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99 1U891 �
<br /> 3. Construction of Improvements. Trustor shall complete in good and workmanlike manner any buildings, improvements,
<br /> or repairs relating thereto which may be begun on the Trust Property or contemplated by the loan evidenced by the
<br /> Note secured hereby, to pay when due all costs and liabilities incurred therefore, and not to permit any construction
<br /> lien against the Trust Property. In the event construction of buildings, improvements, or repairs are contemplated,
<br /> Trustor also agrees, anything in this Deed of Trust to the contrary notwithstanding; (a) to promptly commence any
<br /> such work and to complete the proposed improvements promptly, (b) to complete the same in accordance with the
<br /> plans and specifications as approved by Beneficiary, (c) to comply with all the terms of a building loan agreement, if
<br /> any, between Trustor and Beneficiary, the terms of which are incorporated herein by reference and made a part
<br /> hereof,(d)to allow Beneficiary to inspect the Trust Property at all times during construction,and(e)to replace any work or materials
<br /> unsatisfactory to Beneficiary within fifteen (15) days after written notice from Beneficiary of such fact.
<br /> 4. Funds for Payment of Charges. Subject to applicable law or to a written waiver by Beneficiary, Trustor shall pay to
<br /> Beneficiary on the first day of each month, or such other date each month as may be specified by Beneficiary, until
<br /> the Indebtedness is paid in full, a sum (hereinafter called the "Funds") equal to 1/12th of the yearly taxes and
<br /> assessments which may attain priority over this Deed of Trust and ground rents on the Trust Property, if any, plus
<br /> 1/12th of the yearly premium installments for hazard insurance, plus 1/12th of the yearly premium installments for
<br /> 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
<br /> accounts of which are insured or guaranteed by a federal or state agency including Beneficiary. Beneficiary shall
<br /> apply the Funds to pay the taxes, assessments, insurance premiums, and ground rents. Beneficiary shall not be
<br /> required to pay Trustor any interest or earnings on the Funds. Beneficiary shall give to Trustor, without charge, an
<br /> annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the
<br /> Funds was made. The Funds are pledged as additional security for the Indebtedness secured by this Deed of Trust.
<br /> If the amount of the Funds held by Beneficiary, together with the future monthly installments of Funds payable prior to
<br /> the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay
<br /> the taxes, assessments, insurance premiums, and ground rents as they fall due, such excess shall be, at Trustor's
<br /> option, either promptly repaid to Trustor or credited to Trustor against future monthly installments of Funds. If the
<br /> amount of the Funds held by Beneficiary shall not be sufficient to pay taxes, assessments, insurance premiums and
<br /> ground rents as they fall due, Trustor shall pay to Beneficiary any amount necessary to make up the deficiency within
<br /> thirty days from the date notice is mailed by Beneficiary to Trustor requesting payment thereof. Upon payment in full
<br /> of all Indebtedness, Beneficiary shall promptly refund to Trustor any Funds held by Beneficiary. If the Trust Property
<br /> is sold under the power of sale or the Trust Property is otherwise acquired by Beneficiary, Beneficiary shall apply,
<br /> immediately prior to the sale of the Trust Property or its acquisition by Beneficiary, any Funds held by Beneficiary at
<br /> the time of application as a credit against the Indebtedness. If Beneficiary executes a written waiver of Trustor's
<br /> obligations under this paragraph 4, Trustor covenants and agrees to pay, before they become delinquent, all taxes,
<br /> assessments, insurance premiums, ground rents, and all other charges whatsoever levied upon or assessed, placed, or made
<br /> against the Trust Property. Trustor further agrees,upon written request by Beneficiary,to promptly deliver to Beneficiary all receipts
<br /> for the payment of such charges. Trustor likewise agrees to pay all taxes, assessments, and other charges levied upon or
<br /> assessed, placed,or made against,or measured by,this Deed of Trust or the recordation hereof.
<br /> 5. Application of Payments. All payments received by Beneficiary as to any debt, liability, or obligation owed to Benefi-
<br /> ciary by Trustor may be applied by Beneficiary to the payment of the Indebtedness or to any such other debt, liability
<br /> or obligation, in any order or manner of application which Beneficiary, in its absolute discretion, deems appropriate.
<br /> Unless otherwise elected by Beneficiary, any such payment shall be deemed applied first to the payment of any debt,
<br /> liability or obligation other than the Note.
<br /> 6. Charges; Liens. Trustor will keep the Trust Property free from all liens and encumbrances which in any way may, in
<br /> the judgment of Beneficiary, have priority over, or impair the security of, this Deed of Trust but Trustor need not
<br /> discharge any such lien so long as Trustor shall agree, in writing, to pay the obligation secured by the lien in a manner
<br /> acceptable to Beneficiary and shall in good faith contest the lien by appropriate legal proceedings effective to prevent
<br /> the enforcement of the lien and the loss of any interest in or part of the Trust Property.
<br /> 7. Hazard Insurance. Trustor shall keep the buildings and other improvements now existing or hereafter erected on the
<br /> Trust Property insured by insurance carriers satisfactory to Beneficiary against loss by fire, hazards included in the
<br /> term "extended coverage"and such other hazards, casualties, and contingencies as may be required by Beneficiary,
<br /> in such amounts and for such periods as may be required by Beneficiary. The policy of insurance shall be in form
<br /> acceptable to Beneficiary, provide that it may not be cancelled or modified without 15 days prior written notice to
<br /> Beneficiary, and shall have loss payable provisions in favor of and in form acceptable to Beneficiary. All premiums on
<br /> insurance policies shall be paid in the manner provided under paragraph 4 hereof or, it not paid in such manner, by
<br /> Trustor making payment at least fifteen (15) days prior to the due date, directly to the insurance carrier. Beneficiary
<br /> shall have the right to hold the policies and renewals thereof and Trustor shall promptly furnish to Beneficiary all
<br /> renewal notices and all paid premium receipts received by it. In no event shall Beneficiary or Trustee be held
<br /> responsible for failure to pay insurance premiums or for any loss or damage arising out of a defect in any policy or
<br /> arising out of any failure of any insurance company to pay for any loss or damage insured against or for failure by
<br /> Trustor to effect the insurance required hereunder. In the event of loss, Trustor shall give prompt notice by mail to the
<br /> insurance carrier and Beneficiary. Beneficiary may make proof of loss if not made promptly or in proper form by
<br /> Trustor. All policies of insurance and any and all refunds of unearned premiums are hereby assigned to Beneficiary
<br /> as additional security for the payment of the Indebtedness. In the event of Beneficiary's exercise of the power of
<br /> sale contained herein, or in the event of foreclosure, 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. In case of any loss, the
<br /> insurance proceeds may, at the option of Beneficiary, be applied by Beneficiary upon the Indebtedness, or any part
<br /> thereof, and in such order and amount as Beneficiary may determine; or the insurance proceeds, at the option of
<br /> Beneficiary, may either be used in replacing or restoring the Trust Property partially or totally destroyed to a condition
<br /> satisfactory to Beneficiary; or the insurance proceeds, or any portion thereof, may be released to Trustor. Unless
<br /> Beneficiary and Trustor otherwise agree in writing, any such application of insurance proceeds shall not extend or
<br /> postpone the due date of the Note, or any installments called for therein, or change the amount of such installments.
<br /> If the Trust Property is acquired by Beneficiary pursuant to the exercise of the power of sale or other foreclosure, all
<br /> right, title, and interest of Trustor in and to any insurance proceeds payable as a result of damage to the Trust
<br /> Property prior to the sale or acquisition shall pass to Beneficiary and shall be applied first to the costs and expenses,
<br /> including attorney fees, incurred in collecting such proceeds, then in the manner and in the order provided herein.
<br /> 8. Preservation and Maintenance of Trust Property. Trustor will keep the buildings and other improvements now or
<br /> hereafter erected on the Trust Property in good repair and condition and will not commit or permit waste, will not alter
<br /> the design or structural character constituting any building now or hereafter erected on and constituting the Trust
<br /> Property without the prior written consent of Beneficiary, will not do any act or thing which would unduly impair or
<br /> depreciate the value of the Trust Property, and will not abandon the Trust Property. Trustor will not remove any
<br /> fixtures constituting the Trust Property unless they are immediately replaced with like property, subject to the lien and security
<br /> interest of this Deed of Trust and of at least equal value and utility. Trustor will comply with all present and future ordinances,
<br /> regulations,and requirements of any govemmental body which are applicable to the Trust Property and to the occupancy and use
<br /> thereof. If this Deed of Trust is on a unit in a condominium or a planned unit development, Trustor shall perform all of Trustor's
<br /> obligations under the declarations or covenants creating or goveming the condominium or the planned unit development,the bylaws
<br /> and regulations of the condominium or planned unit development,and the constituent documents.
<br /> 9. Inspection. Beneficiary or its agents may, at all reasonable times, enter upon the Trust Property for the purpose of
<br /> inspection. Beneficiary shall have no duty to make any inspection and shall not be liable to Trustor or to any person
<br /> in possession if it makes or fails to make any such inspection.
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