Xavier Deeds to Peter, a Trustee, His Property in Form

Multiple Choice

Xavier deeds to Peter, a trustee, his property in form of security, for the loan, which is lent by Smith, the beneficiary of the trust. The nature of this transaction renders it as a deed of trust. Under these circumstances, if Xavier defaults to pay the loan, which of the following is the appropriate way in which Smith can recover his loan?

A) By asking Xavier to enter into an action and sale contract
B) By exercising the right of exoneration
C) By exercising right of reimbursement
D) By notifying Peter to sell the property