2. The GRANTOR is desirous of securing payment of the PRINCIPAL LOAN AMOUNT and interest of
<br />said Promissory Note to the BENEFICIARY.
<br />The GRANTOR, in consideration of the premises and for the purpose aforesaid, does hereby
<br />grant, bargain, sell and convey unto the said PUBLIC TRUSTEE in trust forever, the above described
<br />COLLATERAL.
<br />To have and to hold the same, together with all appurtenances, in trust nevertheless, that
<br />in case of default in the payment of said Promissory Note, or any part thereof, or the interest
<br />thereon, or in the performance of any covenants hereinafter set forth or in said Promissory Note or
<br />LOAN CONTRACT, then upon the BENEFICIARY filing notice of election and demand for sale, said
<br />PUBLIC TRUSTEE, after advertising notice of said sale weekly for not less than four weeks in some
<br />newspaper of general circulation in said COUNTY, shall sell said COLLATERAL in the manner provided
<br />by law in effect at the time of filing said notice and demand, at public auction for cash, at any proper
<br />place designated in the notice of sale. Out of the proceeds of said sale, the PUBLIC TRUSTEE shall
<br />retain or pay first all fees, charges and costs and all moneys advanced for taxes, insurance and
<br />assessments, or on any prior encumbrance, with interest thereon and pay the principal and interest
<br />due on said Promissory Note, rendering the overplus, if any, unto the GRANTOR; and after the
<br />expiration of the time of redemption, the PUBLIC TRUSTEE shall execute and deliver to the purchaser
<br />a deed to the COLLATERAL sold. The BENEFICIARY may purchase said COLLATERAL or any part
<br />thereof at such sale.
<br />The GRANTOR covenants that at the time of the delivery of these presents, it is well seized of
<br />the COLLATERAL in fee simple, and has full power and lawful authority to grant, bargain, sell and
<br />convey the same in the manner and form as aforesaid. The GRANTOR fully waives and releases all
<br />rights and claims it may have in or to said COLLATERAL as a Homestead Exemption or other
<br />exemption, now or hereafter provided by law. The GRANTOR further covenants that the collateral is
<br />free and clear of all liens and encumbrances whatever and that the GRANTOR shall warrant and
<br />forever defend the COLLATERAL in the quiet and peaceable possession of the PUBLIC TRUSTEE, its
<br />successors and assigns, against all and every person or persons lawfully claiming or to claim the
<br />whole or any part thereof.
<br />Until payment in full of the indebtedness, the GRANTOR shall timely pay all taxes and
<br />assessments levied on the COLLATERAL; any and all amounts due on account of the principal and
<br />interest or other sums on any senior encumbrances, if any; and will keep the COLLATERAL insured in
<br />accordance with the requirements of the LOAN CONTRACT. In the event of the sale or transfer of the
<br />COLLATERAL, the BENEFICIARY, at its option, may declare the entire balance of the note immediately
<br />due and payable.
<br />In case of default in any of said payments of the principal or interest, according to the terms
<br />of said Promissory Note or LOAN CONTRACT, by the GRANTOR, its successors or assigns, then said
<br />principal sum hereby secured, and interest thereon, may at once, at the option of the BENEFICIARY,
<br />become due and payable, and the said COLLATERAL be sold in the manner and with the same effect
<br />as if said indebtedness had matured, and that if foreclosure be made by the PUBLIC TRUSTEE, an
<br />attorney's fee in a reasonable amount for services in the supervision of said foreclosure
<br />proceedings shall be allowed by the PUBLIC TRUSTEE as a part of the cost of foreclosure, and if
<br />foreclosure be made through the courts a reasonable attorney's fee shall be taxed by the court as a
<br />part of the cost of such foreclosure proceedings.
<br />It is further understood and agreed, that if a release or a partial release of this Deed of Trust
<br />is required, the GRANTOR, its successors or assigns will pay the expense thereof; that all the
<br />covenants and agreements contained herein and in the Promissory Note and LOAN CONTRACT shall
<br />Appendix 5 to Loan Contract C150325
<br />Page 2 of 3
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