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order as Beneficiary may determine. Beneficiary's right to the rents, royalties, issues, profits,
<br />revenue, income and proceeds of the Property does not depend upon whether or not Beneficiary
<br />takes possession of the Property. The entering upon and taking possession of the Property, the
<br />collection of such rents, issues, and profits, and the application thereof as aforesaid, shall not
<br />cure or waive any default or notice of default hereunder or invalidate any act done pursuant to
<br />such notice. if an Event of Default occurs while Beneficiary is in possession of all or part of the
<br />Property and/or is collecting and applying Rents as permitted under this Deed of Trust,
<br />Beneficiary, Trastee and any receiver shall nevertheless be entitled to exercise and invoke every
<br />right and remedy afforded any of them under this Deed of Trust and at law or in equity,
<br />including the right to exercise the power of sale granted hereunder. Regardless of whether or not
<br />Beneficiary, in person or by agent, takes actual possession of the Land or the Improvements,
<br />Beneficiary shall not be deemed to be a "mortgagee in possession," shall not be responsible for
<br />performing any obligation of Trustor under any Lease, shall not be liable in any manner for the
<br />Property, or the use, occupancy, enjoyment or operation of any part of it, and shall not be
<br />responsible for any waste committed by Trustor, lessees or any third parties, or for dangerous or
<br />defective condition of the Property or any negligence in the management, repair or control of the
<br />Property. Absent Beneficiary's written consent, Trustor shall not accept prepayment of Rents for
<br />any rental period exceeding one month.
<br />4. Security Agreement. The parties intend for this Deed of Trust to create a lien on the
<br />Property, and an absolute assignment of the Rents and Leases, all in favor of Beneficiary. The
<br />parties acknowledge that some of the Property may be determined under applicable law to be
<br />personal property or fixtures. To the extent that any Property may be or be determined to be
<br />personal property, Trustor as debtor hereby grants to Beneficiary as secured party a security
<br />interest in all such Property to secure payment and performance of the Secured Obligations. This
<br />Deed of Trust constitutes a security agreement under the California Uniform Commercial Code,
<br />as amended or recodified from time to time (the "UCC"), covering all such Property. To the
<br />extent such Property is not real property encumbered by the lien granted above, and is not
<br />absolutely assigned by the assignment set forth above, it is the intention of the parties that such
<br />Property shall constitute "proceeds, products, offspring, rents, or profits" (as defined in and for
<br />the purposes of Section 552(b) of the United States Bankruptcy Code, as such section may be
<br />modified or supplemented) of the Land and Improvements.
<br />5. Financing Statements. Pursuant to the UCC, Trustor, as debtor, hereby authorizes
<br />Beneficiary, as secured party, to file such financing statements and amendments thereof and such
<br />continuation statements with respect thereto as Beneficiary may deem appropriate to perfect and
<br />preserve Beneficiary's security interest in the Property and Rents, without requiring any signature
<br />or further authorization by Trustor. if requested by Beneficiary, Trustor shall pay all fees and
<br />costs that Beneficiary may incur in filing such documents in public offices and in obtaining such
<br />record searches as Beneficiary may reasonably require. if any financing statement or other
<br />document is filed in the records normally pertaining to persona] property, that filing shall not be
<br />construed as in any way derogating from or impairing this Deed of Trust or the rights or
<br />obligations of the parties under it.
<br />Everything used in connection with the Property and/or adapted for use therein andlor which is
<br />described or reflected in this Deed of Trust is, and at all times and for all purposes and in all
<br />proceedings both legal or equitable shall be regarded as part of the estate encumbered by this
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