Quint & Thimmig LLP

01/05/12

AFTER RECORDATION PLEASE RETURN TO:

Quint & Thimmig LLP
575 Market Street, Suite 3600
San Francisco CA 94105-2874
Attention: Brian D. Quint, Esq.

DEED OF TRUST
WITH
FIXTURE FILING,
SECURITY AGREEMENT
AND ASSIGNMENT AGREEMENT
by
____________________
Dated as of _____ 1, 20__

LOAN NO. _____

TABLE OF CONTENTS
Page
Section 1.
Section 2.
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
Section 8.
Section 9.
Section 10.
Section 11.
Section 12.
Section 13.
Section 14.
Section 15.
Section 16.
Section 17.
Section 18.
Section 19.
Section 20.
Section 21.
Section 22.
Section 23.
Section 24.
Section 25.
Section 26.
Section 27.
Section 28.

Grant in Trust ................................................................................................................................ 1

Obligations ..................................................................................................................................... 3
Security Agreement and Fixture Filing ...................................................................................... 3
Absolute Assignment; Assignment of Leases and Rents ........................................................ 5
Acceleration upon Default ........................................................................................................... 5
Covenants of the Trustor .............................................................................................................. 5
Condemnation Proceeds .............................................................................................................. 7
Acceptance Not Waiver ................................................................................................................ 7
Conveyance, Easements, Subordination, Releases ................................................................... 7
Right of Entry for Inspection ....................................................................................................... 8
Entry, Possession, Operation of Property .................................................................................. 8
Power of Sale ................................................................................................................................. 9
Satisfaction and Reconveyance ................................................................................................. 10
Additional Security ..................................................................................................................... 10
Notice of Actions ......................................................................................................................... 10
Charge for Provision of Statement ............................................................................................ 10
Waiver of Statute of Limitations ............................................................................................... 10
Irrevocable by the Trustor .......................................................................................................... 10
Substitution of Trustee ............................................................................................................... 10
Post-Foreclosure Environmental Losses .................................................................................. 10
Exercise of Rights ........................................................................................................................ 11
Notices .......................................................................................................................................... 11
Successors Bound ........................................................................................................................ 12
Severability of Invalid Provisions ............................................................................................. 12
Amendments; Releases or Reconveyances .............................................................................. 12
Headings and References ........................................................................................................... 12
Governing Law; Venue .............................................................................................................. 12
Attorneys Fees ............................................................................................................................ 13

EXHIBIT A:
EXHIBIT B:

LEGAL DESCRIPTION OF REAL PROPERTY

DESCRIPTION OF COLLATERAL

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DEED OF TRUST
THIS DEED OF TRUST WITH FIXTURE FILING, SECURITY AGREEMENT AND
ASSIGNMENT AGREEMENT (Deed of Trust) is made as of _____ 1, 20__, by
____________________, a California nonprofit public benefit corporation (Trustor) to Stewart
Guaranty Title Company (Trustee) as trustee for the benefit of the Office of Statewide Health
Planning and Development of the State of California (Office), and for the benefit of the
California Municipal Finance Authority (Authority) (collectively, the Beneficiary):
THIS DEED OF TRUST WITNESSETH:
Section 1. Grant in Trust. The Trustor irrevocably grants, transfers and absolutely,
unconditionally and irrevocably assigns to the Trustee, in trust, with power of sale and right of
entry and possession, the entire right, title and interest of Trustor in and to that certain real
property (Land) situated in _______ County, State of California, and more particularly
described in Exhibit A attached hereto and made a part hereof, all right title and interest that
the Trustor otherwise now has or may hereafter acquire in the Land, together with all right, title
and interest that the Trustor now has or may hereafter acquire in:
(i) All buildings, structures, improvements, fixtures, equipment and appurtenances now
and hereafter owned, constructed, located, erected, installed or affixed by or on behalf of the
Trustor upon or appurtenant to the Land and all replacements and substitutions therefor
(Facilities);
(ii) All appurtenances, improvements, easements, pipes, transmission lines or wires and
other rights used in connection with the Land or as a means of access thereto, whether now or
hereafter owned or constructed or placed upon or used in connection with the Land or Facilities
(Appurtenances);
(iii) All equipment, machinery, goods and other personal property of the Trustor,
whether movable or not, if the same is (a) now owned or hereafter acquired by the Trustor, (b)
now or hereafter located at or used in connection with the Facilities, (c) financed with the
proceeds of the Bonds or Parity Debt (as those terms are defined in the Regulatory Agreement
referenced below) or (d) obtained in order to satisfy its obligations under the Loan Agreement,
the Regulatory Agreement or the Contract of Insurance, each as identified below, and all
improvements, restorations, replacements, repairs, additions, accessions or substitutions thereto
or therefor, including, without limitation, all machinery, equipment, material, furnishings and
appliances for generation or distribution of air, water, heat, electricity, light, fuel or
refrigeration, for purposes of ventilation, sanitation or drainage, for exclusion of vermin or
insects, for removal or disposal of dust, refuse or garbage; all elevators, awnings, window
coverings, floor covering, laundry equipment, kitchen equipment, cabinets, furniture and
furnishings; all fixed and moveable equipment now or hereafter installed or placed upon or in
the Land or Facilities for use in health care, treatment, diagnosis and services or for other health
care uses; the products and proceeds from any and all such property; all the estate, interest,
right, title, property or other claim or demand of every nature whatsoever, in and to such
property, including specifically, but without limitation, all deposits made with or other security
given to utility companies by the Trustor with respect to such property and claims or demands

relating to insurance or condemnation awards which the Trustor now has or may hereafter
acquire (Equipment);
(iv) All leases or subleases with respect to the Land, Facilities, Appurtenances and
Equipment (Leases);
(v) All rentals or other payments which may now or hereafter accrue or otherwise
become payable under the Leases to or for the benefit of the Trustor together with all other
income, rents, revenues, issues, profits, reserves and royalties produced by the Land, Facilities,
Appurtenances and Equipment or by all management or service contracts or other contracts
affecting the Property, including but not limited to security deposits (collectively the Rents);
(vi) All earnings, products, damages, indemnifications, insurance proceeds and any
other proceeds from any and all of such Land, Facilities, Appurtenances, Equipment, Leases,
Rents and Accounts including specifically, but without limitation, all deposits made with or
other security given to utility companies and claims or demands relating to insurance or
condemnation awards which the Trustor now has or may hereafter acquire, including all
advance payments of insurance premiums made by the Trustor with respect thereto
(Proceeds);
(vii) All accounts, accounts receivable and other rights to payment of money now owned
or hereafter acquired by the Trustor, whether due or to become due and whether or not earned
by performance (Accounts), including without limitation the following:
(a) Any and all Accounts arising from any source, including without limitation
operations of the Trustor or its agents at the Facilities, and at any other facility,
including, but not limited to, health facility or office; and
(b) Any and all Accounts accruing from in-patient, out-patient, day treatment,
and any other programs run by and operations of the Trustor or its agents.
For purposes hereof, Accounts covered hereby shall include without limitation accounts,
chattel paper, deposit accounts and instruments as defined by the California Commercial Code,
and any amounts receivable from third party payors (including insurance companies, Medicare
and Medicaid including, without limitation, any Medicare and/or Medicaid losses paid on
recapture, unless otherwise prohibited by law) in connection with the foregoing; and
(viii) All right, title and interest of the Trustor in all the Trustors inventory, raw
materials, work in process, finished goods and goods held for sale or lease or furnished under
contracts of service, and all returned and repossessed goods, and all goods covered by
documents of title, including warehouse receipts, bills of lading and all other documents of
every type covering all or any part of the Property, now owned or hereafter acquired, whether
held by the Trustor or any third party, which is located on, appurtenant to, relating to, or used
by or useful in connection with the Property (Inventory);
All of the above referenced Land, Facilities, Appurtenances, Equipment, Leases, Rents,
Proceeds, Accounts and Inventory as hereby conveyed to the Trustee or made subject to the
security interest herein described is collectively referred to herein as the Property.

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Additionally, Health and Safety Code Section 129052, in part, states:

The lien of such pledge shall be valid and binding against all parties, irrespective of
whether the parties have notice of the lien. The indenture, trust agreement, resolution, or
another instrument by which such pledge is created need not be recorded or the security
interest otherwise perfected.
The Trustor warrants and agrees that as of the date of recording of this Deed of Trust it
has not entered into any sales agreement, option, assignment, sublease, pledge, mortgage, deed
of trust, financing statement, security agreement or any other arrangement regarding the
Property apart from the transactions referenced in or secured by this Deed of Trust and has not
nor will execute any document or instrument referring to or covering the Property, or any part
thereof, and no such documents or instruments are on file, recorded or in effect in any public
office, other than Permitted Encumbrances (as that term is defined in the Regulatory Agreement
described below) and agrees that the Property is, and shall be, kept free from any lien, security
interest, encumbrance or any other interest other than the Permitted Encumbrances.
FOR THE PURPOSE OF SECURING:
Section 2. Obligations
(a) Payment of Loan Repayments and Additional Payments (as those terms are defined
in the Indenture which is defined below) pursuant to that certain Loan Agreement, dated as of
_____ 1, 20__ (the Loan Agreement), by and between the Authority and the Trustor, in an
amount sufficient to pay the debt service on the California Municipal Finance Authority Insured
Revenue Bonds (____________________), Series 20__ (the Bonds), issued in an original
principal amount of _________ dollars ($_________), pursuant to that certain Indenture, dated
as of _____ 1, 20__ (Indenture), by and between the Authority and ____________________
(Indenture Trustee), and any Parity Debt (as that term is defined in the Regulatory
Agreement) issued pursuant to the terms of the Loan Agreement and the Indenture;
(b) Performance of each and every obligation, covenant and agreement of Trustor
contained in the Loan Agreement;
(c) Performance of each and every obligation, covenant and agreement contained in this
Deed of Trust; and
(d) Performance of each and every obligation, covenant and agreement of Trustor under
that certain Regulatory Agreement (Regulatory Agreement) and under that certain Contract
of Insurance (Contract of Insurance), each dated as of _____ 1, 20__, and entered into by and
among the Trustor, the Office and the Authority and any regulatory agreements and contracts
of insurance relating to Parity Debt.
The foregoing obligations are hereinafter sometimes referred to as the Obligations.
THIS DEED OF TRUST FURTHER WITNESSETH:
Section 3. Security Agreement and Fixture Filing. This Deed of Trust shall also constitute
a security agreement and the Trustor hereby pledges and grants to the Beneficiary a security

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interest in and to all of the Property not constituting real property under the laws of the State of
California (Personal Property), whether Trustor now or hereafter obtains an interest in such
Personal Property and all the proceeds or products thereof, including but not limited to all of
those items listed in Exhibit B attached hereto and made a part hereof. Upon any default of the
Trustor hereunder, the Beneficiary shall be entitled to exercise with respect to all such collateral
all of the rights and remedies set forth herein, in the Loan Agreement, in the Contract of
Insurance, in the Regulatory Agreement or otherwise afforded to a secured party in default
under the terms of Article 9 of the California Uniform Commercial Code, any or all of which
may be pursued and exercised concurrently, consecutively, alternatively or otherwise. The
Trustor will execute one or more supplemental security agreements and financing statements as
the Beneficiary may from time to time require, covering any property now or hereafter
constituting a portion of the Property and otherwise the collateral securing the indebtedness
secured hereunder and such financing statements and other and further assurances as the
Beneficiary may request to perfect or evidence the security interest herein created (which shall
cover all proceeds and products of collateral), including but not limited to, UCC-1 Financing
Statements (which shall contain the description of collateral attached as Exhibit B) and UCC
Continuation Statements.
The Trustor will pay all costs of filing any financing, continuation or termination
statements with respect to the security interest created by this Deed of Trust; and the
Beneficiary is hereby appointed the Trustors attorney-in-fact to do, at the Beneficiarys option
and at the Trustors expense, all acts and things which the Beneficiary may deem necessary to
perfect and continue perfected the security interest created by this Deed of Trust and to protect
the Property. The Beneficiary may execute, sign, endorse, transfer or deliver, in the name of the
Trustor, notes, checks, drafts or other instruments for the payment of money and receipts,
certificates of origin, certificates of title, applications for certificates of title, or any other
documents necessary to evidence, perfect or realize upon the security interests and secured
indebtedness created or secured by this Deed of Trust. This authority shall be considered a
power coupled with an interest and shall be irrevocable until all the indebtedness secured
hereby shall have been paid in full.
This Deed of Trust constitutes a Financing Statement filed as a fixture filing in the
Official Records of the County Recorder of the county in which the property is located with
respect to any and all Fixtures (as defined by the Uniform Commercial Code), included within
the term Property as used in this Deed of Trust and with respect to any goods or other
Personal Property that may now or hereafter become such Fixtures. The address of the
Beneficiary, from which information concerning the security interest granted hereunder may be
obtained, is:
Office of Statewide Health Planning and Development
400 R Street, Suite 470
Sacramento, CA 95811
Attn: Deputy Director
Cal-Mortgage Loan Insurance Division
California Municipal Finance Authority
2111 Palomar Airport Road, Suite 320
Carlsbad, CA 92011
Attn: Financial Advisor

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All references in this Deed of Trust to the Uniform Commercial Code shall be to the

Uniform Commercial Code as enacted by the State of California.

Section 4. Absolute Assignment; Assignment of Leases and Rents.
(a) The Trustor hereby absolutely, unconditionally and irrevocably assigns to the
Beneficiary the Leases and Rents. The Beneficiary authorizes the Trustor, prior to any default in
the payment of any indebtedness secured hereby or in the performance of any covenant or
obligation hereunder, without notice, to collect and use all such Rents as they become due and
payable and to exercise all rights under the Leases if not otherwise restricted under the Loan
Agreement, the Regulatory Agreement or Contract of Insurance. The foregoing assignment
shall not impose upon the Beneficiary any duty to produce Rents from the Property or cause the
Beneficiary to be a mortgagee in possession for any purpose.
(b) Except as otherwise permitted under the Regulatory Agreement, the Trustor agrees
that it will not amend, modify, change or waive, or consent to any amendment, modification,
change or Waiver of, any term or provision of the Leases without the prior written consent of
the Beneficiary.
(c) The Trustor agrees that it will take all steps and do all things necessary to keep and
maintain the Leases in full force and effect and will enforce or cause to be enforced all and
singular the provisions thereof, and bring and prosecute or cause to be prosecuted any and all
suits, actions and proceedings necessary to enforce compliance with all of the terms, provisions
and covenants thereof. If, in the reasonable opinion of the Beneficiary, the Trustor has failed, or
is about to fail, to take suitable action to enforce the Leases or any guaranty thereof or to first
preserve any rights or remedies thereunder, the Beneficiary, after giving five (5) days written
notice to the Trustor, may, but is not required to, take such action as it shall deem appropriate,
in its own name or in the name of the Trustor for the use and benefit of the Beneficiary, to
enforce the Leases and to preserve any rights or remedies thereunder, and all costs and
expenses incurred by the Beneficiary in taking any such action shall be payable on demand and
shall constitute part of the secured indebtedness hereunder.
Section 5. Acceleration upon Default. In the event of any default by the Trustor under
the Loan Agreement, the Regulatory Agreement, the Contract of Insurance, or any other
agreements secured hereby, or upon the breach by the Trustor of any of its covenants or
agreements contained herein, the Beneficiary shall have the option of declaring the unpaid
balance owing under the Loan Agreement and any other sums secured hereby immediately due
and payable as provided in Section 8.2 of the Loan Agreement.
Section 6. Covenants of the Trustor. For the purpose of protecting and preserving the
security of this Deed of Trust, the Trustor promises and agrees to do the following:
(a) (1) to take all action necessary to keep the Property at all times entirely free of
dry rot, fungus, termites, beetles and all other wood-boring, wood-eating, harmful or
destructive insects, and in all respects properly to care for and keep all of the Property,
including all such buildings, structures and other improvements, in good condition and
repair;

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(2) not to remove, demolish or substantially alter (except such alterations as may
be required by laws, ordinances or regulations or permitted pursuant to the Loan
Agreement) any of the Facilities; provided, however, that the Trustor may make such
proper replacements, repairs, renewals, removals and alterations as it shall in good faith
reasonably determine are necessary or advisable to maintain or enhance the efficiency
and value of the security created hereby;
(3) to complete promptly and in good and businesslike manner any building or
other improvements which may be constructed on the Land, to promptly restore in like
manner (to the extent permitted by law) any Facilities which may be damaged or
destroyed thereon, and to pay when due all claims for labor performed and materials
furnished therefor, provided that the Trustor shall not be required to pay any such claim
if it shall in good faith contest the validity thereof and, if so contested, shall provide for
the payment thereof in a manner reasonably satisfactory to the Office;
(4) to comply with all laws, ordinances, regulations, conditions and restrictions
now or hereafter affecting the Property or any part thereof or requiring any alterations
or improvements to be made thereon;
(5) not to commit or permit any waste, and not to permit any deterioration, of the
Property; and
(6) not to commit, suffer or permit any act to be done in or upon the Property in
violation of any law or ordinance if such act might have consequences that would
materially and adversely affect the financial condition, assets, properties or operation of
the Trustor;
(b) to provide and maintain hazard insurance as required by the Regulatory Agreement
(see Section XV entitled Insurance), and to deliver duplicate originals or certified copies of the
policies of said insurance to the Trustee upon its request; it being mutually agreed that the
proceeds of any claim under such insurance in excess of one and one-half percent (1-1/2%) of
the Trustors Adjusted Annual Operating Revenues (as defined in the Regulatory Agreement;
see Section XIX(A) of the Regulatory Agreement entitled Disposition of Insurance and
Condemnation Proceeds) shall be deposited with the Indenture Trustee pursuant to the
Indenture and are hereby assigned to said Indenture Trustee to be held and disbursed by said
Indenture Trustee as provided in the Regulatory Agreement, and that any unexpired insurance
and all returnable insurance premiums shall inure to the benefit of, and pass to, the purchaser
of the property covered thereby at any Trustees sale held hereunder;
(c) to appear in and defend any action or proceeding affecting or purporting to affect the
security of this Deed of Trust, any additional or other security for any of the obligations secured
hereby, or the interest, rights, powers, or duties of the Trustee or the Beneficiary hereunder, it
being agreed, however, that in the case of an action or proceeding against the Trustee or the
Beneficiary said Trustee or Beneficiary, at its option, may appear in and defend any such action
or proceeding and, in addition, it being agreed that the Trustee or Beneficiary may commence
any action or proceeding deemed necessary by it to perfect, maintain or protect such interest,
rights, powers or duties, all in such manner and to such extent as it may determine in its sole
discretion to be appropriate, and the Trustee or Beneficiary is authorized to pay, purchase or
compromise on behalf of the Trustor any encumbrance or claim which in its judgment appears
or purports to affect the security hereof or to be superior hereto; to pay all costs and expenses,
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including costs of evidence of title and attorneys fees and expenses in a reasonable sum, in any
above described action or proceedings in which the Beneficiary or the Trustee may appear;
(d) (1) to pay, and submit to the Beneficiary, at least five (5) days before default
or delinquency, a receipt or other evidence of payment, or certified copy thereof,
evidencing payment of all taxes and assessments affecting the Property, and any
accrued interest, cost or penalty thereon, provided that the Trustor shall not be required
to pay any such tax or assessment if it shall in good faith contest the validity thereof and,
if so contested, shall provide for the payment thereof in a manner reasonably
satisfactory to the Office;
(2) to pay when due all encumbrances (including any debt secured by deed of
trust), ground rents, liens or charges, with interest, on the Property or any part thereof
which appear to be prior or superior hereto, and to pay immediately and in full all such
encumbrances, rents, liens or charges, if any, which may now be due or payable;
provided that the Trustor shall not be required to pay any such encumbrances, rent, lien
or charge if it shall in good faith contest the validity thereof and, if so contested, shall
provide for the payment thereof in manner satisfactory to the Beneficiary; and
(3) to pay when due all costs, fees and expenses of these trusts, including costs of
evidence of title and the Trustees fees in connection with sale, whether completed or
not, which amounts shall become due upon delivery to the Trustee of declaration of
default and demand for sale, as hereinafter provided; and
(e) to pay immediately and without demand all reasonable and necessary sums
expended or expense incurred by the Trustee or by the Beneficiary to enforce the terms of the
Trust, including attorneys fees and expenses, under any of the terms of this Deed of Trust, with
interest from date of expenditure at the rate of ten percent (10%) per annum.
Section 7. Condemnation Proceeds. All condemnation proceeds of the Property in excess
of one and one-half percent (1-1/2%) of the Trustors Adjusted Annual Operating Revenues (as
defined in the Regulatory Agreement) shall be deposited with the Indenture Trustee pursuant
to the Indenture and are hereby assigned to said Indenture Trustee to be held and disbursed by
said Indenture Trustee as provided in the Regulatory Agreement; provided that any
condemnation proceeds not so required to be deposited may be retained by the Trustor and
used for any lawful purpose, subject to Trustors obligation to repair or restore the Property
following such condemnation.
Section 8. Acceptance Not Waiver. By accepting payment of any sum secured hereby
after its due date, neither the Trustee nor the Beneficiary shall be deemed to have waived its
right either to require prompt payment when due of all other sums so secured or to declare
default as herein provided for failure so to pay.
Section 9. Conveyance, Easements, Subordination, Releases. To the extent permitted
under the Loan Agreement or the Regulatory Agreement, at any time, or from time to time,
without liability therefor and without notice, upon written request by the Beneficiary or
Trustor, upon presentation of this Deed of Trust, and without affecting the liability of any
person for payment of the indebtedness secured hereby or the effect of this Deed of Trust upon
the remainder of the Property, the Trustee shall reconvey any part of the Property, consent in
writing to the making of any map or plat thereof, execute releases, join in granting any
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easement thereon, or join in any extension agreement or any agreement subordinating the lien
or charge hereof. The Trustor, the Beneficiary and the Trustee shall execute and deliver any
agreements subordinating the lien or charge hereof to the lien of any Permitted Encumbrance
(as that term is defined in the Regulatory Agreement) and any releases and waivers of the lien
of this Deed of Trust as is necessary to accommodate the requirements of the holders of
Permitted Encumbrances.
Section 10. Right of Entry for Inspection. The Trustee and the Beneficiary are each
authorized, by themselves or their agents or workers, in a reasonable manner such as not to
interfere with the Trustors business in a materially adverse manner and after giving notice to
enter during reasonable business hours (or at any other time agreeable to the Trustor) upon any
part of the Property for the purpose of inspecting the same.
Section 11. Entry, Possession, Operation of Property.
(a) Should the Trustor fail or refuse to make any payment or to do any act which it is
obligated hereunder to make or do, at the time and in the manner herein provided, then the
Trustee or the Beneficiary, in its sole discretion, without notice to or demand upon the Trustor
and without releasing the Trustor from any obligation hereof, is authorized to do and may do
any of the following:
(1) make any such payment or do any such act in such manner and to such extent
as it may deem necessary to protect the security hereof, the Trustee and the Beneficiary
being authorized to enter upon the Property for such purposes;
(2) pay, purchase, contest or compromise any claim, debt, lien, charge or
encumbrance which in the judgment of the Trustee or the Beneficiary may affect or
appear to affect the security of this Deed of Trust, the interest of the Beneficiary or the
rights, powers or duties of the Trustee or the Beneficiary hereunder; or
(3) either by itself or by its agents appointed by it for that purpose, enter into and
upon and take and hold possession of any or all of the Property, exclude the Trustor and
all other persons therefrom, and operate and manage the Property, and rent and lease
the same and collect any and all rents, issues, income and profits therefrom, and from
time to time apply the same or accumulate the same for application, in such order and
manner as the Trustee or the Beneficiary in its sole discretion shall consider advisable, to
the following: costs of collecting the same, including the Trustees reasonable fees in so
doing; the necessary and proper costs of upkeep, maintenance, repair, and operation of
the Property; the repayment of any sums theretofore or thereafter advanced pursuant to
the terms of this Deed of Trust; the interest and principal then due or next to become
due upon any indebtedness secured hereby; and the taxes and assessments upon the
Property then due or next to become due.
(b) The collection or receipt of Rents from the Property by the Trustee or the Beneficiary
after declaration of default and election to cause the Property to be sold under and pursuant to
the terms of this Deed of Trust shall not affect or impair such default or declaration of default or
election to cause the Property to be sold or any sale proceedings predicated thereon, but such
proceedings may be conducted and sale effected notwithstanding the receipt or collection of
any such Rents. Any such Rents in the possession of the Trustee or the Beneficiary at the time of

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sale and not theretofore applied as herein provided, shall be applied in the same manner and
for the same purposes as the proceeds of the sale.
(c) The Trustee and the Beneficiary shall not be under any obligation to make any of the
payments or do any of the acts above mentioned, but, upon election so to do, employment of an
attorney is authorized and payment of such attorneys fees and of all other necessary
expenditures is hereby secured.
Section 12. Power of Sale.
(a) Should a Loan Default Event have occurred and be continuing under the Loan
Agreement, or upon the breach by the Trustor of any of its covenants or agreements contained
herein, in the Regulatory Agreement or in the Contract of Insurance, the Trustee, upon written
request by the Beneficiary, shall declare all sums secured hereby immediately due and payable.
(b) Having so declared, the Trustee shall provide and record such notices of default and
of the election to cause the Property or any part of it to be sold as are required by law.
(c) The Trustee, upon written request by the Beneficiary, from time to time before the
Trustees sale, may rescind any such notice of default and of election to cause to be sold the
Property and may execute a written notice of such a rescission, which notice, when recorded,
shall also constitute a cancellation of any prior declaration of default and demand for sale. The
exercise of such right of rescission shall not constitute a waiver of any breach or default then
existing or subsequently occurring or impair the right of the Beneficiary to execute and deliver
to the Trustee, as above provided, other requests for notices of default and of election to cause
to be sold the Property to satisfy the obligations hereof, nor otherwise affect any provision,
covenant or condition of this Deed of Trust or any of the rights, obligations or remedies of the
parties hereunder.
(d) Not less than the time then required by law having elapsed after recordation of
notice of default, without demand on the Trustor, the Trustee, having first given notice of sale
as then required by law, shall sell the Property in the manner provided by law at the time and
place of sale fixed by it in the notice of sale, provided that the Trustee may postpone sale of all
or any portion of the Property in the manner provided by law.
(e) The Trustee shall deliver to the purchaser its deed conveying the property so sold,
but without any covenant or warranty, express or implied, and the recitals in such deed of any
matters or facts affecting the regularity or validity of the sale shall be conclusive proof of the
truthfulness thereof. Also, such deed shall be conclusive against all persons as to all matters or
facts therein recited. Any person, including the Trustor, the Trustee and the Beneficiary, may
purchase at such sale.
(f) The Trustee shall apply the proceeds of any such sale to payment of: (1) all costs, fees,
charges and expenses of the Trustee and of these trusts, and fees of any attorneys employed by
the Trustee or the Beneficiary to enforce the provisions hereof; (2) the Trustees fees in
connection with the sale, and all expenses of sale, including the cost of procuring evidence of
title in connection with the sale proceedings and revenue stamps on the Trustees deed; and (3)
all other sums secured hereby, including interest on each of the foregoing items, all in such
manner and order of priority or preference as the Beneficiary may in its sole and absolute

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discretion direct. The remainder, if any, of such proceeds, shall be paid to the person or persons
legally entitled thereto, upon proof satisfactory to the Trustee of such right.
Section 13. Satisfaction and Reconveyance. Upon written request of the Beneficiary
stating that all sums secured hereby have been paid, and upon surrender to the Trustee of this
Deed of Trust and upon payment of its fees, the Trustee shall reconvey and release, without
warranty, the Property, it being further agreed that the recitals in such reconveyance and
release of any matters or facts shall be conclusive proof of the truthfulness thereof and that the
grantee in any reconveyance may be described as the person or persons legally entitled
thereto.
Section 14. Additional Security. The Trustee shall be entitled to enforce payment and
performance of any indebtedness or obligations secured hereby and to exercise all rights and
powers under this Deed of Trust or under any other agreement or any laws now or hereafter in
force, notwithstanding that some or all of the indebtedness and obligations secured hereby are
now or shall hereafter be otherwise secured, whether by mortgage, deed of trust, pledge, lien,
assignment or otherwise; and neither the acceptance of this Deed of Trust nor its enforcement,
whether by court action or pursuant to the power of sale or other powers herein contained, shall
prejudice or in any manner affect the Trustees or the Beneficiarys right to realize upon or
enforce any other security now or hereafter held by the Trustee or the Beneficiary, it being
agreed either that the Trustee or the Beneficiary shall be entitled to enforce this Deed of Trust
and any other security now or hereafter held by the Beneficiary or the Trustee in such order and
manner as it may in its uncontrolled discretion determine.
Section 15. Notice of Actions. The Trustee shall be under no obligation to notify any
party hereto of any action or proceeding of any kind in which the Trustor, the Beneficiary or the
Trustee shall be a party, unless brought by the Trustee, or of any pending sale under any other
deed of trust.
Section 16. Charge for Provision of Statement. For any statement regarding the
obligations secured hereby, a charge, which the Trustor agrees to pay, may be made in an
amount not exceeding the maximum allowed by law at the time any such statement is
requested.
Section 17. Waiver of Statute of Limitations. The right to plead any and all statutes of
limitations as a defense to any demand secured by this Deed of Trust is hereby waived.
Section 18. Irrevocable by the Trustor. The trust created hereby is irrevocable by the
Trustor.
Section 19. Substitution of Trustee. The Beneficiary may substitute a successor Trustee
from time to time by recording at the places required by law an instrument stating the election
by the Beneficiary to make such substitution and identifying this Deed of Trust.
Section 20. Post-Foreclosure Environmental Losses. THE TRUSTOR HAS EXECUTED
THAT CERTAIN ENVIRONMENTAL INDEMNITY DATED AS OF _____ 1, 20__, IN FAVOR
OF THE BENEFICIARY (ENVIRONMENTAL INDEMNITY). NOTWITHSTANDING ANY
OTHER PROVISION IN THE LOAN AGREEMENT OR THE REGULATORY AGREEMENT,
THIS DEED OF TRUST DOES NOT SECURE ANY OBLIGATIONS OR LIABILITIES ARISING

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UNDER THE ENVIRONMENTAL INDEMNITY OR OUT OF ANY POST-FORECLOSURE

TRANSFER ENVIRONMENT LOSSES (AS DEFINED IN THE ENVIRONMENTAL
INDEMNITY). IT IS THE EXPRESS INTENTION OF THE TRUSTOR AND THE BENEFICIARY
THAT SUCH OBLIGATIONS AND LIABILITIES BE UNSECURED.
Section 21. Exercise of Rights. For as long as the Office is obligated under the Contract of
Insurance, all rights under this Deed of Trust shall be exercised solely by the Office and all
notices, determinations and consents required or permitted under this Deed of Trust shall be
given by and to the Office only, notwithstanding notice and consent provisions relating to both
the Office and the Indenture Trustee, as assignee of Authority. For so long as the Office is
obligated under the Contract of Insurance, all rights shall be exercised by the Office for the
equal and ratable benefit of the Office and the Indenture Trustee, it being understood that all
rights and proceeds inuring to the benefit of the Indenture Trustee hereunder are for the benefit
of the holders of the Bonds and Parity Debt. In the event the Contract of Insurance has been
canceled or terminated, all rights and remedies under this Deed of Trust may be exercised
solely by the Indenture Trustee, acting in accordance with the direction of the Owners of a
majority in aggregate principal amount of the Bonds. In the event that all amounts owing to the
Indenture Trustee have been paid, all rights and remedies under this Deed of Trust may be
exercised solely by the Office for its own benefit.
Section 22. Notices. All notices, requests or communications required or permitted to be
given in this Deed of Trust, including any notice of default and any notice of sale to the Trustor
under this Deed of Trust, shall be in writing and mailed or delivered to the respective party as
follows:
Trustor:

____________________
____________________
____________________
Attention: ____________________

Trustee:

____________________ Title Company

____________________
____________________
Attention: ____________________

Office:

Office of Statewide Health Planning and Development

400 R Street, Suite 470
Sacramento, CA 95811
Attention: Deputy Director, Cal-Mortgage Loan Insurance Division
[email protected]

Indenture Trustee:

____________________
____________________
____________________
Attention: Corporate Trust Department

Authority:

California Municipal Finance Authority

2111 Palomar Airport Road, Suite 320
Carlsbad, CA 92011
Attention: Financial Advisor

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The Trustor, the Trustee, the Office, the Authority and the Indenture Trustee, may, by
notice given hereunder, designate any further or different address to which subsequent notices,
notice of default, notice of sale, statements and other communications shall be sent.
Section 23. Successors Bound. This Deed of Trust shall bind, and the benefits shall inure
to, the respective parties hereto, the Beneficiary, their legal representatives, successors in office
or interest, and assigns.
Section 24. Severability of Invalid Provisions. If any provision of this Deed of Trust
should be held unenforceable or void, in whole or in part, then such unenforceable or void
provision or part shall be deemed separable from the remaining provisions and shall in no way
affect the validity of the remainder of this Deed of Trust.
Section 25. Amendments; Releases or Reconveyances. This Deed of Trust may be
amended, changed, modified or terminated at any time by the written consent of the Office,
without the necessity of obtaining the consent of the Authority, the Indenture Trustee or the
holders of the Bonds or of Parity Debt.
Without affecting the liability of any other person liable for the payment of any obligation
herein mentioned, and without affecting the lien or charge of this Deed of Trust upon any
property not then or theretofore released as security for the full amount of all unpaid
obligations, the Trustee may, upon written request by the Office in accordance with the Loan
Agreement or the Regulatory Agreement, from time to time, and without notice to the Trustor,
release any person other than the Trustor so liable, extend the maturity or alter any of the terms
of any such obligation, or grant other indulgences, release or reconvey, or cause to be released
or reconveyed, any portion or all of the Property, release any other or additional security for
any obligation herein mentioned, or make compositions or other arrangements with debtors in
relation thereto; and if the Trustee at any time holds any additional security for any obligations
secured hereby, it may enforce the sale thereof or otherwise realize upon the same at its option,
either before or concurrently herewith or after a sale is made hereunder.
Section 26. Headings and References. The headings or titles of the several sections,
subsections and subdivisions hereof shall be solely for convenience of reference and shall not
affect the meaning, construction or effect of this Deed of Trust. All references herein to
sections, subsections and other subdivisions are to the corresponding sections, subsections
or subdivisions of this Deed of Trust. The words herein, hereof, hereby, hereunder and
other words of similar import refer to this Deed of Trust as a whole and not to any particular
section, subsection or subdivision hereof. Words of the masculine gender shall mean and
include words of the feminine and neuter genders.
Section 27. Governing Law; Venue. The laws of the State of California shall govern this
Deed of Trust, the interpretation thereof and any right or liability arising hereunder. Any action
or proceeding to enforce or interpret any provision of this Deed of Trust shall be brought,
commenced or prosecuted in Sacramento County, California, except as may otherwise be
required to provide jurisdiction.

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Section 28. Attorneys Fees. In the event of any action at law or in equity between the
parties hereto to interpret or enforce any of the provisions of this Deed of Trust, the
nonprevailing party or parties to such litigation shall pay to the prevailing party or parties all
costs and expenses, including actual attorneys fees, incurred therein by such prevailing party
or parties; and if such prevailing party or parties shall recover judgment in any such action or
proceeding, such costs, expenses and attorneys fees may be included in and as part of such
judgment. The prevailing party shall be the party who is entitled to recover its costs of suit,
whether or not the suit proceeds to final judgment. A party not entitled to recover its costs of
suit shall not recover attorneys fees.
____________________

By
Name
Title

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The California Municipal Finance Authority hereby assigns all of its rights, title and
interest in the foregoing Deed of Trust to ____________________, as trustee on behalf of the
Holders of the Bonds and Parity Debt, pursuant to that certain Indenture, dated as of _____ 1,
20__, by and between the California Municipal Finance Authority and ____________________,
as trustee.
CALIFORNIA MUNICIPAL FINANCE
AUTHORITY

By
Member, Board of Directors

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EXHIBIT A
LEGAL DESCRIPTION OF REAL PROPERTY
The land referred to herein is situated in _______ County, State of California, and is described as
follows:

Exhibit A

EXHIBIT B
DESCRIPTION OF COLLATERAL
All right, title and interest that ____________________, a California nonprofit public benefit
corporation, which is defined as Trustor in that certain Deed of Trust with Fixture Filing and Security
Agreement dated as of _____ 1, 20__ (Deed of Trust) now has or may hereafter acquire in:
(i) All buildings, structures, improvements, fixtures, equipment and appurtenances now
and hereafter owned, constructed, located, erected, installed or affixed by or on behalf of the
Trustor upon or appurtenant to the Land as defined in the Deed of Trust and all replacements
and substitutions therefor (Facilities);
(ii) All appurtenances, improvements, easements, pipes, transmission lines or wires and
other rights used in connection with the Land or as a means of access thereto, whether now or
hereafter owned or constructed or placed upon or in the Land or Facilities (Appurtenances);
(iii) All equipment, machinery, goods and other personal property of the Trustor
whether movable or not, if the same is (a) now owned or hereafter acquired by the Trustor, (b)
now or hereafter located at or used in connection with the Facilities, (c) financed with the
proceeds of the Bonds or Parity Debt as those terms are defined in the Regulatory Agreement
referenced in the Deed of Trust or (d) obtained in order to satisfy its obligations under the Loan
Agreement, the Regulatory Agreement or the Contract of Insurance, each as identified in the
Deed of Trust, and all improvements, restorations, replacements, repairs, additions, accessions or
substitutions thereto or therefor, including, without limitation, all machinery, equipment,
material, furnishings and appliances for generation or distribution of air, water, heat, electricity,
light, fuel or refrigeration, for purposes of ventilation, sanitation or drainage, for exclusion of
vermin or insects, for removal or disposal of dust, refuse or garbage; all elevators, awnings,
window coverings, floor covering, laundry equipment, kitchen equipment, cabinets, furniture
and furnishings; all fixed and moveable equipment now or hereafter installed or placed upon or
in the Land or Facilities for use in health care, treatment, diagnosis and services or for other
health care uses; the products and proceeds from any and all such property; all the estate,
interest, right, title, property or other claim or demand of every nature whatsoever, in and to
such property, including specifically, but without limitation, all deposits made with or other
security given to utility companies by the Trustor with respect to such property and claims or
demands relating to insurance or condemnation awards which the Trustor now has or may
hereafter acquire (Equipment);
(iv) All leases or subleases with respect to the Land, Facilities, Appurtenances and
Equipment (Leases);
(v) All rentals or other payments which may now or hereafter accrue or otherwise
become payable under the Leases to or for the benefit of the Trustor together with all other
income, rents, revenues, issues, profits, reserves, and royalties produced by the Land, Facilities,
Appurtenances and Equipment or by all management or service contracts or other contracts
affecting the Property, including but not limited to security deposits (collectively the Rents);
(vi) All earnings, products, damages, indemnifications, insurance proceeds and any
other proceeds from any and all of such Land, Facilities, Appurtenances, Equipment, Leases,
Rents and Accounts including specifically, but without limitation, all deposits made with or
Exhibit B
Page 1

other security given to utility companies and claims or demands relating to insurance or
condemnation awards which the Trustor now has or may hereafter acquire, including all
advance payments of insurance premiums made by the Trustor with respect thereto
(Proceeds);
(vii) All accounts, accounts receivable and other rights to payment of money now owned
or hereafter acquired by the Trustor, whether due or to become due and whether or not earned
by performance (Accounts), including without limitation the following:
(a) Any and all Accounts arising from any source, including without limitation
operations of the Trustor or its agents at the Facilities, and at any other hospital, facility
or office; and
(b) Any and all Accounts accruing from in-patient, out-patient, day treatment,
and any other programs run by and operations of the Trustor or its agents.
For purposes hereof, Accounts covered hereby shall include without limitation accounts,
chattel paper, deposit accounts and instruments as defined by the California Commercial Code,
and any amounts receivable from third party payors (including insurance companies, Medicare
and Medicaid, including without limitation any Medicare and/or Medi-Cal losses paid on
recapture, unless otherwise prohibited by law) in connection with the foregoing; and
(viii) All right, title and interest of the Trustor in all the Trustors inventory, raw
materials, work in process, finished goods and goods held for sale or lease or furnished under
contracts of service, and all returned and repossessed goods, and all goods covered by
documents of title, including warehouse receipts, bills of lading and all other documents of every
type covering all or any part of the Property, now owned or hereafter acquired, whether held by
the Trustor or any third party, which is located on, appurtenant to, relating to, or used by or
useful in connection with the Property (Inventory);
All of the above referenced Land, Facilities, Appurtenances, Equipment, Leases, Rents, Proceeds,
Accounts and Inventory as hereby conveyed to the Trustee or made subject to the security interest herein
described is collectively referred to herein as the Property.

Additionally, Health and Safety Code Section 129052, in part, states:

The lien of such pledge [the Property] shall be valid and binding against all parties, irrespective
of whether the parties have notice of the lien. The indenture, trust agreement, resolution, or another
instrument by which such pledge is created need not be recorded or the security interest otherwise
perfected.

Exhibit B
Page 2