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200003492
<br />the Property in violation of any law, ordinance, or regulation;
<br />and shall pay and promptly discharge at Borrower's cost and
<br />expense all liens, encumbrances and charges levied, imposed or
<br />assessed against the Property or any part thereof.
<br />6. Eminent Domain. Lender is hereby assigned all
<br />compensation, awards, damages and other payments or relief
<br />(hereinafter "Proceeds ") in connection with condemnation or other
<br />taking of the Property or part thereof, or for conveyance in lieu
<br />of condemnation. Lender shall be entitled, at its option, to
<br />commence, appear in and prosecute in its own name any action or
<br />proceedings, and shall also be entitled to make any compromise or
<br />settlement in connection with such taking or damage. In the
<br />event any portion of the Property is so taken or damaged, Lender
<br />shall have the option, in its sole and absolute discretion, to
<br />apply all such Proceeds, after deducting therefrom all costs and
<br />expenses incurred by it in connection with such Proceeds, upon
<br />any indebtedness secured hereby and in such order as Lender may
<br />determine, or to apply all such Proceeds, after such deductions,
<br />to the restoration of the Property upon such conditions as Lender
<br />may determine. Any application of Proceeds to indebtedness shall
<br />not extend or postpone the due date of any I payments under the
<br />Note, or cure any default thereunder or hereunder.
<br />7. Performance by Lender. In the event of Borrower's
<br />failure to perform any of the covenants herein or make any pay-
<br />ments required hereby, or if any act is taken or legal proceeding
<br />commenced which materially affects Lender's interest in the
<br />Property, Lender may in its own discretion, but without obliga-
<br />tion to do so, and without notice to or demand upon Borrower, and
<br />without releasing Borrower from any obligation, do any act which
<br />the Borrower has agreed but fails to do and may also do any other
<br />act it deems necessary to protect the security hereof. Borrower
<br />shall, immediately upon demand therefor by Lender, pay to Lender
<br />all costs and expenses incurred and sums expended by Lender in
<br />connection with the exercise by Lender of the foregoing rights,
<br />together with interest thereon at the default rate provided in
<br />the Note, which shall be added to the indebtedness secured
<br />hereby. Lender shall not incur any liability because of anything
<br />it may do or omit to do hereunder.
<br />8. Hazardous Materials. Borrower shall keep the
<br />Property in compliance with any and all federal, state and local
<br />laws, ordinances and regulations relating to industrial hygiene
<br />or to environmental conditions on, under or about the Property,
<br />including, but not limited to, soil and groundwater conditions.
<br />Trustor shall not use, generate, manufacture, store or dispose of
<br />on, under or about the Property or transport to or from the
<br />Property any flammable explosives, radioactive materials, hazardous
<br />wastes, toxic substances or related materials, including, without
<br />limitation, any substances defined as or included in the defini-
<br />tion of "hazardous substances ", "hazardous wastes ", "hazardous
<br />materials" or "toxic substances" under any applicable laws,
<br />ordinances or regulations (collectively referred to hereinafter
<br />as "Hazardous Materials "). Borrower hereby warrants and repre-
<br />sents to Lender that there are no Hazardous Materials on or under
<br />the Property. Borrower hereby agrees to indemnify and hold
<br />harmless Lender, its directors, officers, employees and agents,
<br />and any successors to Lender's interest, from and against any and
<br />all claims, damages and liabilities arising in connection with
<br />the presence, use, storage, disposal or transport of any Hazardous
<br />Materials on, under, from or about the Property, including, with-
<br />out limitation, (a) all damages directly or indirectly arising
<br />out of the use, generation, storage or disposal of Hazardous
<br />Materials by Borrower or any prior owner or operator of the
<br />Property, and (b) all costs of any required or necessary repair,
<br />cleanup or detoxification and the preparation of any closure or
<br />other required plans, whether such action is required or neces-
<br />sary prior to or following transfer of title to the Property, to
<br />the full extent that such action is attributable, directly or
<br />indirectly, to the presence or use, generation, storage, release,
<br />threatened release or disposal of Hazardous Materials by any
<br />person on the Property prior to transfer of title thereto by
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