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<br />Loan No: 032713101
<br />
<br />DEED OF TRUST
<br />(Continued)
<br />
<br />200600261
<br />
<br />Page 5
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<br />Default on Other Payments. Failure of Trustor within the time required by this Deed of Trust to make any payment for taxes or
<br />insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien.
<br />
<br />False Statements. Any representation or statement made or furnished to Lender by Trustor or on Trustor's behalf under this Deed of
<br />Trust or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished.
<br />
<br />Defective Collateralization. This Deed of Trust or any of the Related Documents ceases to be in full force and effect (including failure
<br />of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason.
<br />
<br />Death or Insolvency. The death of Trustor, the insolvency of Trustor, the appointment of a receiver for any part of Trustor's property,
<br />any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any
<br />bankruptcy or insolvency laws by or against Trustor.
<br />
<br />Taking of the Property. Any creditor or governmental agency tries to take any of the Property or any other of Trustor's property in
<br />which Lender has a lien. This includes taking of, garnishing of or levying on Trustor's accounts with Lender. However, if Trustor
<br />disputes in good faith whether the claim on which the taking of the Property is based is valid or reasonable, and if Trustor gives
<br />Lender written notice of the claim and furnishes Lender with monies or a surety bond satisfactory to Lender to satisfy the claim, then
<br />this default provision will not apply.
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<br />Breach of Other Agreement. Any breach by Trustor under the terms of any other agreement between Trustor and Lender that is not
<br />remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other
<br />obligation of Trustor to Lender, whether existing now or later.
<br />
<br />Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation
<br />party of any of the Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or
<br />revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness. In the event of a death, Lender, at its option,
<br />may, but shall not be required to, permit the guarantor's estate to assume unconditionally the obligations arising under the guaranty in
<br />a manner satisfactory to Lender, and, in doing so, cure any Event of Default.
<br />
<br />Existing Indebtedness. The payment of any installment of principal or any interest on the Existing Indebtedness is not made within the
<br />time required by the promissory note evidencing such indebtedness, or a default occurs under the instrument securing such
<br />indebtedness and is not cured during any applicable grace period in such instrument, or any suit or other action is commenced to
<br />foreclose any existing lien on the Property.
<br />
<br />RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this Deed of Trust, at any time thereafter, Trustee or Lender
<br />may exercise anyone or more of the following rights and remedies:
<br />
<br />Election of Remedies. All of Lender's rights and remedies will be cumulative and may be exercised alone or together. An election by
<br />Lender to choose anyone remedy will not bar Lender from using any other remedy. If Lender decides to spend money or to perform
<br />any of Trustor's obligations under this Deed of Trust, after Trustor's failure to do so, that decision by Lender will not affect Lender's
<br />right to declare Trustor in default and to exercise Lender's remedies.
<br />
<br />Foreclosure by Sale. Upon an Event of Default under this Deed of Trust, Beneficiary may declare the entire Indebtedness secured by
<br />this Deed of Trust immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of
<br />written notice of default and of election to cause to be sold the Property, which notice Trustee shall cause to be filed for record.
<br />Beneficiary also shall deposit with Trustee this Deed of Trust, the Note, other documents requested by Trustee, and all documents
<br />evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of the
<br />notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell the
<br />Property at the time and place fixed by it in the notice of sale, either as a whole or in separate parcels, and in such order as it may
<br />determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may
<br />postpone sale of all or any portion of the Property by public announcement at such time and place of sale, and from time to time
<br />thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement in accordance with
<br />applicable law. Trustee shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or
<br />warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof.
<br />Any person, including Trustor, Trustee or Beneficiary may purchase at such sale. After deducting all costs, fees and expenses of
<br />Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to
<br />payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect
<br />at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto.
<br />
<br />Judicial Foreclosure. With respect to all or any part of the Real Property, Lender shall have the right in lieu of foreclosure by power of
<br />sale to foreclose by judicial foreclosure in accordance with and to the full extent provided by California law.
<br />
<br />UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured
<br />party under the Uniform Commercial Code, including without limitation the right to recover any deficiency in the manner and to the full
<br />extent provided by California law.
<br />
<br />Collect Rents. Lender shall have the right, without notice to Trustor to take possession of and manage the Property and collect the
<br />Rents, including amounts past due and unpaid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness.
<br />In furtherance of this right, Lender may require any tenant or other user of the Property to make payments of rent or use fees directly
<br />to Lender. If the Rents are collected by Lender, then Trustor irrevocably designates Lender as Trustor's attorney-in-fact to endorse
<br />instruments received in payment thereof in the name of Trustor and to negotiate the same and collect the proceeds. Payments by
<br />tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made,
<br />whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person,
<br />by agent, or through a receiver.
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<br />Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with
<br />the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from
<br />the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve
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