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200301760
<br />14. DEFAULT. Trustor will he in default if any party obligated on the Secured Debt fails to make payment when due. Trustor
<br />will he in default if a breach occurs under the terms of (his Security Instrument or any other document executed for the
<br />purpose of creating, securing or guamnlying the Scoured Debt. A good faith belief by Beneficiary that Beneficiary at any
<br />time is insecure with respect ht any person or entity obligated on the Secured Debt or that the pruspemt of any payment or
<br />the value of the Property is unpaired shall also constitute an event of default.
<br />15. REMEDIES ON DEFAULT. In some imtanuus, federal and state law will require Beneficiary to provide Trustor with
<br />notice of the right to cure rat other notices and may establish time schedules for foreclosure actions_ Subject to these
<br />limitations, if any, Beneficiary may accelerate the Secured Debt and foreclose this Security Instrument in a manner
<br />provided by law if Tmstor is in default.
<br />At the option of Beneficiary, all or any pan of the agreed fees and charges, accrued interest and principal shall become
<br />immediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime
<br />thereafter. In addition, Beneficiary shall be entitled to all the remedies provided by law, the terms of the Secured Debt,
<br />this Security Instrument and any totaled documents, including without limitation, the power to sell the Property.
<br />If there is a defauh, Trustee shall, in addition to any other permitted remedy, at the request of the Beneficiary, advertise
<br />and sell the Property as a whole or in separate parcels at public auction to the highest bidder for cash and convey absolute
<br />title free and clear of all right, title and interest of Truster at such time and place as Trustee designates. 'Trustee shall give
<br />notice of sale including the tittle, terms and place of sale and a description of the property to be sold as required by the
<br />applicable law in effect at the time of the proposed sale.
<br />Upon sale of the Property and to the extent not prohibited by law, 'Trustee shall make and deliver a deed m the Property
<br />sold which conveys absolute title to the purchaser, and alter first paying all fees, charges and costs, shall pay to
<br />Beneficiary all moneys advanced for repairs, (axes, insurance, liens, assessments and prior encumbrances and interest
<br />thereon, and the principal and interest On the Secured Debt, paying the surplus, if any, to Truster. Beneficiary may
<br />purchase the Property. The recitals in any deed of conveyance shall be prima facie evidence of the facts set forth therein.
<br />All rclacdas are distinct, cumulative and not exclusive, and (he Beneficiary is entitled to all remedies provided at law or
<br />equity, whether or not expressly set. forte The acceptance by Beneficiary of any sum in payment or partial payment on tie
<br />Secured Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a
<br />waiver of Beneficiary's right to require complete cure of any existing default. By not exercising any remedy on Truslor. s
<br />default, Beneficiary does not waive Beneficiary's right to later consider the event a default If it continues or happens again
<br />16. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when
<br />prohibited by law, Truster agrees to pay all of Beneficiary's expenses if Truslor breaches any covenant in this Security
<br />Instrument. Trustor will also pay on demand any amount incurred by Beneficiary for insuring, inspecting, preserving or
<br />otherwise protecting the Property and Beneficiary's security interest. These expenses will bear interest from the date of tie
<br />payment until paid in full at the highest interest rate in effect as provided in the temrs of the Secured Debt. Truster agrees
<br />to pay all costs and expenses incurred by Beneficiary in collecting, enforcing or protecting Beneficiary's rights and
<br />remedies under This Security Instrument. This amount may include, but is not limited m, attorneys' fees, court ousts, and
<br />other legal expenses. This Security Instrument shall remain in effect until released. Truster agrees to pay for any
<br />recordation costs of such release.
<br />17. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) Eaviroamental Law
<br />means, without limitation the Comp chereive Environmental Response, Compensation and Liability Act (CERCLA, 42
<br />U.S.C. 9601 et sec.), and all other tedeml, state and local laws, regulations, ordinances, court orders, attorney general
<br />opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2)
<br />Hazardous Substance means any toxic, radioactive or hazardous material, waste, pollutant or conlmninznt which has
<br />characteristics which render the substance dangerous or potentially dangerous to the public health, safety, welfare or
<br />environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substances,"
<br />"Ilvardous waste" or "hazardous substance" under any Lnviroomental Law.
<br />Truster represents, warrants and agrees (hat'.
<br />A. Except as previously disclosed and acknowledged in writing to Beneficiary, no Hazardous Substance is or will be
<br />located, stored or released on or in the Property. 'Phis restriction does no( apply to small quantities of Hvardous
<br />Substances that are generally recognized to be appropriate for the nonual use and maintenance of the Property.
<br />B. Except as previously disclosed and acknowledged in writing to Beneficiary, Trustor and every tenant have been, are,
<br />and shall remain in full compliance with any applicable Environmental Law,
<br />C. Truster shall immediately notify Beneficiary if a release or threatened release of a ;Hazardous Substance occurs on,
<br />under or about the Property or (here is a violation of any Environmental Law concerning the Property. In such an
<br />event, Truslor shall take all necessary remedial action in accordance with any Environmental Law.
<br />D. Trustor shall immediately noify Beneficiary in writing as soon as Trustor has reason to believe there is any pending
<br />or threatened investigation, claim, or proceeding relating to the release or threatened release of any Hazardous
<br />Substance or the violation of any Environmental Law.
<br />18. CONDEMNATION. 'I rustor will give Beneficiary prompt notice of any pending or threatened action, by private or public
<br />entities to purchase or lake any rat all of the Property through condemnation, eminent domain, or any other meats. Truster
<br />authorizes Beneficiary to intervene in Trustor's name in any of the above described actions or claims. 'frster assigns to
<br />Beneficiary the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any
<br />pan of the Property. Such proceeds shall he considered payments and will he applied as provided in this Security
<br />Instrument This assignment of proceeds is subject to the terns of any prior mortgage, deed of trust, security agreement or
<br />other lien document.
<br />19. INSURANCE. Trustor shall keep Property insured against loss by fire, hood, theft and other hazards and risks reasonably
<br />associated with the Property due w its type and location. This insurance shall be maintained in the amounts and for the
<br />periods that Beneficiary requites. What Lender requires pursuant to (he preceding sentence can change during the term of
<br />(he loan. The insurance carrier providing the insurance shall he chosen by Trustor subject to Beneficiary's approval, which
<br />shall not be unreasonably withheld. If Trustor fails to maintain the coverage described above, Beneficiary may, at
<br />Beneficiary's option, obtain coverage to protect Benetictary's rights in the Property according to the (errs of this Security
<br />I oil notion t.
<br />All insurance policies and renewals shall be acceptable to Beneficiary and shall include a standard "mortgage clause" and,
<br />where applicable, "loss payee clause." Truslor shall immediately notify Beneficiary of cancellation or lerminalion of the
<br />insurance. Beneficiary shall have the right to hold the policies and renewals. If Beneficiary requires, Trustor shall
<br />immediately give to Beneficiary all receipts of paid premiums and renewal notices. Upon loss, Truster shall give
<br />immediate notice to the insurance carrier and Beneficiary . Beneficiary may make proof of loss if not made immediately by
<br />Trustor.
<br />(page 3 0f 4)
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