel such insurance whenever
<br /> the Beneficia�y determines that such insurance does not adequately protect the Beneficiary's interest.
<br /> 8. Preservaiion and Maintenance of Tiust Property. Trustor will keep the buildings and othe�improvements now or hereafter erected on the
<br /> Trust Property in good repair and condition, ordinary depreciation excepied, and shall provide all utility services necessary for the operation
<br /> and preservation of the Trust P�operty. Trustor will not commit or permit waste, will not alter the design or structural character constituting
<br /> any building now o�hereafter erected on and constituting the Trust Property without the prio�written consent 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 Trust Property unless the same are immediately�eplaced with like property subject to the lien and
<br /> secu�ity inierest of this Deed of Trust and of at least equal value and utility. T�ustor will comply with all present and future ordinances,
<br /> regulations and requirements 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 pe�fo�m all of Trustor's obligations under the
<br /> declarations or covenants creating or governing the condominium or the planned unit development, the bylaws and regulations oi the
<br /> condominium or planned unit development, and the constituent documents.
<br /> 9. /nspection. Beneficiary or its agents may, at all reasonable times, enier upon the Trust Property for the purpose of inspection including,
<br /> but not/imited to environmental testing. Beneficiary sha//have no duty to make such inspection and sha//not be/iab/e to Trustor o�to any
<br /> person in possession if it makes or fails to make any such inspection.
<br /> 10. Protection of Security. lf Trustor fails to pe�fo�m any of the covenants and agreements contained in this Deed of T�ust, or if any action
<br /> o�proceeding is commenced which does o�may adversely affect ihe Trust Prope�ty or the interest of Trustor o�Beneficiary therein or the
<br /> title of Trustor thereto, then Beneficiary, at its option, may pe�form such covenants and ag�eements, make such appearances, de{end 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/imited to, disbursement of reasonable attorneys'fees and ent�y upon the Trust P�ope�ty to make repai�s. Any amounis disbursed or
<br /> incuned by Beneficia�y pursuant to this Section, including, but not limited to, reasonable attorneys'fees, with interest thereon, shall
<br /> constitute additional Obligations secured by this Deed of Tiust. Beneficiary is hereby given an inevocable power of attorney(which power is
<br /> coupled with an inte�est for purposes of security) to enter upon the Trust Property as the Trustor's agent and in the Trustor's name to
<br /> perform any and all covenanis and ag�eements to be performed by the Trusto�as herein provided. Unless Trustor and Beneficiary agree to
<br /> other terms of payment, such amounts sha//be payab/e upon notice from Beneficiary to Trustor requesting payment thereof, and sha//bear
<br /> inierest from the date of disbursement o�the date incurred at the rate set forth in the Note or the rate provided in the most recent obligation
<br /> covered by the Guaranty, un/ess payment of interest at such rate wou/d be contrary to applicab/e/aw, in which event such amounts shall
<br /> bear interest at the highest rate pe�mitted by applicab/e/aw. Nothing contained in this paragraph shall require Beneficiary to incur any
<br /> expense or take any action hereunde�. Beneficiary shall, at its option, be subrogated to any encumbrance, lien, claim or demand and to a//
<br /> rights and securities for the payment ihereof paid or discharged by Beneficiary under the provisions hereof and any such subrogation rights
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