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99 � 11405
<br /> 2. Payment of/ndebtedness. Trustor shall promptly pay or cause to be paid when due the Obligations and all other indebtedness. The �
<br /> T�ustor shall also p�omptly and faithfu!ly observe�!/of its o¢ligations under any othe�deed of trust encumbering all or part of the Trust
<br /> Prope�ty and, if applicab/e, any promissory note, g�aranty, or other term of contractual indebtedness secured by such other deed of trust,
<br /> whether junior or senior to the lien of this Deed of Trust, and any other obligations secured by a lien on the T�ust Property, whethe�arising
<br /> consensually or by operation of law.
<br /> 3. Construction of/mprovements. Trusto�shall complete in good and workmanlike manner any buildings, improvements or repairs relating
<br /> thereto which may be begun on the Tiust 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 contemp/ated, Trustor a/so agrees, anything in this Deed of Trust to the contrary notwithstanding; (al to
<br /> promptly commence any such wo�k and to complete the proposed imp�ovements p�omptly, (bl to complete the same in accordance with the
<br /> p/ans and specifications as approved by Beneficiary, /cl to comp/y with a//the terms of a bui/ding/oan agreement, if any, beiween Trusto�
<br /> and Beneficiary, the terms of which are incorporated herein by reference and made a pa�t hereof, /dl to a!low Beneficiary to inspect the Trust
<br /> Property at all times during construction, and(el to replace 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. /f�equested at any time or f�om time to time by the Beneficiary, T�usto�sha//pay to Beneficiary on the
<br /> first day of each month, or such other date each month�s may¢e gpecified-4y Beneficiary, until the Obligations a�e paid in full, a sum
<br /> (he�einafter the "Funds'7 equal to 1/12th of the yearly ta�e'S enrl as'�eSSmefit's•tyhich may attain prio�ity over this Deed of Trust and ground
<br /> rents on the Trust Property, if any,plus 1/12th of the yearly premium installments for haza�d insurance,plus 1/12th of the yearly premium
<br /> insta//ments for mortgage insurance, if any, a//as reasonab/y estimated initia//y 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, ihe deposits or accounts of which are
<br /> insu�ed or guaranteed 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. Beneficia�y shall not be requi�ed to pay Trustor any interest or earnings on the Funds. Beneficia�y shall
<br /> give to Trustor, without charge, an annua/accounting of the Funds showing credits and debits to the Funds and the pu�pose 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, insu�ance p�emiums and ground rents,shall exceed the amount�equi�ed to pay said taxes, assessments, insurance premiums
<br /> and yround rents as they fall due, such,excess shall be, at Trusfor's option, either promptly repaid to Trusfor or 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, assessmenis,
<br /> insurance premiums and ground rents as they fall due, Trustor 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 T�ustor requesting payment thereof. Upon payment in fu//of a//
<br /> Obligations, Beneficiary shall promptly refund to Trustor any Funds held by Beneficia�y. lf the Tiust Prope�ty is sold under the power of sale
<br /> or the Trust Prope�ty is othe�wise acquired by Beneficiary, Beneficiary shall apply, immediately prio�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 written waiver of Trustor's obligations under this Section, T�ustor covenants and agrees to pay, before the same become delinquent, all
<br /> taxes, assessments, insurance premiums, ground rents, and all other charges whatsoeve�levied upon o�assessed,placed or made againsi
<br /> the Trust Property. Trustor further ag�ees, upon written request by Beneficiary, fo promptly deliver to Beneficiary all receipts fo�the payment
<br /> of such cha�ges. T�ustor likewise agrees to pay all taxes, assessments and other charges levied upon or 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 Beneficiary to the payment of the Obligations in any order or manner of application which Beneficiary, in its absolute discretion,
<br /> deems approp�iate.
<br /> 6. Charges;Liens. Trustor will keep the Trust Property fiee from all liens and encumb�ances, whether prior or subordinate to this Deed of
<br /> Trust, other than the lien of current�eal estate taxes and installments of official assessments with�espect to which no penalty is yet
<br /> payable;provided, howeve�, that Trustor need not discharge any such lien so long as Trustor shall ag�ee, 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 the lien or the loss of any inte�est in or part of the Trust P�operty, and shall also give such reasonable security
<br /> to Beneficiary as may be demanded by Beneficiary to insure compliance therewiih. The Beneficia�y may in its sole discretion defend the lien
<br /> of this Deed of Trust and all costs and aitorneys'fees incurred by Beneficiary in said defense shall be reimbursed by Trustor or added to the
<br /> Obligations.
<br /> 7. Hazard/nsurance. T�ustor sha//keep the bui/dings and other improvements now existing o�hereafter erected on the Tiusi Property
<br /> insured by insu�ance car�iers satisfactory to Beneficiary against loss by fi�e, hazards included in the te�m "extended cove�age"and such
<br /> other hazards, casualties and contingencies, including war damage insurance, as may be�equired by Beneficiary, in such amounts and for
<br /> such periods as may be required 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 the standard provision that no act of the Beneficiary or of the Beneficia�y's agents or
<br /> represen.tat%ves :��%!!re.^.der*h.e pe!icy void as to the Beneficiary a,-affect th=:Beneficiary's right to rcce�•e:in ease of loss, ana'the policy or
<br /> policies shall provide that the same may not be cance%d or modified without fifteen (15) days prior written notice to Beneficiary, and have
<br /> loss payable provisions in favor of and in fo�m acceptable to Beneficia�y. All premiums on insu�ance policies shall be paid in the manner
<br /> provided unde�the Section entit/ed "Funds for Payment of Charges"herein or,if not paid in such manner, by Trusto�making payment at
<br /> least fifteen (151 days prior to the due date, diiectly 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 p�emium receipts received by it. ln no event shall
<br /> Beneficiary or Tiustee be held responsible for failure to pay insurance p�emiums o�for any loss or damage arising out of a defect in any
<br /> policy or arising out of any failu�e of any insu�ance 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, Tiustor shall give prompt notice by mail to the insurance carrie�and Beneficiary.
<br /> Beneficiary may make proof of/oss if not made prompt/y or in proper form by T�ustor. A//po/icies of insurance and any and a//refunds of
<br /> unea�ned premiums 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 the event of foreclosure, all right, title and interest of Tiusior in and to any insurance
<br /> policy then in force shall pass to the purchaser at the trustee's sale o�forec%sure sale. ln case of any loss, the insurance p�oceeds may, at
<br /> the option of Beneficiary, be applied by Beneficia�y upon the Obligations, or any pa�t the�eof, and in such order and amount as Beneficiary
<br /> may determine;or said insurance p�oceeds, at the option of Beneficiary, may eithe�be used in replacing or restoring the Trust Property
<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 T�ustor oiherwise ag�ee in writing, any such application of insu�ance 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 /> installments. lf the Trust Property 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 pioceeds payable as a result of damage to the Tiust Property prior to the sale 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 /> ihen in the manner and in the order provided herein. Notwithstanding anything contained in this Section to the contra�y, 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, un/ess 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 thereon to the Beneficiary
<br /> and, in the Beneficia�y'S so%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 o�notJ the T�ustor hereby authorizes the Beneficiary to cancel such insurance whenever
<br /> the Beneficiary determines that such insurance does not adequately protect the Beneficia�y's interesi.
<br /> 8. Preservation and Maintenance of Trust Propeity. Trusto�will keep the buildings and other imp�ovements now or hereafter erected on the
<br /> Trust Property in good repaii and condition, ordinaiy depreciation excepted, and shall provide all utility services necessa�y for ihe ope�ation
<br /> and preservation of t.he Trust Property. T�ustor wi!l not commit or permit v.-ast�, �vil1 not alter the design or structural character constitutrng
<br /> any building now or hereatter erected on and constituting the Trust Property without the prior written consent of Beneficiary, will not do any
<br /> act or thing which would unduly impair or depreciate the value of the Trust Prope�ty and will not abandon the Trust Prope�ty. Trustor will not
<br /> remove any fixtures constituting the Trust Property unless the same are immediately replaced with like property subject to the lien and
<br /> secu�ity 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 governmental body which are applicable to the Trust Property and to the occupancy and use thereof. lf
<br /> this Deed o/Trust is on a unit in a condominium or a planned unit deve%pment, Trustor shall perfo�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 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 Trust Prope�ty 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 o�fails to make any such inspection.
<br /> 10. Protection of Secuiity. lf Tiustor fails to perform any of the covenants and agreements contained in this Deed of Trust, or if any action
<br /> or proceeding is commenced which does or may adversely affect the Trust Property o�the interest of Trustor or Beneficiary the�ein o�the
<br /> title of Trustor ihereto, then Beneficiary, at its option, may perform such covenants and agreements, make such appearances, defend against
<br /> and/or investigate such action or p�oceeding and take such other action as Beneficiary deems necessary to p�otect its interest including, but
<br /> not limited to, disbursement of reasonable attorneys'fees and entry upon the Trust Property to make�epairs. Any amounts disbursed or
<br /> incurred by Beneficiary pursuant to this Seciion, rncluding, but not limited to, reasonable atiorneys'fees, with interest thereon, shall
<br /> constitute additional Obligations secu�ed by this Deed of Trust. Beneficiary is hereby given an i�revocable power of attorney/which power is
<br /> coupled with an interest ior purposes of secu�ityl to enter upon the Trust Property as the Tiustor's agent and in the Trustor's name to
<br /> perform 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 payment, 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 incu�red at the rate set forth in the Note or the�ate provided in the most recent obligation
<br /> cove�ed by the Guaranty, unless payment of interest at such rate wou/d be contrary to applicable law, in which event such amounts shall
<br /> bea�interest at the highesi rate pe�mitted by applicab/e/aw. Nothing contained in this paragraph shall requi�e 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 o�discha�ged by Beneficiary under the provisions hereof and any such sub�ogation rights
<br /> shall be additiona/and cumu/ative security fo�this Deed of Trust. �___ � _�< <�
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