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<br />ARTICLE IV. RIGHTS AND DUTIES OF THE PARTIES
<br />4.01 Title. Trustor warrants that, except as disclosed to Beneficiary prior to the date hereof in a writing
<br />which refers to this warranty, Trustor lawfully possesses and holds fee simple title to, or if permitted by
<br />Beneficiary in writing a leasehold interest in, the Subject Property without limitation on the right to encumber,
<br />as herein provided, and that this Deed of Trust is a valid lien on the Subject Property and all of Trustor's
<br />interest therein.
<br />4.02 Taxes and Assessments. Subject to the right, if any, of Trustor to contest payment of the following
<br />pursuant to any other agreement between Trustor and Beneficiary, Trustor shall pay prior to delinquency all
<br />taxes, assessments, levies and charges imposed: (a) by any public or quasi - public authority or utility company
<br />which are or which may become a lien upon or cause a loss in value of the Subject Property or any interest
<br />therein; or (b) by any public authority upon Beneficiary by reason of its interest in any Secured Obligation or in
<br />the Subject Property, or by reason of any payment made to Beneficiary pursuant to any Secured Obligation;
<br />provided however, that Trustor shall have no obligation to pay any income taxes of Beneficiary. Promptly
<br />upon request by Beneficiary, Trustor shall furnish to Beneficiary satisfactory evidence of the payment of all of
<br />the foregoing. Beneficiary is hereby authorized to request and receive from the responsible governmental and
<br />non - governmental personnel written statements with respect to the accrual and payment of any of the
<br />foregoing.
<br />4.03 Performance of Secured Obligations. Trustor shall promptly pay and perform each Secured Obligation
<br />when due.
<br />4.04 Liens. Encumbrances and Charges. Trustor shall immediately discharge any lien on the Subject
<br />Property not approved by Beneficiary in writing. Except as otherwise provided in any Secured Obligation or
<br />other agreement with Beneficiary, Trustor shall pay when due all obligations secured by or reducible to liens
<br />and encumbrances which shall now or hereafter encumber the Subject Property, whether senior or subordinate
<br />hereto, including without limitation, any mechanics' liens.
<br />4.05 Insurance. Trustor shall insure the Subject Property against loss or damage by fire and such other risks
<br />as Beneficiary shall from time to time require. Trustor shall carry public liability insurance, flood insurance as
<br />required by applicable law and such other insurance as Beneficiary may reasonably require, including without
<br />limitation, business interruption insurance or loss of rental value insurance. Trustor shall maintain all required
<br />insurance at Trustor's expense, under policies issued by companies and in form and substance satisfactory to
<br />Beneficiary. Neither Beneficiary nor Trustee, by reason of accepting, rejecting, approving or obtaining
<br />insurance, shall incur any liability for: (a) the existence, nonexistence, form or legal sufficiency thereof; (b) the
<br />solvency of any insurer; or (c) the payment of losses. All policies and certificates of insurance shall name
<br />Beneficiary as loss payee, and shall provide that the insurance cannot be terminated as to Beneficiary except
<br />upon a minimum of ten (10) days' prior written notice to Beneficiary. Immediately upon any request by
<br />Beneficiary, Trustor shall deliver to Beneficiary the original of all such policies or certificates, with receipts
<br />evidencing annual prepayment of the premiums.
<br />4.06 Tax and Insurance Impounds. At Beneficiary's option and upon its demand, Trustor shall, until all
<br />Secured Obligations have been paid in full, pay to Beneficiary monthly, annually or as otherwise directed by
<br />Beneficiary an amount estimated by Beneficiary to be equal to: (a) all taxes, assessments, levies and charges
<br />imposed by any public or quasi - public authority or utility company which are or may become a lien upon the
<br />Subject Property and will become due for the tax year during which such payment is so directed; and (b)
<br />premiums for fire, other hazard and mortgage insurance next due. If Beneficiary determines that amounts paid
<br />by Trustor are insufficient for the payment in full of such taxes, assessments, levies and /or insurance
<br />premiums, Beneficiary shall notify Trustor of the increased amount required for the payment thereof when
<br />due, and Trustor shall pay to Beneficiary such additional amount within thirty (30) days after notice from
<br />Beneficiary. All amounts so paid shall not bear interest, except to the extent and in the amount required by
<br />law. So long as there is no Default, Beneficiary shall apply said amounts to the payment of, or at
<br />Beneficiary's sole option release said funds to Trustor for application to and payment of, such taxes,
<br />assessments, levies, charges and insurance premiums. If a Default exists, Beneficiary at its sole option may
<br />DEED OF TRUST With Assignment of Rents (05/01) Page 4
<br />07264, #7787507270
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