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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. The
<br /> Trustor sha//a/so prompt/y and faithfu//y observe a//of its ob/igations under any other deed of t�ust encumbering a//o�part of the Trust
<br /> Property and, if applicable, any promissory note, guaranty, or other term of cont�actual indebiedness secured by such oiher 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. Construciion of/mp�ovements. Trustor shall complete in good and wo�kmanlike manner any buildings, improvements or repairs relating
<br /> ihereto which may be begun on ihe Trust Property or contemplated by ihe Obligaiions secured hereby, to pay when due a!l costs and
<br /> liabilities incur�ed therefor, and not to permit any construction lien against such Trust Property. ln the event construction of buildings,
<br /> improvements or repairs are contemplated, Tiustor also agrees, anything in ihis�eed of Trust to the contrary notwithstanding; (al to
<br /> promptly commence any such work and to complete the proposed improvements p�omptly, (bl to complete the same in accordance with the
<br /> plans and specifications as approved by Beneficiary, /cl to comply with all the terms of a building loan ag�eement, if any, between Trustor
<br /> and Beneficiary, the terms of which are inco�porated herein by reference and made a part hereof, (d1 to allow Beneficiary to inspect the Trust
<br /> Property at all times during construction, and(eJ to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) days after
<br /> w�itien 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 Beneficiary on the
<br /> first day of each month, or such other date each monih as may be specified by Beneficiary, until the Obligations are paid in full, a sum
<br /> (hereinafter the "Funds"I equal to 1/12th of the yearly taxes and assessments which may attain p�iority over this Deed of Trust and ground
<br /> rents on the Trust Property, if any,plus 1/12th of the yearly premium installments fo�hazard insurance,plus 1/12th of the yearly premium
<br /> rnsta!lments fo�mortgage insurance, if any, all as reasonably estimated initially and from time to time by Beneficiary on rhe basis of
<br /> assessments and bills and reasonable esiimates thereof. The Funds shall be held in an institution, the deposits or accounts of which are
<br /> Oinsu�ed or gua�anteed 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. Beneficiary shall not be required to pay Trustor any interest or earnings on the Funds. Beneficiary shall
<br /> � give to Trustor, wiihout charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose fo�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 ihe amount
<br /> y� of ihe Funds held by Beneficiary, togeiher with the future monihly installmenis of Funds payable prior to the due dates of taxes,
<br /> wassessments, insurance premiums and ground rents, shall exceed ihe amount required to pay said taxes, assessments, insurance p�emiums
<br /> � and ground rents as they fall due, such excess shall be, at Trustor's option, either promptly repaid to Trusto�or credited to Trustor against
<br /> � future monihly insta!lments of Funds. lf the amount of the Funds held by Beneficiary shall not be sufficieni to pay taxes, assessments,
<br /> rnsurance premiums and ground rents as they fall due, T�ustor 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 /> �� Ob/igations, Beneficiary sha//prompt/y refund to Trustor any Funds he/d by Beneficiary. /f ihe Trust Property is so/d unde�the power of sa/e
<br /> or the Trust P�operty is oiherwise acquired by Beneficiary, Beneficia�y shall apply, immediately prior to the sale of the Trust Property or its
<br /> � acquisition by Beneficiary, any Funds held by Benefiiciary at the time of application as a c�edit against the Obligations. lf Beneficiary executes
<br /> a written waiver of Trustor's obligations under ihis Section, Trustor covenants and agrees to pay, before the same become delinquent, all
<br /> taxes, assessments, insu�ance premiums, ground rents, and all other cha�ges whatsoever levied upon or assessed,placed or made against
<br /> the Trust Property. Trustor further agrees, upon written request by Beneficiary, to promptly deliver to Beneficiary all receipts for the payment
<br /> of such charges. Trusto�likewise agrees to pay all taxes, assessmenrs and other charges levied upon or assessed, placed or made against,
<br /> or measured by, ihis Deed of Trust or the reco�dation hereof.
<br /> 5. Application of Paymenis. All payments received by Beneficiary as to any debt, liability o�obligation owed to Beneficiary by Trustor may
<br /> be applied by Beneficiary to the payment of ihe Obligations in any order o�manner of application which Beneficiary, in its absolute discretion,
<br /> deems appropriate.
<br /> 6. Charges;Liens. Trusto�will keep the Trust Property free from all liens and encumbrances, whether p�ior or subordinate to this Deed of
<br /> Trust, other ihan the/ien of current rea!esfate taxes and insta//ments of officia/assessments with respect to which no pena/ty is yet
<br /> payable;provided, however, that Trustor need noi discharge any such lien so long as Trustor shall agree, in writing, to pay the obligation
<br /> secured by such/ien in a manner acceptab/e to Beneficiary and sha//in good faith contest such/ien by approp�iate/ega/proceedings effective
<br /> to prevent the enforcement of the lien or the loss of any interest in or part of the Trust Property, and shall also give such reasonable security
<br /> to Beneficia�y 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 al1 cosis and attorneys'fees incuned by Beneficiary in said defense shall be reimbursed by Trustor o�added to the
<br /> Obligations.
<br /> 7. Hazard lnsurance. Trustor shall keep ihe buildings and other imp�ovements now existing o�hereafter erected on the Trust Property
<br /> insured by insu�ance caniers satisfactory to Beneficiary against loss by fire, hazards included in ihe term "extended coverage"and such
<br /> other hazards, casualties and coniingencies, including war damage insurance, as may be required by Beneficiary, in such amounts and for
<br /> such periods as may be�equired by Beneficiary. The policy of insurance shall be in form acceptable to Beneficiary and shall not contain a
<br /> defense based on coinsurance, and shall contain ihe standard provision ihat no aci of the Beneficiary or of the Beneficiary's agents or
<br /> representafives will render the policy void as to the Beneficiary or affect the Beneficiary's right to recover in case of loss, and the policy or
<br /> po/icies sha//provide ihat ihe same may not be cance/ed or modified without fifteen (151 days prior written noiice to Beneficiary, and have
<br /> loss payable provisions in favo�of and in form acceptable to Beneficiary. All premiums on insurance policies shall be paid in the manner
<br /> p�ovided under the Section entitled "Funds fo�Payment of Charges"he�ein or, if not paid in such manner, by Trustor making payment at
<br /> least fifteen (151 days prior to the due date, directly to the insurance car�ie�. Beneficiary shall have the right to hold the policies and renewals
<br /> thereof and T�ustor shall promptly furnish to Beneficiary all renewal notices and a!l paid premium receipts received by it. ln no event shall
<br /> Beneficiary or Trustee be he/d responsib/e for fai/ure to pay insurance premiums o�for any/oss or damage arising out of a defect in any
<br /> po/icy or arising out of any fai/ure of any insurance company fo pay for any/oss or damage insured against or for failure by Trustor to eflect
<br /> the insurance required hereunder. ln the event of loss, Trustor shall give prompt notice by mail to the insurance carrier and Beneliciary.
<br /> Beneficiary may make proof ofi loss if not made promptly o�in proper form by Trustor. Al!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. In the event of Beneficiary's
<br /> exercise of the power of sa/e contained herein, or in the event of forec/osure, a/!righr, tit/e and inte�est of Trustor in and to any insurance
<br /> policy then in force shall pass to the purchaser at ihe trustee's sale o�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; o�said insurance proceeds, at the option of Beneficiary, may either be used in rep/acing or�estoring the Trust P�operty
<br /> pariially or totally destroyed to a condition satisfaciory to Beneficiary;or said insu�ance p�oceeds, or any portion thereof, may be released to
<br /> Trustor. Un/ess Beneficiary and Trustoi oiherwise ag�ee in writing, any such app/ication of insurance p�oceeds sha//not extend or postpone
<br /> the due date o!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 of the power of sale or other foreclosure, all�ight, title
<br /> and interest of Trustor in and to any insurance p�oceeds payab/e as a resu/t of damage to the Trust Property prio�to the sa/e or acquisition
<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 p�ovided 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/ocated in that deve%pment, then, unless otherwise notified in w�iting by the Beneficiary, the Trustor sha//
<br /> have no obligation to maintain ihe insurance required hereunder, and will assign all benefits and proceeds received thereon to the Beneficiary
<br /> and, in the Beneficiary's sole disc�etion, name the Beneficiary as the named insu�ed on said policy. Whenever such insurance is in force
<br /> (regardless of whether requested by ihe Beneficiary 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 Beneficiary's interest.
<br /> 8. Preservation and Maintenance of Tiust P�operty. Trustor will keep the buildings and other improvements now or hereafter erected on the
<br /> Trust Prope�ty in good repair and condition, ordinary depreciation excepted, and shall provide all utility services necessary for the operation
<br /> and preservatron of the Trust Property. Trustor will not commit o�permit waste, will noi alter the design or structural character constituting
<br /> any building now or hereafter erected on and constituting ihe Trust Property wiihour the prior written consent of Beneficiary, will nof do any
<br /> act or thing which would unduly impair or depreciate the value of the Trust Property and will not abandon the Trust Property. Trustor will not
<br /> remove any fixtures constituring the Trust Property unless the same are immediafely replaced wirh like property subject to rhe lien and
<br /> security interest of this Deed of Trusi and of at least equal value and utility. T�usior will comply with all present and future o�dinances,
<br /> regulations and requirements of any governmenial body which are applicable to the Trust Property and to ihe occupancy and use thereof. lf
<br /> this Deed of Trust is on a unit in a condominium or a p/anned unit deve/opment, Trustor sha//perform a//of Trustor's ob/igations under the
<br /> declarations or covenants creating or governing the condominium or the planned unit development, the bylaws and regulations of the
<br /> condominium or planned unit development, and the constituent documents.
<br /> 9. lnspection. Beneficiary or its agents may, at all reasonable times, 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 Trustor or to any
<br /> person in possession if it makes or fails to make any such inspection.
<br /> 10. Protection of Security. /f Trustor fai/s to perfo�m any of the covenanrs and ag�eements contained in this Deed of Trust, or if any action
<br /> o�proceeding is commenced which does or may adversely aifect the Trust Property or the inierest of Trustor o�Beneficiary therein or the
<br /> title of Trustor thereto, then Beneficiary, ai its option, may perform such covenants and ag�eements, make such appearances, defend against
<br /> and/o�investigate such action or 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 Trust P�operty to make repairs. Any amounts disbursed or
<br /> incurred by Beneficiary pu�suant to this Section, including, but not limited to, reasonable attorneys'fees, with interest thereon, shall
<br /> constitute additiona/Ob/igations secured by this Deed of Trust. Beneficiary is hereby given an irrevocab/e power of attorney (which power is
<br /> coupled with an interest for purposes of security) to enter upon the Trust Properiy as the Trusior's agent and in the Trustor's name to
<br /> pe�form any and al1 covenants and agreements to be performed by the Trustor as herein p�ovided. Unless Trustor and Beneficiary agree to
<br /> othe�terms of payment, such amounts shall be payable upon notice from Beneficiary to Trustor requesiing payment thereof, and shall bear
<br /> interest from ihe daie of disbursement or ihe date incurred at the rate set forth in the Note or the rate prowded in the most recent obligation
<br /> covered by the Gua�anty, 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�ate permitted by applicable law. Nothing contained in this pa�agraph 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 or demand and to all
<br />■ .:,,h.� �,,.�ccr��ritiac fnr rha navment thereof oaid or discha�.qed by Beneficiary under the provisions hereof and any such subrogation rights _
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