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200300520
<br />(b) Warranty of Title. Truster is lawfully seized and possessed of good and
<br />marketable title and estate to the Trust Estate and has the right and authority to grant and convey the
<br />Trust Estate as herein provided. The Trust Estate is and, until the Trust Estate is reconveyed
<br />pursuant to the terms hereof, shall remain, free and clear of all security interests, pledges, mortgages,
<br />liens and encumbrances except those for (i) a deed of trust from Trustor to a financial institution with
<br />respect to that portion of the Property legally described on Exhibit `B" attached hereto and
<br />incorporated herein by this reference; provided, however, that the sole purpose of such financing
<br />shall be the construction of improvements thereon and the principal amount thereof shall not exceed
<br />$1,100,000.00 (the "First Deed of Trust"), (ii) current and non - delinquent taxes or taxes being
<br />contested in good faith and by appropriate legal proceedings in a manner which, in thejudgment of
<br />Beneficiary, will not jeopardize Beneficiary's interest in the Trust Estate, (iii) liens arising in the
<br />ordinary course of business for sums not past due or sums being protested in good faith and by
<br />appropriate legal proceedings in a manner which, in Beneficiary's judgment, will not jeopardize
<br />Beneficiary's interest in the Trust Estate, and (iv) easements, exceptions, reservations, covenants,
<br />and rights of way of record as of the date hereof. During the Term (as hereinafter defined) of this
<br />Deed of Trust, Trustor shall not sell, convey, transfer or dispose of all or any portion of the Trust
<br />Estate without the prior written consent of Beneficiary and will warrant and defend title to and
<br />possession of the Trust Estate against all claims and demands.
<br />(c) Maintenance and Compliance With Laws. Until the Trust Estate is
<br />reconveyed pursuant to the terms hereof, Truster shall keep the Trust Estate in good repair and
<br />condition and shall not commit waste or permit impairment or deterioration of the Trust Estate,
<br />reasonable and normal wear and tear excepted. No improvement on the Trust Estate which
<br />materially effects the value of the Trust Estate shall be removed or demolished without the prior
<br />written consent of Beneficiary, except to the extent required by Governing Law (as hereinafter
<br />defined) or where Truster replaces the removed or demolished improvement with an improvement of
<br />equal or greater value. Trustor shall comply with, and shall not commit, suffer or permit any act to
<br />be done in or upon the Trust Estate in violation of, any law, ordinance, regulation, covenant,
<br />condition and restriction affecting the Trust Estate, including environmental law. Tmstor shall cause
<br />to be restored within a reasonable period of time and in a good and workmanlike manner any
<br />Improvement which may be damaged or destroyed and cause to be paid, when due, all claims for
<br />labor performed and materials furnished therefor and for any alterations thereof.
<br />(d) Taxes, Assessments and Charges.
<br />(i) Until the Trust Estate is reconveyed pursuant to the terms hereof, Truster
<br />shall cause to be paid directly and before delinquent, all real estate and other taxes, assessments and
<br />other charges, whether general or special, including, without limitation, all fines, penalties and
<br />impositions, and all lawful claims for labor, materials, and supplies, if any, which are assessed or
<br />imposed upon all or any part of the Trust Estate, or become due and payable and create, may create,
<br />or appear to create a lien or other encumbrance upon all or any part of the Trust Estate; provided that
<br />Truster may protest in good faith and by appropriate legal proceedings, in a manner which will not
<br />jeopardize Beneficiary's interest in the Trust Estate. Trustor shall promptly fumishto Beneficiary all
<br />notices of amounts due under this paragraph, and all receipts evidencing payment of such amounts or
<br />evidence that Trustor is exempt from payment thereof.
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