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200204704
<br />14. DEFAULT. 'I roster will be in default if any party obligated on the Secured Debt fails to make payment when due. Truster
<br />will he in default if a breach occurs under the terms of this Security Instrument or any other document executed for the
<br />purpose of creating, securing or guarantying the Secured Debt, A good faith belief by Beneficiary that Beneficiary at any
<br />time is insecure with respect to any person or early ohligated on the Secured Debt or that the prospect of any payment or
<br />the value of the Property is impaired shall also constitute an event of default.
<br />15. REMEDIES ON DEFAULT. In some instances, federal and state law will require Beneficiary to provide Truster with
<br />notice of the right to cure or 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 />If provided by law '1'mstor is in default.
<br />At the option of Beneficiary, all or any part 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 related documents, including without fountain, nt sin, the power to sell the Property.
<br />If there is a default, 'Trustee shall, in addition to any other permitted remedy, at the re uesl 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 Tmstor at such time and place as "frustce des iguates- Trustee shall give
<br />notice of sale including the time, (eons and place of sale and a description of the property to he sold as required by the
<br />applicable law in effect at the time of the proposed sale,
<br />Upon sale of the property awl to the extent not prohibited by law, 'l'mslee shall make and deliver a deed to the Property
<br />sold which conveys absolute title to the purchaser, and after first paying all fees, charges and costs, shall pay to
<br />Beneficiary all moneys advanced for repairs, taxes, 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 Trustor. Beneficiary may
<br />purchase the Property. The recitals in any deed of conveyance shall be prima facie evidence of the facts set forth thereto
<br />All remedies are distinct, cumulative and not exclusive, and the Beneficiary is eatided to all remedies provided at law or
<br />equity, whether er not expressly set forth. The acceptance by Beneficiary of any sum in payment or partial payment on the
<br />Secured Debt after the balance is due or is accelerated or after foreclosure proceedings are filer) shall not eonslilunr a
<br />waiver of Beneficiary's right N require complete cure of any existing default. By not exercising any remedy on Truster's
<br />default, Beneficiary does act waive Beneficiary 's right to later consider the event a default if if continues or happens again
<br />D. EXPENSES ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when
<br />prohibited by law, Tmstut agrees to pay all of Beneficiary's expenses if Tmstor breaches any covenant in this Security
<br />Instrument Truster 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 the
<br />payment until paid in full at the highest interest rate in effect as provided in the terms of the Secured Debt. Trustor agrees
<br />to pay all costs and expenses incurred by Beneficiary m eullecling, enforcing or protecting Beneficiary's rights and
<br />remedies under this Security lnstrumea- This amount may include, but is not l mind to, attorneys' fees, court costs, and
<br />other legal expenses. Phis Security Instrument shall remain in effect until released. Trasmr agrees to pay for any
<br />recordation costs of such release.
<br />17. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used is this section, (l) Enviroameutal Law
<br />means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42
<br />U.S.C. 9601 et acq.), and all other tnlcml, 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, Pollnow or coaamivant which has
<br />characteristics which render the substance dangerous or potentially dangerous to the public health, safety, welfare or
<br />environment. The teen includes, without limitation, any substances defined as "hazardous material," "toxic substances,"
<br />"hazardous waste" or "hazardous substance" under any Environmental Law.
<br />Trustor represent¢, warrants and agrees that
<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 nr in the Property. This restriction does not apply to small quantifies of Hazardous
<br />Suhstances that are generally recognized to be appropriate for the annual use and maintenance of the Properly.
<br />H, 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 It Hazardous Substance occurs on,
<br />under or about the Property or there is a violation of any EnvironmenW Law concerning the Property. In such an
<br />even, Trustor shall lake all necessary remedial action in accordance with any Environmental Law.
<br />D- TrnsLU[ shall Irimedia[cly notify Beneficiary in writing as soon as Toaster has reason to believe there is any pending
<br />or threamned investigation, claim, or proceeding relating to the release m threatened release of any azardome
<br />Substance or the violation of any 8uvironmcntal Law.
<br />18. CONDEMNATION. Tmstor will give Beneficiary prompt notice of any pending or threatened action, by private or public
<br />entities to purchase or take any or all of the Property through condemnation, emmew domain, or any other reams. '1 mstor
<br />aathmizes Beneficiary N intervene in Truslor's wane in any of the above described actions of claims. Tmstor assigus to
<br />Beneficiary the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any
<br />part of the Property- Such proceeds shall he considered payments and will be applied as provided in this Security
<br />lustromenL This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or
<br />other lien document.
<br />I9. INSURANCE. Trustor shall keep Property insured against loss by fire, flood, theft and other hazards and risks reasonably
<br />associated with the Property due to its type and location. This insurance shall he maiolaiued in the amounts xad for the
<br />periods that Beneficiary requires. The insurance carrier providing the insurance shall he chosen by Trustor subject to
<br />Beneficiary's appmva, which .shall not be unreasonably withheld. If Trustor fails to maintain the coverage described
<br />above, Beneficiary may, at Beneficiary's opfiou, obtain coverage to protect Beneficiary's rights in the Property according
<br />to the terms of this Security Inetrmnert.
<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." 'fmstnr shall immediately notify Beneficiary of cancellation or termination 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, Trustor shall give
<br />Immediate nofico to the insurance carrier and Beneficiary . Beneficiary may make proof of loss if not metric immediately by
<br />Trustor.
<br />(Page 3 of 41
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