|
99 106541
<br /> 2. Peyment of/ndebtedness. Tiustor shall prom tl � ,
<br /> p y pay or cause to be paid when due the Obligations and all other indebtedness. The
<br /> Trustor sha//a/so prompt/y and faithfu//y obseive a//of its ob/igations under any other deed of trust encumbering a//or part of the Trust
<br /> P�operty and, if applicable, any promissory note, guaranty, or other te�m of contractual indebtedness secured by such other deed of trust,
<br /> whether junior or senior to the lien of this Deed of Trusf, 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/mp�ovements. Trustor shall complete in good and workmanlike manner any buildings, improvements or�epairs relating
<br /> the�eto which may be begun on the Trust Property or contemplated by the Obligations secured hereby, to pay when due all cosis and
<br /> liabilities incur�ed therefor, and not to permit any const�uction lien against such Trust Property. ln the event construction of buildings,
<br /> improvements or repairs are contemplated, Trusto�also agrees, anything in this Deed of Trust to the contra�y notwithstanding; (a) to
<br /> promptly commence any such work and to complete the proposed improvements promptly, (bl to complete the same in accordance with ihe
<br /> plans and specifications as approved by Beneficiary, (c1 to comply with all the terms of a building loan agreement, if any, between Trustor
<br /> and Beneficiary, the terms of which are incorporated herein by reference and made a part hereof, /dl to allow Beneficiary to inspect the Trust
<br /> Property at all times du�ing construction, and/el to replace any work or mate�ials unsatisfactory to Beneficiary within fifteen (151 days afte�
<br /> written notice from Beneficiary of such fact.
<br /> 4. Funds for Payment of Charges. lf requested at any time or fiom time to time by the Beneficia�y, Trusto�shall pay to Beneficiary on the
<br /> first day of each month, or such other date each month as may be specified by Beneficiary, until the Obligations are paid in full, a sum
<br /> lhereinafter the "Funds")equal to 1/12th of the yearly taxes and assessments which may attain prio�ity ove�this Deed of Trust and g�ound
<br /> �ents on the Trust Property, if any,plus 1/12th of the yearly premium insta!lments for haza�d insurance,plus 1/12th o{the yearly premium
<br /> installmenis for mortgage insu�ance, if any, all as reasonably estimated initially and from time to time by Beneficiary on the basis of
<br /> assessments and bi//s and reasonab/e estimates the�eof. The Funds sha//be he/d in an institution, the deposits or accounrs of which are
<br /> insured or guaranieed by a federal or state agency including Beneficiary. Beneficia�y shall apply the Funds to pay said taxes, assessments,
<br /> insurance premiums and g�ound rents. Beneficiary shall not be required to pay Tiustor any interest or ea�nings on the Funds. Beneficiary shall
<br /> give to Trustor, without charge, an annual accounting of the Funds showing credits and debits to ihe Funds and the purpose for which each
<br /> debit to the Funds was made. The Funds are pledged as additional security for the Obligations secured by this Deed of Trust. lf the amount
<br /> of the Funds held by Beneficiary, together with the future monthly installments of Funds payable prior to the due dates of taxes,
<br /> assessments, insurance premiums and ground rents, sha//exceed the amount required to pay said taxes, assessmenis, insurance p�emiums
<br /> and g�ound rents as they fall due, such excess shall be, at Trusto�'s option, either promptly repaid to Trustor or credited to Trustor against
<br /> future month/y insta//ments of Funds. /f the amount 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, Tiustor 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 Trustor requesting payment thereof. Upon payment in full of all
<br /> Obligations, Beneficiary shall promptly refund to Trustor any Funds held by Beneficiary. lf the Tiust Property is sold under the power of sale
<br /> or the Trust Property is othe�wise acquired by Beneficiary, Beneficiary shall apply, immediately prior to the sale of the Trust Property o�its
<br /> acquisition by Beneficiary, any Funds held by Beneficiary at the time of application as a credit against the Obligations. lf Beneficiary executes
<br /> a written waiver of Tiusior's obligations under this Section, Trusto�covenants and agrees to pay, befo�e the same become delinquent, all
<br /> taxes, assessments, insurance premiums, ground rents, and all othe�charges whatsoever levied upon or assessed,placed or made against
<br /> the Trusi Property. Trustor further agrees, upon written request by Beneficiary, to promptly delive�to Beneficiary all receipts for the payment
<br /> of such charges. Trustor likewise agrees to pay all taxes, assessments and othe�charges levied upon or assessed,placed or made against,
<br /> or measu�ed by, ihis Deed of Trusi or the recordation hereof,
<br /> 5. App/ication of Payments. All payments received by Beneficia�y 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 manne�of application which Beneficiary, in its absolure discretion,
<br /> deems appropriate.
<br /> 6. Charges;Liens. Trustor will keep the T�ust Property f�ee from all liens and encumbrances, whether prior or subordinate to this Deed o£
<br /> T�ust, other than the lien of current real estate taxes and instaJlments of official assessments with respect to which no penalty is yet
<br /> payable;provided, however, that Trustor need not discharge any such lien so long as Trustor 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
<br /> to prevent the enforcement of ihe lien or the loss of any interest in or part of the Trust Property, and shall also give such reasonable security
<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 all costs and attorneys'fees incurred by Beneficiary in said defense shall be reimbursed by Trustor or added to the
<br /> Obligations.
<br /> 7. Hazard/nsurance. Tiustor sha//keep the bui/dings and other improvements now existing or hereafter erected on the T�ust Property
<br /> insured by insurance caniers satisfactory to Beneficiary against loss by fire, hazards included in the term "exiended coverage"and such
<br /> other hazards, casua/ties and contingencies, inc/uding war damage insurance, as may be required by Beneficiary, in such amounts and fo�
<br /> such periods as may be required by Beneficiary. The policy of insurance shall be in form accepfable to Beneficiary and shall not contain a
<br /> defense based on coinsurance, and shall contain the standard provision that no act of the Beneficiary or of the Beneficia�y's agents or
<br /> representatives will render the policy void as to the Beneficiary or affect the Beneficiary's�ight to recover in case of loss, and the policy or
<br /> policies shall provide that the same may not be canceled or modified without fifteen (151 days prior w�itten 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 Section entit/ed "Funds fo�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, di�ectly to the insurance carrier. 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�eceived by it. ln no event shall
<br /> Beneficrary or Trustee be he/d responsible for failure to pay insu�ance premiums or for any loss 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 shad give prompi notice by mail to the insurance ca�rie�and Beneficiary.
<br /> Beneficiary may make p�oof of loss if not made promptly or in proper form by Trustor. All policies of insurance and any and all�efunds of
<br /> unearned p�emiums 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, or in ihe event of forec%sure, all right, title and interest of Trustor in and to any insurance
<br /> policy then in fo�ce 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 p�oceeds, at the option of Beneficiary, may either be used in replacing or restoring the Trust Prope�ty
<br /> partially or totally destroyed to a condition satisfactory to Beneficiary;or said insu�ance proceeds, or any portion thereof, may be released to
<br /> Trustor. Unless Beneficiary and Trustor otherwise agree 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 /> installmenis. lf the Trust Property is acquired by Beneficiary pursuant to the exercise ofi the power of sale o�other foreclosure, all right, title
<br /> and interest of Trustor in and to any insurance proceeds payab/e as a resu/t ol damage to the Trust Prope�ty prior to the sa/e or acquisition
<br /> sha//pass to Beneficiary and sha//be app/ied fi�st to the costs and expenses, inc/uding attorneys'fees, incur�ed in co//ecting such proceeds,
<br /> then in the manner and in the o�der provided herein. Notwithstanding anything contained in this Section to the contrary, if this Deed of T�ust
<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/ocated in that deve%pment, then, unless otherwise notified in writing by the Beneficiary, the Trustor sha//
<br /> have no obligation to maintain the insurance required hereunder, and will assign all benefits and proceeds received the�eon to the Beneficiary
<br /> and, in the Beneficiary's so/e disc�etion, name the Beneficiary as the named insured on said po/icy. Whenever such insurance is in force
<br /> (regardless of whether requested by the Beneficiary or notl the Trustor hereby authorizes the Beneficia�y to cancel such insurance whenever
<br /> ihe Beneficiary dete�mines that such insu�ance does not adequately protect the Beneficia�y's interest.
<br /> 8. Preservation and Maintenance of Trust Pioperty. Trustor will keep the buildings and other improvements now or hereafter erected on the
<br /> Trust Property in good repai�and condition, ordinary depreciation excepted, and shall p�ovide all utility services necessary for the operarion
<br /> and preservation of the Trust Property. Trustor will not commit or permit wasfe, will not alte�the desrgn or structural characte�constituting
<br /> any building now or hereafter e�ected on and constituting the T�ust Property without the prior wriiten 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 the T�ust Property. Trustor will not
<br /> iemove any fixtures constituting the Trust Property un/ess the same are immediate/y rep/aced with/ike property subject to the/ien and
<br /> secu�ity interest of this Deed of Trust and of at/east equa/va/ue and utility. T�ustor wi//comp/y with a/!p�esent and future o�dinances,
<br /> regulations and requirements of any governmental body which are applicable to the Trust Property and to the occupancy and use the�eof. lf
<br /> this Deed of Trust is on a unit in a condominium or a planned unit development, Trustor shall pe�form all of Trustor's obligations under the
<br /> declarations o�covenants creating or governing the condominium or the planned unit deve%pment, the bylaws and regulations of the
<br /> condominium or planned unit development, and the constituent documents.
<br /> 9. /nspeciion. Beneficiary or its agents may, at all reasonable fimes, enter upon the Trust Property for the purpose of inspection including,
<br /> but not limited to environmental testing. Beneficiary shall have no duty to make such inspection and shall not be liable to T�ustor o�to any
<br /> person in possession if it makes o�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, o�if any action
<br /> or proceeding is commenced which does or may adversely affect the Trust Property or the interest of Trustor or Beneficiary therein or the
<br /> title of Trustor thereto, then Beneficia�y, at its option, may perform such covenants and agreements, make such appearances, defend against
<br /> and/or investigate such action o�p�oceeding and take such other action as Beneficiary deems necessary to protect its interest including, but
<br /> not limited to, disbu�sement of reasonable attorneys'fees and entry upon the Tiust Property to make repairs. Any amounts disbursed or
<br /> incurred by Beneficiary 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 Trust. Beneficiary is hereby given an irrevocable power of attorney(which power is
<br /> coupled with an interest for purposes of securityJ to enter upon the Trust Property as the Trustor's agent and in the Trusior's name to
<br /> pe�fo�m any and all covenants and agreements to be performed by the Trustor as herein provided. Unless Trustor and Beneficiary agree to
<br /> other terms of paymeni, such amounts shall be payable upon notice from Beneficiary to Trustor requesting payment thereof, and shall bear
<br /> interest from the date of disbursement or the date incurred at the�ate set forth in the Note o�the�ate provided in the most recent obligation
<br /> covered by the Guaranty, un/ess 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 applicable law. Nothing contained in this paragraph shall require Beneficiary to incur any
<br /> expense or take any action hereunder. Beneficiary shall, at its option, be subrogated to any encumbrance, lien, claim o�demand and to all
<br /> rights and securities for the payment thereof paid or discha�ged by Beneficiary under the provisions he�eof and any such subrogation rights
<br />
|