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<br /> ?. Payment of/ndebtedness. Trusto�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 trust encumbering a//or part of the Trust
<br /> �Prope�ty and, if applicable, any promissory no�e,guaranty, or other te�m of contractual indebtedness secured by such other deed of trust,
<br /> ' vv�hether junio�or senior to the lren of this Deed of Trust, and any other obligations secured by a lien on the Trust Property, whether arising
<br /> �e�nsensually o�by operation of faw. '
<br /> '.k3. Construction of/mprovements. T�ustor shall complete in good and workmanlike manner any buildings, improvements or repairs�elating
<br /> thereto which may be begun on the Trust Property or contemplated by the Obligations secured hereby, to pay when due all costs and
<br /> liabilities incurred therefor, and not to permit any construction lien against such Trust Property. ln the event construction of buildings,
<br /> improvements or repairs are contemplated, Trustor also agrees, anything in this Deed of Trust to the contrary notwithstanding; (a) to
<br /> piomptly commence any such wo�k and to complete the proposed improvemenis 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 agreement, if any, between Trustor
<br /> and Beneficiary, the te�ms of which a�e incorporated herein by reference and made a part hereof, (dJ to allow Beneficiary to inspect ihe Trust
<br /> Property ai a//times du�ing construction, and(e) to�eplace any work o�materials unsatisfactory to Beneficiary within fifteen (15) days after
<br /> written 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 /> fi�st day of each month, or such othe�date each month as may be specified by Beneficiary, until the Obligations are paid in full, a sum
<br /> (hereinafter the "Funds"1 equal to 1/12th of the yearly taxes and assessments which may attain priority over this Deed of Trust and g�ound
<br /> rents on the Trust Prope�ty, if any,plus 1/12th of the yearly premium insta!lments for hazard insurance,plus 1/12th of the yearly premium
<br /> installments for mortgage insurance, if any, all as reasonably estimated initially and,from tinpe o �ime bM��neficiary on the basis of
<br /> assessments and bills and reasonable estimates thereof. The Funds shall be held in an;insti�v�n,'the deposits or accounts of which a�e
<br /> insured or guaranteed by a fede�al or state agency including Beneficiary. Beneficiary shall apply 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, without chaige, an annual accounting of the Funds showing credits and debits to the Funds and the pu�pose fo�which each
<br /> debit to the Funds was made. The Funds are p/edged as additiona/security for the Ob/igations secured by this Deed of Trust. /f the amount
<br /> of the Funds held by Beneficiary, together with the future monthly installments o/Funds payable prior to the due dates of taxes,
<br /> assessments, insurance premiums and ground rents, sha!l exceed the amount required to pay said taxes, assessments, insurance p�emiums
<br /> and ground rents as they fall due, such excess sha!l be, ai Trustor's option, either promptly repaid to Trustor or credited to Trusto�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 renis as they fall due, Trustor shall pay to Beneficiary any amount necessa�y 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 Trust Property is sold under the power of sale
<br /> or the Trust Property is otherwise acquired by Beneficiary, Beneficiary shall apply, immediately p�ior to the sale of the Trust Property or 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 wriiten 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, ground�ents, and all other charges whatsoever levied upon or assessed,placed or made against
<br /> the Trust Property. Trustor furihei agrees, upon written request by Beneficiary, to promptly delivei to Beneficiary all receipts for the payment
<br /> of such charges. Tiustor likewise agrees to pay all taxes, assessments and othe�charges levied upon o�assessed,placed or made against,
<br /> or measured by, this Deed of T�ust 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 Beneficia�y to the payment of the Obligations in any order or manner of application which Beneficiary, in its absolute discretion,
<br /> deems appropriate.
<br /> 6. Cha�ges;Liens. Trustor wi//keep the T�ust Properiy free from a///iens and encumbrances, whether prior or subo�dinate to this Deed of
<br /> Trust, other than the/ien of cu�rent rea/estate taxes and insta//ments of official assessments with�espect to which no pena/ty is yet
<br /> payable;provided, however, that Trusror need not discharge any such lien so long as Trustor shall agree, in writing, to pay the obligatron
<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 the lien or the loss of any interest in or part of the Trust Property, and shall also give such�easonable 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 all costs and attorneys'fees incurred by Beneficiary in said defense shall be reimbu�sed by Trustor or added to the
<br /> Obligations.
<br /> 7. Hazard/nsurance. Trustor shall keep the buildings 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 haza�ds, casualties and contingencies, including war damage insurance, as may be required by Beneficiary, in such amounts and for
<br /> such periods as may be required by Beneficiary. The po/icy of insurance sha//be in form acceptab/e to Beneficiary and sha//not contain a
<br /> defense based on coinsurance, and sha//contain the standa�dprovision that no act of the Beneficiary or of the Beneficiary's agents or
<br /> representatives will�ender the policy void as to the Beneficiary 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 o�modified without fifteen /15/days prio�written notice to Beneficiary, and have
<br /> loss payable provisions in favor of and in form acceptable to Beneliciary. 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 T�ustor making payment at
<br /> leasi fifteen (15)days prior to the due date, directly to the insu�ance carr.%er. Beneficiary shall have the right to hold the policies and renewals
<br /> the�eof and Trustor shall promptly furnish to Beneficiary all�enewal notices and all paid premium receipts received by it. ln no event shall
<br /> Beneficia�y or Trustee be he/d responsib/e for fai/ure to pay insurance premiums or for any/oss or damage arising out of a defect in any
<br /> policy o�arising out of any failure of any insurance company to pay fo�any loss or damage insured against o�for failure by Trusior to effect
<br /> the insurance required hereunder. ln the event of loss, Tiustor shall give prompt notice by mail to the insurance carrier and Beneficiary.
<br /> Beneficiary may make proof of/oss if not made prompt/y or in proper form by Trustor. A//po/icies of insurance and any and a//refunds of
<br /> unearned premiums are hereby assigned to Beneficiary as addrtional security for the payment of the Obligations. ln the event of Beneficiary's
<br /> exercise of the power of 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. 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 insu�ance proceeds, at the option of Beneficiary, may eithe�be used in replacing o��estoring the Trusi Property
<br /> partially or totally dest�oyed to a condition satisfactory to Beneficiary;o�said insurance proceeds, or any portion thereof, may be re%ased to
<br /> Trustor. Unless Beneficiary and T�ustor otherwise agree in writing, any such application of insurance p�oceeds shall not extend or postpone
<br /> the due date of any note o�agreement evidencing the Obligations, or any installments called fo�the�ein, o�change the amount of such
<br /> installments. lf the Tiust Properiy is acquired by Beneficiary pursuant to the exercise of the power 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 Property prior to the sale or acquisition
<br /> sha//pass to Beneficiaiy and sha//be app/ied first to the costs and expenses, inc/uding attorneys'fees, incurred in co//ecting such p�oceeds,
<br /> then in the manner and in the order 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 located in that development, then, unless otherwise notified in writing by the Beneficiary, the Trustor shall
<br /> have no obligation to maintain the insurance required hereunder, and will assign all benefits and proceeds received thereon to the Beneficiary
<br /> and, in the Beneficiary's so%discretion, name the Beneficiary as the named insured on said policy. Whenever such insurance is in force
<br /> (regardless of whether requested by the Beneficiary o�not/ the Trustor hereby autho�izes 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. Preservation and Maintenance of Tiust Property. Trustor will keep the buildings and other improvements now or hereafter erected on the
<br /> Trust Property in good repair and condition, ordinary depreciation excepted, and shall provide all utility services necessary for the operation
<br /> and preservation of the Tiust P�operty. Trustor will not commit or permit waste, will not alter the design or structu�al cha�acter constituting
<br /> any building now or hereafter e�ected on and constituting the Trust Property without the prior written consent of Beneficia�y, 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 Trust Property. Trustor will not
<br /> remove any fixtures constituting the T�ust Property unless the same a�e immediately replaced with like property subject to the lien and
<br /> security interest of this Deed of Trust and of at least equal value and utility. Trustor will comply with all present and futu�e ordinances,
<br /> regulations and requirements of any governmental body which a�e applicable to the Trust P�operty and to the occupancy and use thereof. 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 or covenants creating or governing the condominium or the planned unit development, the bylaws and�egulations of the
<br /> condominium or planned unit deve%pment, and the constituent documents.
<br /> 9. /nspection. Beneficiary or its agents may, at all reasonable times, enter upon the Tiust P�operty 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. lf Trustor fails to perform any of ihe 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 8eneficiary therein or the
<br /> title of Trustor thereto, then Beneficiary, at its option, may perform such covenants and ag�eements, make such appearances, defend against j
<br /> and/or investigate such action o�p�oceeding and take such other action as Beneficiary deems necessary to protect its interest including, but i
<br /> not limited to, disbursement of�easonable attorneys'fees and entry upon the Trust Property to make repairs. Any amounts disbu�sed or
<br /> incurred by Beneficiary pu�suant 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 inte�est for purposes of securityl to enter upon the Trust Property as the Tiustor's agent and in the Trustor's name to
<br /> perform any and a//covenants and agreemenis to be performed by the Trustor as herein provided. Un/ess T�ustor and Beneficia�y agree to
<br /> othei te�ms of payment, such amounis shall be payable upon notice from Beneficiary to T�ustor requesting payment thereof, and shall 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 mosi�ecent obligation
<br /> covered by the Gua�anty, 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 hrghest rate permitted by applicab/e/aw. Nothing contained in this paragraph sha//require Beneficiary to incur any
<br /> expense or take any action hereunder. Beneficiary shall, at its option, be subrogated to any encumbrance, lien, c/aim or demand and to all
<br /> rights and securities for the payment thereof paid or discharged by Beneficiary under the provisions hereof and any such subrogation rights
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