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Trust indentures
Real Property (RPP) CHAPTER 50, ARTICLE 4-A
§ 126. Trust indentures. No trustee shall hereafter accept a trust
under any trust indenture or mortgage within the contemplation of this
article or act as trustee thereunder unless the instrument creating the
trust shall contain the following provisions, among others, which confer
the following powers and impose the following duties upon the trustees:

1. In the case of an event of default (as such term is defined in such
instrument), to exercise such of the rights and powers vested in the
trustee by such instrument, and to use the same degree of care and skill
in their exercise as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs.

2. In considering what actions are or are not prudent in the
circumstances, to consider whether or not:

(a) to take such action as may be necessary or proper to sequester the
rents and income of the property;

(b) to procure from the owner of the property an assignment of rents
and/or a consent to enter into possession of the property and to collect
the rents therefrom;

(c) to apply to the court for the appointment of a receiver of the
rents and income of the property;

(d) to declare due and payable forthwith any principal amount
remaining due and unpaid and commence an action of foreclosure;

(e) to apply the moneys received as rents and income from the property
as well as moneys received by the trustee from any receiver appointed
for such property in his discretion, to the maintenance and operation of
such property, the payment of taxes, water rents and assessments levied
thereon and any arrears thereof, to the payment of underlying liens, and
to the creation and maintenance of a reserve or sinking fund.

3. If the trustee can obtain the information without unreasonable
effort or expense, to render annually to bondholders, after the
occurrence of a default, unless such default be previously cured, a
summarized statement of income and expenditures in connection with the

4. To distribute the proceeds of any sale or other disposition of the
property ratably among the bondholders, subject to applicable mandatory
provisions of law.

5. To permit the obligor or other person in possession or control of
the property, or his successors in interest, to be free to select the
insurance broker or agent through whom any insurance of any kind is to
be placed or written on any property affected or covered by a mortgage
held by such trustee.